73rd OREGON LEGISLATIVE ASSEMBLY--2005 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 359
Senate Bill 121
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for Department of Consumer and Business Services)
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.
Authorizes Director of Department of Consumer and Business
Services to issue cease and desist order and to impose civil
penalty for improper conduct in franchise transactions.
A BILL FOR AN ACT
Relating to enforcement powers of the Director of the Department
of Consumer and Business Services in franchise transactions;
creating new provisions; and amending ORS 650.055.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 650.055 is amended to read:
650.055. The Director of the Department of Consumer and
Business Services { + may + }:
(1) { - May make such public or private investigations within
or outside this state as - } { + Undertake the investigations,
including investigations outside this state, that + } the
director considers necessary to:
(a) Determine whether a person { + : + } { - has violated or
is about to violate any provision of ORS 650.005 to 650.085 or
any rule of the director; or - }
{ + (A) Has failed to comply with ORS 650.010;
(B) Has engaged in, is engaging in or is about to engage in an
act or practice that would give rise to liability under ORS
650.020; or
(C) Has violated, is violating or is about to violate a rule of
the director adopted under ORS 650.050. + }
(b) Aid in the enforcement of ORS 650.005 to 650.085 or in the
formulation of rules and forms { - thereunder; - } { + that
carry out ORS 650.005 to 650.085. + }
(2) { - May - } Require a person to file a statement in
writing, under oath or otherwise { + , + } { - as the director
determines, as to all the facts and circumstances - } concerning
the matter { - to be - } { + being + } investigated { + . + }
{ - ; and - }
{ + (3) When the director has reason to believe that a person
has failed to comply with ORS 650.010, issue an order to comply.
(4) When the director has reason to believe that a person has
engaged in, is engaging in or is about to engage in an act or
practice that would give rise to liability under ORS 650.020,
issue an order to cease and desist from the act or practice.
(5) When the director has reason to believe that a person has
violated, is violating or is about to violate a rule of the
director adopted under ORS 650.050, issue an order to cease and
desist from the violation. + }
{ - (3) - } { + (6) + } { - May - } Publish information
concerning any { + :
(a) Failure to comply with ORS 650.010;
(b) Act or practice that gives rise to liability under ORS
650.020;
(c) + } Violation of { - ORS 650.005 to 650.085 or any - }
{ + a + } rule of the director { + adopted under ORS 650.050;
or
(d) Person who:
(A) Fails to comply with ORS 650.010;
(B) Commits an act or practice that gives rise to liability
under ORS 650.020; or
(C) Violates a rule of the director adopted under ORS
650.050 + }.
SECTION 2. { + Sections 3 to 5 of this 2005 Act are added to
and made a part of ORS 650.005 to 650.085. + }
SECTION 3. { + (1) The Director of the Department of Consumer
and Business Services shall serve an order under ORS 650.055 on
the person named in the order.
(2) An order issued under ORS 650.055 becomes effective upon
service on the person named in the order.
(3) ORS 183.413 to 183.470 apply to orders issued under ORS
650.055.
(4) Notwithstanding subsection (3) of this section, a person
may not obtain a hearing on the order unless the person requests
the hearing within 20 days of service of the order.
(5) A person who does not request a contested case hearing may
not obtain judicial review of the order.
(6) The director may vacate or modify an order issued under ORS
650.055 at any time. A modified order is effective upon service
on the person named in the order. + }
SECTION 4. { + (1) In addition to any other liability or
penalty provided by law, the Director of the Department of
Consumer and Business Services may impose a civil penalty on a
person for violation of a rule adopted under ORS 650.050 or an
order issued under ORS 650.055.
(2)(a) The director shall impose a civil penalty under this
section in the manner provided in ORS 183.745.
(b)(A) The civil penalty may not exceed $10,000 for each
violation.
(B) In the case of a continuing violation:
(i) Each day that the violation continues is a separate
violation.
(ii) The civil penalty may not exceed $50,000. + }
SECTION 5. { + All penalties recovered under section 4 of this
2005 Act shall be paid into the State Treasury and credited to
the General Fund and are available for general government
expenses. + }
SECTION 6. { + (1) The amendments to ORS 650.055 by section 1
of this 2005 Act apply to an act, practice or violation occurring
before, on or after the effective date of this 2005 Act.
(2) Section 3 of this 2005 Act applies to orders issued on or
after the effective date of this 2005 Act.
(3) Section 4 of this 2005 Act applies to a violation occurring
on or after the effective date of this 2005 Act. + }
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