Bill Text: OR SB533 | 2011 | Regular Session | Introduced
Bill Title: Relating to vehicle dealer certification.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [SB533 Detail]
Download: Oregon-2011-SB533-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 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 2768
Senate Bill 533
Sponsored by Senator STARR (at the request of Oregon Vehicle
Dealer Association) (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.
Eliminates delivery of letter of credit as method by which
surety may be secured for vehicle dealer certification. Reduces
bond amount that dealer must secure for vehicle dealer
certification. Reduces maximum amount available under bond that
may be used to pay claims by persons other than retail customers
of dealer.
A BILL FOR AN ACT
Relating to vehicle dealer certification; creating new
provisions; and amending ORS 822.020, 822.030 and 822.045.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 822.020 is amended to read:
822.020. Except as provided in ORS 822.035 (8), 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 ORS 822.027 (1) if the person is a dealer
subject to the education and test requirements.
SECTION 2. ORS 822.030 is amended to read:
822.030. (1) A bond { - or letter of credit - } required to
qualify for a vehicle dealer certificate under ORS 822.020 or to
qualify for renewal of a certificate under ORS 822.040 must
comply with all of the following:
(a) The bond shall have a corporate surety licensed to do
business within this state. { - A letter of credit shall 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 - } shall continue 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) Except as otherwise provided in this paragraph, the bond
{ - or letter of credit - } shall be in the following sum:
(A) If the applicant is seeking a certificate to be a dealer
exclusively in motorcycles, mopeds, Class I all-terrain vehicles
or snowmobiles or any combination of those vehicles, the bond
{ - or letter of credit - } shall be for $2,000.
(B) Except as provided in subparagraph (A) of this paragraph,
if the applicant is seeking a certificate to be a vehicle dealer,
the bond { - or letter of credit - } shall be for
{ - $40,000 - } { + $20,000 + } for each year the certificate
is valid.
(d) The bond { - or letter of credit - } described in this
subsection shall be approved as to form by the Attorney General.
(e) The bond { - or letter of credit - } must be conditioned
that the person issued the certificate shall conduct business as
a vehicle dealer without fraud or fraudulent representation and
without violating any provisions of the vehicle code relating to
vehicle registration, vehicle permits, the transfer or alteration
of vehicles or the regulation of vehicle dealers.
(f) The bond { - or letter of credit - } must be filed and
held in the office of the department.
(g) The vehicle dealer shall purchase a bond { - or letter of
credit - } under this subsection annually on or before each
anniversary of the issuance of the vehicle dealer's certificate.
(2) Any person shall have a right of action against a vehicle
dealer { - , - } { + and + } against the surety on the vehicle
dealer'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 dealer's fraud, fraudulent representations
or violations of provisions of the vehicle code relating to:
(a) Vehicle registration;
(b) Vehicle permits;
(c) The transfer or alteration of vehicles; or
(d) The regulation of vehicle dealers.
(3) Notwithstanding subsection (2) of this section, the maximum
amount available under a bond described in subsection (1)(c)(B)
of this section for the payment of claims by persons other than
retail customers of the dealer is { - $20,000 - }
{ + $1,000 + }.
(4) If the certificate of a vehicle dealer is not renewed or is
voluntarily or involuntarily canceled, the sureties on the bond
{ - and the issuer of the letter of credit - } are relieved
from liability that accrues after the department cancels the
certificate.
SECTION 3. 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).
(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.
SECTION 4. { + (1) The amendments to ORS 822.030 by section 2
of this 2011 Act apply to bonds acquired on or after the
effective date of this 2011 Act.
(2) The amendments to ORS 822.030 by section 2 of this 2011 Act
apply to claims by persons other than retail customers of a
dealer filed on or after the effective date of this 2011 Act.
(3) The amendments to ORS 822.020, 822.030 and 822.045 by
sections 1, 2 and 3 of this 2011 Act do not apply to letters of
credit acquired before the effective date of this 2011 Act. + }
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