74th OREGON LEGISLATIVE ASSEMBLY--2007 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 1980
House Bill 2394
Sponsored by Representative ESQUIVEL (Presession filed.)
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 certification of vehicle salespersons. Directs
Department of Transportation to provide education for vehicle
salespersons.
Creates offense of vehicle dealer employing uncertified vehicle
salesperson. Punishes by maximum fine of $360.
A BILL FOR AN ACT
Relating to vehicle salespersons; creating new provisions; and
amending ORS 184.642, 822.007, 822.009, 822.045 and 822.700.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 7 of this 2007 Act are added to
and made a part of the Oregon Vehicle Code. + }
SECTION 2. { + (1) A person may not act as a vehicle
salesperson unless the person holds a valid, current vehicle
salesperson certificate issued under section 3 of this 2007 Act.
A person acts as a vehicle salesperson if the person is employed
by a vehicle dealer to buy, sell, trade or exchange vehicles
either outright or by means of any conditional sale, bailment,
lease, security interest or consignment.
(2) The Department of Transportation shall adopt a form of
application to be used by persons applying for a vehicle
salesperson certificate. The department may require any
information the department considers necessary. + }
SECTION 3. { + (1) The Department of Transportation shall
issue a vehicle salesperson certificate to a person if the person
meets all of the following requirements:
(a) The person must complete the application for a vehicle
salesperson certificate described in section 2 of this 2007 Act.
(b) The person must deliver to the department a bond or letter
of credit that meets the requirements described in section 5 of
this 2007 Act.
(c) The person must pay the fee required by ORS 822.700 for
issuance of a vehicle salesperson certificate.
(d) The person must certify completion of the education and
test requirements described in section 4 of this 2007 Act.
(2) The department may not issue a vehicle salesperson
certificate to a person who has been convicted of a felony. + }
SECTION 4. { + (1) Prior to submitting an application for
initial issuance of a vehicle salesperson certificate, a person
must complete a minimum of five hours of approved education
described in subsection (3) of this section and must pass a test.
At least one hour of the approved education must include
information about business ethics.
(2) Prior to submitting an application for renewal of a vehicle
salesperson certificate, a person must complete a minimum of six
hours of approved continuing education described in subsection
(3) of this section. At least two hours of the continuing
education must include information about business ethics.
(3) The Department of Transportation shall provide the
education and the test required by subsections (1) and (2) of
this section. In providing the education, the department shall
consider any training standards adopted or used in the vehicle
sales industry.
(4) The education and the test required by subsections (1) and
(2) of this section may be provided by accredited educational
institutions, private vocational schools, correspondence schools
or trade associations if the education and the test have been
approved by the department. + }
SECTION 5. { + (1) A bond or letter of credit required to
qualify for issuance of a vehicle salesperson certificate under
section 3 of this 2007 Act or to qualify for renewal of a
certificate under section 6 of this 2007 Act must comply with all
of the following:
(a) A bond must have a corporate surety licensed to do business
within this state. A letter of credit must be an irrevocable
letter of credit issued by an insured institution, as defined in
ORS 706.008. The surety or institution shall notify the
Department of Transportation if the bond or letter of credit is
canceled for any reason. The surety or institution continues to
be liable under the bond or letter of credit until the department
receives the notice required by this paragraph, or until the
cancellation date specified in the notice, whichever is later.
(b) The bond or letter of credit shall be executed to the State
of Oregon.
(c) The bond or letter of credit shall be for the sum of
$5,000.
(d) The Attorney General shall approve the form of the bond or
letter of credit.
(e) The bond or letter of credit shall contain a condition that
the person issued the vehicle salesperson certificate shall
conduct business as a vehicle salesperson without fraud or
fraudulent representation and without violating any provisions of
the Oregon Vehicle Code relating to vehicle sales.
(f) The bond or letter of credit must be filed and held in the
office of the department.
(g) The vehicle salesperson shall purchase a bond or letter of
credit as described in this subsection every three years, on or
before each anniversary of the issuance of the vehicle
salesperson's certificate.
(2) Any person shall have a right of action against a vehicle
salesperson, against the surety on the vehicle salesperson's bond
and against the letter of credit in the person's own name if the
person suffers any loss or damage by reason of the vehicle
salesperson's fraud, fraudulent representations or violations of
provisions of the Oregon Vehicle Code relating to the regulation
of vehicle salespersons.
(3) If the certificate of a vehicle salesperson is not renewed
or is voluntarily or involuntarily canceled, the surety on the
bond and the issuer of the letter of credit are relieved from
liability that accrues after the department cancels the
certificate. + }
SECTION 6. { + A vehicle salesperson certificate is valid for
a three-year period and may be renewed. The Department of
Transportation shall renew a certificate if the applicant for
renewal does the following:
(1) Pays the required fee for renewal under ORS 822.700;
(2) Delivers to the department a bond or letter of credit that
meets the requirements of section 5 of this 2007 Act; and
(3) Certifies completion of the education requirements under
section 4 of this 2007 Act. + }
SECTION 7. { + The Department of Transportation shall revoke
the vehicle salesperson certificate of any vehicle salesperson
convicted of a felony. + }
SECTION 8. ORS 822.007 is amended to read:
822.007. (1) In addition to any other remedies provided by law,
the Department of Transportation may petition the circuit court
to enjoin a person from acting as a vehicle dealer { + or
vehicle salesperson + } in violation of the Oregon Vehicle Code
or any rule adopted by the department.
(2) A single act in violation of the provisions of the Oregon
Vehicle Code or of any rules adopted by the department relating
to vehicle dealers { + or vehicle salespersons + } shall be
sufficient ground for the court to issue the injunction.
(3) In addition to issuing an injunction, the court may assess
a penalty not to exceed $15,000 if the department proves by a
preponderance of the evidence that a person is acting as a
vehicle dealer without possessing a vehicle dealer
certificate { + or is acting as a vehicle salesperson without
possessing a vehicle salesperson certificate + }. The court shall
also award reasonable costs and disbursements, attorney and
enforcement fees.
SECTION 9. ORS 822.009 is amended to read:
822.009. (1) The Department of Transportation may levy and
collect a civil penalty, in an amount not to exceed $1,000 for
each violation, against any person who has a vehicle dealer
certificate { + or vehicle salesperson certificate + } if it
finds that the dealer { + or salesperson + } has violated any
provisions of the Oregon Vehicle Code or of any rules adopted by
the department relating to the sale of vehicles, vehicle titling
or vehicle registration.
(2) The department may levy and collect a civil penalty, in an
amount not to exceed $5,000 for each vehicle improperly sold,
brokered, exchanged or offered or displayed for sale, against any
person if it finds that the person is in violation of:
(a) ORS 822.005 (1); { - or - }
{ + (b) Section 2 of this 2007 Act; or + }
{ - (b) - } { + (c) + } Any rules adopted by the department
relating to the sale of vehicles and the person is not subject to
subsection (1) of this section.
SECTION 10. ORS 822.045 is amended to read:
822.045. (1) A vehicle dealer improperly conducts a vehicle
dealer business and is subject to the penalties under this
section if the vehicle dealer commits any of the following
offenses:
(a) A vehicle dealer commits the offense of failure to obtain a
supplemental vehicle dealer certificate if the vehicle dealer
opens any additional place of business using the same business
name as a place of business approved under a vehicle dealer
certificate without first obtaining a supplemental dealer
certificate under ORS 822.040.
(b) A vehicle dealer commits the offense of failure to obtain a
corrected vehicle dealer certificate if the dealer moves a place
of business or changes the business name without first obtaining
a corrected dealer certificate under ORS 822.040.
(c) A vehicle dealer commits the offense of failure to maintain
proper vehicle dealer records if the dealer does not keep records
or books with all of the following information concerning any
used or secondhand vehicles or campers the dealer deals with:
(A) A record of the purchase, sale or exchange or of the
dealer's receipt for purpose of sale.
(B) A description of the vehicle or camper.
(C) The name and address of the seller, the purchaser and the
alleged owner or other person from whom the vehicle or camper was
purchased or received or to whom it was sold or delivered.
(D) For motor vehicles, the vehicle identification number and
any other numbers or identification marks as may be thereon and a
statement that a number has been obliterated, defaced or changed,
if such is a fact.
(E) For trailers and campers, the vehicle identification number
and any other numbers or identification marks as may be thereon.
(F) A duly assigned certificate of title or other primary
ownership record or a bill of sale from the registered owner of
the vehicle or camper from the time of delivery to the dealer
until the dealer disposes of the vehicle or camper. If title is
issued for the vehicle in a form other than a certificate, or if
the primary ownership record is in a form other than a document,
a dealer shall keep records in accordance with rules adopted by
the Department of Transportation for the purpose of complying
with this subparagraph.
(d) A vehicle dealer commits the offense of failure to allow
administrative inspection if the dealer refuses to allow the
department to conduct an inspection under ORS 822.035 at any time
during normal business hours.
(e) A vehicle dealer commits the offense of failure to allow
police inspection if the dealer refuses to allow any police
officer to conduct an inspection under ORS 810.480 at any time
during normal business hours.
(f) A vehicle dealer commits the offense of illegal use of
dealer vehicle for hire if the dealer allows any vehicle operated
under vehicle dealer registration to be loaned or rented with or
without driver for hire or direct compensation.
(g) A vehicle dealer commits the offense of improper use of
dealer plates or devices if the dealer or employee of the dealer
causes or permits the display or use of any special vehicle
dealer registration plate or device on any vehicle not owned or
controlled by the dealer.
(h) A person commits the offense of improper display of dealer
plates if the person operates over and along the highways of this
state any unregistered vehicle owned or controlled by the dealer
and any dealer plates issued are not displayed in the manner
provided in ORS 803.540 for the display of registration plates.
(i) A vehicle dealer commits the offense of failure to exhibit
the dealer certificate if the dealer fails to permanently exhibit
the certificate at the place of business of the person at all
times while the certificate is in force.
(j) Except as provided in subsection (2) of this section, a
vehicle dealer commits the offense of failure to provide clear
title if:
(A) Within 15 days of transfer of any interest in a vehicle or
camper to the dealer by a consumer, the dealer fails to satisfy:
(i) The interest of any person from whom the dealer purchased
or obtained the vehicle or camper;
(ii) The interest of any person from whom the person described
in sub-subparagraph (i) of this subparagraph leased the vehicle
or camper; and
(iii) All security interests in the vehicle or camper entered
into prior to the time of transfer.
(B) Within 15 days of receiving clear title to a vehicle or
camper from another dealer, the purchasing dealer fails to
satisfy the interest of the selling dealer.
(k) Except as provided in subsection (3) of this section, a
vehicle dealer commits the offense of failure to furnish
certificate of title or application for title if, within 90
calendar days of transfer of any interest in a vehicle or camper
by the dealer, the dealer has failed to:
(A) Furnish the certificate of title or other primary ownership
record for the vehicle or camper and any release thereon or, if
title has been issued or is to be issued in a form other than a
certificate, any information or documents required by rule of the
department, to the security interest holder next named, if any,
otherwise to the lessor or, if none, to the purchaser; or
(B) Submit to the department in a manner that complies with any
applicable statutes and rules, an application for title on behalf
of the person to whom the title is to be furnished or whose name
is to be shown on the title record.
(L) A vehicle dealer commits the offense of failure to maintain
bond or letter of credit coverage if the dealer permits a bond or
letter of credit to lapse during the period that the bond or
letter of credit is required under ORS 822.020 or 822.040 or if
the dealer fails to purchase a bond or letter of credit required
by ORS 822.030.
(m) A person commits the offense of acting as a vehicle dealer
while under revocation, cancellation or suspension if the person
conducts business as a vehicle dealer in this state and the
person's vehicle dealer certificate is revoked, canceled or
suspended, regardless of whether the person is licensed as a
vehicle dealer in another jurisdiction. This paragraph does not
apply if the person has other current, valid dealer certificates
issued in this state.
(n) A vehicle dealer commits the offense of improper display of
a vehicle for advertising purposes if the dealer displays a
vehicle at a location other than the dealer's place of business
for the purpose of advertising and the dealer does not comply
with the provisions of ORS 822.040 (4).
{ + (o) A vehicle dealer commits the offense of employing an
uncertified vehicle salesperson if the vehicle dealer employs a
person to buy, sell, trade or exchange vehicles either outright
or by means of any conditional sale, bailment, lease, security
interest or consignment and the person does not hold a vehicle
salesperson certificate issued under section 3 of this 2007
Act. + }
(2) A dealer shall not be considered to have committed the
offense described in subsection (1)(j) of this section if the
dealer fails to satisfy an interest in a vehicle or camper that
arises from an inventory financing security interest for which
the dealer is the debtor.
(3) A dealer shall not be considered to have committed the
offense described in subsection (1)(k) of this section if the
dealer demonstrates that:
(a) The dealer has made a good faith effort to comply; and
(b) The dealer's inability to provide title is due to
circumstances beyond the dealer's control.
(4) The offenses described in this section are subject to the
following penalties:
(a) The offense described in this section, failure to obtain a
supplemental vehicle dealer certificate, is a Class A
misdemeanor.
(b) The offense described in this section, failure to obtain a
corrected vehicle dealer certificate, is a Class A misdemeanor.
(c) The offense described in this section, failure to maintain
proper vehicle dealer records, is a Class A misdemeanor.
(d) The offense described in this section, failure to allow
administrative inspection, is a Class A misdemeanor.
(e) The offense described in this section, failure to allow
police inspection, is a Class A misdemeanor.
(f) The offense described in this section, illegal use of
dealer vehicle for hire, is a Class B traffic violation.
(g) The offense described in this section, improper use of
dealer plates or devices, is a Class D traffic violation.
(h) The offense described in this section, improper display of
dealer plates, is a Class B traffic violation.
(i) The offense described in this section, failure to exhibit
the dealer certificate, is a Class A misdemeanor.
(j) The offense described in this section, failure to provide
clear title, is a Class A misdemeanor.
(k) The offense described in this section, failure to furnish
certificate of title or application for title, is a Class A
misdemeanor.
(L) The offense described in this section, failure to maintain
bond or letter of credit coverage, is a Class A misdemeanor.
(m) The offense described in this section, acting as a vehicle
dealer while under revocation, cancellation or suspension, is a
Class A misdemeanor.
(n) The offense described in this section, improper display of
a vehicle for advertising purposes, is a Class A misdemeanor.
{ + (o) The offense described in this section, employing an
uncertified vehicle salesperson, is a Class B violation. + }
SECTION 11. ORS 822.700 is amended to read:
822.700. (1) Fee for issuance of dismantler certificates:
(a) $450, for an original dismantler certificate covering a
single place of business issued under ORS 822.110;
(b) $90, for a supplemental certificate for each additional
place of business to be covered by that certificate and operated
under the same name; and
(c) $30, for each duplicate dismantler certificate issued under
ORS 822.110.
(2) Fee for renewal of dismantler certificate under ORS
822.125, $450.
(3) Fee for original issuance of vehicle dealer certificate
under ORS 822.020:
(a) $958, for a certificate covering a single place of
business;
(b) $230, for each additional place of business to be covered
by the certificate and operated under the same name; and
(c) $30, for each corrected vehicle dealer certificate issued
under ORS 822.040.
(4) Fee for renewal of vehicle dealer certificate under ORS
822.040:
(a) $958, for renewal of a vehicle dealer certificate covering
a single place of business; and
(b) $230, for each additional place of business to be covered
by the certificate and operated under the same name.
(5) Fee for issuance of towing business certificate under ORS
822.205, $17 for each vehicle used for towing or recovery
purposes.
(6) Fee for renewal of towing business certificate under ORS
822.210, $17 for each vehicle used for towing or recovery
purposes.
(7) Fee for issuance of vehicle transporter certificate under
ORS 822.310, $150.
(8) Fee for renewal of vehicle transporter certificate under
ORS 822.310, $150.
(9) Fee for issuance of driver training instructor certificate
under ORS 822.530, $100.
(10) Fee for renewal of driver training certificate under ORS
822.530, $100.
(11) Fee for issuance of commercial driver training school
certificate under ORS 822.515, $200.
(12) Fee for renewal of commercial driver training school
certificate under ORS 822.515, $200.
(13) Fee for issuance of appraiser certificate under ORS
819.230, $50.
(14) Fee for renewal of an appraiser certificate under ORS
819.230, $50.
{ + (15) Fee for initial issuance of a vehicle salesperson
certificate under section 3 of this 2007 Act, $___.
(16) Fee for renewal of a vehicle salesperson certificate under
section 6 of this 2007 Act, $___. + }
SECTION 12. ORS 184.642 is amended to read:
184.642. (1) The Department of Transportation Operating Fund is
established in the State Treasury separate and distinct from the
General Fund and separate and distinct from the State Highway
Fund. Except as otherwise provided in subsection (3)(e) of this
section, moneys in the Department of Transportation Operating
Fund are continuously appropriated to the Department of
Transportation to pay expenses of the department that are
incurred in the performance of functions the department is
statutorily required or authorized to perform and that may not
constitutionally be paid from revenues described in section 3a,
Article IX of the Oregon Constitution.
(2) The operating fund shall consist of the following:
(a) Taxes paid on motor vehicle fuels or on the use of fuel in
a motor vehicle for which a person is entitled to a refund under
a provision described in this paragraph but for which no refund
is claimed, in amounts determined under ORS 184.643. This
paragraph applies to refund entitlements described in ORS 319.280
(1)(a) and (e), 319.320 (1)(a) and 319.831 (1)(b).
(b) Fees collected under ORS 822.700 for issuance or renewal
of:
(A) Dismantler certificates;
(B) Vehicle dealer certificates;
(C) Driver training certificates;
(D) Commercial driver training school certificates;
{ - and - }
(E) Appraiser certificates { - . - } { + ; and
(F) Vehicle salesperson certificates. + }
(c) Fees collected under ORS 822.705.
(d) Moneys from civil penalties imposed under ORS 822.009.
(e) Fees collected under ORS 807.410 for identification cards.
(f) Fees collected by the department for issuance of permits to
engage in activities described in ORS 374.305 to 374.330 that are
not directly connected to the construction, reconstruction,
improvement, repair, maintenance, operation and use of a public
highway, road, street or roadside rest area.
(g) Interest and other earnings on moneys in the operating
fund.
(3) Moneys in the Department of Transportation Operating Fund
established by subsections (1) and (2) of this section may be
spent only as follows:
(a) Taxes described in subsection (2)(a) of this section may be
used only for payment of expenses of the Department of
Transportation that:
(A) May not constitutionally be paid from revenues described in
section 3a, Article IX of the Oregon Constitution;
(B) Are incurred in the performance of functions the department
is statutorily required or authorized to perform; and
(C) Are not payable from moneys described in paragraphs (b) to
(e) of this subsection.
(b) Fees collected under subsection (2)(b) of this section may
be used only to carry out the regulatory functions of the
department relating to the businesses that generate the fees.
(c) Fees collected under ORS 822.705 may be used only for the
purposes described in ORS 822.705.
(d) Moneys collected from civil penalties imposed under ORS
822.009 may be used only for regulation of vehicle dealers { +
and vehicle salespersons + }.
(e) Moneys collected under ORS 807.410 from fees for
identification cards shall be used first to pay the expenses of
the department for performing the functions of the department
relating to identification cards. After paying the expenses
related to identification cards, the department shall transfer
the remaining moneys collected under ORS 807.410 to the Elderly
and Disabled Special Transportation Fund established in ORS
391.800.
(f) Moneys from the permits described in subsection (2)(f) of
this section may be used for costs of issuing the permits and
monitoring the activities that generate the fees.
(g) Moneys from interest and other earnings on moneys in the
operating fund may be used for any purpose for which other moneys
in the fund may be used.
SECTION 13. { + Sections 1 to 7 of this 2007 Act and the
amendments to ORS 184.642, 822.007, 822.009, 822.045 and 822.700
by sections 8 to 12 of this 2007 Act become operative July 1,
2008. + }
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