(1) As used in this section, ‘applicant’ includes, but is not limited to, any person having a substantial interest or control, directly or indirectly, in or over the operations conducted or to be conducted under the carrier’s authority.

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(2) Notwithstanding any other provision of law, the Department of Transportation may not grant to an applicant a certificate, permit, transfer of any operating authority, extension of any operating authority or variance permit under ORS Chapter 818 if the department has reasonable grounds to believe, based on information contained in department files and records, or based on evidence presented during a hearing with respect to an application filed under ORS § 825.102, that any of the following apply:

(a) The applicant is not capable of conducting the transportation service contemplated, in compliance with the law and rules of the department.

(b) The applicant is or has been a repeated and intentional violator of the provisions of this chapter, of ORS Chapter 818 or of the rules of the department. This paragraph does not apply to violations for which an applicant has been penalized under subsection (3) of this section.

(c) The information contained in the application pertaining to ownership, possession or control of the equipment or operation to be conducted is false.

(3) A person whose application has been denied under subsection (2) of this section is not eligible to renew the application or to operate or participate directly or indirectly in the proposed operation for a period of time ordered by the department. The period of time ordered by the department under this subsection shall in no event be less than a period of six months from the date application has been denied and shall continue until the applicant has complied with any other penalties ordered by the department under this or other provisions of this chapter. An applicant may renew an application without prejudice by past violations after the penalty period under this subsection.

(4) Upon request, any person whose application has been denied under subsection (2) of this section shall be granted a hearing. This subsection does not require a separate or additional hearing for applicants if the issues are addressed as part of any hearing on the application. After the hearing, the department shall grant or deny the application in conformity with the findings.

(5) Subsection (2) of this section shall be strictly construed for purposes described in this subsection and shall control over any other purposes or policy considerations under the laws relating to motor carriers. The department shall exercise the authority granted under subsection (2) of this section to assure that persons described in subsection (2)(b) of this section:

(a) Achieve an awareness of and respect for the provisions of this chapter, ORS Chapter 818 and rules of the department.

(b) Do not legitimize activities that violate this chapter, ORS Chapter 818 or the rules of the department by applying for and receiving any operating authority to continue previously unlawful activities.

(6) If the department determines that a carrier issued authority under this chapter is not providing requested transportation services that are within the authority of the carrier, the department shall limit the authority of the carrier to service that the carrier is actually providing unless the carrier provides full transportation services permitted under the carrier’s authority. [Formerly 767.130; 1997 c.722 § 4; 2009 c.433 § 9; 2015 c.283 § 18]