Chapter 371
AN ACT
HB 2438
Relating to vehicle dealers; creating new provisions; and amending ORS
822.060.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 822.060 is amended to read:
822.060. (1) A vehicle
dealer issued a certificate under ORS 822.020 commits the offense of illegal
consignment practices if the dealer does any of the following:
(a) Takes a vehicle on
consignment from a person who is not a certified dealer and does not have proof
that the consignor is the registered owner, a security interest holder or
lessor of the vehicle.
(b) Takes a vehicle on
consignment from a security interest holder without the security interest
holder first completing a repossession action prior to consigning the vehicle
and providing the dealer with proper documentary proof of the repossession
action.
(c) Takes a vehicle on
consignment and does not have the terms of the consignment agreement in writing
and provide a copy of the agreement to the consignor. The agreement shall
include a provision stating that if the terms of the agreement are not met, the
consignor may file a complaint in writing with the Department of
Transportation,
(d) Sells a vehicle that
the dealer has on consignment and does not pay the consignor within 10 days of
the sale.
(e) Sells a vehicle that
the dealer has on consignment and does not either provide the purchaser with a
certificate of title to the vehicle or with other primary ownership records in
the form of documents or apply to the department in the purchaser’s name for
title to the vehicle within 30 days of the sale in a manner provided by the
department by rule.
(f) Does not allow the
department or any duly authorized representative to inspect and audit any
records of any separate accounts into which the dealer deposits any funds
received or handled by the dealer or in the course of business as a dealer from
consignment sale of vehicles at such times as the department may direct.
(g) Takes any part of
any money paid to the dealer in connection with any consignment transaction as
part or all of the dealer’s commission or fee until the transaction has been
completed or terminated.
(h) Does not make
arrangement for the disposition of money from a consignment transaction with
the seller at the time of establishing a consignment agreement.
(i) Sells a vehicle that
the dealer has taken on consignment without first giving the purchaser the
following disclosure in writing:
______________________________________________________________________________
DISCLOSURE REGARDING
CONSIGNMENT
________________ (Name of Dealer) is selling the following described
vehicle: ______ (Year) ______ (Make) ______ (Model) ______ (Vehicle
Identification Number) on consignment. [Title
to this vehicle is in the name of: ____________ (Vehicle Owner(s) as shown on
Certificate of Title) and the following are listed on the Certificate of Title
as security interest holders:]
[____________________________________________________________________________]
[____________________________________________________________________________]
[ ] There is a security interest in this
vehicle.
[ ] There is not a security interest in this
vehicle.
YOU SHOULD TAKE ACTION TO ENSURE THAT ANY SECURITY INTERESTS ARE
RELEASED AND THAT THE TITLE TO THE VEHICLE IS TRANSFERRED TO YOU. OTHERWISE,
YOU MAY TAKE TITLE SUBJECT TO ANY UNSATISFIED SECURITY INTERESTS.
______________________________________________________________________________
(2) The offense
described in this section, illegal consignment practices, is a Class A
misdemeanor.
SECTION 2. The
amendments to ORS 822.060 by section 1 of this 2007 Act apply to vehicles sold
or offered for sale on or after the effective date of this 2007 Act.
Approved by the Governor June 12, 2007
Filed in the office of Secretary of State June 13, 2007
Effective date January 1, 2008
__________