(1) The Department of Transportation shall provide for registration of vehicles that qualify under this section in a manner that is consistent with this section. A vehicle qualifies for registration under this section if the vehicle meets the following qualifications and is not a vehicle that is described under subsection (2) of this section:

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(a) The vehicle must be a motor vehicle.

(b) Except as provided under ORS § 803.600, the vehicle must be used exclusively in transporting students to or from any school or authorized school activity or function, including extracurricular activities, and to or from points designated by a school.

(c) The vehicle must meet the requirements for school buses under ORS § 820.100 to 820.120, or activity vehicles under ORS § 820.110 and 820.120.

(d) The vehicle may be owned, operated or leased by the state, a city or county or any other political subdivision or otherwise provided to such government body for purposes described in this subsection or may be privately or otherwise owned and leased by or provided to a school for purposes described in this subsection.

(2) The following vehicles may not be registered under this section:

(a) A vehicle subject to regulation under ORS Chapter 825.

(b) A vehicle regulated by a city under ORS § 221.420.

(3) Except as otherwise provided by this section, vehicles registered under this section are subject to the same requirements and provisions for registration as are other vehicles. The following requirements and provisions are different from those otherwise provided for registration:

(a) The registration period for vehicles subject to this section shall be an ownership registration period as described under ORS § 803.400, except that the registration continues valid if the ownership of the vehicle is transferred to another who continues to use the vehicle for purposes allowed under the registration.

(b) The fee for registration of the vehicles shall be the fee for registration of school vehicles established under ORS § 803.420, and no other registration fee shall be required.

(c) Any vehicle registered under this section and not exempted under ORS § 815.300 shall meet the requirements for certification of compliance with pollution control under ORS § 815.310.

(4) The department shall suspend or revoke registration under this section if the department determines that:

(a) A vehicle registered under this section is being used for purposes other than those required for qualification for registration under this section, and a trip permit as provided under ORS § 803.600 has not been obtained.

(b) The vehicle does not comply with requirements under ORS § 820.100 to 820.120. [1985 c.547 § 11; 1987 c.158 § 164; 1993 c.741 § 125]