Or. Admin. Code § 582-070-0025

Current through Register Vol. 63, No. 11, November 1, 2024

Section 582-070-0025 - Vehicle repair, insurance, modification and purchase

(1) Definitions. In addition to terms defined in OAR 582-001-0010, the following definitions apply to this rule:

(a) "ASE Certified Mechanic" means a mechanic who has fulfilled the voluntary requirements for certification by the U.S. National Institute for Automotive Excellence.

(b) "Qualified Occupational Therapist" (QOT) means an individual with specialized training and experience to complete a qualified vehicle modification evaluation for a participant seeking a vehicle modification. A QOT must have experience with people with physical disabilities and must have at least one of the following current certifications:

(A) Occupational Therapy Credential/Licensed by Oregon (OTR/L);

(B) Certified Driver Rehabilitation Specialist (CDRS); or,

(C) Driver Rehabilitation Specialist - allied health specialist (DRS).

(c) "Qualified Vehicle Modification Evaluation" means an evaluation performed by a QOT.

(d) "Security Interest" as defined in Oregon Revised Statute (ORS) 801.465 means an interest in a vehicle reserved or created by agreement and which secures payment or performance of an obligation.

(e) "Serious traffic offense" means a conviction that directly results in the revocation, cancellation, or suspension, of the individual's driver's license or driving privileges by this state or another state or territory of the United States, and also means revocation of driving privileges of a person as a habitual offender under ORS 809.640 (Procedures on habitual offender determination) and ORS 809.600 (Kinds of offenses and number of convictions). A serious traffic offense also means an offense of:

(A) Speeding excessively, involving any speed of 15 miles per hour or more above a regulated, posted, or basic rule speed limit;

(B) Reckless driving, under ORS 811.140 (Reckless driving);

(C) Failure to drive within a lane, under ORS 811.370 (Failure to drive within lane);

(D) Unsafe passing on the left, under ORS 811.410 (Unsafe passing on the left);

(E) Unsafe passing on the right, under ORS 811.415 (Unsafe passing on the right);

(F) Following too closely, under ORS 811.485 (Following too closely);

(G) Any violation of a motor vehicle traffic control law if the violation has the same offense date as a fatal accident, and the accident and violation occurred in the same incident;

(H) Operating a vehicle without proper classification or endorsement, under ORS 807.010;

(I) Operating a vehicle while suspended or revoked, under ORS 811.175 (Violation driving while suspended or revoked) or ORS 811.175 (Criminal driving while suspended or revoked);

(J) This subsection does not apply to violations of parking laws or laws regulating vehicle weight or equipment.

(f) "Vehicle modifications" are services involving the purchase and installation of adaptations or devices intended to meet the employment-related transportation needs of the participant.

(2) Requirements for funding vehicle repairs, modifications or purchase

(a) The Program may authorize funding for a participant's transportation needs in the form of vehicle repairs, vehicle modifications, or vehicle purchase as part of the participant's individualized plan for employment (IPE) if the requirements of this rule are met.

(b) Before authorizing funds for vehicle repair, vehicle modifications, or vehicle purchase, the Program must verify that:

(A) The funding is in support of a specific vocational goal identified in the participant's IPE that requires the participant to operate a vehicle and is necessary to overcome a disability-related barrier to the participant's employment. If the goal is self-employment:

(i) Transportation may not be the primary purpose of the self-employment plan; and,

(ii) The business plan must meet all established requirements for competitive integrated employment.

(B) Assessments, evaluations and tests demonstrate the funding is necessary to remove a transportation-related barrier.

(C) The participant can safely own and operate the vehicle.

(D) The participant possesses, or can obtain and maintain, a valid driver's license.

(E) The participant can pass a criminal background check completed by the Program.

(F) The participant possesses, or can obtain and maintain, insurance that meets the minimum coverage required by the laws of this state and subsection (6) of this rule.

(G) The participant will have sufficient income and resources to meet daily living expenses and cost of vehicle operation and replacement while participating in the Program and after a participant's case is closed.

(c) In assessing whether a participant meets the requirements of subsection (2)(b) of this rule, the Program may require documents, assessments, evaluations, or tests which may include:

(A) Proof of the participant's income, assets, and resources.

(B) A copy of a current and valid driver's license and proof of title.

(C) "Granting VR authorization to obtain current and valid driving records, including a history of moving violations or criminal convictions related to driving a vehicle.

(D) Proof of insurance and policy information.

(d) Funding for vehicle repairs, vehicle modifications, or vehicle purchase shall not be authorized solely because a participant lacks transportation.

(e) Comparable benefits must be examined before funding is approved and the Program must select the most cost-effective transportation option that will meet the participant's needs. If the participant is required to make a financial contribution based on the financial needs test, this amount must be applied toward the cost of any vehicle repair, vehicle modification, or vehicle purchase.

(f) The Program is not authorized to purchase warranties and shall assume no warranty responsibility.

(3) Additional requirements for funding vehicle repairs. In addition to the requirements of subsection (2) of this rule, the Program will not approve funding for repair expenses of a participant's own vehicle unless:

(a) The repairs are necessary for the individual to safely and independently operate the vehicle;

(b) The repairs are essential to maintain the individual's employment; and,

(c) The repairs are not routine maintenance expenses, except that some routine repairs may be approved under unique circumstances at the discretion of the branch manager.

(4) Additional requirements for funding vehicle modifications

(a) In addition to the requirements of subsection (2) of this rule, the Program shall not approve funding for modifications of a participant's own vehicle, or for the purchase of a vehicle with modifications, unless:

(A) A Qualified Occupational Therapist (QOT) conducts a Qualified Vehicle Modification Evaluation at the Program's expense and determines that the participant requires the proposed vehicle modification(s);

(B) The QOT determines that the participant is able to safely operate a vehicle with the specific modification(s); and,

(C) For used or participant-owned vehicles, an ASE Certified Mechanic inspects the vehicle and determines that the vehicle is mechanically sound and appropriate for modification. If applicable, the ASE Certified Mechanic must be independent from the vehicle seller.

(b) The participant shall be responsible for the costs of any vehicle modification not recommended and approved by a QOT in a Qualified Vehicle Modification Evaluation.

(c) Funding for second or subsequent vehicle modifications is limited to those needed to accommodate changes in the participant's medical condition or diagnosis.

(d) Funding for vehicle modifications shall not be approved if the participant otherwise owns or operates another vehicle that meets the participant's employment-related transportation needs.

(5) Additional requirements for funding vehicle purchase.

(a) In addition to the requirements of subsection (2) of this rule, the Program will not approve funding for the purchase of a used or new vehicle unless the requirements of this subsection are met, and the Director reviews and approves the funding.

(b) Funding for vehicle purchases shall not be approved for the purchase of a replacement or secondary vehicle unless the existing vehicle is found to be:

(A) Mechanically unsound and unable to be repaired, or,

(B) Inappropriate for modification, if modification is necessary.

(c) If the Program approves funding to purchase a used vehicle, the cost of the used vehicle must be determined using one or more independent appraisals.

(d) The Program must be the primary lien holder on any vehicle purchased with Program funds. The participant must agree to promptly execute and deliver all instruments and documents necessary for the Program to monitor its security interest in the vehicle.

(e) The participant must complete and sign the Program's Vehicle Security Interest Agreement before funding will be approved. The participant must abide by and perform the obligations set forth in the Agreement for the duration of the Agreement.

(6) Insurance Requirements.

(a) The Program will not approve funding for vehicle repairs or modifications to a participant's existing vehicle unless the participant provides proof of insurance in an amount at or above the minimum coverage required by the laws of this State.

(b) The Program will not approve funding for the purchase of a new or used vehicle unless the participant can obtain and maintain the following minimum insurance coverage:

(A) Bodily Injury (BI) $50,000 per person/$100,000 per accident;

(B) Property Damage to Others' Property $40,000 per accident;

(C) Property Damage (PD) equal to the value of the vehicle;

(D) Personal Injury Protection (PIP) $30,000 per person; and,

(E) Uninsured Motorist Bodily Insurance $50,000 per person/$100,000 per accident.

(c) The Program generally will not purchase insurance for a participant. Should extenuating circumstances exist, the Program may approve reimbursement to a participant for insurance premiums for a vehicle as follows:

(A) Approval must be made in writing by the branch manager;

(B) Approval must occur for a limited duration, must be reviewed on a monthly basis, and must cease once the participant's case is closed;

(C) Reimbursement shall not be in excess of the minimum coverage required by the laws of this State or, for vehicles purchased with Program funds, the minimum coverage required by this rule; and,

(D) For vehicle purchased with Program funds, the approval shall not exceed the duration of the Program's security interest in a vehicle.

(d) Insurance payouts

(A) Any insurance property liability payout for a vehicle purchased with Program funds shall be paid directly to the Program while the Program retains a security interest in the vehicle, unless that payout or a portion thereof is connected to personal property that Program did not purchase or the vehicle was only partially funded by the Program. The Program shall apply those funds toward vehicle repair or replacement, as appropriate.

(B) Any insurance personal liability payout or property liability payout that does not relate to property the Program purchased shall be paid directly to the participant or injured party, not the Program.

(C) If the Program partially funded the vehicle purchase and the participant contributed to its purchase, then a portion of the property liability payout proportionate to the participant's investment in the vehicle should be paid directly to the participant and the remainder paid directly to the Program.

(7) Possession and repossession of purchased vehicles

(a) The participant shall not transfer, sell, or otherwise dispose of a vehicle purchased with Program funds while the Program retains a security interest in the vehicle.

(b) Repossession shall occur if the individual fails to achieve a successful rehabilitation.

(c) While the Program retains a security interest in a vehicle, the participant has the following responsibilities:

(A) The participant must adhere to and perform the obligations set forth in the Vehicle Security Interest Agreement.

(B) The participant must comply with all federal and state laws governing the operation of a vehicle and must immediately notify the Program if cited for any violation(s) of law governing operation or use of vehicle.

(C) The participant must ensure the vehicle is maintained in a safe and road-worthy condition, and must immediately notify the Program of any incidents, crashes, or damage to the vehicle.

(D) If requested by the Program, the participant must make the vehicle available for inspection by an ASE qualified mechanic, and produce any other vehicle inspection reports, maintenance records, or other documents for inspection.

(E) The participant must notify and obtain written approval from the Program before obtaining any vehicle modification(s) not otherwise provided by the Program. The Program will require that any such modification:

(i) Be approved by a Qualified Occupational Therapist; and,

(ii) Be completed by an ASE qualified mechanic or a Program contracted vendor for vehicle modification.

(F) The participant is responsible for routine maintenance and associated costs. The participant shall proactively plan for the costs associated with maintenance, repair, and replacement.

(d) A participant may not be entitled to continued possession and use of a vehicle purchased with Program funds if transportation no longer remains a necessary component of the participant's individualized plan for employment (IPE).

(e) The Program may assert its security interest and repossess a vehicle purchased with Program funds if:

(A) The participant fails to meet the requirements of this rule;

(B) The participant fails to perform the obligations set forth in the Vehicle Security Interest Agreement;

(C) The participant fails to operate and maintain the vehicle in a safe and roadworthy condition;

(D) The participant fails to comply with federal and state laws governing the operation and use of a motor vehicle that result in a serious traffic violation (OAR 582-070-0025(1)(e));

(E) The participant fails to possess and maintain the insurance coverage required under this rule;

(F) The participant no longer requires transportation as part of the participant's individualized plan for employment (IPE); or,

(G) The participant has their file closed and services terminated as other than rehabilitated under OAR 582-060-0020(1).

(f) A participant must return a vehicle to the Program when the Program is entitled to repossession.

(g) In the event the Program successfully reclaims a vehicle such that the participant no longer has a legal claim to possession, the Program must reassign or otherwise dispose of the vehicle in accordance with State of Oregon, Department of Administrative Services surplus property disposition guidelines.

(8) Lien satisfaction

(a) The Program's security interest in a vehicle purchased with Program funds will be satisfied when:

(A) The participant meets the requirements for competitive integrated employment;

(B) The participant delivers wage documentation to the Program staff from initial hire and 90 days after hire; and

(C) The participant otherwise completes all requirements established by the Program to achieve a successful rehabilitation such that the Program can close the Participant's file and terminate services as rehabilitated under OAR 582-060-0020(2).

(b) Within no more than 60 days of the date that the participant's file is closed as rehabilitated, the Program shall take necessary steps to remove its lien on the vehicle. The participant shall promptly execute and deliver all further documents necessary for the Program to remove its lien.

(c) The participant shall maintain the vehicle after successful case closure at the participant's own expense and liability. The Program shall have no further warranties or interest in the vehicle.

(9) Participant is unable to drive

(a) If the Program determines that the participant is unable to drive safely, the Program may permit a qualified driver, other than the participant, to operate the vehicle. Such permission must be documented in writing in the participant's file.

(b) Before approval is given, the qualified driver must provide the Program with records and information demonstrating that the qualified driver meets the requirements of this rule regarding the safe and lawful operation of a motor vehicle.

(10) Denial of funds for vehicle repair, modification or purchase.

(a) The Program may deny funds for vehicle repair, modification or purchase if:

(A) The participant fails to cooperate with required evaluations, assessments, or tests, or to produce records or documentation required by this rule;

(B) It is determined that the participant or the participant's qualified driver is unable to drive safely; or

(C) The participant otherwise fails to meet the requirements of this rule.

(b) If the participant disagrees with the Program's denial, the participant shall be afforded the right to review under the Program's dispute resolution process at OAR Chapter 582, Division 20.

Or. Admin. Code § 582-070-0025

VRD 2-1996, f. & cert. ef. 8-28-96; VRS 1-2003, f. & cert. ef. 9-23-03; VRS 5-2004, f. & cert. ef. 8-5-04; VRS 1-2008, f. & cert. ef. 2-4-08; VRS 1-2011(Temp), f. 2-15-11, cert. ef. 3-1-11 thru 8-28-11; Reverted to VRS 1-2008, f. & cert. ef. 2-4-08; VRS 2-2011, f. 8-12-11, cert. ef. 9-1-11; VRS 1-2021, temporary amend filed 09/09/2021, effective 09/10/2021 through 03/08/2022; VRS 1-2022, amend filed 03/08/2022, effective 3/8/2022

Statutory/Other Authority: ORS 344.530

Statutes/Other Implemented: ORS 344.511 - 344.690 & 344.710 - 344.730