Chapter 189 Oregon Laws 2003

AN ACT

SB 328

Relating to exemptions from certain vehicle code requirements for manufactured structures; creating new provisions; amending ORS 820.510 and 820.525; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 820.510 is amended to read:

820.510. (1) The Department of Transportation shall establish by rule procedures for the owner of a manufactured structure [that is located on land in which the owner of the manufactured structure has record title] who meets the criteria specified in this subsection to obtain an exemption from any requirements to register and title the manufactured structure under the vehicle code. The owner of a manufactured structure may obtain an exemption under this section if the owner:

(a) Also owns the land on which the manufactured structure is located; or

(b) Is the holder of a recorded leasehold estate of 20 years or more if the lease specifically permits the owner of the manufactured structure to obtain an exemption under this section.

(2) Rules adopted by the department under subsection (1) of this section shall include the following:

(a) Provisions for surrender of the certificate of title, if issued, and registration of any manufactured structure that is currently registered and titled to the county assessor of the county where the manufactured structure is located for delivery to the department.

(b) Provisions whereby the purchaser of a new manufactured structure [that is located on land owned by the purchaser] who meets the criteria specified in subsection (1) of this section may obtain the exemption under this section without having to register and title the manufactured structure under the vehicle code.

(c) Provisions for registration and titling of a manufactured structure that has been subject to an exemption under this section so that the manufactured structure may be sold separately from the land upon which it is located.

(d) Provisions for notification of the county assessor of the county where a manufactured structure that is subject to an exemption obtained under this section is located so that the assessor may perform the assessor’s duties relating to the manufactured structure in a manner consistent with this section.

(e) Provisions for notification of any holders of security interests in manufactured structures for which an exemption is obtained under this section so that the security interest holders may protect the security interest.

(f) Provisions for notification of any holders of a mortgage on land upon which a manufactured structure is located if the manufactured structure is registered with the department after being subject to an exemption under this section.

(g) Any other procedures the department determines necessary to carry out the purposes of this section.

[(2)] (3) A new manufactured structure or a manufactured structure that has never been titled or registered in Oregon is exempt from requirements for registration and titling if the owner or an attorney acting on behalf of the owner executes and submits to the Department of Transportation a notarized certification stating that:

(a) The [same] person who owns the manufactured structure [and the real property on which the manufactured structure is or will be situated] meets the criteria for exemption specified in subsection (1) of this section;

(b) The manufactured structure is or will be affixed to the real property and subject to taxation by the county in which it is located as an improvement to the real property;

(c) Each person with a security interest in the manufactured structure and each person with a security interest in the real property approves the exemption from registration and titling; and

(d) A duplicate original of the certification is being submitted for recording to the county clerk for the county in which the real property is located.

[(3)] (4) A certification required by subsection [(2)] (3) of this section shall contain the following information:

(a) The vehicle identification number, year, make and style of the manufactured structure and any other information prescribed by the department;

(b) The legal description and street address of the real property on which the manufactured structure is or will be located, or any other information determined by the department to adequately describe the location of the real property on which the manufactured structure is or will be located;

(d) The name and mailing address of each person with a security interest in the manufactured structure or the real property.

[(4)] (5) If an exemption is obtained for a manufactured structure under this section, the following apply:

(a) Except as otherwise provided in this section or by the rules of the department, the manufactured structure, upon obtaining the exemption under this section, shall become subject to the same provisions of law in this state that would apply to any other building, housing or structure on the land.

(b) After obtaining the exemption, the manufactured structure may not be sold separately from the land upon which the manufactured structure is located and may not be moved unless registered and titled under the vehicle code or unless otherwise provided by rule of the department.

(c) Nothing in this section affects any lien or security interest in a manufactured structure that is exempted under this section if the security interest or lien attaches before the exemption is obtained.

[(5)] (6) This section does not grant authority to change or alter construction standards applicable to manufactured structures. A manufactured structure that is exempted as provided under this section shall be subject to the same construction standards applicable to other manufactured structures.

[(6)] (7) Every official, officer and employee of this state or any agency of this state shall cooperate with the department as requested by the department to carry out the purposes of this section and shall establish such rules or procedures as are consistent with the authority of the official, officer or employee for purposes of carrying out the intent of this section.

[(7)] (8) Notwithstanding any other provision of law, the department may take any reasonable amount of time the department determines necessary to implement the procedures required by this section. The department may implement the procedures in stages, may place initial limits on the applicability of the procedures or may take any other administrative steps the department considers convenient for the department in order to provide an orderly and consistent implementation of the procedures developed for purposes of this section. As necessary, the department may delay the implementation of procedures when the department determines that certain procedures may require legislation in order to fully carry out the purposes of this section.

[(8)] (9) The person who records a certification under subsection [(2)] (3) of this section shall mail or deliver a copy of the certification and the recording information to the appropriate county tax collector.

[(9)] (10) The owner of a manufactured structure exempted under subsection [(2)] (3) of this section, or an attorney acting on behalf of the owner, shall cause to be surrendered to the department the manufacturer’s statement of origin for the manufactured structure or, if applicable, the certificate of title from another jurisdiction for the manufactured structure.

SECTION 2. ORS 820.525 is amended to read:

820.525. A duplicate original certification described in ORS 820.510 [(2) and (3)] (3) and (4) shall be recorded in the records of the county clerk for the county in which the manufactured structure is situated. Recording constitutes constructive notice of the interests set out in the certification. Any security interest described in the certification but not perfected or recorded before recording of the certification becomes perfected or recorded upon recording of the certification. A security interest perfected or recorded as permitted by law prior to recording of the certification is not impaired by the recording of the certification, whether or not the security interest is described in the certification.

SECTION 3. The amendments to ORS 820.510 by section 1 of this 2003 Act, authorizing owners of manufactured structures who hold certain recorded leasehold interests to apply for exemption from title and registration requirements, apply to owners who hold the required recorded leasehold interest whether the lease is entered into before, on or after the effective date of this 2003 Act.

SECTION 4. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor June 4, 2003

Filed in the office of Secretary of State June 5, 2003

Effective date June 4, 2003

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