71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3826
A-Engrossed
House Bill 3791
Ordered by the House March 27
Including House Amendments dated March 27
Sponsored by COMMITTEE ON SMART GROWTH AND COMMERCE
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
{ - Limits - } { + Sets minimum + } amount licensed vehicle
dealer may charge to collect fees and to complete and submit
documents necessary for transference of certificate of title or
registration for vehicle. Increases required dealer bond
amount. { + Limits amount available under dealer bond to pay
claims by persons other than retail customers.
Declares emergency, effective on passage. + }
A BILL FOR AN ACT
Relating to vehicle dealers; creating new provisions; amending
ORS 822.030; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + The Department of Transportation may adopt
rules to limit the amount that a licensed vehicle dealer may
charge a purchaser for the dealer to collect fees and to complete
and submit documents necessary for the transference of a
certificate of title and registration for a vehicle. The limit
established by department rule may not be less than $50. + }
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.
SECTION 6. { + (1) The amendments to ORS 822.030 by section 3
of this 2001 Act become operative September 1, 2002.
(2) The amendments to ORS 822.030 by section 4 of this 2001 Act
become operative September 1, 2003.
(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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