ORS Chapter 705 - Oregon Statutes

TITLE 52A

INSURANCE ANDFINANCE ADMINISTRATION

 

Chapter     705.     Departmentof Consumer and Business Services

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Chapter 705 — Departmentof Consumer and Business Services

 

2009 EDITION

 

 

DEPARTMENTOF CONSUMER AND BUSINESS SERVICES

 

INSURANCEAND FINANCE ADMINISTRATION

 

ADMINISTRATION

 

(Generally)

 

705.010     Definitions

 

705.105     Departmentof Consumer and Business Services; director; qualifications; confirmation;Insurance Commissioner; bond or letter of credit; seal

 

705.115     Departmentorganization

 

705.117     ConsumerAdvocacy Section

 

705.125     Deputydirector; subordinate officers and personnel

 

705.135     Delegation;rules; employee indebtedness; reporting

 

705.137     Informationthat is confidential or not subject to disclosure; public officer privilege;permitted uses of confidential information

 

705.139     Agreementswith other agencies regarding sharing and use of confidential information;contents

 

705.141     Criminalrecords check; fingerprints required; persons subject to requirement

 

(Licensing)

 

705.143     Combinedlicense processing; rules

 

(FinancialProvisions)

 

705.145     Consumerand Business Services Fund; sources; uses; revolving account; assignment ofcertain moneys to single account; contracts for state building code trainingprograms

 

705.148     Transfersfrom Consumer and Business Services Fund to Workers’ Benefit Fund; purpose;amount; liability limit

 

705.155     Pettycash funds

 

705.165     Dispositionof moneys accruing from department administration and enforcement of certainlaws

 

705.175     Warrantfor collection of debt owed Department of Consumer and Business Services

 

SECURITIESAND FRANCHISE LAWS; ADMINISTRATIVE PROVISIONS

 

705.300     Recordsof actions of director regarding securities, commodity and franchise laws

 

705.310     Evidentiaryeffect of certain records regarding securities, commodities and franchises;fees

 

705.320     Certifieddocuments; effect

 

705.330     Withdrawalof certain documents; review; effect

 

705.340     Accessto director’s and department records regarding securities, commodities andfranchises; rules; accuracy of information

 

705.350     Feesfor certain documents; rules

 

FINANCIALINSTITUTIONS

 

705.610     Appointmentof financial institution examiners

 

705.630     Chargingfor extra expenses

 

705.635     Certificateof approval of certain business registry names filed under ORS 56.023

 

705.638     “Company”defined; organization requirements for companies conducting banking business

 

705.640     Enforcementauthority regarding conduct of banking business; court order; cease and desistorder; civil penalty

 

705.642     Injunctionauthority regarding conduct of banking business; fine; attorney fees; claimsfor restitution, damages or disgorgement of illegal gains

 

705.005 [1985 c.762 §2;repealed by 1987 c.373 §85]

 

ADMINISTRATION

 

(Generally)

 

      705.010Definitions.As used in this chapter:

      (1)“Board” means the Workers’ Compensation Board.

      (2)“Department” means the Department of Consumer and Business Services.

      (3)“Director” means the Director of the Department of Consumer and BusinessServices. [1987 c.373 §1; 1993 c.744 §9; 1999 c.59 §213]

 

      705.100 [1985 c.762 §3;repealed by 1987 c.373 §85]

 

      705.105Department of Consumer and Business Services; director; qualifications;confirmation; Insurance Commissioner; bond or letter of credit; seal. (1) TheDepartment of Consumer and Business Services is created.

      (2)The department shall be under the supervision and control of a director whoshall be responsible for the functions of the department.

      (3)Subject to confirmation by the Senate in the manner provided in ORS 171.562 and171.565, the Governor shall appoint the director, who shall hold office at thepleasure of the Governor. The person appointed as director shall be wellqualified by training and experience to perform the functions of the office.

      (4)The director shall receive such salary as is provided by law or, if not soprovided, as is fixed by the Governor.

      (5)With respect to the duties, functions and powers imposed upon the directorunder the insurance laws, the director may be designated by the title of InsuranceCommissioner or may appoint a person under ORS 705.115 to serve under thesupervision and control of the director as Insurance Commissioner.

      (6)Before entering upon the functions of office, the director shall give to thestate a fidelity bond with one or more corporate sureties authorized to dobusiness in this state, or an irrevocable letter of credit issued by an insuredinstitution, as defined in ORS 706.008, in either case in the penal sum fixedby the Governor.

      (7)The department shall have an official seal. Any certificate or other documentor paper executed by the department pursuant to its authority and sealed withits seal, and all copies of papers certified by it and authenticated by theseal, shall in all cases be evidence equally and in like manner as the originaland shall have the same force and effect as would the original in any suit orproceeding in any court in this state. [1987 c.373 §2; 1991 c.331 §108; 1993c.744 §10; 1997 c.631 §526; 2003 c.802 §179]

 

      705.110 [1985 c.762 §4;repealed by 1987 c.373 §85]

 

      705.115Department organization. (1) The Director of the Department of Consumer andBusiness Services, with the approval of the Governor, shall organize andreorganize the Department of Consumer and Business Services in the manner thedirector considers necessary to conduct the work of the department properly.

      (2)The functions of the department may be divided into administrative divisions orstaff offices. Each division or office shall be under the supervision of aperson appointed by the director, with the approval of the Governor. Theappointee shall serve at the pleasure of the director, not be subject to theState Personnel Relations Law and be well qualified by technical training andexperience in the functions the appointee is to perform. [1987 c.373 §4]

 

      705.117Consumer Advocacy Section. The Director of the Department of Consumer andBusiness Services shall establish within the department a Consumer AdvocacySection not later than January 1, 1988. [1987 c.774 §152(1)]

 

      Note: 705.117 wasenacted into law by the Legislative Assembly but was not added to or made apart of ORS chapter 705 or any series therein by legislative action. SeePreface to Oregon Revised Statutes for further explanation.

 

      705.120 [1985 c.762 §5;repealed by 1987 c.373 §85]

 

      705.125Deputy director; subordinate officers and personnel. (1) With theapproval of the Governor, the Director of the Department of Consumer andBusiness Services may appoint a deputy director who shall serve at the pleasureof the director, not be subject to the State Personnel Relations Law and havefull authority to act for the director, subject to the control of the director.The appointment of the deputy director shall be by written order filed with theSecretary of State.

      (2)Except as provided in ORS 705.115 and subsection (1) of this section, thedirector, subject to applicable provisions of the State Personnel RelationsLaw, shall appoint all subordinate officers and employees of the Department ofConsumer and Business Services, prescribe their functions and fix theircompensation. [1987 c.373 §5]

 

      705.130 [1985 c.762 §6;repealed by 1987 c.373 §85]

 

      705.135Delegation; rules; employee indebtedness; reporting. (1) TheDirector of the Department of Consumer and Business Services may delegate anyduties, powers and functions of the director or of the Department of Consumerand Business Services, under such conditions as the director deems appropriate.

      (2)In accordance with ORS chapter 183, and in addition to other rulemakingauthority prescribed by law, the director may adopt rules for the purpose ofcarrying out the functions of the department.

      (3)The director shall adopt rules governing circumstances under which employees orany category of employees of the department may or may not be or becomeindebted to or hold any interest in any entity subject to regulation by thedepartment. The rules shall provide for reporting any such indebtedness orinterest and for preventing or resolving possible conflicts of interest arisingtherefrom. [1987 c.373 §6; 2003 c.802 §180]

 

      705.137Information that is confidential or not subject to disclosure; public officerprivilege; permitted uses of confidential information. (1) Except asprovided in subsection (3) of this section, a document, material or otherinformation that is in the possession or control of the Department of Consumerand Business Services for the purpose of administering ORS 86A.095 to 86A.198,86A.990, 86A.992, 697.005 to 697.095, 697.602 to 697.842, 717.200 to 717.320,717.900 and 717.905 and ORS chapters 59, 723, 725 and 726, the Bank Act and theInsurance Code and that is described in statute as confidential or as notsubject to disclosure is not subject to disclosure under ORS 192.410 to192.505, is not subject to subpoena and is not subject to discovery oradmissible in evidence in a private civil action. The Director of theDepartment of Consumer and Business Services may use a confidential document,material or other information in administering ORS 86A.095 to 86A.198, 86A.990,86A.992, 697.005 to 697.095, 697.602 to 697.842, 717.200 to 717.320, 717.900and 717.905 and ORS chapters 59, 723, 725 and 726, the Bank Act and theInsurance Code and in furthering a regulatory or legal action brought as a partof the director’s duties.

      (2)A document, material or other information to which subsection (1) of thissection applies is subject to the public officer privilege described in ORS40.270.

      (3)In order to assist in the performance of the director’s duties, the directormay:

      (a)Authorize sharing a confidential document, material or other information thatis subject to subsection (1) of this section as appropriate among theadministrative divisions and staff offices of the department created under ORS705.115 for the purpose of administering and enforcing the statutes identifiedin subsection (1) of this section, in order to enable the administrativedivisions and staff offices to carry out the functions and responsibilities ofthe administrative divisions and staff offices.

      (b)Share a document, material or other information, including a confidentialdocument, material or other information that is subject to subsection (1) ofthis section or that is otherwise confidential under ORS 192.501 or 192.502,with other state, federal, foreign and international regulatory and lawenforcement agencies and with the National Association of InsuranceCommissioners and affiliates or subsidiaries of the National Association ofInsurance Commissioners, if the recipient agrees to maintain theconfidentiality of the document, material or other information.

      (c)Receive a document, material or other information, including an otherwiseconfidential document, material or other information, from state, federal,foreign and international regulatory and law enforcement agencies and from theNational Association of Insurance Commissioners and affiliates or subsidiariesof the National Association of Insurance Commissioners. As provided in thissection, the director shall maintain the confidentiality of documents,materials or other information received upon notice or with an understandingthat the document, material or other information is confidential or privilegedunder the laws of the jurisdiction that is the source of the document, materialor other information.

      (4)Disclosing a document, material or other information to the director under thissection or sharing a document, material or other information as authorized insubsection (3) of this section does not waive an applicable privilege or claimof confidentiality in the document, material or other information.

      (5)This section does not prohibit the director from releasing a final, adjudicatedaction, including a suspension or revocation of a certificate of authority or alicense if the action is otherwise open to public inspection, to a database orother clearinghouse service maintained by the National Association of InsuranceCommissioners or affiliates or subsidiaries of the National Association ofInsurance Commissioners. [2001 c.377 §2; 2009 c.541 §24; 2009 c.604 §25]

 

      705.139Agreements with other agencies regarding sharing and use of confidentialinformation; contents. (1) The Director of the Department of Consumer andBusiness Services may enter into agreements with other state, federal, foreignand international regulatory and law enforcement agencies and with the NationalAssociation of Insurance Commissioners and its affiliates or subsidiaries,governing the sharing and use of information consistent with ORS 705.137.

      (2)An agreement under this section must specify the duration of the agreement, thepurpose of the agreement, the methods that may be employed for terminating theagreement and any other necessary and proper matters.

      (3)An agreement under this section does not relieve the director of any obligationor responsibility imposed by law.

      (4)The director may expend funds of the Department of Consumer and BusinessServices and may supply services for the purpose of carrying out an agreementunder this section.

      (5)Agreements under this section are exempt from ORS 190.410 to 190.440 and190.480 to 190.490. [2001 c.377 §3]

 

      705.140 [1985 c.762 §6a;repealed by 1987 c.373 §85]

 

      705.141Criminal records check; fingerprints required; persons subject to requirement. For the purposeof requesting a state or nationwide criminal records check under ORS 181.534,the Department of Consumer and Business Services may require the fingerprintsof a person who is applying for a license, or renewal of a license, under ORS744.001, 744.059 or 744.326 or a person who:

      (1)(a)Is employed or applying for employment by the department; or

      (b)Provides services or seeks to provide services to the department as acontractor, vendor or volunteer; and

      (2)Is, or will be, working or providing services in a position:

      (a)In which the person is providing information technology services and hascontrol over, or access to, information technology systems that would allow theperson to harm the information technology systems or the information containedin the systems;

      (b)In which the person has access to information that state or federal laws, rulesor regulations prohibit disclosing or define as confidential;

      (c)That has payroll functions or in which the person has responsibility forreceiving, receipting or depositing money or negotiable instruments, forbilling, collections or other financial transactions or for purchasing orselling property or has access to property held in trust or to private propertyin the temporary custody of the state;

      (d)That has mailroom duties as a primary duty or job function;

      (e)In which the person has responsibility for auditing the department;

      (f)That has personnel or human resources functions as a primary responsibility;

      (g)In which the person has access to Social Security numbers, dates of birth orcriminal background information of employees or members of the public; or

      (h)In which the person has access to tax or financial information aboutindividuals or business entities. [2007 c.619 §1]

 

      Note: 705.141 wasenacted into law by the Legislative Assembly but was not added to or made apart of ORS chapter 705 or any series therein by legislative action. SeePreface to Oregon Revised Statutes for further explanation.

 

(Licensing)

 

      705.143Combined license processing; rules. (1) The Department of Consumer andBusiness Services may establish one or more combined license processingprograms. Participation in a combined license processing program by a stateagency is voluntary. Notwithstanding any other provision of law, agenciesparticipating in a combined license processing program may:

      (a)Use combined license applications;

      (b)Adopt standardized license terms under subsection (2) of this section;

      (c)Charge adjusted license fees established under subsection (2) of this section;

      (d)Issue combined license documents; and

      (e)Take any other action authorized under rules adopted pursuant to subsection (3)of this section that provides a simplified procedure for processing licensesissued pursuant to the program.

      (2)Notwithstanding any other provision of law, the Department of Consumer andBusiness Services may establish a standardized term for licenses of stateagencies participating in a combined license processing program. If thedepartment establishes a standardized term under the provisions of thissubsection, the agencies participating in the program shall adjust the feesestablished by statute for each license in an appropriate manner to ensure thatthere is no revenue loss by reason of the change in the term of the license.

      (3)The Department of Consumer and Business Services may adopt rules necessary forimplementation of combined license processing programs. Any agencyparticipating in a combined license processing program may:

      (a)Agree to be bound by the rules adopted by the Department of Consumer andBusiness Services; and

      (b)Adopt any other rules necessary for participation in a combined licenseprocessing program. [2005 c.73 §1; 2007 c.768 §59]

 

      Note: 705.143 wasenacted into law by the Legislative Assembly but was not added to or made apart of ORS chapter 705 or any series therein by legislative action. SeePreface to Oregon Revised Statutes for further explanation.

 

(FinancialProvisions)

 

      705.145Consumer and Business Services Fund; sources; uses; revolving account;assignment of certain moneys to single account; contracts for state buildingcode training programs. (1) There is created in the State Treasury a fundto be known as the Consumer and Business Services Fund, separate and distinctfrom the General Fund. All moneys collected or received by the Department ofConsumer and Business Services, except moneys collected pursuant to ORS 735.612and those moneys required to be paid into the Workers’ Benefit Fund, shall bepaid into the State Treasury and credited to the Consumer and Business ServicesFund. Moneys in the fund may be invested in the same manner as other statemoneys and any interest earned shall be credited to the fund.

      (2)The department shall keep a record of all moneys deposited in the Consumer andBusiness Services Fund that shall indicate, by separate account, the sourcefrom which the moneys are derived, the interest earned and the activity orprogram against which any withdrawal is charged.

      (3)If moneys credited to any one account are withdrawn, transferred or otherwiseused for purposes other than the program or activity for which the account isestablished, interest shall accrue on the amount withdrawn from the date ofwithdrawal and until such funds are restored.