(1) The Department of Transportation shall have the authority to investigate and verify information provided in conjunction with application for proportional registration of a tow vehicle under ORS § 822.217. The department may cancel an identification device for a proportionally registered tow vehicle if the department determines that the owner or lessee of the vehicle, or an employee of either, has:

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(a) Operated the vehicle in violation of tow vehicle registration limits;

(b) Falsely certified an application required by ORS § 822.217 for registration or renewal of registration of a proportionally registered tow vehicle; or

(c) Falsely completed an application under ORS § 822.205 for a towing business certificate.

(2) If a tow vehicle proportional registration identification device is canceled under this section, the vehicle is not eligible for registration under ORS § 822.205 for a period of one year after the cancellation. [1991 c.284 § 29]