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 3287
 
                         Senate Bill 868
 
Sponsored by Senator GEORGE
 
 
                             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 as
introduced.
 
  Requires Department of Transportation to develop and apply
credit risk assessment model for motor carriers. Requires bonds
in specified amounts for high and medium risk carriers.
  Deletes requirement that department issue plates to carriers.
 
                        A BILL FOR AN ACT
Relating to motor carriers; creating new provisions; amending ORS
  825.020, 825.022, 825.137, 825.139, 825.230, 825.354, 825.450,
  825.452, 825.454, 825.480, 825.490, 825.494 and 825.507; and
  repealing ORS 825.470 and 825.506.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 825. + }
  SECTION 2.  { + (1) The Department of Transportation shall
design a credit risk assessment model to be applied to each motor
carrier subject to payment of taxes or fees under ORS 825.474,
825.476 or 825.480 to determine the risk of the carrier failing
to pay taxes or fees as required or filing for bankruptcy. In
designing the model the department shall consider at least the
following variables:
  (a) Number of years the carrier has been operating;
  (b) Annual tax liability of the carrier;
  (c) Tax payment history of the carrier;
  (d) History of the carrier's compliance with safety regulations
and traffic laws;
  (e) Number of vehicles in the carrier's fleet; and
  (f) Age and composition of vehicles in the carrier's fleet.
  (2) The department shall apply the credit risk assessment model
developed pursuant to subsection (1) of this section to each
carrier subject to payment of taxes or fees under ORS 825.474,
825.476 or 825.480 and shall rank each carrier as low, medium or
high risk.
  (3) A high or medium risk carrier shall file a bond in the form
prescribed by the department as follows:
  (a) For a high risk carrier, the bond must be in an amount that
covers 15 percent of the carrier's tax liability based on the
past three reporting periods.
  (b) For a medium risk carrier, the bond must be in an amount
that covers 10 percent of the carrier's tax liability based on
the past three reporting periods.
  (4) A low risk carrier need not file a bond. + }
  SECTION 3. ORS 825.507 is amended to read:
  825.507. (1) No bond filed pursuant to   { - ORS 825.506 - }
 { + section 2 of this 2001 Act + } may be canceled or otherwise
terminated at any time prior to its expiration until the surety
company which executed the same, has filed with the Department of
Transportation a notice of cancellation as provided in such bond.
Such cancellation shall be effective not less than 30 days from
the date of receipt, and no agreement between the parties thereto
shall operate to avoid this restriction upon cancellation.
  (2) If any bond filed pursuant to   { - ORS 825.506 - }  { +
section 2 of this 2001 Act + } becomes inoperative, the authority
under the certificate or permit involved shall cease and be
suspended insofar as it pertains to any affected vehicles until
the requirements of   { - ORS 825.506 - }  { +  section 2 of this
2001 Act + } have been met by the carrier.
  SECTION 4. ORS 825.020 is amended to read:
  825.020. Except as otherwise provided in this section, this
chapter does not apply to the persons or vehicles described in
this section. The provisions of ORS 825.100, 825.137, 825.139,
825.141, 825.160, 825.164, 825.166, 825.168, 825.210 (1) and (3),
825.212, 825.450, 825.454,   { - 825.470, - }  825.472, 825.474,
825.476, 825.480, 825.484, 825.488, 825.490, 825.492, 825.494,
825.496, 825.498, 825.504,   { - 825.506, - }  825.507, 825.508
and 825.515  { + and section 2 of this 2001 Act  + }apply to any
of the following vehicles or combinations of vehicles with a
combined weight of more than 26,000 pounds:
  (1) Vehicles being used exclusively in the transportation of
United States mail on a trip basis.
  (2) Vehicles being used in the transportation of persons for
hire, in vehicles with a seating capacity of more than five
persons, within a city and within three air miles of the city.
When the three air mile radius extends into the corporate limits
of another city, the two cities shall be considered as one city
for the purposes of this subsection. The following apply to this
subsection:
  (a) Service may also be provided to or from any area
surrounding the area described under this subsection so long as
the service does not compete with a carrier granted authority by
the Department of Transportation under this chapter to operate in
that surrounding area.
  (b) Any vehicle exempt from the provisions of this chapter
under this subsection is subject to regulation by the city or
cities in which it is operated.
  (3) Vehicles being used for the purpose of transporting persons
or property in connection with the patrolling of forests for the
prevention or fighting of forest fires.
  (4) Vehicles being used in towing or otherwise transporting
vehicles at the direction of a police officer or in servicing,
towing or transporting wrecked or disabled vehicles, or in towing
or transporting a replacement vehicle for such wrecked or
disabled vehicle if the vehicle:
  (a) Is not otherwise used in transporting goods and merchandise
for compensation; and
  (b) In the case of towing, is specially constructed for that
use or has a combined weight not exceeding 8,000 pounds.
  (5) Vehicles being used by a for-hire carrier to transport
within this state free or at reduced rates:
  (a) The carrier's officers, agents or employees, or dependent
members of the families of those individuals, or the personal
effects or household goods of those individuals.
  (b) Ministers of religions, inmates of hospitals and
individuals exclusively engaged in charitable and eleemosynary
work.
  (c) Indigent, destitute and homeless individuals and the
necessary agents employed in the transportation.
 
  (d) Witnesses attending legal investigations in which the
carrier is interested.
  (e) Persons injured in wrecks and physicians and nurses
attending those persons.
  (f) Persons providing relief in cases of general epidemic,
pestilence or other emergency.
  (g) Persons traveling under commuter, party or excursion
passenger tickets, if available to all persons applying under
like circumstances or conditions.
  (h) Persons traveling under an exchange of passes between
for-hire carriers.
  (6) Vehicles being used to transport plants, artificial and
natural flowers and accompanying florist accessories in movements
originating at retail shops.
  (7) Any vehicle used by a person licensed under ORS 508.235
while the person is transporting the person's own, unsold catch
of fish from the point of landing to the first point where fish
from the catch will be sold, placed in storage or processed in
any way.
  (8) Vehicles owned or operated by truck leasing companies
operated empty over the public highways for the purpose of
relocation of equipment. This exemption does not apply to motor
vehicles operated empty as a result of or for the purpose of
transporting passengers or property.
  SECTION 5. ORS 825.137 is amended to read:
  825.137. (1) Certificates and permits when issued shall be
valid until suspended or revoked when the carrier is found by the
Department of Transportation to be in violation of this chapter
or ORS chapter 818. A variance permit issued under ORS chapter
818 shall be valid for the length of time for which it is issued
unless prior to that time the permit is suspended or revoked by
the Department of Transportation for violation of this chapter or
ORS chapter 818.
  (2) Certificates or permits, or variance permits issued
pursuant to ORS chapter 818, may be suspended or canceled by the
department based upon the department's own motion after notice
and hearing, when the certificate or permit holder:
  (a) Or agents or employees of the holder have repeatedly
violated this chapter or other highway or motor laws of this
state. In applying this paragraph the department may consider
violations by agents or employees of the holder that occurred
prior to the time they became agents or employees of the holder,
but only if the agent or employee has a substantial interest or
control, directly or indirectly, in or over the operation of the
holder.
  (b) Has repeatedly violated or avoided any order or rule of the
department.
  (c) Is a transporter of persons or household goods and has
repeatedly made unlawful rebates or repeatedly underestimated
transportation charges to clients.
  (d) Has repeatedly refused or has repeatedly failed, after
being requested to do so, to furnish service authorized by
certificate. The department in such cases may also, in the
discretion of the department, restrict the certificate to conform
with operations conducted.
  (e) Has not, except for reasons beyond the control of the
holder, transported persons or household goods authorized by the
certificate for a period exceeding 180 consecutive days
immediately preceding the filing of the complaint in the
proceeding. The department in these cases may also, in the
discretion of the department, restrict the certificate to conform
with operations performed that were required by the public
convenience and necessity.
  (f) Has not, except for reasons beyond the control of the
holder, transported property or persons authorized by the permit
 
for a period exceeding one year immediately preceding the filing
of the complaint in the proceeding.
  (g) Has refused, or has failed, within the time provided, to
file the annual report required by ORS 825.320 or has failed or
refused to maintain records required by the department or to
produce such records for examination within the time set by the
department.
  (h) Has failed to appear for hearing after notice that the
certificate or permit is under investigation.
  (i) Has filed with the department an application which is false
with regard to the ownership, possession or control of the
equipment being used or the operation being conducted.
  (3) The department shall not suspend or revoke a certificate or
permit of a vehicle or person described in ORS 825.020 unless the
person or vehicle is in violation of this section and ORS
825.139, 825.141, 825.160, 825.164, 825.166, 825.168, 825.210 (1)
and (3), 825.212, 825.450, 825.454,   { - 825.470, - }  825.472,
825.474, 825.476, 825.480, 825.484, 825.488, 825.490, 825.492,
825.494, 825.496, 825.498, 825.504,   { - 825.506, - }  825.507,
825.508 or 825.515  { +  or section 2 of this 2001 Act + }.
  SECTION 6. ORS 825.139 is amended to read:
  825.139. (1) A certificate or permit is subject to suspension
or cancellation, if the holder thereof:
  (a) Is delinquent in reporting or paying any fees, taxes or
penalties due the Department of Transportation, whether imposed
under this chapter or under ORS chapter 826;
  (b) Has refused or failed, within the time provided, to file a
deposit or bond   { - requested - }  { +  required + } under
 { - ORS 825.506 - }   { + section 2 of this 2001 Act + }; or
  (c) Fails to comply with the applicable requirements for
attendance at a motor carrier education program as required by
ORS 825.402.
  (2) A written 10-day notice of suspension shall be given to the
certificate or permit holder and unless a hearing is requested
within such time, the certificate or permit shall be deemed
suspended without further notice or hearing until the report,
payment, bond or deposit is filed with the department or the
requirements of ORS 825.402 are met.
  (3) Upon a written 10-day notice by the department, a
certificate or permit may be suspended or canceled for any of the
reasons set forth in subsection (1) of this section. If the
certificate or permit is suspended, the filing of the report,
payment, bond or deposit, or the fulfilling of the requirements
of ORS 825.402 will not reinstate the authority until the
suspension period has expired, except on order of the department.
  SECTION 7. ORS 825.450 is amended to read:
  825.450. (1)   { - Except as otherwise permitted under ORS
825.454 and 825.470, the Department of Transportation shall, with
respect to each self-propelled or motor-driven vehicle that is
not issued an identification device under ORS chapter 826, issue
an identification plate or marker. - }  The   { - department - }
 { +  Department of Transportation + } shall   { - also - }
issue a receipt stating therein the combined weight of each
self-propelled or motor-driven vehicle and any train or
combination of vehicles to be used therewith.
  (2) The receipt shall be carried with the motor vehicle at all
times, and no person shall load any motor vehicle in excess of
its combined weight permit rating thus determined except as
variations may necessarily result in passenger loading. A fee of
$5 shall be paid to the department for each replacement weight
receipt issued.
    { - (3) The identification plate or marker must be fastened
or placed on the motor vehicle to which it is issued in a manner
prescribed by the department by rule. - }
    { - (4) Identification plates or markers issued under this
section shall be valid from the first day of any calendar quarter
to the last day of the fourth consecutive calendar quarter. Each
carrier may select the calendar quarter in which the period will
begin except that, if necessary for administrative convenience,
the department may require a carrier to adopt a starting date
chosen by the department. - }
    { - (5) All vehicles operating under the carrier's authority
shall have the same four-quarter period of plate or marker
validity. The department may allow a carrier to operate with
expired plates or markers for up to one extra quarter if the
renewal application has been submitted and the required fees have
been paid on or before the last day of the period of validity of
the plates or markers. The extension of time allowed by this
subsection shall be granted only if the department determines
that the extension is necessary for the administrative
convenience of the department. - }
  SECTION 8. ORS 825.452 is amended to read:
  825.452. In order to facilitate the plate and registration
issuance and registration renewal processes, when a carrier
 { - is initially issued plates or markers under ORS 825.450
or - }  initially registers under ORS 826.009 or 826.037, the
Department of Transportation may assign a plate validity period
or registration period ranging from three to 12 months. Initial
fees shall be adjusted accordingly.
  SECTION 9. ORS 825.454 is amended to read:
  825.454. (1)   { - Notwithstanding ORS 825.450, - }  The
Department of Transportation, in the discretion of the
department, may require the use of identification devices, such
as cab cards, stamps or carrier identification numbers,   { - in
lieu of, as a substitute for or in addition to, plates or
markers, - }  to identify and be carried with or placed upon each
motor vehicle authorized to be operated in Oregon subject to the
provisions of this chapter. The form of any identification device
and the method for its use shall be determined by the department.
    { - (2) Except as may be inconsistent with this section, all
provisions of this chapter relating to identification plates or
markers shall be applicable to the identification devices
authorized by this section. - }
    { - (3) - }  { +  (2) + } Notwithstanding any other provision
in this chapter, the department may require applications for
identification devices to be made annually and may require each
carrier holding or obtaining a permit under this chapter to pay
to the department a fee of not to exceed $5 for each device
issued on an annual basis.
  SECTION 10. ORS 825.022 is amended to read:
  825.022. The provisions of ORS 825.104, 825.160, 825.450,
825.454,   { - 825.470, - }  825.472, 825.474, 825.476, 825.480,
825.484, 825.488, 825.490, 825.492, 825.494, 825.496 and 825.515
do not apply to any vehicle or combination of vehicles with a
combined weight of 26,000 pounds or less.
  SECTION 11. ORS 825.230 is amended to read:
  825.230. (1) The Department of Transportation shall, in issuing
certificates or permits, classify the applicants as to their
proper class under the law and no carrier shall operate in a
different class without certificate or permit from the
department.
  (2) An authorized for-hire carrier may act as a private carrier
without separate or additional authority.
    { - (3) For-hire carriers may interchange equipment upon
which an identification plate or marker has been issued by the
department and such identification plate or marker may remain on
the equipment and no transfer of registration with the department
shall be required, provided that such interchange shall be
permitted only in accordance with rules adopted by the department
pertaining to insurance coverage, accounts, records, reports,
operations and practices thereof. - }
 
    { - (4) - }  { +  (3) + } If, after notice and hearing, the
department finds that any carrier is operating in a class other
than that for which the certificate or permit is issued, the
department shall revoke or suspend the certificate or permit, or
order the carrier to cease and desist the illegal or irregular
practices found.
  SECTION 12. ORS 825.354 is amended to read:
  825.354. The Department of Transportation may appoint agents
  { - to issue temporary passes provided in ORS 825.470 (2)
and - }  to collect any fees and taxes required by this chapter.
The department shall prescribe the duties and compensation of
such agents and may require them to give bonds or irrevocable
letters of credit issued by an insured institution, as defined in
ORS 706.008, in such amount as the department determines
appropriate, conditioned upon the faithful performance of their
duties.
  SECTION 13. ORS 825.490 is amended to read:
  825.490. (1) On or before the last day of each month, except
for the time of payment provided in ORS 825.480 and 825.492, all
persons shall report and pay to the Department of Transportation
the amount of taxes and fees due from them for the preceding
calendar month. However, taxes and fees incurred after the 15th
day of any month may be reported and paid to the department on or
before the last day of the second calendar month following the
month in which the taxes or fees were incurred. If no taxes or
fees are due in any reporting period, the report shall so state.
If payment is not made on or before the date it is due, there
shall be added as a late payment charge a sum equal to 10 percent
of the unpaid amount of the tax.
  (2) The department may permit a person to report and pay motor
carrier taxes and fees on a periodic basis other than the
calendar-month basis prescribed in subsection (1) of this
section, provided that the number of reporting periods in any
12-month period shall not be less than 12. If no taxes or fees
are due in any reporting period, the report shall so state. If
payment is not made on or before the date it is due, there shall
be added as a late payment charge a sum equal to 10 percent of
the unpaid amount of the tax.
  (3) Whenever practicable, and in no event later than three
years after any report of taxes or fees is filed, the department
shall audit it if the department deems such audit practicable. If
the department is not satisfied with the report filed or amount
of taxes or fees  { - , including fees for temporary passes
required under ORS 825.470 (2), - }  paid to the state by any
person, the department may, not later than three years after the
report was filed or the taxes or fees were paid, make a proposed
assessment of additional taxes or fees due from such person based
upon any information available to the department. There shall be
added to each such assessment, as a late payment charge, a sum
equal to 10 percent of the amount of additional taxes or fees
due.
  (4) Every such additional assessment shall bear interest at the
rate of one percent per month, or fraction thereof, from the last
day of the month following the close of the month for which the
additional assessment is imposed until paid.
  (5) If the additional assessment imposed exceeds by at least
five percent but not more than 15 percent the amount of taxes or
fees reported or paid a penalty of five percent of the amount of
the additional assessment shall be added thereto in addition to
the 10 percent late payment charge provided in subsection (3) of
this section.
  (6) If the additional assessment imposed exceeds by more than
15 percent the amount of taxes or fees reported or paid, a
penalty of 20 percent of the amount of the additional assessment
shall be added thereto in addition to the 10 percent late payment
charge provided in subsection (3) of this section.
  (7) The department shall give to the person concerned written
notice of such additional assessment.
  (8) Except as provided in ORS 825.484 (3), the department shall
refund to any person the amount of any overpayment caused by any
incorrect report.
  (9) Whenever the department has made an assessment pursuant to
this section which has become final the department may not reopen
or reassess such taxes, interest or penalties unless the
department is satisfied that the taxpayer fraudulently or with
intent to evade taxation destroyed, concealed or withheld any
books, accounts, papers, records or memoranda required to be
maintained by the taxpayer pursuant to this chapter or the rules
of the department.
  SECTION 14. ORS 825.494 is amended to read:
  825.494. (1) If any person neglects or refuses to make a fee or
tax report as required by this chapter, the Department of
Transportation shall make a proposed assessment, based upon any
information available to the department, for the period for which
such person failed to make a report, of the amount of taxes and
fees  { - , including fees for temporary passes required under
ORS 825.470 (2), - }  due for the period for which such proposed
assessment is made.
  (2) Each assessment shall bear interest at the rate of one
percent per month, or fraction thereof, from the last day of the
month following the close of the month for which the assessment
is imposed until paid.
  (3) There shall be added to every such assessment a penalty of
25 percent of the amount thereof.
  (4) The department shall give to such person written notice of
such assessment.
  (5) Whenever the department has made an assessment pursuant to
this section which has become final the department may not reopen
or reassess such taxes, fees, interest or penalties unless the
department is satisfied that the taxpayer fraudulently or with
intent to evade taxation destroyed, concealed or withheld any
books, accounts, papers, records or memoranda required to be
maintained by a person subject to this chapter or the rules of
the department.
  SECTION 15. ORS 825.480 is amended to read:
  825.480. (1)(a) In lieu of other fees provided in ORS 825.474,
carriers engaged in operating motor vehicles in the
transportation of logs, poles, peeler cores or piling may pay
annual fees for such operation computed at the rate of five
dollars and fifty-five cents for each 100 pounds of declared
combined weight.
  (b) Any carrier electing to pay fees under this method may, as
to vehicles otherwise exempt from taxation, elect to be taxed on
the mileage basis for movements of such empty vehicles over
public highways whenever operations are for the purpose of
repair, maintenance, servicing or moving from one exempt highway
operation to another.
  (2) The annual fees provided in subsections (1), (4) and (5) of
this section may be paid on a monthly basis. Any carrier electing
to pay fees under this method may not change an election during
the same calendar year in which the election is made, but may be
relieved from the payment due for any month on a motor vehicle
which is not operated. A carrier electing to pay fees under this
method shall report and pay these fees on or before the 10th of
each month for the preceding month's operations. A monthly report
shall be made on all vehicles on the annual fee basis including
any vehicle not operated for the month.
  (3)(a) In lieu of the fees provided in ORS   { - 825.470 to - }
825.474, motor vehicles described in ORS 825.024 with a combined
weight of less than 46,000 pounds that are being operated under a
permit issued under ORS 825.102 may pay annual fees for such
 
operation computed at the rate of four dollars and fifty-five
cents for each 100 pounds of declared combined weight.
  (b) The annual fees provided in this subsection shall be paid
in advance but may be paid on a monthly basis on or before the
first day of the month. A carrier may be relieved from the fees
due for any month during which the motor vehicle is not operated
for hire if a statement to that effect is filed with the
Department of Transportation on or before the fifth day of the
first month for which relief is sought.
  (4)(a) In lieu of other fees provided in ORS 825.474, carriers
engaged in the operation of motor vehicles equipped with dump
bodies and used in the transportation of sand, gravel, rock,
dirt, debris, cinders, asphaltic concrete mix, metallic ores and
concentrates or raw nonmetallic products, whether crushed or
otherwise, moving from mines, pits or quarries may pay annual
fees for such operation computed at the rate of five dollars and
fifty cents for each 100 pounds of declared combined weight.
  (b) Any carrier electing to pay fees under this method may, as
to vehicles otherwise exempt for taxation, elect to be taxed on
the mileage basis for movements of such empty vehicles over
public highways whenever operations are for the purpose of
repair, maintenance, servicing or moving from one exempt highway
operation to another.
  (5)(a) In lieu of other fees provided in ORS 825.474, carriers
engaged in operating motor vehicles in the transportation of wood
chips, sawdust, barkdust, hog fuel or shavings may pay annual
fees for such operation computed at the rate of twenty-two
dollars and forty cents for each 100 pounds of declared combined
weight.
  (b) Any carrier electing to pay under this method may, as to
vehicles otherwise exempt from taxation, elect to be taxed on the
mileage basis for movement of such empty vehicles over public
highways whenever operations are for the purpose of repair,
maintenance, service or moving from one exempt highway operation
to another.
  SECTION 16.  { + ORS 825.470 and 825.506 are repealed. + }
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