Department of Transportation,
Motor Carrier Transportation Division Chapter 740
Caption: Penalties for failure to produce
Order No.: MCTD 4-2011
Filed with Sec. of
Certified to be
Rules Amended: 740-055-0100, 740-300-0010
Subject: These rules describe requirements for maintenance and
production of records, and associated penalties for failure to produce records.
These amendments allow the Department to assess civil monetary penalties when
records are made available for audit but are found to be inadequate. Currently,
when the carrier provides inadequate records, the best available information
standard is used to audit the records. Using the best available information
standard, rather than a carrier’s records, often results in an under assessment
of taxes due. Carriers that continue to either not maintain records, or provide
inadequate records have an advantage. The rule is necessary to provide a tool
that can be used on a progressive scale to deter carriers from providing the
department with inadequate records after they have been educated about the
minimum record requirements.
Rules Coordinator: Lauri Kunze—(503) 986-3171
Maintenance and Production of
Records and Vehicles – Penalties
(1) At the request of the Department or its authorized
representative, each motor carrier must produce for inspection or audit all
records required to be prepared or maintained by statute or rules of the
Department and all motor vehicles subject to the Department’s jurisdiction.
Each succeeding day that the records or vehicles are not made available for
inspection or audit will constitute a separate violation of this rule until
such records or vehicles are made available at the place stated in the request.
(2) In addition to any other penalty authorized by law,
the operating authority of a person who fails to prepare, maintain, or produce
records required by statute or the rules of the Department or fails to produce
vehicles for inspection will be subject to suspension or cancellation.
(3) The penalties authorized will not be imposed unless
the Department’s request to produce vehicles for inspection or records for
audit gives the motor carrier a reasonable time and place to produce said
vehicles for inspection or records for audit.
(4) If a motor carrier makes records available for a
weight-mile tax audit, but the records made available do not meet Department
requirements in OAR 740-055-0120, and the records as a whole are deemed so
inadequate that they cannot be audited in the normally prescribed method, the
Department may impose penalties described in OAR 740-300-0010. These penalties
may be imposed even if the Department is able to complete an audit of the
carrier’s records by relying on any information available to the Department as
described in ORS 825.490(3). The penalties are in addition to any other
penalties authorized by law.
Hist.: PUC 181, f. 12-30-77, ef.
1-15-78 (Order No. 77-896); Renumbered from 860-038-0048; PUC 1-1983, f. &
ef. 1-17-83 (Order No. 83-024); PUC 9-1994, f. & cert. ef. 4-21-94 (Order
No. 94-637); MCT 3-1996, f. & cert. ef. 3-14-96; Renumbered from
860-068-0048; MCT 8-1997, f. & cert. ef. 11-17-97; MCTD 4-2011, f. &
cert. ef. 11-23-11
Failure to Produce Records –
Except as otherwise ordered by the Department in a
particular case, after written notice, any motor carrier who fails to produce
records as required by the Department under OAR 740-055-0100, in addition to
any other penalties authorized by law, will be subject to the following
penalties under ORS 825.137(2)(g) and 825.950:
(1) $100 per day for each day of failure for a period
not to exceed 10 days, and except as described in subsection (3), suspension of
operating authority until reinstated by the Department;
(2) $100 per day for each day of failure from the 16th
day of the entry of the order under subsection (1) of this section, for a
period not to exceed 20 days, and cancellation of operating authority;
(3) Any suspension of authority imposed for failure to
produce records as described in OAR 740-055-0100(4) will be held in abeyance
for one year if the motor carrier has not been found in violation of OAR
740-055-0100(4) within the prior five years. A second failure to produce
records subjects the motor carrier to a five day suspension of operating
authority. A third failure to produce records under this section may result in
cancellation of operating authority.
Stat. Auth.: ORS 183, 823 &
Stats. Implemented: ORS 823.029
Hist.: PUC 14-1992, f. & cert.
ef. 11-9-92 (Order No. 92-1560); MCT 3-1996, f. & cert. ef. 3-14-96;
Renumbered from 860-061-0020; MCTD 4-2011, f. & cert. ef. 11-23-11
Notes 1.) This online version of the OREGON BULLETIN is provided for convenience of reference and enhanced access. The official, record copy of this publication is contained in the original Administrative Orders and Rulemaking Notices filed with the Secretary of State, Archives Division. Discrepancies, if any, are satisfied in favor of the original versions. Use the OAR Revision Cumulative Index found in the Oregon Bulletin to access a numerical list of rulemaking actions after November 15, 2011.