Chapter 339 Oregon Laws 2005

AN ACT

SB 121

Relating to enforcement powers of the Director of the Department of Consumer and Business Services in franchise transactions; creating new provisions; and amending ORS 650.055.

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

SECTION 1. ORS 650.055 is amended to read:

650.055. The Director of the Department of Consumer and Business Services may:

(1) [May make such public or private investigations within or outside this state as] Undertake the investigations, including investigations outside this state, that the director considers necessary to:

(a) Determine whether a person: [has violated or is about to violate any provision of ORS 650.005 to 650.085 or any rule of the director; or]

(A) Has failed to comply with ORS 650.010;

(B) Has engaged in, is engaging in or is about to engage in an act or practice that would give rise to liability under ORS 650.020; or

(C) Has violated, is violating or is about to violate a rule of the director adopted under ORS 650.050.

(b) Aid in the enforcement of ORS 650.005 to 650.085 or in the formulation of rules and forms [thereunder;] that carry out ORS 650.005 to 650.085.

(2) [May] Require a person to file a statement in writing, under oath or otherwise, [as the director determines, as to all the facts and circumstances] concerning the matter [to be] being investigated.[; and]

(3) When the director has reason to believe that a person has failed to comply with ORS 650.010, issue an order to comply.

(4) When the director has reason to believe that a person has engaged in, is engaging in or is about to engage in an act or practice that would give rise to liability under ORS 650.020, issue an order to cease and desist from the act or practice.

(5) When the director has reason to believe that a person has violated, is violating or is about to violate a rule of the director adopted under ORS 650.050, issue an order to cease and desist from the violation.

[(3)] (6) [May] Publish information concerning any:

(a) Failure to comply with ORS 650.010;

(b) Act or practice that gives rise to liability under ORS 650.020;

(c) Violation of [ORS 650.005 to 650.085 or any] a rule of the director adopted under ORS 650.050; or

(d) Person who:

(A) Fails to comply with ORS 650.010;

(B) Commits an act or practice that gives rise to liability under ORS 650.020; or

(C) Violates a rule of the director adopted under ORS 650.050.

SECTION 2. Sections 3 to 5 of this 2005 Act are added to and made a part of ORS 650.005 to 650.085.

SECTION 3. (1) The Director of the Department of Consumer and Business Services shall serve an order under ORS 650.055 on the person named in the order.

(2) An order issued under ORS 650.055 becomes effective upon service on the person named in the order.

(3) ORS 183.413 to 183.470 apply to orders issued under ORS 650.055.

(4) Notwithstanding subsection (3) of this section, a person may not obtain a hearing on the order unless the person requests the hearing within 20 days of service of the order.

(5) A person who does not request a contested case hearing may not obtain judicial review of the order.

(6) The director may vacate or modify an order issued under ORS 650.055 at any time. A modified order is effective upon service on the person named in the order.

SECTION 4. (1) In addition to any other liability or penalty provided by law, the Director of the Department of Consumer and Business Services may impose a civil penalty on a person for violation of a rule adopted under ORS 650.050 or an order issued under ORS 650.055.

(2)(a) The director shall impose a civil penalty under this section in the manner provided in ORS 183.745.

(b)(A) The civil penalty may not exceed $10,000 for each violation.

(B) In the case of a continuing violation:

(i) Each day that the violation continues is a separate violation.

(ii) The civil penalty may not exceed $50,000.

SECTION 5. All penalties recovered under section 4 of this 2005 Act shall be paid into the State Treasury and credited to the General Fund and are available for general government expenses.

SECTION 6. (1) The amendments to ORS 650.055 by section 1 of this 2005 Act apply to an act, practice or violation occurring before, on or after the effective date of this 2005 Act.

(2) Section 3 of this 2005 Act applies to orders issued on or after the effective date of this 2005 Act.

(3) Section 4 of this 2005 Act applies to a violation occurring on or after the effective date of this 2005 Act.

Approved by the Governor June 29, 2005

Filed in the office of Secretary of State June 29, 2005

Effective date January 1, 2006

__________