Bill Text: OR HB4035 | 2012 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

---

Bill Title: Relating to secured transactions in personal property; and declaring an emergency.

Spectrum: Unknown

Status: (Passed) 2012-03-05 - Chapter 12, (2012 Laws): Effective date March 5, 2012. [HB4035 Detail]

Download: Oregon-2012-HB4035-Amended.html

---

     76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session

HA to HB 4035

LC 106/HB 4035-2

                       HOUSE AMENDMENTS TO
                         HOUSE BILL 4035

               By COMMITTEE ON BUSINESS AND LABOR

                           February 9

  On page 1 of the printed bill, line 4, delete 'and 79.0619 '
and insert ', 79.0619, 803.030 and 803.097'.
  On page 26, delete lines 41 through 45 and delete pages 27
through 30 and insert:
  '  { +  SECTION 20. + }  { + Section 21 of this 2012 Act is
added to and made a part of the Oregon Vehicle Code. + }
  '  { +  SECTION 21. + }  { +  ' Special mobile equipment' means
a vehicle that is not designed primarily to transport persons or
property, that is operated on a highway only incidentally and
that is used primarily on a farm, for timber production and
harvest, for construction work or for lawn and grounds care. + }
  '  { +  SECTION 22. + } ORS 803.030 is amended to read:
  ' 803.030. This section establishes exemptions from the
requirements under ORS 803.025 to obtain title issued by this
state. The exemptions are subject to ORS 803.040. The exemptions
are in addition to any exemptions under ORS 801.026. Vehicles
exempted by this section from the requirements to be titled by
this state are not prohibited from being titled by this state if
titling is permitted under ORS 803.035. The exemptions are
partial or complete as provided in the following:
  ' (1) Title from this state is not required for a vehicle
unless the vehicle is operated on a highway in this state.
  ' (2) Title from this state is not required unless a vehicle is
operated under a registration number of this state.
  ' (3) Snowmobiles and Class I, Class III and Class IV
all-terrain vehicles are not subject to the requirements under
ORS 803.025. The requirements and procedures for titling
snowmobiles are as provided under ORS 821.060 and 821.070.
  ' (4) Road rollers, farm tractors and traction engines are
exempt from the requirements for title.
  ' (5) Trolleys are exempt from the requirements for title.
  ' (6) Bicycles are exempt from the requirements for title.
  ' (7) United States Government owned and operated motor
vehicles and trailers are exempt from the requirements for title.
  ' (8) Implements of husbandry, well drilling machinery,
emergency fire apparatus providing public fire protection and
wheelchairs are exempt from the requirements for title.
  ' (9) Except as provided in subsection (23) of this section,
fixed load vehicles are exempt from the requirements for title
while operated within the immediate construction project, as
described in the governmental agency contract, in the
construction or reconstruction of state or county roads, highways
or city streets.
  ' (10) Motor vehicles designed to operate at a loaded weight
over 8,000 pounds, trailers and equipment are exempt from
requirements for title while:
  ' (a) Owned, leased, contracted or requisitioned by the State
Forester, State Board of Forestry, their contractors under ORS
chapter 477, or the federal government; and

  ' (b) Being used for the purposes of forest protection and fire
suppression under ORS chapter 477 or a similar federal statute,
including movement of the vehicles to and from the work area.
  ' (11) Farm trailers are exempt from requirements for title
when the operation or movement of the vehicle upon the highways
is incidental to its use in an agricultural operation.
  ' (12) Golf carts operated under an ordinance adopted under ORS
810.070 are exempt from requirements for title.
  ' (13) Golf carts or similar vehicles are exempt from
requirements for title when:
  ' (a) They have not less than three wheels in contact with the
ground;
  ' (b) They have an unloaded weight of less than 1,300 pounds;
  ' (c) They are designed to be and are operated at not more than
15 miles per hour; and
  ' (d) They are operated by persons with disabilities.
  ' (14) The nonresident owners of vehicles currently registered
and titled in any other country, state or territory may operate
such vehicles over the highways of this state without complying
with the titling requirements under ORS 803.025. All of the
following apply to this subsection:
  ' (a) This subsection only provides an exemption so long as the
owner satisfactorily shows that the owner is not a resident of
this state or has been a resident of this state for less than 30
days. For the purpose of this paragraph, a person is a resident
of this state if the person meets the residency requirements
described in ORS 803.200.
  ' (b) The exemption under this subsection applies to vehicles
granted exemptions under ORS 802.500, 802.520 or 826.005, unless
otherwise provided under paragraph (c) of this subsection.
  ' (c) Except as otherwise provided in this paragraph, a vehicle
operated over the highways of this state for compensation or
profit must comply with the titling requirements under ORS
803.025 in the same manner as required of nontitled vehicles. The
following vehicles are not subject to this paragraph:
  ' (A) Vehicles operated under reciprocal registration
exemptions established under ORS 802.500 or 826.005.
  ' (B) Vehicles operated under an exemption established under
ORS 802.520.
  ' (C) Vehicles that are proportionally registered under an
agreement established under ORS 826.007, and according to the
procedures established under ORS 826.009 or 826.011.
  ' (D) Any vehicle if duly registered and titled under the laws
of the state or country of which the owner is a bona fide
resident to the extent that in the foreign country, state,
territory or federal district where the owner resides like
exemptions and privileges are granted vehicles duly registered
and titled under the laws of this state and owned by residents of
this state.
  ' (d) If no exemptions from titling requirements are in effect
under ORS 802.500, 802.520, 826.005 or 826.007 with respect to
another jurisdiction, any vehicle properly registered and titled
in such other jurisdiction and for which evidence of compliance
is supplied shall receive, when operated in this state, the same
exemptions, benefits and privileges granted by such other
jurisdictions to vehicles properly registered and titled in this
state. Reciprocity extended under this paragraph shall apply to
commercial vehicles only when engaged exclusively in interstate
commerce.
  ' (e) Any vehicle operated under dealer registration plates
issued by another state, country, province, territory or the
District of Columbia is subject to this subsection.
  ' (15) Vehicle dealers issued certificates under ORS 822.020
may use and operate untitled vehicles as provided under ORS
822.040.

  ' (16) Towing businesses issued certificates under ORS 822.205
may tow untitled vehicles as provided under ORS 822.210.
  ' (17) Vehicle transporters issued certificates under ORS
822.310 may transport untitled vehicles as provided in ORS
822.310.
  ' (18) Untitled vehicles may be operated under trip permits
described under ORS 803.600 or under permits described under ORS
803.610 to 803.625.
  ' (19) Vehicles that are registered by the United States
Department of State and that are owned or operated by foreign
nationals with diplomatic immunity are exempt from the
requirements for title.
  ' (20)(a) Vehicles that are registered under the proportional
registration provisions of ORS chapter 826 and are titled in a
jurisdiction other than Oregon are exempt from the requirements
for title.
  ' (b) A trailer that is registered under the proportional
registration provisions of ORS chapter 826 and titled in a
jurisdiction other than Oregon shall remain exempt from the
requirements for title in Oregon if the trailer is registered
when the other jurisdiction removes its exception to proportional
registration requirements for the trailer.
  ' (21) Converter dollies and tow dollies are exempt from the
requirements for title.
  ' (22) Electric personal assistive mobility devices are exempt
from the requirements for title.
  ' (23) Road machinery that is operated at the direction of a
road authority is exempt from the requirements for title. The
exemption under this subsection also applies when the operation
of road machinery upon a highway or an alley is incidental to its
use in a highway maintenance operation.
  '  { +  (24) Special mobile equipment is exempt from the
requirements for title. + }
  '  { +  SECTION 23. + } ORS 803.097 is amended to read:
  ' 803.097. (1) Except as provided in subsection (5) of this
section, the exclusive means for perfecting a security interest
in a vehicle is by application for notation of the security
interest on the title in accordance with this section. The
application may accompany the application for a title or may be
made separately at any time prior to issuance of title and must
be accompanied by evidence of ownership as defined by the
Department of Transportation by rule unless the department is in
possession of evidence of ownership when it receives the
application. If title to the vehicle has been issued in a form
other than a certificate, and the title reflects a security
interest, the application for perfection shall include
authorization from the previous security interest holder for the
new security interest to be recorded on the title. Authorization
under this subsection is not required if:
  ' (a) A release of interest is submitted by the prior security
interest holder or the department is otherwise satisfied that the
prior holder no longer holds an interest or is otherwise not
entitled to title to the vehicle;
  ' (b) The security interest is being added to the title in
conjunction with the cancellation of previous title or other
action the department takes to correct ownership information
reflected on a title; or
  ' (c) Title is being transferred by operation of law.
  ' (2) When the department processes an application for a
security interest the department shall mark on the application or
otherwise indicate on the record the date the application was
first received by the department. The department shall determine
by rule what constitutes receipt of an application for purposes
of this subsection.
  ' (3) If the department has the evidence required by subsection
(1) of this section and if the application contains the name of
each owner of the vehicle, the name and address of the secured
party and the vehicle identification number of the collateral,
the security interest is perfected as of the date marked on the
application or indicated in the record by the department. If the
application does not contain the information required by this
subsection, or if the department does not have the required
evidence, the department shall indicate on the application or on
the record that the date placed on the application or the record
pursuant to subsection (2) of this section is not the date of
perfection of the security interest.
  ' (4) The security interest remains effective until released or
terminated by the secured party.
  ' (5) A security interest in a vehicle may not be perfected as
described under this section but is subject to the perfection
provisions under ORS chapter 79 if { + :
  ' (a) + } The debtor who granted the security interest is in
the business of selling vehicles and the vehicle constitutes
inventory held for sale or lease  { - . - }  { + ; or
  ' (b) The vehicle is exempt from titling requirements under ORS
803.030. + }
  '  { +  SECTION 24. + }  { + (1) Except as otherwise provided
in sections 21 and 24 to 31 of this 2012 Act, the amendments to
statutes by sections 1 to 19, 22 and 23 of this 2012 Act apply to
a transaction or lien within the scope of ORS 79.0102, 79.0105,
79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335,
79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518,
79.0521, 79.0607, 79.0619, 803.030 and 803.097, as amended by
sections 1 to 19, 22 and 23 of this 2012 Act, even if the
transaction or lien was entered into or created before the
operative date specified in section 32 of this 2012 Act.
  ' (2) The amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act do not affect an action, case or proceeding
commenced before the operative date specified in section 32 of
this 2012 Act. + }
  '  { +  SECTION 25. + }  { + (1) A security interest that is a
perfected security interest immediately before the operative date
specified in section 32 of this 2012 Act is a perfected security
interest under section 21 of this 2012 Act and under ORS 79.0102,
79.0105, 79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326,
79.0335, 79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516,
79.0518, 79.0521, 79.0607, 79.0619, 803.030 and 803.097, as
amended by sections 1 to 19, 22 and 23 of this 2012 Act, if after
the operative date specified in section 32 of this 2012 Act the
applicable requirements for attachment and perfection under the
amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act are satisfied without further action.
  ' (2) Except as otherwise provided in section 27 of this 2012
Act, if immediately before the operative date specified in
section 32 of this 2012 Act a security interest is a perfected
security interest but the applicable requirements for perfection
under the amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act are not satisfied on or before the operative
date specified in section 32 of this 2012 Act, the security
interest remains perfected thereafter only if the applicable
requirements for perfection under the amendments to statutes by
sections 1 to 19, 22 and 23 of this 2012 Act are satisfied within
one year after the operative date specified in section 32 of this
2012 Act. + }
  '  { +  SECTION 26. + }  { + A security interest that is an
unperfected security interest immediately before the operative
date specified in section 32 of this 2012 Act becomes a perfected
security interest:
  ' (1) Without further action on or after the operative date
specified in section 32 of this 2012 Act if the applicable
requirements for perfection under the amendments to statutes by

sections 1 to 19, 22 and 23 of this 2012 Act are satisfied before
or at that time; or
  ' (2) When the applicable requirements for perfection are
satisfied if the requirements are satisfied after that time. + }
  '  { +  SECTION 27. + }  { + (1) The filing of a financing
statement before the operative date specified in section 32 of
this 2012 Act is effective to perfect a security interest to the
extent that the filing would satisfy the applicable requirements
for perfection under the amendments to statutes by sections 1 to
19, 22 and 23 of this 2012 Act.
  ' (2) The amendments to statutes by sections 1 to 19, 22 and 23
of this 2012 Act do not render ineffective an effective financing
statement that, before the operative date specified in section 32
of this 2012 Act, is filed and satisfies the applicable
requirements for perfection under the law of jurisdiction
governing perfection as provided in ORS 79.0102, 79.0105,
79.0208, 79.0307, 79.0311, 79.0316, 79.0317, 79.0326, 79.0335,
79.0406, 79.0408, 79.0503, 79.0507, 79.0515, 79.0516, 79.0518,
79.0521, 79.0607, 79.0619, 803.030 and 803.097 as those statutes
existed before the operative date specified in section 32 of this
2012 Act. However, except as otherwise provided in subsections
(3) and (4) of this section and in section 28 of this 2012 Act,
the financing statement ceases to be effective:
  ' (a) If the financing statement is filed in this state, at the
time the financing statement would have ceased to be effective
had section 21 of this 2012 Act and the amendments to ORS
79.0102, 79.0105, 79.0208, 79.0307, 79.0311, 79.0316, 79.0317,
79.0326, 79.0335, 79.0406, 79.0408, 79.0503, 79.0507, 79.0515,
79.0516, 79.0518, 79.0521, 79.0607, 79.0619, 803.030 and 803.097
by sections 1 to 19, 22 and 23 of this 2012 Act not become
operative; or
  ' (b) If the financing statement is filed in another
jurisdiction, at the earlier of:
  ' (A) The time the financing statement would have ceased to be
effective under the law of the other jurisdiction; or
  ' (B) June 30, 2018.
  ' (3) The filing of a continuation statement after the
operative date specified in section 32 of this 2012 Act does not
continue the effectiveness of a financing statement filed before
the operative date specified in section 32 of this 2012 Act.
However, upon the timely filing of a continuation statement after
the operative date specified in section 32 of this 2012 Act and
in accordance with the law of the jurisdiction governing
perfection as provided in the amendments to statutes by sections
1 to 19, 22 and 23 of this 2012 Act, the effectiveness of a
financing statement filed in the same office in the jurisdiction
before the operative date specified in section 32 of this 2012
Act continues for the period provided by the law of the
jurisdiction.
  ' (4) Subsection (2)(b)(B) of this section applies to a
financing statement that, before the operative date specified in
section 32 of this 2012 Act, is filed against a transmitting
utility and satisfies the applicable requirements for perfection
under the law of the jurisdiction governing perfection as
provided in ORS 79.0102, 79.0105, 79.0208, 79.0307, 79.0311,
79.0316, 79.0317, 79.0326, 79.0335, 79.0406, 79.0408, 79.0503,
79.0507, 79.0515, 79.0516, 79.0518, 79.0521, 79.0607, 79.0619,
803.030 and 803.097, as those statutes existed before the
operative date specified in section 32 of this 2012 Act, only to
the extent that the amendments to statutes by sections 1 to 19,
22 and 23 of this 2012 Act provide that the law of a jurisdiction
other than the jurisdiction in which the financing statement is
filed governs perfection of a security interest in collateral
covered by the financing statement.
  ' (5) A financing statement that includes a financing statement
filed before the operative date specified in section 32 of this
2012 Act and a continuation statement filed before the operative
date specified in section 32 of this 2012 Act is effective only
to the extent that the financing statement satisfies the
requirements of ORS 79.0503, 79.0515, 79.0516, 79.0518 and
79.0521, as amended by sections 12, 14, 15, 16 and 17 of this
2012 Act, for an initial filing statement. A financing statement
that indicates that the debtor is a decedent's estate indicates
that the collateral is being administered by a personal
representative within the meaning of ORS 79.0503 (1)(b), as
amended by section 12 of this 2012 Act. A financing statement
that indicates that the debtor is a trust or is a trustee acting
with respect to property held in trust indicates that the
collateral is held in a trust within the meaning of ORS 79.0503
(1)(c), as amended by section 12 of this 2012 Act. + }
  '  { +  SECTION 28. + }  { + (1) The filing of an initial
filing statement in the office specified in ORS 79.0501 continues
the effectiveness of a financing statement filed before the
operative date specified in section 32 of this 2012 Act if:
  ' (a) The filing of an initial financing statement in the
office would be effective to perfect a security interest under
the amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act;
  ' (b) The financing statement filed before the operative date
specified in section 32 of this 2012 Act was filed in an office
in another state; and
  ' (c) The initial financing statement satisfies the provisions
of subsection (3) of this section.
  ' (2) The filing of an initial financing statement under
subsection (1) of this section continues the effectiveness of the
financing statement filed before the operative date specified in
section 32 of this 2012 Act:
  ' (a) If the initial financing statement is filed before the
operative date specified in section 32 of this 2012 Act, for the
period provided in ORS 79.0515, as that statute existed before
the operative date specified in section 32 of this 2012 Act, with
respect to an initial financing statement; and
  ' (b) If the initial financing statement is filed after the
operative date specified in section 32 of this 2012 Act, for the
period provided in ORS 79.0515, as amended by section 14 of this
2012 Act, with respect to an initial financing statement.
  ' (3) To be effective for purposes of subsection (1) of this
section, an initial financing statement must:
  ' (a) Satisfy the requirements of ORS 79.0501 to 79.0528 for an
initial financing statement;
  ' (b) Identify the financing statement that was filed before
the operative date specified in section 32 of this 2012 Act by
indicating the office in which the financing statement was filed
and providing the dates of filing and file numbers, if any, of
the financing statement and of the most recent continuation
statement filed with respect to the financing statement; and
  ' (c) Indicate that the financing statement filed before the
operative date specified in section 32 of this 2012 Act remains
effective. + }
  '  { +  SECTION 29. + }  { + (1) After the operative date
specified in section 32 of this 2012 Act, a person may add or
delete collateral covered by, continue or terminate the
effectiveness of, or otherwise amend the information provided in
a financing statement filed before the operative date specified
in section 32 of this 2012 Act only in accordance with the law of
the jurisdiction governing perfection as provided in the
amendments to statutes by sections 1 to 19, 22 and 23 of this
2012 Act. However, the effectiveness of a financing statement
filed before the operative date specified in section 32 of this
2012 Act may also be terminated in accordance with the law of the
jurisdiction in which the financing statement is filed.

  ' (2) Except as otherwise provided in subsection (3) of this
section, if the law of this state governs perfection of a
security interest, the information in a financing statement filed
before the operative date specified in section 32 of this 2012
Act may be amended after the operative date specified in section
32 of this 2012 Act only if:
  ' (a) The financing statement filed before the operative date
specified in section 32 of this 2012 Act and an amendment are
filed in the office specified in ORS 79.0501;
  ' (b) An amendment is filed in the office specified in ORS
79.0501 concurrently with or after the filing in the office of an
initial financing statement that satisfies section 28 (3) of this
2012 Act; or
  ' (c) An initial financing statement that provides the
information as amended and satisfies section 28 (3) of this 2012
Act is filed in the office specified in ORS 79.0501.
  ' (3) If the law of this state governs perfection of a security
interest, the effectiveness of a financing statement filed before
the operative date specified in section 32 of this 2012 Act may
be continued only under section 27 (3) and (5) or 28 of this 2012
Act.
  ' (4) Whether or not the law of this state governs perfection
of a security interest, the effectiveness of a financing
statement filed in this state before the operative date specified
in section 32 of this 2012 Act may be terminated after the
operative date specified in section 32 of this 2012 Act by filing
a termination statement in an office in which the financing
statement filed before the operative date specified in section 32
of this 2012 Act is filed unless an initial financing statement
that satisfies section 28 (3) of this 2012 Act has been filed in
the office specified as the office in which to file a financing
statement by the law of the jurisdiction governing perfection as
provided in the amendments to statutes by sections 1 to 19, 22
and 23 of this 2012 Act. + }
  '  { +  SECTION 30. + }  { + A person may file an initial
financing statement or a continuation statement under sections 24
to 31 of this 2012 Act if:
  ' (1) The secured party of record authorizes the filing; and
  ' (2) The filing is necessary under sections 24 to 31 of this
2012 Act:
  ' (a) To continue the effectiveness of a financing statement
filed before the operative date specified in section 32 of this
2012 Act; or
  ' (b) To perfect or continue the perfection of a security
interest. + }
  '  { +  SECTION 31. + }  { + Section 21 of this 2012 Act and
the amendments to ORS 79.0102, 79.0105, 79.0208, 79.0307,
79.0311, 79.0316, 79.0317, 79.0326, 79.0335, 79.0406, 79.0408,
79.0503, 79.0507, 79.0515, 79.0516, 79.0518, 79.0521, 79.0607,
79.0619, 803.030 and 803.097 by sections 1 to 19, 22 and 23 of
this 2012 Act determine the priority of conflicting claims to
collateral. However, if the relative priorities of the claims
were established before the operative date specified in section
32 of this 2012 Act, ORS 79.0102, 79.0105, 79.0208, 79.0307,
79.0311, 79.0316, 79.0317, 79.0326, 79.0335, 79.0406, 79.0408,
79.0503, 79.0507, 79.0515, 79.0516, 79.0518, 79.0521, 79.0607,
79.0619, 803.030 and 803.097, as those statutes existed before
the operative date specified in section 32 of this 2012 Act,
determine priority. + }
  '  { +  SECTION 32. + }  { + Section 21 of this 2012 Act and
the amendments to ORS 79.0102, 79.0105, 79.0208, 79.0307,
79.0311, 79.0316, 79.0317, 79.0326, 79.0335, 79.0406, 79.0408,
79.0503, 79.0507, 79.0515, 79.0516, 79.0518, 79.0521, 79.0607,
79.0619, 803.030 and 803.097 by sections 1 to 19, 22 and 23 of
this 2012 Act become operative July 1, 2013. + }

  '  { +  SECTION 33. + }  { + The section captions used in this
2012 Act are provided only for the convenience of the reader and
do not become part of the statutory law of this state or express
any legislative intent in the enactment of this 2012 Act. + }
  '  { +  SECTION 34. + }  { + This 2012 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2012 Act
takes effect on its passage. + } ' .
                         ----------