Chapter 277 Oregon Laws 1999

Session Law

AN ACT

HB 3001

Relating to motor vehicle dealers; creating new provisions; amending ORS 822.020, 822.025 and 822.040; and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1. Section 2 of this 1999 Act is added to and made a part of ORS chapter 822.

SECTION 2. (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 (3) 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 (3) of this section prior to submitting an application for the renewal certificate.

(2) The education requirements in subsection (1) of this section do not apply to an applicant for a vehicle dealer certificate under ORS 822.020 or 822.040 if the applicant is:

(a) A franchised dealer of nationally advertised and recognized motor vehicles;

(b) A franchised dealer of new recreational vehicles;

(c) A nationally franchised or corporate-owned motor vehicle rental company;

(d) A dealer of 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.

(3) The education programs and test required in subsection (1) of this section shall be developed by motor vehicle industry organizations including, but not limited to, the Oregon Independent Auto Dealers Association and shall be submitted to the Department of Transportation for approval. The department shall approve a program or test if it pertains to the motor vehicle industry and includes, but is not limited to, state and federal law in 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.

(4) The education programs and test 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 Department of Transportation as required in subsection (3) of this section.

SECTION 3. ORS 822.020 is amended to read:

822.020. The Department of Transportation shall issue a vehicle dealer certificate to any person if the person meets all of the following requirements:

(1) The person must complete the application for a dealer certificate described under ORS 822.025.

(2) The person must deliver to the department a bond or letter of credit that meets the requirements under ORS 822.030.

(3) The person must deliver to the department a certificate of insurance that meets the requirements established by ORS 822.033.

(4) The person must pay the fee required under ORS 822.700 for issuance of a vehicle dealer certificate.

(5) The person must certify completion of the education and test requirements of section 2 (1) of this 1999 Act if the person is a dealer subject to the education and test requirements.

SECTION 4. ORS 822.025 is amended to read:

822.025. An application for a vehicle dealer certificate issued by the Department of Transportation under ORS 822.020 shall be in a form prescribed by the department and shall contain all of the following:

(1) The names and residence addresses of the persons applying:

(a) If the applicant is a firm or partnership, the name of the firm or partnership with the names and residence addresses of all members thereof.

(b) If the applicant is a corporation, the name of the corporation with the names of the principal officers and their residence addresses and the name of the state under whose laws the corporation is organized.

(2) The name under which the business will be conducted.

(3) The street address, including city and county in Oregon, where the business will be conducted.

(4) Whether or not used vehicles are handled.

(5) A certificate from the applicant showing that the applicant will act as a vehicle dealer and will conduct business at the location given on the application.

(6)(a) A certificate signed by a person authorized by the local governing body to do so, stating that the location of the business as given in the application for a certificate complies with any land use ordinances or business regulatory ordinances of the city or county.

(b) If the business will be located within a residential zone and the application indicates that the dealer will sell or display only manufactured homes, as defined in ORS 446.003, the local governing body may condition the approval of the application under this subsection by:

(A) Prohibiting sale or display of other types of vehicles at the location; or

(B) Requiring that the manufactured homes that are on display comply with architectural and aesthetic standards regulating permanent placement of manufactured homes in the residential zone.

(7) Any information required by the department to efficiently administer the registration of vehicles and regulation of dealers or other relevant information required by the department.

(8) A certificate from the provider of each education program or test showing that the applicant has completed the education programs and passed the test required under section 2 (1) of this 1999 Act if the applicant is a dealer subject to the education and test requirements.

SECTION 5. 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 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.

(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. 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 one-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 annual fee for renewal under ORS 822.700.

(b) Delivers to the department a bond that meets the requirements under ORS 822.030.

(d) Provides the names of all partners or corporate officers.

(e) Certifies completion of the education requirements of section 2 (1) of this 1999 Act if the person is a dealer subject to the education requirements.

(5) The department may adopt suitable rules for the issuance and renewal of certificates under this section and ORS 822.020.

SECTION 6. This 1999 Act takes effect on January 1, 2000.

Approved by the Governor June 18, 1999

Filed in the office of Secretary of State June 18, 1999

Effective date January 1, 2000

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