Committee adopts amendment shortening dealer financing window and adds disclosure requirements for vehicle retail contracts

Chair Sosa opened a work session on House Bill 3,178, which addresses timing and disclosure rules for vehicle retail installment contracts and lease agreements. The bill, as amended, reduces the time a dealer may hold a retail installment contract without completing financing or voiding the contract and places a disclosure form requirement in statute.

The dash-3 amendment inserted a retail-installment-contract disclosure form into statute and adjusted timing. Under the amendment the dealer has 10 calendar days to secure financing or otherwise resolve the retail installment contract; if no agreement is reached in that period the contract defaults to voiding and the seller must return items of value that were part of the transaction. The amendment also clarifies compensation if a trade-in used as part of the transaction has been sold before the dealer voids the contract.

Chair Sosa thanked staff and outside participants for negotiating the changes and invited industry witnesses to comment. Daryl Fuller, representing the Oregon RV Dealers Association and the Oregon Vehicle Dealers Association, said, “Nobody likes to watch how the sausage gets made, but in the end, it’s pretty good for breakfast.” Greg Remensberger, executive vice president of the Oregon Auto Dealers Association, said the association was “neutral on this bill.”

Vice Chair Taichie moved to adopt the dash-3 amendment; the committee adopted the amendment without objection. Vice Chair Taichie then moved House Bill 3,178 as amended to the floor with a due-pass recommendation. The roll call vote recorded Representative Kate excused; Representatives Thompson, Gomberg, Murrow, Rushdie, Walters, Vice Chair Chai Chi, Vice Chair Osborne, and Chair Sosa voting aye; the motion passed.

The committee closed the work session on HB 3,178 and the bill was scheduled to be carried to the House floor with Representative Sosa as carrier.