Bill Text: OR SB614 | 2013 | Regular Session | Introduced


Bill Title: Relating to education requirements for vehicle dealers.

Spectrum: Committee Bill

Status: (Failed) 2013-07-08 - In committee upon adjournment. [SB614 Detail]

Download: Oregon-2013-SB614-Introduced.html


     77th OREGON LEGISLATIVE ASSEMBLY--2013 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 3122

                         Senate Bill 614

Sponsored by COMMITTEE ON BUSINESS AND TRANSPORTATION

                             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.

  Changes education requirements for vehicle dealers.

                        A BILL FOR AN ACT
Relating to education requirements for vehicle dealers; creating
  new provisions; and amending ORS 822.027 and 822.040.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 822.027 is amended to read:
  822.027. (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   { - (4) - }
 { +  (3) + } of this section and pass a test   { - within one
year prior to - }  { +  before + } 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 (4) of this section prior to submitting
an application for the renewal certificate. - }
  (2) The education   { - requirements - }  { +  requirement + }
in subsection
  { - (1)(a) - }  { +  (1) + } of this section   { - do - }  { +
does + } not apply to an applicant for a vehicle dealer
certificate under ORS 822.020   { - or 822.040 - } if, at the
time of application, the applicant holds another certificate
issued under ORS 822.020   { - or 822.040 - } .
    { - (3) The continuing education requirements of subsection
(1)(b) of this section do not apply to an applicant for renewal
of a vehicle dealer certificate under ORS 822.040 if the
applicant is: - }
    { - (a) A dealer having a franchise in this state for
nationally advertised and recognized motor vehicles; - }
    { - (b) A dealer having a franchise in this state for new
recreational vehicles; - }
    { - (c) A motor vehicle rental company having a national
franchise under the ownership of a corporation that operates
throughout the United States; or - }
    { - (d) A national auction company that holds a vehicle
dealer certificate and a dismantler certificate whose primary
activity in this state is the sale or disposition of totaled
vehicles. - }
    { - (4) - }  { +  (3) + } Education programs and the test
required in subsection (1) of this section may be developed by
any motor vehicle industry organization { + , + }
 { - including, but not limited to, the Oregon Independent Auto
Dealers Association - }   { + accredited educational institution,
private vocational school, correspondence school or trade
association + } and shall be submitted to the advisory committee
established under ORS 802.370 for approval. The committee shall
approve any program or test that pertains to the motor vehicle
industry and includes state and federal law in at least 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.
    { - (5) Education programs and the test required in
subsection (1) of this section 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 advisory committee
established under ORS 802.370 as required in subsection (4) of
this section. - }
  SECTION 2. 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. 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) 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. For purposes of this subsection,
'place of business' includes a recreational vehicle service
facility as defined in ORS 822.082. 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) The department may establish by rule the requirements a
holder of a vehicle dealer certificate must meet to display a
vehicle at a location other than the dealer's place of business
for the purpose of advertising without first obtaining a
supplemental certificate from the department. In addition to any
requirements established by the department by rule, all of the
following apply:
  (a) The dealer must have a signed agreement with the owner of
the property or the person using the property where the vehicle
is to be displayed stating that the vehicle is for an advertising
promotion only and that the processing of any documents or other
activities required to purchase a vehicle must be done at the
dealer's place of business.
  (b) The vehicle on display must be clearly marked with the
dealer's name and contact information and a notice that the
vehicle is displayed only for the purpose of advertising and may
be purchased only at the dealer's place of business.
  (c) Displaying the vehicle must not violate any zoning laws or
ordinances.
  (d) The dealer or the dealer's employees may not remain with
the vehicle except for the purpose of moving the vehicle in or
out of the display area.
  (5) A vehicle dealer certificate is valid for a three-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 fee for renewal under ORS 822.700.
  (b) Delivers to the department a bond that meets the
requirements under ORS 822.030.
  (c) Delivers to the department a certificate of insurance that
meets the requirements under ORS 822.033.
  (d) Provides the names of all partners or corporate officers.
    { - (e) Certifies completion of the education requirements of
ORS 822.027 (1) if the person is a dealer subject to the
education requirements. - }
    { - (f) - }  { +  (e) + } If the dealer offers new
recreational vehicles for sale under the certificate, certifies
that the dealer maintains a recreational vehicle service facility
as listed in the dealer certificate application described in ORS
822.025.
  (6) The department may adopt suitable rules for the issuance
and renewal of certificates under this section and ORS 822.020.
  SECTION 3.  { + The amendments to ORS 822.027 and 822.040 by
sections 1 and 2 of this 2013 Act apply to applications for
vehicle dealer certificates submitted on or after the effective
date of this 2013 Act. + }
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