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OregonSB 8402025 Regular SessionSenateWALLET

Relating to transportation.

Sponsored By: Sponsor information unavailable

Signed by Governor

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Bill Overview

Analyzed Economic Effects

26 provisions identified: 10 benefits, 9 costs, 7 mixed.

Fewer rebuilding penalties for altered vehicles

The illegal vehicle rebuilding business offense no longer covers buying, selling, dealing in, or making substantially altered vehicles. The offense still covers specified business activity involving assembled or reconstructed vehicles without a valid dealer certificate. Substantial alteration alone also no longer counts as destroying a vehicle. Dismantling, disassembling, or damaging still counts when the listed intent, repair-cost, or value conditions apply.

Commercial drivers face broader suspension rules

Oregon must suspend commercial driving privileges for out-of-state convictions that trigger suspension under the matching Oregon law. The same reinstatement authority applies as for an equivalent Oregon conviction. The 180-day deadline for receiving conviction notices limits noncommercial actions, but not commercial actions. Oregon can adopt rules for federal commercial-driving regulations adopted on or after this law's effective date. Noncompliance can lead to denial, cancellation, suspension, or revocation, with administrative review or a hearing available.

Drivers face broader license offense penalties

Knowingly making false statements for another person's license or permit application is covered by a Class A misdemeanor offense. Taking another applicant's test or knowingly using fraud to help them pass is also covered. Drivers whose privileges are revoked or canceled must immediately return their license or permit. Failure to return it is a Class C misdemeanor.

Stricter insurance enforcement for Oregon drivers

Oregon must suspend driving privileges for false insurance certifications or failure to maintain certified coverage, without first setting a proof deadline. After an uninsured crash, drivers must make the required insurance filing within 30 days. Otherwise, suspension lasts until they meet future filing requirements or the filing requirement ends, replacing a fixed one-year suspension. Oregon may also suspend vehicle registration or registration applications when requested insurance proof is missing or incorrect. That suspension lasts until correct proof is verified; registration may be restored for required insurance or a valid exemption.

Dealers face penalties for lapsed bonds

Vehicle dealers commit a Class A misdemeanor by letting required bond or letter-of-credit coverage lapse. Failing to obtain that coverage is also a Class A misdemeanor. These penalties apply to coverage required under ORS 822.020 or ORS 822.030.

Vehicle dealers face stronger certificate enforcement

For listed violations, Oregon can suspend or revoke rights to renew dealer certificates or apply under another business or name. Oregon can suspend certificates held by people who do not qualify as dealers and adopt rules governing certificate denials. Dealing in Oregon with a revoked, canceled, or suspended Oregon certificate is a Class A misdemeanor, even with out-of-state licensing. That offense does not apply when the person holds another current, valid Oregon dealer certificate. Off-site vehicle advertising that violates the required display rules is also a Class A misdemeanor.

Accident reporting changes drivers' suspension risks

Oregon must suspend driving privileges for failure to file an accident report required under ORS 811.725. Suspension ends when the report is filed or after five years, whichever comes first. Failure to file a report under ORS 811.730 no longer triggers this suspension.

More flexible license photos for drivers

Oregon driver-license photos no longer have to be in color, but must still show the full face and meet size rules. Oregon can also renew or replace noncommercial licenses without photos for eligible military households when it lacks an acceptable photo. This option covers active Armed Forces or National Guard members stationed outside Oregon, along with their spouses and dependents.

More hardship permits during treatment requirements

Oregon can issue hardship permits to drivers eligible for reinstatement who must provide treatment proof and use an ignition interlock. Applicants must also meet hardship-permit requirements for their application, driving need, driving record, and future insurance filings. The permit provides limited driving access while those treatment and interlock requirements apply.

Shorter insurance filing requirements for drivers

Oregon's transportation department must end certain drivers' required proof-of-future-insurance filings after more than one year from the required filing date. This shorter period applies to requirements under ORS 806.200 or ORS 806.230. Other filing requirements covered by this provision keep their existing three-year period.

Shorter insurance filings after uninsured driving

Drivers convicted of driving uninsured must file proof of financial responsibility and maintain it for one year, down from three. This shortens the required filing period, not the general duty to carry required insurance. The law also repeals a related financial-responsibility statute, but the supplied text does not explain that repeal's effects.

Teen drivers can retest sooner

Applicants under 18 who fail Oregon's driving skills test no longer face the required one-month wait before retesting. They still must pass the test to get driving privileges.

Car buyers get title history disclosures

Before completing a covered retail sale, dealers must check title history and verify title information. They must disclose title brands, defects, or irregularities found that could affect the vehicle's value. Vehicles subject to National Motor Vehicle Title Information System reporting must be checked through that system. Otherwise, dealers may use that system or a qualifying commercial equivalent. This requirement excludes vehicles sold with salvage titles or another state's title-brand document.

Dealers gain online and delivery flexibility

Vehicle dealers can conduct dealer activities entirely online or through other electronic means without a supplemental certificate. Dealers can also deliver vehicles they sold to buyers away from their approved business location without a supplemental certificate.

Fewer transfer reports for vehicle dismantlers

Oregon-certified dismantlers must file transfer reports for wrecked or dismantled vehicles transferred to another certified dismantler. This reporting duty no longer covers transfers to every purchaser. Transfers outside the certified-dismantler group do not require this report.

Undercover agencies gain out-of-state plates

Oregon can make agreements with other states to exchange vehicle registration plates or stickers. Eligible law-enforcement, parole, and probation agencies can use those out-of-state plates or stickers in undercover criminal investigations. Vehicles must qualify for the existing regular-series plate program.

New title duties for altered vehicles

Buyers acquiring an interest in a substantially altered vehicle covered by an Oregon title must apply within 30 days, unless another exemption applies. Substantial alteration alone no longer qualifies a vehicle for specified salvage-title, branded-title, plate, or review procedures. Other listed grounds, such as being totaled or dismantled, still qualify. Separately, registered owners must surrender totaled-vehicle titles to Oregon or the insurer within 30 days of the insurer's declaration. That deadline no longer starts from another relevant act by the insurer.

Vehicle dismantlers face stronger certificate controls

For listed violations, Oregon can suspend or revoke rights to renew dismantler certificates or apply under another business or name. Oregon must cancel or suspend a certificate after written local notice that approval of the dismantling location was revoked. The existing definition of major component parts also applies to the dismantler-business requirements.

Vehicle sellers face licensing and recordkeeping

Manufactured-structure dealers and certain licensing-exempt sellers lose an exemption for selling vehicles, trailers, or semitrailers taken in trade. The former exemption covered three direct sales per calendar year and unlimited consignment sales. Those sellers must now meet applicable vehicle dealer requirements. Dealers handling used vehicles or campers must also keep copies of required national title-history reports or permitted commercial equivalents.

Truck operators face narrower tank exemptions

The tank-vehicle exclusion for empty storage tanks rated at 1,000 gallons or more now has a narrower scope. The tank must not be designed for transportation and must be temporarily attached to a flatbed trailer. Empty tanks designed for transportation do not qualify for this exclusion.

More low-value vehicles face streamlined disposal

The law raises the appraisal threshold for specified towing liens, notices, and abandoned-vehicle disposal procedures from $500 to $1,000. A certified vehicle appraiser must make the appraisal. The change includes covered disposal procedures for vehicles on private property. More vehicles qualify for streamlined disposal, which eases disposal but can end owners' rights after the required claim period.

Oregon expands driver records and sharing

Oregon can create a driving record for someone without one when it requests or receives driving information about them. When creating records or issuing licenses or permits, Oregon can obtain driving records from other jurisdictions. State rules govern when those records are obtained and how entries are used. Oregon can also share digital license and identification-card photos with licensing agencies in other jurisdictions.

Pollution proof required, temporary permits available

Owners of covered vehicles must provide pollution-control proof before Oregon issues registration, stickers, or plates. Vehicles exempt under Oregon's pollution-control law do not face this requirement. Dealers can issue temporary registration permits when proof is missing at sale, but must give buyers the required written notice. A temporary permit does not waive other applicable compliance requirements.

Private driver services can charge fees

Oregon can authorize qualified providers, through agreements, to handle driver-related transactions, including related fees or taxes. Authorized providers can charge service fees when existing law allows them. Drivers gain another way to complete transactions, but may pay an added service charge.

Car buyers face fee negotiation limits

At dealers designated as Oregon transportation department agents, buyers can negotiate document processing fees except the portion covering integrator costs. The fee remains capped at $250 with an integrator or $200 without one. Dealers using an integrator and charging the integrator-based fee must pay $35 of that fee to the integrator.

School transport providers must report testing

Covered school transportation providers must certify each calendar year that they follow required drug-and-alcohol testing rules. They must identify their testing consortium operator when applicable. Medical review officers must report verified positive tests to the Oregon Department of Education. The rules cover school transportation and public transportation using covered school vehicles.

Sponsors & Cosponsors

Sponsors

There is no primary sponsor on record.

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

All Roll Calls

Yes: 78 • No: 0

House vote • 6/13/2025

Third reading. Carried by McLain. Passed.

Yes: 41 • No: 0

Senate vote • 5/29/2025

Third reading. Carried by Meek. Passed.

Yes: 26 • No: 0

legislature vote • 5/19/2025

Transportation: Heard and Reported Out with Amendments

Yes: 11 • No: 0

Actions Timeline

  1. Effective date, January 1, 2026.

    7/2/2025Senate

  2. Chapter 415, 2025 Laws.

    7/2/2025Senate

  3. Governor signed.

    6/24/2025Senate

  4. Speaker signed.

    6/17/2025House

  5. President signed.

    6/17/2025Senate

  6. Third reading. Carried by McLain. Passed.

    6/13/2025House

  7. Rules suspended. Carried over to June 13, 2025 Calendar.

    6/12/2025House

  8. Rules suspended. Carried over to June 12, 2025 Calendar.

    6/11/2025House

  9. Rules suspended. Carried over to June 11, 2025 Calendar.

    6/10/2025House

  10. Rules suspended. Carried over to June 10, 2025 Calendar.

    6/9/2025House

  11. Rules suspended. Carried over to June 9, 2025 Calendar.

    6/5/2025House

  12. Second reading.

    6/4/2025House

  13. Recommendation: Do pass.

    6/4/2025House

  14. Referred to Transportation.

    6/3/2025House

  15. First reading. Referred to Speaker's desk.

    6/2/2025House

  16. Third reading. Carried by Meek. Passed.

    5/29/2025Senate

  17. Carried over to 05-29 by unanimous consent.

    5/28/2025Senate

  18. Second reading.

    5/27/2025Senate

  19. Recommendation: Do pass with amendments. (Printed A-Eng.)

    5/23/2025Senate

  20. Work Session held.

    5/19/2025Senate

  21. Work Session held.

    5/13/2025Senate

  22. Work Session held.

    4/21/2025Senate

  23. Public Hearing held.

    2/18/2025Senate

  24. Public Hearing held.

    2/3/2025Senate

  25. Referred to Transportation.

    1/17/2025Senate

Bill Text

  • JCT Amendment -10 (Proposed)

    5/19/2025

    PDF

  • JCT Amendment -11 (Combined)

    5/19/2025

    PDF

  • JCT Amendment -12 (Adopted)

    5/19/2025

    PDF

  • JCT Amendment -9 (Combined)

    5/19/2025

    PDF

  • JCT Amendment -10 (Proposed)

    5/13/2025

    PDF

  • JCT Amendment -6 (Proposed)

    5/13/2025

    PDF

  • JCT Amendment -9 (Proposed)

    5/13/2025

    PDF

  • JCT Amendment -9 (Proposed)

    5/6/2025

    PDF

  • JCT Amendment -9 (Proposed)

    4/29/2025

    PDF

  • JCT Amendment -2 (Proposed)

    4/21/2025

    PDF

  • JCT Amendment -8 (Proposed)

    4/21/2025

    PDF

  • A-Engrossed

    PDF

  • Enrolled

    PDF

  • Introduced

    PDF

  • Senate Amendments to Introduced

    PDF

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