71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
HA to HB 3791
LC 3826/HB 3791-1
HOUSE AMENDMENTS TO
HOUSE BILL 3791
By COMMITTEE ON SMART GROWTH AND COMMERCE
March 27
On page 1 of the printed bill, line 2, delete 'and' and after
'822.030' insert '; and declaring an emergency'.
In line 7, delete 'amount allowed' and insert 'limit
established' and delete 'exceed' and insert 'be less than'.
Delete lines 8 through 31 and delete page 2.
On page 3, delete lines 1 through 11 and insert:
' { + SECTION 2. + } ORS 822.030, as amended by section 5,
chapter 593, Oregon Laws 1999, is amended to read:
' 822.030. (1) A bond or letter of credit required to qualify
for a vehicle dealer certificate under ORS 822.020 or to qualify
for renewal of a certificate under ORS 822.040 must comply with
all of the following:
' (a) The bond shall have a corporate surety licensed to do
business within this state. A letter of credit shall be an
irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The surety or institution shall notify
the Department of Transportation if the bond or letter of credit
is canceled for any reason. The surety or institution shall
continue to be liable under the bond or letter of credit until
the department receives the notice required by this paragraph, or
until the cancellation date specified in the notice, whichever is
later.
' (b) The bond or letter of credit shall be executed to the
State of Oregon.
' (c) Except as otherwise provided in this paragraph, the bond
or letter of credit shall be in the following sum:
' (A) If the applicant is seeking a certificate to be a dealer
exclusively in motorcycles, mopeds, Class I all-terrain vehicles
or snowmobiles or any combination of those vehicles, the bond or
letter of credit shall be for $2,000.
' (B) Except as provided in subparagraph (A) of this paragraph,
if the applicant is seeking a certificate to be a vehicle dealer,
the bond or letter of credit shall be for $25,000 for each year
the certificate is valid.
' (d) The bond or letter of credit described in this subsection
shall be approved as to form by the Attorney General.
' (e) The bond or letter of credit must be conditioned that the
person issued the certificate shall conduct business as a vehicle
dealer without fraud or fraudulent representation and without
violating any provisions of the vehicle code relating to vehicle
registration, vehicle permits, the transfer or alteration of
vehicles or the regulation of vehicle dealers.
' (f) The bond or letter of credit must be filed and held in
the office of the department.
' (g) The vehicle dealer shall purchase a bond or letter of
credit under this subsection annually on or before each
anniversary of the issuance of the vehicle dealer's certificate.
' (2) Any person shall have a right of action against a vehicle
dealer, against the surety on the vehicle dealer's bond and
against the letter of credit in the person's own name if the
person suffers any loss or damage by reason of the vehicle
dealer's fraud, fraudulent representations or violations of
provisions of the vehicle code relating to:
' (a) Vehicle registration;
' (b) Vehicle permits;
' (c) The transfer or alteration of vehicles; or
' (d) The regulation of vehicle dealers.
' { + (3) Notwithstanding subsection (2) of this section, the
maximum amount available under a bond described in subsection
(1)(c)(B) of this section for the payment of claims by persons
other than retail customers of the dealer is $20,000. + }
' { - (3) - } { + (4) + } If the certificate of a vehicle
dealer is not renewed or is voluntarily or involuntarily
canceled, the sureties on the bond and the issuer of the letter
of credit are relieved from liability that accrues after the
department cancels the certificate.
' { + SECTION 3. + } ORS 822.030, as amended by section 5,
chapter 593, Oregon Laws 1999, and section 2 of this 2001 Act, is
amended to read:
' 822.030. (1) A bond or letter of credit required to qualify
for a vehicle dealer certificate under ORS 822.020 or to qualify
for renewal of a certificate under ORS 822.040 must comply with
all of the following:
' (a) The bond shall have a corporate surety licensed to do
business within this state. A letter of credit shall be an
irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The surety or institution shall notify
the Department of Transportation if the bond or letter of credit
is canceled for any reason. The surety or institution shall
continue to be liable under the bond or letter of credit until
the department receives the notice required by this paragraph, or
until the cancellation date specified in the notice, whichever is
later.
' (b) The bond or letter of credit shall be executed to the
State of Oregon.
' (c) Except as otherwise provided in this paragraph, the bond
or letter of credit shall be in the following sum:
' (A) If the applicant is seeking a certificate to be a dealer
exclusively in motorcycles, mopeds, Class I all-terrain vehicles
or snowmobiles or any combination of those vehicles, the bond or
letter of credit shall be for $2,000.
' (B) Except as provided in subparagraph (A) of this paragraph,
if the applicant is seeking a certificate to be a vehicle dealer,
the bond or letter of credit shall be for
{ - $25,000 - } { + $30,000 + } for each year the certificate
is valid.
' (d) The bond or letter of credit described in this subsection
shall be approved as to form by the Attorney General.
' (e) The bond or letter of credit must be conditioned that the
person issued the certificate shall conduct business as a vehicle
dealer without fraud or fraudulent representation and without
violating any provisions of the vehicle code relating to vehicle
registration, vehicle permits, the transfer or alteration of
vehicles or the regulation of vehicle dealers.
' (f) The bond or letter of credit must be filed and held in
the office of the department.
' (g) The vehicle dealer shall purchase a bond or letter of
credit under this subsection annually on or before each
anniversary of the issuance of the vehicle dealer's certificate.
' (2) Any person shall have a right of action against a vehicle
dealer, against the surety on the vehicle dealer's bond and
against the letter of credit in the person's own name if the
person suffers any loss or damage by reason of the vehicle
dealer's fraud, fraudulent representations or violations of
provisions of the vehicle code relating to:
' (a) Vehicle registration;
' (b) Vehicle permits;
' (c) The transfer or alteration of vehicles; or
' (d) The regulation of vehicle dealers.
' (3) Notwithstanding subsection (2) of this section, the
maximum amount available under a bond described in subsection
(1)(c)(B) of this section for the payment of claims by persons
other than retail customers of the dealer is $20,000.
' (4) If the certificate of a vehicle dealer is not renewed or
is voluntarily or involuntarily canceled, the sureties on the
bond and the issuer of the letter of credit are relieved from
liability that accrues after the department cancels the
certificate.
' { + SECTION 4. + } ORS 822.030, as amended by section 5,
chapter 593, Oregon Laws 1999, and sections 2 and 3 of this 2001
Act, is amended to read:
' 822.030. (1) A bond or letter of credit required to qualify
for a vehicle dealer certificate under ORS 822.020 or to qualify
for renewal of a certificate under ORS 822.040 must comply with
all of the following:
' (a) The bond shall have a corporate surety licensed to do
business within this state. A letter of credit shall be an
irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The surety or institution shall notify
the Department of Transportation if the bond or letter of credit
is canceled for any reason. The surety or institution shall
continue to be liable under the bond or letter of credit until
the department receives the notice required by this paragraph, or
until the cancellation date specified in the notice, whichever is
later.
' (b) The bond or letter of credit shall be executed to the
State of Oregon.
' (c) Except as otherwise provided in this paragraph, the bond
or letter of credit shall be in the following sum:
' (A) If the applicant is seeking a certificate to be a dealer
exclusively in motorcycles, mopeds, Class I all-terrain vehicles
or snowmobiles or any combination of those vehicles, the bond or
letter of credit shall be for $2,000.
' (B) Except as provided in subparagraph (A) of this paragraph,
if the applicant is seeking a certificate to be a vehicle dealer,
the bond or letter of credit shall be for
{ - $30,000 - } { + $35,000 + } for each year the certificate
is valid.
' (d) The bond or letter of credit described in this subsection
shall be approved as to form by the Attorney General.
' (e) The bond or letter of credit must be conditioned that the
person issued the certificate shall conduct business as a vehicle
dealer without fraud or fraudulent representation and without
violating any provisions of the vehicle code relating to vehicle
registration, vehicle permits, the transfer or alteration of
vehicles or the regulation of vehicle dealers.
' (f) The bond or letter of credit must be filed and held in
the office of the department.
' (g) The vehicle dealer shall purchase a bond or letter of
credit under this subsection annually on or before each
anniversary of the issuance of the vehicle dealer's certificate.
' (2) Any person shall have a right of action against a vehicle
dealer, against the surety on the vehicle dealer's bond and
against the letter of credit in the person's own name if the
person suffers any loss or damage by reason of the vehicle
dealer's fraud, fraudulent representations or violations of
provisions of the vehicle code relating to:
' (a) Vehicle registration;
' (b) Vehicle permits;
' (c) The transfer or alteration of vehicles; or
' (d) The regulation of vehicle dealers.
' (3) Notwithstanding subsection (2) of this section, the
maximum amount available under a bond described in subsection
(1)(c)(B) of this section for the payment of claims by persons
other than retail customers of the dealer is $20,000.
' (4) If the certificate of a vehicle dealer is not renewed or
is voluntarily or involuntarily canceled, the sureties on the
bond and the issuer of the letter of credit are relieved from
liability that accrues after the department cancels the
certificate.
' { + SECTION 5. + } ORS 822.030, as amended by section 5,
chapter 593, Oregon Laws 1999, and sections 2, 3 and 4 of this
2001 Act, is amended to read:
' 822.030. (1) A bond or letter of credit required to qualify
for a vehicle dealer certificate under ORS 822.020 or to qualify
for renewal of a certificate under ORS 822.040 must comply with
all of the following:
' (a) The bond shall have a corporate surety licensed to do
business within this state. A letter of credit shall be an
irrevocable letter of credit issued by an insured institution, as
defined in ORS 706.008. The surety or institution shall notify
the Department of Transportation if the bond or letter of credit
is canceled for any reason. The surety or institution shall
continue to be liable under the bond or letter of credit until
the department receives the notice required by this paragraph, or
until the cancellation date specified in the notice, whichever is
later.
' (b) The bond or letter of credit shall be executed to the
State of Oregon.
' (c) Except as otherwise provided in this paragraph, the bond
or letter of credit shall be in the following sum:
' (A) If the applicant is seeking a certificate to be a dealer
exclusively in motorcycles, mopeds, Class I all-terrain vehicles
or snowmobiles or any combination of those vehicles, the bond or
letter of credit shall be for $2,000.
' (B) Except as provided in subparagraph (A) of this paragraph,
if the applicant is seeking a certificate to be a vehicle dealer,
the bond or letter of credit shall be for
{ - $35,000 - } { + $40,000 + } for each year the certificate
is valid.
' (d) The bond or letter of credit described in this subsection
shall be approved as to form by the Attorney General.
' (e) The bond or letter of credit must be conditioned that the
person issued the certificate shall conduct business as a vehicle
dealer without fraud or fraudulent representation and without
violating any provisions of the vehicle code relating to vehicle
registration, vehicle permits, the transfer or alteration of
vehicles or the regulation of vehicle dealers.
' (f) The bond or letter of credit must be filed and held in
the office of the department.
' (g) The vehicle dealer shall purchase a bond or letter of
credit under this subsection annually on or before each
anniversary of the issuance of the vehicle dealer's certificate.
' (2) Any person shall have a right of action against a vehicle
dealer, against the surety on the vehicle dealer's bond and
against the letter of credit in the person's own name if the
person suffers any loss or damage by reason of the vehicle
dealer's fraud, fraudulent representations or violations of
provisions of the vehicle code relating to:
' (a) Vehicle registration;
' (b) Vehicle permits;
' (c) The transfer or alteration of vehicles; or
' (d) The regulation of vehicle dealers.
' (3) Notwithstanding subsection (2) of this section, the
maximum amount available under a bond described in subsection
(1)(c)(B) of this section for the payment of claims by persons
other than retail customers of the dealer is $20,000.
' (4) If the certificate of a vehicle dealer is not renewed or
is voluntarily or involuntarily canceled, the sureties on the
bond and the issuer of the letter of credit are relieved from
liability that accrues after the department cancels the
certificate.'.
In line 12, delete '4' and insert '6' and delete '2 ' and
insert '3'.
In line 14, delete '3' and insert '4'.
After line 15, insert:
' (3) The amendments to ORS 822.030 by section 5 of this 2001
Act become operative September 1, 2004.
' { + SECTION 7. + } { + This 2001 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2001 Act
takes effect on its passage. + } ' .
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