73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 1577
 
                         House Bill 2419
 
Sponsored by Representative KRUMMEL
 
 
                             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 person who submits vehicle title transfer application
to Department of Transportation to pay fees for previous title
transfers that should have been made but were not.
 
                        A BILL FOR AN ACT
Relating to vehicle title; creating new provisions; and amending
  ORS 803.092.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 803.092 is amended to read:
  803.092. (1) Except as otherwise provided in this section, upon
the transfer of any interest in a vehicle covered by an Oregon
title { + , + } the transferee shall submit an application for
title to the Department of Transportation. Such application shall
be submitted to the department within 30 days of the date of
transfer of interest.
  (2) Notwithstanding subsection (1) of this section, application
is not required under this section when:
  (a) The change involves only a change in the security interest
where the security interest holder or lessor is a financial
institution, a financial holding company or a bank holding
company, as those terms are defined in ORS 706.008, a licensee
under ORS chapter 725, or any subsidiary or affiliate of any of
the foregoing and the transfer of the interest of the security
interest holder or lessor:
  (A) Results from the merger, conversion, reorganization,
consolidation or acquisition of the security interest holder or
lessor;
  (B) Is to an entity that is a member of the same affiliated
group as the security holder or lessor; or
  (C) Is made in connection with a transfer in bulk.
  (b) The vehicle is transferred to a vehicle dealer and the
vehicle will become part of the dealer's inventory for resale.
Upon the transfer of a vehicle to a dealer, however, the dealer
shall immediately notify the department of such transfer. This
exemption from the requirement to apply for title does not apply
if the department determines that application for title is
necessary in order to comply with odometer disclosure
requirements. If the department determines that application for
title is not required, it may require filing of documents under
ORS 803.126.
  (c) The vehicle is to be titled in another jurisdiction.
  (d) The vehicle has been totaled, wrecked, dismantled,
disassembled, substantially altered or destroyed, in which case
the provisions of ORS 819.010, 819.012, 819.014 or 822.135
relating to notice and surrender of title documents shall be
complied with.
  (e) The transfer involves the creation or termination of a
leasehold interest in a vehicle that is proportionally registered
under ORS 826.009 or 826.011, if the department is furnished with
satisfactory proof of the lease.
  (3) Except as provided in subsection (2) of this section, the
transferee shall:
  (a) Submit an application that meets requirements for title
under ORS 803.045 and 803.050 and any applicable rules of the
department.
  (b) Submit the title transfer fees as required under ORS
803.090 { + , + }  { - . - }   { + including fees for any title
transfers that should have occurred if the vehicle previously had
been transferred without the required title transfer application
and if the transferee does not hold a certificate issued under
ORS 822.020. + }
  (c) Comply with the provisions of ORS 803.065 and any
applicable rules of the department under that statute and submit
the duplicate or replacement title fee as provided under ORS
803.090, if the transfer includes an application for duplicate or
replacement title and transfer of title.
  (d) Submit an odometer disclosure containing information
required by the department for the kind of transaction involved.
  (e) Submit any late presentation of certificate of title fee as
provided under ORS 803.090 if such fee is required under ORS
803.105.
  (4) Notwithstanding subsections (1) and (3) of this section, if
the vehicle is a manufactured structure, an application may be
submitted under this section or as allowed by ORS 820.587 (5).
  (5) For purposes of this section:
  (a) 'Affiliated group' has the meaning given to the term in
section 1504(a) of the Internal Revenue Code of 1986, as amended
(26 U.S.C. 1504(a)).
  (b) A 'transfer in bulk' is:
  (A) The sale or assignment of, the grant of a security interest
in, or any other transfer of either a group of loans secured by
vehicles, leases of vehicles or both or a participation or other
interest in the group of loans;
  (B) The creation of asset-backed securities or other securing
of assets involving the loans or leases; or
  (C) Any similar transaction involving the loans or leases.
  SECTION 2. ORS 803.092, as amended by section 102, chapter 655,
Oregon Laws 2003, is amended to read:
  803.092. (1) Except as otherwise provided in this section, upon
the transfer of any interest in a vehicle covered by an Oregon
title { + , + } the transferee shall submit an application for
title to the Department of Transportation. Such application shall
be submitted to the department within 30 days of the date of
transfer of interest.
  (2) Notwithstanding subsection (1) of this section, application
is not required under this section when:
  (a) The change involves only a change in the security interest
where the security interest holder or lessor is a financial
institution, a financial holding company or a bank holding
company, as those terms are defined in ORS 706.008, a licensee
under ORS chapter 725, or any subsidiary or affiliate of any of
the foregoing and the transfer of the interest of the security
interest holder or lessor:
  (A) Results from the merger, conversion, reorganization,
consolidation or acquisition of the security interest holder or
lessor;
 
  (B) Is to an entity that is a member of the same affiliated
group as the security holder or lessor; or
  (C) Is made in connection with a transfer in bulk.
  (b) The vehicle is transferred to a vehicle dealer and the
vehicle will become part of the dealer's inventory for resale.
Upon the transfer of a vehicle to a dealer, however, the dealer
shall immediately notify the department of such transfer. This
exemption from the requirement to apply for title does not apply
if the department determines that application for title is
necessary in order to comply with odometer disclosure
requirements. If the department determines that application for
title is not required, it may require filing of documents under
ORS 803.126.
  (c) The vehicle is to be titled in another jurisdiction.
  (d) The vehicle has been totaled, wrecked, dismantled,
disassembled, substantially altered or destroyed, in which case
the provisions of ORS 819.010, 819.012, 819.014 or 822.135
relating to notice and surrender of title documents shall be
complied with.
  (e) The transfer involves the creation or termination of a
leasehold interest in a vehicle that is proportionally registered
under ORS 826.009 or 826.011, if the department is furnished with
satisfactory proof of the lease.
  (3) Except as provided in subsection (2) of this section, the
transferee shall:
  (a) Submit an application that meets requirements for title
under ORS 803.045 and 803.050 and any applicable rules of the
department.
  (b) Submit the title transfer fees as required under ORS
803.090 { + , + }  { - . - }   { + including fees for any title
transfers that should have occurred if the vehicle previously had
been transferred without the required title transfer application
and if the transferee does not hold a certificate issued under
ORS 822.020. + }
  (c) Comply with the provisions of ORS 803.065 and any
applicable rules of the department under that statute and submit
the duplicate or replacement title fee as provided under ORS
803.090, if the transfer includes an application for duplicate or
replacement title and transfer of title.
  (d) Submit an odometer disclosure containing information
required by the department for the kind of transaction involved.
  (e) Submit any late presentation of certificate of title fee as
provided under ORS 803.090 if such fee is required under ORS
803.105.
  (4) For purposes of this section:
  (a) 'Affiliated group' has the meaning given to the term in
section 1504(a) of the Internal Revenue Code of 1986, as amended
(26 U.S.C. 1504(a)).
  (b) A 'transfer in bulk' is:
  (A) The sale or assignment of, the grant of a security interest
in, or any other transfer of either a group of loans secured by
vehicles, leases of vehicles or both or a participation or other
interest in the group of loans;
  (B) The creation of asset-backed securities or other securing
of assets involving the loans or leases; or
  (C) Any similar transaction involving the loans or leases.
  SECTION 3.  { + The amendments to ORS 803.092 by sections 1 and
2 of this 2005 Act apply to title transfer applications submitted
on or after January 1, 2007. + }
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