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 2473
House Bill 3374
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.
Requires security interest holder in vehicle to pay title
replacement fee if certificate of title is lost, mutilated or
destroyed while in holder's possession. Requires security
interest holder to deliver statement attesting to loss,
mutilation or destruction of certificate of title if loss,
mutilation or destruction occurs while title is in holder's
possession.
Directs department to establish by rule procedures by which
department imposes or removes restriction on issuance of
registration cards for motor vehicles subject to possessory lien.
Allows vehicle dealer to leave registration stickers on vehicle
if buyer shows proof that buyer has submitted title and
registration documents to department prior to delivery.
Exempts vehicle dealers from requirement to carry vehicle
registration card in vehicles owned or controlled by dealer.
Excludes persons owning or driving vehicle operating under dealer
plates, trip permit or certain other permits from offense of
improper display of validating stickers.
Extends number of days certificate of compliance for pollution
control can be dated prior to motor vehicle registration or
renewal for vehicles owned by vehicle dealer.
Directs department to adopt rules to ensure applicant for
vehicle dealer certificate is same person who completed required
education and test.
A BILL FOR AN ACT
Relating to motor vehicles; creating new provisions; and amending
ORS 803.092, 803.094, 803.105, 803.108, 803.560, 803.565,
815.310, 822.027 and 822.040.
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. + }
SECTION 4. ORS 803.094 is amended to read:
803.094. (1) Except as otherwise provided in this section, upon
the transfer of any interest shown on an Oregon title any person
whose interest is released, terminated, assigned or transferred,
shall release or assign that interest in a manner specified by
the Department of Transportation by rule. Rules adopted for
purposes of this subsection shall be designed, as much as
possible, to protect the interests of all parties to the
transfer. If required under ORS 803.102, the person shall also
complete an odometer disclosure statement.
(2) Notwithstanding subsection (1) of this section:
(a) In the case of a transfer by operation of law of any
interest shown on an Oregon title, the personal representative,
receiver, trustee, sheriff or other representative or successor
in interest of the person whose interest is transferred shall
release or assign interest and if required by the department by
rule, as provided under ORS 803.102, complete an odometer
disclosure statement and shall provide the certificate, if any,
and disclosure statement if required to the transferee. The
representative or successor shall also provide the transferee
with information satisfactory to the department concerning all
facts entitling such representative or successor to transfer
title. If there is no person to assign interest, the person to
whom interest is awarded or otherwise transferred shall be
responsible for the requirements of this paragraph.
(b) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder if the estate is not
being probated and title is not being transferred under the
provisions of ORS 114.545, interest may be assigned through the
use of an affidavit. The affidavit shall be on a form prescribed
by the department and signed by all of the known heirs of the
person whose interest is being transferred stating the name of
the person to whom the ownership interest has been passed. If any
heir has not arrived at the age of majority or is otherwise
incapacitated, the parent or guardian of the heir shall sign the
affidavit. In the case of a transfer under this paragraph, one of
the heirs or any other person designated by the department by
rule shall complete any odometer disclosure statement required
under ORS 803.102.
(c) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder where transfer occurs
under the provisions of ORS 114.545, the 'affiant' as defined in
ORS 114.505 is the person required to assign interest. The
department may designate by rule the affiant or any other person
to complete any odometer disclosure statement required under ORS
803.102.
(d) Upon the termination of a lease, in lieu of the lessee
releasing interest, the lessor may provide information
satisfactory to the department that the lease has been
terminated. The lessor shall provide an odometer disclosure
statement if required under ORS 803.102. If the lessor does not
take possession of the vehicle upon termination of the lease, the
information in the odometer disclosure given by the lessor may be
taken from an odometer disclosure given by the lessee to the
lessor under ORS 803.102 unless the lessor has reason to believe
that the disclosure by the lessee does not reflect the actual
mileage of the vehicle.
(e) A security interest holder or lessor, without the consent
of the owner, may assign interest of the holder or lessor in a
vehicle to a person other than the owner without affecting the
interest of the owner or the validity or priority of the
interest. A person not given notice of such assignment is
protected in dealing with the security interest holder or lessor
as the holder of the interest until the assignee files in
accordance with ORS chapter 79. This paragraph does not exempt
such assignments from title transfer requirements.
(f) If an interest in a manufactured structure is transferred
pursuant to an application under ORS 820.587 (5), the recital by
the escrow company that no written objections were received
constitutes the release or transfer of interest by the person
whose interest is released, terminated, assigned or transferred.
(3) Nothing in this section requires the release or assignment
of title upon the creation or termination of a leasehold interest
for a vehicle that is proportionally registered under ORS 826.009
or 826.011 if the department is furnished with satisfactory proof
of the lease for such vehicle.
(4) The department by rule may allow odometer disclosure
statements to be on a form other than the certificate of title.
(5) { - Persons - } { + A person + } subject to the
provisions of this section shall provide { + all of the
following + } to the transferee { + :
(a)(A) + } A title certificate, if one has been issued and is
in
{ - their - } { + the + } possession { - , - } { + of the
person; or
(B) A statement attesting to the loss, mutilation or
destruction of the title certificate and payment of the fee as
required to issue a replacement title certificate under ORS
803.065, if the title certificate has been issued and is lost,
mutilated or destroyed while in the possession of a security
interest holder.
(b) + } The release or assignment of interest { - , and - }
{ + .
(c) + } Any required odometer disclosure statement. If an
odometer disclosure statement is required, the transferee shall
provide a signed disclosure to the transferor in a form
determined by the department by rule.
SECTION 5. ORS 803.094, as amended by section 103, chapter 655,
Oregon Laws 2003, is amended to read:
803.094. (1) Except as otherwise provided in this section, upon
the transfer of any interest shown on an Oregon title any person
whose interest is released, terminated, assigned or transferred,
shall release or assign that interest in a manner specified by
the Department of Transportation by rule. Rules adopted for
purposes of this subsection shall be designed, as much as
possible, to protect the interests of all parties to the
transfer. If required under ORS 803.102, the person shall also
complete an odometer disclosure statement.
(2) Notwithstanding subsection (1) of this section:
(a) In the case of a transfer by operation of law of any
interest shown on an Oregon title, the personal representative,
receiver, trustee, sheriff or other representative or successor
in interest of the person whose interest is transferred shall
release or assign interest and if required by the department by
rule, as provided under ORS 803.102, complete an odometer
disclosure statement and shall provide the certificate, if any,
and disclosure statement if required to the transferee. The
representative or successor shall also provide the transferee
with information satisfactory to the department concerning all
facts entitling such representative or successor to transfer
title. If there is no person to assign interest, the person to
whom interest is awarded or otherwise transferred shall be
responsible for the requirements of this paragraph.
(b) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder if the estate is not
being probated and title is not being transferred under the
provisions of ORS 114.545, interest may be assigned through the
use of an affidavit. The affidavit shall be on a form prescribed
by the department and signed by all of the known heirs of the
person whose interest is being transferred stating the name of
the person to whom the ownership interest has been passed. If any
heir has not arrived at the age of majority or is otherwise
incapacitated, the parent or guardian of the heir shall sign the
affidavit. In the case of a transfer under this paragraph, one of
the heirs or any other person designated by the department by
rule shall complete any odometer disclosure statement required
under ORS 803.102.
(c) In the case of a transfer at death of the interest of the
owner, lessor or security interest holder where transfer occurs
under the provisions of ORS 114.545, the 'affiant' as defined in
ORS 114.505 is the person required to assign interest. The
department may designate by rule the affiant or any other person
to complete any odometer disclosure statement required under ORS
803.102.
(d) Upon the termination of a lease, in lieu of the lessee
releasing interest, the lessor may provide information
satisfactory to the department that the lease has been
terminated. The lessor shall provide an odometer disclosure
statement if required under ORS 803.102. If the lessor does not
take possession of the vehicle upon termination of the lease, the
information in the odometer disclosure given by the lessor may be
taken from an odometer disclosure given by the lessee to the
lessor under ORS 803.102 unless the lessor has reason to believe
that the disclosure by the lessee does not reflect the actual
mileage of the vehicle.
(e) A security interest holder or lessor, without the consent
of the owner, may assign interest of the holder or lessor in a
vehicle to a person other than the owner without affecting the
interest of the owner or the validity or priority of the
interest. A person not given notice of such assignment is
protected in dealing with the security interest holder or lessor
as the holder of the interest until the assignee files in
accordance with ORS chapter 79. This paragraph does not exempt
such assignments from title transfer requirements.
(3) Nothing in this section requires the release or assignment
of title upon the creation or termination of a leasehold interest
for a vehicle that is proportionally registered under ORS 826.009
or 826.011 if the department is furnished with satisfactory proof
of the lease for such vehicle.
(4) The department by rule may allow odometer disclosure
statements to be on a form other than the certificate of title.
(5) { - Persons - } { + A person + } subject to the
provisions of this section shall provide { + all of the
following + } to the transferee { + :
(a)(A) + } A title certificate, if one has been issued and is
in
{ - their - } { + the + } possession { - , - } { + of the
person; or
(B) A statement attesting to the loss, mutilation or
destruction of the title certificate and payment of the fee as
required to issue a replacement title certificate under ORS
803.065, if the title certificate has been issued and is lost,
mutilated or destroyed while in the possession of a security
interest holder.
(b) + } The release or assignment of interest { - , and - }
{ + .
(c) + } Any required odometer disclosure statement. If an
odometer disclosure statement is required, the transferee shall
provide a signed disclosure to the transferor in a form
determined by the department by rule.
SECTION 6. ORS 803.105 is amended to read:
803.105. (1) Except as provided in ORS 803.092, a person
commits the offense of failure to deliver vehicle documents on
transfer of a vehicle for which the Department of Transportation
has issued a certificate of title if the person does not comply
with any of the following:
(a) Upon transfer of title or any interest in a vehicle, the
transferee shall present the certificate of title to the
department within 30 days after the transfer. This paragraph does
not apply to a vehicle dealer. If the transfer arises from the
sale of a vehicle, a transferee who presents the certificate more
than 30 days after the transfer shall pay the fee for late
presentation of certificate of title established in ORS 803.090.
However, the fee for late presentation does not apply if the
transferee proves to the satisfaction of the department that:
(A) The transferee made a good faith effort to obtain title; or
(B) Failure to comply was for a reason beyond the control of
the transferee.
(b) Upon transfer of title or any interest in a vehicle to a
vehicle dealer, the vehicle dealer shall immediately notify the
department that the vehicle has been transferred to the dealer.
(c) Upon creation of a leasehold interest in a vehicle, the
lessor or holder shall present the certificate of title to the
department within 30 days of the transfer. This paragraph does
not apply to the creation of leasehold interests in vehicles that
are proportionally registered under ORS 826.009 or 826.011.
(d) Upon termination of a leasehold interest, the lessor shall
cause the certificate of title to be delivered to the department
within 30 days of the termination. This paragraph does not apply
to the termination of leasehold interests in commercial vehicles
that are proportionally registered under ORS 826.009 or 826.011.
(e) Upon creation of a leasehold interest in vehicles that are
proportionally registered under ORS 826.009 or 826.011, the
lessee shall furnish the department with satisfactory proof of
the lease.
(f) Upon the creation of a security interest in a vehicle where
the owner or lessor is in possession of a certificate of title,
the owner or lessor, if there is a lease, shall deliver the
certificate to the person in whom the security interest was
created. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale.
(g) Upon the creation of a security interest in a vehicle where
a prior security interest holder is in possession of the
certificate of title, the owner or lessor, if there is a lease,
shall either provide for the delivery of the certificate of title
to the person in whom the security was created or arrange for
direct delivery by the prior security interest holder to the
department. This paragraph does not apply upon the creation of a
security interest where the debtor who granted the security
interest is in the business of selling vehicles and the vehicle
constitutes inventory held for sale.
(h) Notwithstanding paragraph (a) of this subsection, upon
creation of a security interest in a vehicle, a person in whom a
security interest was created and who receives a certificate of
title showing the interest from the person granting the security
interest shall present the certificate of title to the department
within 30 days after receiving the certificate of title.
(i) Within 15 calendar days of satisfaction of a security
interest in a vehicle, the security interest holder affected:
(A) If in possession of the certificate of title, shall deliver
the certificate of title and the release contained thereon to the
security interest holder next named, if any, otherwise to the
lessor or, if none, to the owner.
(B) If not in possession of the certificate of title,
shall { + :
(i) + } Deliver a release to the person entitled thereto { + ;
and
(ii) If the certificate of title is lost, mutilated or
destroyed while in the possession of the security interest
holder, deliver a statement attesting to the loss, mutilation or
destruction of the certificate of title and payment of the fee as
required to issue a replacement certificate of title under ORS
803.065 + }.
(j) Upon receipt of a release of a security interest in a
vehicle by a person who is not in possession of the certificate
of title, the person shall promptly deliver the release to the
holder of the certificate of title. This paragraph does not apply
to release of a security interest in vehicles where the debtor
who granted the security interest is in the business of selling
vehicles and the vehicle constitutes inventory held for sale.
(k) Notwithstanding paragraph (a) of this subsection, upon
satisfaction of a security interest in a vehicle, the holder of
the certificate of title and the release shall present both to
the department within 30 days after the date of the release. This
paragraph does not apply upon release of a security interest in
vehicles where the debtor who granted the security interest is in
the business of selling vehicles and the vehicle constitutes
inventory held for sale.
(2) The offense described in this section, failure to deliver
vehicle documents on transfer of interest in a vehicle, is a
Class D traffic violation.
SECTION 7. { + The amendments to ORS 803.094 and 803.105 by
sections 4 to 6 of this 2005 Act apply only to transfers of
interest in vehicles made on or after the effective date of this
2005 Act. + }
SECTION 8. ORS 803.108 is amended to read:
803.108. { + (1) + } If the ownership of a motor vehicle
subject to the lien provided for by ORS 319.700 is transferred,
whether by operation of law or otherwise, the Department of
Transportation shall not issue, to the transferee or person
otherwise entitled thereto, a registration card or title with
respect to { - such - } { + the + } motor vehicle until the
department has determined that the lien has been removed.
Implements of husbandry are not subject to this
{ - section - } { + subsection + } by virtue of exemption
under ORS 319.520
{ - from the lien provided for by ORS 319.700 - } .
{ + (2) For a motor vehicle subject to a possessory lien
other than a lien provided for by ORS 319.700, the department
shall adopt by rule procedures that:
(a) Allow a lien claimant to request the department to impose a
restriction on the issuance of a registration card to a
transferee when the ownership of the motor vehicle is
transferred.
(b) Provide for the removal of a restriction imposed under
paragraph (a) of this subsection, including by request of the
lien claimant that requested the restriction. + }
SECTION 9. ORS 803.565 is amended to read:
803.565. (1) Except as provided in subsections (2) and (3) of
this section, before a person who has a vehicle dealer
certificate issued under ORS 822.020 or a towing business
certificate issued under ORS 822.205 sells a vehicle that has
Oregon registration plates, the person shall remove the
registration stickers from the registration plates of the
vehicle.
(2) A person who has a vehicle dealer certificate issued under
ORS 822.020 need not remove registration stickers under
subsection (1) of this section if:
(a) The person submits title and registration documents to the
Department of Transportation on behalf of the buyer of the
vehicle; { - or - }
{ + (b) Prior to accepting delivery of the vehicle, the buyer
presents to the person proof, as determined by the department by
rule, that the buyer has submitted title and registration
documents for the vehicle to the department; or + }
{ - (b) - } { + (c) + } The person sells the vehicle to
another person who has a vehicle dealer certificate issued under
ORS 822.020.
(3) A person who has a towing business certificate issued under
ORS 822.205 need not remove registration stickers under
subsection (1) of this section if the person sells the vehicle to
a person who has a vehicle dealer certificate issued under ORS
822.020.
SECTION 10. { + The amendments to ORS 803.565 by section 9 of
this 2005 Act apply only to vehicles sold on or after the
effective date of this 2005 Act. + }
SECTION 11. ORS 822.040 is amended to read:
822.040. (1) The holder of a current, valid vehicle dealer
certificate issued under ORS 822.020 may exercise the following
privileges under the certificate:
(a) A dealer is authorized, without violating ORS
803.025 { + , + }
{ - or - } 803.300 { + or 803.560 + }, to use and operate
over and along the highways of this state all vehicles displaying
the dealer's plates whether registered or not or whether or not a
title is issued for the vehicle subject to the following:
(A) This paragraph does not authorize dealers to use or operate
vehicles under dealer plates unless the vehicles are actually
owned or controlled by the dealer and in actual use by the
dealer, members of the dealer's firm, any salesperson thereof or
any person authorized by the dealer. Vehicles operated under
dealer plates may be used for the same purposes as are any other
vehicles registered in this state that are registered by payment
of the fee under ORS 803.420. This paragraph is subject to the
limitations under ORS 822.045.
(B) Nothing in this paragraph allows dealers to use or operate
manufactured structures under dealer plates. All movement of
manufactured structures by dealers shall be by trip permits
issued under ORS 803.600 and 820.560.
(C) Vehicles registered or titled in another state, country,
province, territory or the District of Columbia are subject to
the provisions under ORS 803.300 and 803.305 applicable to such
vehicles.
(b) A dealer is entitled to receive dealer plates or devices
and replacement or additional dealer plates or devices. As many
additional dealer plates as may be desired may be obtained upon
the filing of a formal application for additional plates with the
Department of Transportation. The plates issued to dealers shall
require the payment of fees as provided under ORS 805.250.
(c) The person is not subject to the prohibitions and penalties
under ORS 822.005 as long as the holder's vehicle dealer business
is conducted in a location approved under the certificate.
(d) The dealer shall be considered the owner of vehicles
manufactured or dealt in by the dealer, before delivery and sale
of the vehicles, and of all vehicles in the dealer's possession
and operated or driven by the dealer or the dealer's employees.
{ + (e) Notwithstanding ORS 803.505, a dealer is not required
to place or keep a registration card in or on a vehicle owned or
controlled by the dealer. + }
(2) The holder of a vehicle dealer certificate may open
additional places of business under the same business name by
obtaining a supplemental certificate from the department under
this subsection. The following all apply to a supplemental
certificate issued under this subsection:
(a) The department shall not issue a supplemental certificate
under this subsection if the additional place of business opened
will be operated under a different business name than that
indicated on the current certificate. Any business that a vehicle
dealer operates under a separate business name must be operated
under a separate certificate and the dealer must apply for and
pay the fees for a regular dealer certificate for the business.
(b) A supplemental certificate issued under this subsection is
subject to the fee for supplemental certificate under ORS
822.700.
(3) The holder of a vehicle dealer certificate may move a place
of business or change a business name by obtaining a corrected
certificate from the department. For purposes of this subsection,
'place of business' includes a recreational vehicle service
facility as defined in ORS 822.082. The following apply to a
corrected certificate issued under this subsection:
(a) The department shall prescribe the form for application for
a corrected certificate.
(b) A person applying for a corrected certificate shall pay the
fee for the corrected certificate established in ORS 822.700.
(4) A vehicle dealer certificate is valid for a three-year
period and may be renewed as provided by the department. The
department shall only renew a certificate if the applicant for
renewal does all of the following:
(a) Pays the required fee for renewal under ORS 822.700.
(b) Delivers to the department a bond that meets the
requirements under ORS 822.030.
(c) Delivers to the department a certificate of insurance that
meets the requirements under ORS 822.033.
(d) Provides the names of all partners or corporate officers.
(e) Certifies completion of the education requirements of ORS
822.027 (1) if the person is a dealer subject to the education
requirements.
(f) If the dealer offers new recreational vehicles for sale
under the certificate, certifies that the dealer maintains a
recreational vehicle service facility as listed in the dealer
certificate application described in ORS 822.025.
(5) The department may adopt suitable rules for the issuance
and renewal of certificates under this section and ORS 822.020.
SECTION 12. ORS 822.040, as amended by section 129, chapter
655, Oregon Laws 2003, is amended to read:
822.040. (1) The holder of a current, valid vehicle dealer
certificate issued under ORS 822.020 may exercise the following
privileges under the certificate:
(a) A dealer is authorized, without violating ORS
803.025 { + , + }
{ - or - } 803.300 { + or 803.560 + }, to use and operate
over and along the highways of this state all vehicles displaying
the dealer's plates whether registered or not or whether or not a
title is issued for the vehicle subject to the following:
(A) This paragraph does not authorize dealers to use or operate
vehicles under dealer plates unless the vehicles are actually
owned or controlled by the dealer and in actual use by the
dealer, members of the dealer's firm, any salesperson thereof or
any person authorized by the dealer. Vehicles operated under
dealer plates may be used for the same purposes as are any other
vehicles registered in this state that are registered by payment
of the fee under ORS 803.420. This paragraph is subject to the
limitations under ORS 822.045.
(B) Vehicles registered or titled in another state, country,
province, territory or the District of Columbia are subject to
the provisions under ORS 803.300 and 803.305 applicable to such
vehicles.
(b) A dealer is entitled to receive dealer plates or devices
and replacement or additional dealer plates or devices. As many
additional dealer plates as may be desired may be obtained upon
the filing of a formal application for additional plates with the
Department of Transportation. The plates issued to dealers shall
require the payment of fees as provided under ORS 805.250.
(c) The person is not subject to the prohibitions and penalties
under ORS 822.005 as long as the holder's vehicle dealer business
is conducted in a location approved under the certificate.
(d) The dealer shall be considered the owner of vehicles
manufactured or dealt in by the dealer, before delivery and sale
of the vehicles, and of all vehicles in the dealer's possession
and operated or driven by the dealer or the dealer's employees.
{ + (e) Notwithstanding ORS 803.505, a dealer is not required
to place or keep a registration card in or on a vehicle owned or
controlled by the dealer. + }
(2) The holder of a vehicle dealer certificate may open
additional places of business under the same business name by
obtaining a supplemental certificate from the department under
this subsection. The following all apply to a supplemental
certificate issued under this subsection:
(a) The department shall not issue a supplemental certificate
under this subsection if the additional place of business opened
will be operated under a different business name than that
indicated on the current certificate. Any business that a vehicle
dealer operates under a separate business name must be operated
under a separate certificate and the dealer must apply for and
pay the fees for a regular dealer certificate for the business.
(b) A supplemental certificate issued under this subsection is
subject to the fee for supplemental certificate under ORS
822.700.
(3) The holder of a vehicle dealer certificate may move a place
of business or change a business name by obtaining a corrected
certificate from the department. For purposes of this subsection,
'place of business' includes a recreational vehicle service
facility as defined in ORS 822.082. The following apply to a
corrected certificate issued under this subsection:
(a) The department shall prescribe the form for application for
a corrected certificate.
(b) A person applying for a corrected certificate shall pay the
fee for the corrected certificate established in ORS 822.700.
(4) A vehicle dealer certificate is valid for a three-year
period and may be renewed as provided by the department. The
department shall only renew a certificate if the applicant for
renewal does all of the following:
(a) Pays the required fee for renewal under ORS 822.700.
(b) Delivers to the department a bond that meets the
requirements under ORS 822.030.
(c) Delivers to the department a certificate of insurance that
meets the requirements under ORS 822.033.
(d) Provides the names of all partners or corporate officers.
(e) Certifies completion of the education requirements of ORS
822.027 (1) if the person is a dealer subject to the education
requirements.
(f) If the dealer offers new recreational vehicles for sale
under the certificate, certifies that the dealer maintains a
recreational vehicle service facility as listed in the dealer
certificate application described in ORS 822.025.
(5) The department may adopt suitable rules for the issuance
and renewal of certificates under this section and ORS 822.020.
SECTION 13. ORS 803.560 is amended to read:
803.560. (1) A person commits the offense of improper display
of validating stickers if the person owns or drives a vehicle on
which the display of registration stickers provides proof of
valid registration and:
(a) The stickers are not displayed in a manner required by the
Department of Transportation; or
(b) The stickers are displayed on the vehicle after the
registration period shown on the stickers.
{ + (2) A person is not in violation of this section if the
person owns or drives a vehicle lawfully operating under a dealer
plate pursuant to ORS 822.040 or a permit issued pursuant to ORS
803.600, 803.610, 803.615 or 803.625. + }
{ - (2) - } { + (3) + } The offense described in this
section, improper display of validating stickers, is a Class D
traffic violation.
SECTION 14. ORS 815.310 is amended to read:
815.310. When proof of compliance with pollution control
equipment requirements is required under ORS 803.350, 803.465 and
815.295 the following apply:
(1) The proof may be provided by any means that the Department
of Transportation and the Environmental Quality Commission
determine by joint rulemaking or by interagency agreement to be
satisfactory.
(2) Except as otherwise provided in this section, when a
certificate of compliance is used as proof, the certificate must
comply with all the following:
(a) It must be signed by a person licensed and qualified under
ORS 468A.380.
(b) It must be dated not more than 90 days prior to the motor
vehicle registration or renewal of registration { + unless the
motor vehicle is owned by a holder of a current, valid vehicle
dealer certificate issued under ORS 822.020. If the motor vehicle
is owned by a vehicle dealer, the certificate of compliance must
be dated not more than 180 days prior to the motor vehicle
registration or renewal of registration + }.
(c) It must be on a form supplied by the Department of
Environmental Quality and must include such information as the
department may require.
(3) In order for registration to continue to be valid for a
motor vehicle that is registered as a government-owned vehicle
under ORS 805.040, a police undercover vehicle under ORS 805.060
or a state-owned vehicle with regular registration plates under
ORS 805.045, the vehicle must be certified as frequently as a
privately owned vehicle of the same registration type is required
to be certified. For purposes of this subsection, the
registration type of a privately owned vehicle is determined by
the registration period for the vehicle under ORS 803.415. For
local government vehicles, the proof of certification may be
provided through self-testing facilities provided by local
governmental agencies. Local governmental agencies providing
self-testing facilities may not be charged a fee in connection
with provision of the required proof. However, a reasonable fee
covering department expenses in administering such self-testing
programs may be charged.
SECTION 15. { + The amendments to ORS 815.310 by section 14 of
this 2005 Act apply only to certificates of compliance issued on
or after the effective date of this 2005 Act. + }
SECTION 16. ORS 822.027 is amended to read:
822.027. (1) Except as provided in subsection (2) of this
section, the following education requirements apply to an
applicant for a vehicle dealer certificate under ORS 822.020 or
822.040:
(a) An applicant for a vehicle dealer certificate under ORS
822.020 must complete a minimum of eight hours of approved
education programs described in subsection (4) of this section
and pass a test prior to submitting an application for the
certificate; and
(b) An applicant for a renewal certificate under ORS 822.040
must complete a minimum of five hours per year in a licensing
period of approved continuing education programs described in
subsection (4) of this section prior to submitting an application
for the renewal certificate.
(2) The education requirements in subsection (1)(a) of this
section do not apply to an applicant for a vehicle dealer
certificate under ORS 822.020 or 822.040 if, at the time of
application, the applicant holds another certificate issued under
ORS 822.020 or 822.040.
(3) The continuing education requirements of subsection (1)(b)
of this section do not apply to an applicant for renewal of a
vehicle dealer certificate under ORS 822.040 if the applicant is:
(a) A dealer having a franchise in this state for nationally
advertised and recognized motor vehicles;
(b) A dealer having a franchise in this state for new
recreational vehicles;
(c) A motor vehicle rental company having a national franchise
under the ownership of a corporation that operates throughout the
United States;
(d) A dealer that primarily sells manufactured dwellings; or
(e) A national auction company that holds a vehicle dealer
certificate and a wrecker certificate whose primary activity in
this state is the sale or disposition of totaled vehicles.
(4) Education programs and the test required in subsection (1)
of this section may be developed by any motor vehicle industry
organization including, but not limited to, the Oregon
Independent Auto Dealers Association and shall be submitted to
the advisory committee established under ORS 802.370 for
approval. The committee shall approve any program or test that
pertains to the motor vehicle industry and includes state and
federal law in at least the following areas:
(a) Motor vehicle advertising;
(b) Odometer laws and regulations;
(c) Vehicle licensing and registration;
(d) Unlawful dealer activities;
(e) Environmental rules and regulations;
(f) Oregon and industry standard motor vehicle forms;
(g) Truthful lending practices;
(h) Motor vehicle financing;
(i) Service and warranty contracts; and
(j) Land use regulations governing motor vehicle dealers.
(5) Education programs and the test required in subsection (1)
of this section may be provided by accredited educational
institutions, private vocational schools, correspondence schools
or trade associations if the education programs and test have
been approved by the advisory committee established under ORS
802.370 as required in subsection (4) of this section.
{ + (6) The Department of Transportation in consultation with
the advisory committee established under ORS 802.370 shall adopt
rules to ensure that the person completing the educational
requirements and test required under subsection (1)(a) of this
section is in fact the applicant applying for a vehicle dealer
certificate under ORS 822.020. The rules may include, but not be
limited to, requiring providers of the educational programs and
tests to verify the identification of the person completing the
educational requirements or test. + }
SECTION 17. ORS 822.027, as amended by section 127, chapter
655, Oregon Laws 2003, is amended to read:
822.027. (1) Except as provided in subsection (2) of this
section, the following education requirements apply to an
applicant for a vehicle dealer certificate under ORS 822.020 or
822.040:
(a) An applicant for a vehicle dealer certificate under ORS
822.020 must complete a minimum of eight hours of approved
education programs described in subsection (4) of this section
and pass a test prior to submitting an application for the
certificate; and
(b) An applicant for a renewal certificate under ORS 822.040
must complete a minimum of five hours per year in a licensing
period of approved continuing education programs described in
subsection (4) of this section prior to submitting an application
for the renewal certificate.
(2) The education requirements in subsection (1)(a) of this
section do not apply to an applicant for a vehicle dealer
certificate under ORS 822.020 or 822.040 if, at the time of
application, the applicant holds another certificate issued under
ORS 822.020 or 822.040.
(3) The continuing education requirements of subsection (1)(b)
of this section do not apply to an applicant for renewal of a
vehicle dealer certificate under ORS 822.040 if the applicant is:
(a) A dealer having a franchise in this state for nationally
advertised and recognized motor vehicles;
(b) A dealer having a franchise in this state for new
recreational vehicles;
(c) A motor vehicle rental company having a national franchise
under the ownership of a corporation that operates throughout the
United States; or
(d) A national auction company that holds a vehicle dealer
certificate and a wrecker certificate whose primary activity in
this state is the sale or disposition of totaled vehicles.
(4) Education programs and the test required in subsection (1)
of this section may be developed by any motor vehicle industry
organization including, but not limited to, the Oregon
Independent Auto Dealers Association and shall be submitted to
the advisory committee established under ORS 802.370 for
approval. The committee shall approve any program or test that
pertains to the motor vehicle industry and includes state and
federal law in at least the following areas:
(a) Motor vehicle advertising;
(b) Odometer laws and regulations;
(c) Vehicle licensing and registration;
(d) Unlawful dealer activities;
(e) Environmental rules and regulations;
(f) Oregon and industry standard motor vehicle forms;
(g) Truthful lending practices;
(h) Motor vehicle financing;
(i) Service and warranty contracts; and
(j) Land use regulations governing motor vehicle dealers.
(5) Education programs and the test required in subsection (1)
of this section may be provided by accredited educational
institutions, private vocational schools, correspondence schools
or trade associations if the education programs and test have
been approved by the advisory committee established under ORS
802.370 as required in subsection (4) of this section.
{ + (6) The Department of Transportation in consultation with
the advisory committee established under ORS 802.370 shall adopt
rules to ensure that the person completing the educational
requirements and test required under subsection (1)(a) of this
section is in fact the applicant applying for a vehicle dealer
certificate under ORS 822.020. The rules may include, but not be
limited to, requiring providers of the educational programs and
tests to verify the identification of the person completing the
educational requirements or test. + }
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