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 1955
 
                           A-Engrossed
 
                         House Bill 2438
                  Ordered by the House March 22
            Including House Amendments dated March 22
 
Sponsored by Representative GARRARD; Representative SCHAUFLER (at
  the request of Oregon Vehicle Dealer Association)
 
 
                             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.
 
    { - Decreases required vehicle dealer bond amount. - }
    { - Removes requirement that vehicle dealer give specified
disclosure notice with vehicle sold on consignment. - }
    { - Provides that motor vehicle repair shop is exempt from
requirement to hold vehicle dealer certificate only if motor
vehicle repair shop acquires vehicles from insurance company at
auction held by person who holds vehicle dealer certificate and
sells repaired vehicles to person who holds vehicle dealer
certificate. - }
    { - Requires motor vehicle repair shop to keep specific
records of vehicles being sold to person holding vehicle dealer
certificate. Imposes civil penalty of up to $1,000 for violation
of record keeping provisions. - }
   { +  Removes requirement that vehicle dealer provide certain
title information on disclosure notice given to purchaser of
vehicle sold on consignment. + }
 
                        A BILL FOR AN ACT
Relating to vehicle dealers; creating new provisions; and
  amending ORS 822.060.
Be It Enacted by the People of the State of Oregon:
  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, Salem, Oregon.
  (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 SALE
 
____________ (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. + }
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