71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 938-2
 
                           A-Engrossed
 
                         Senate Bill 304
                 Ordered by the Senate March 20
           Including Senate Amendments dated March 20
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor John A. Kitzhaber,
  M.D., for Department of Consumer and Business Services)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Converts Appraiser Certification and Licensure Board to
semi-independent state agency status. Revises duties and
authority of board. { +  Reduces board membership. Changes
composition of board. + }
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to semi-independent status of Appraiser Certification
  and Licensure Board; creating new provisions; amending ORS
  674.305, 674.310 and 674.340; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + On the operative date of this section, the
Appraiser Certification and Licensure Board is transferred from
the Department of Consumer and Business Services and is
established as a semi-independent state agency that is subject to
sections 2 to 9 of this 2001 Act. + }
  SECTION 2.  { + As used in sections 2 to 9 of this 2001 Act:
  (1) 'Board' means the Appraiser Certification and Licensure
Board established as a semi-independent state agency under
section 1 of this 2001 Act.
  (2) 'License' includes licenses, registrations, certifications,
permits or other forms of permission required by law to pursue an
occupation or engage in a business regulated by the board. + }
  SECTION 3.  { + (1) Except as otherwise provided by law, the
provisions of ORS chapters 240, 276, 279, 282, 283, 291, 292 and
293 do not apply to the Appraiser Certification and Licensure
Board. The board is subject to all other statutes governing a
state agency that do not conflict with sections 2 to 9 of this
2001 Act, including the tort liability provisions of ORS 30.260
to 30.300 and the provisions of ORS 183.310 to 183.550. The
employees of the board are included within the Public Employees
Retirement System.
 
  (2) Notwithstanding subsection (1) of this section, the
following provisions shall apply to the board:
  (a) ORS 240.309 (1) to (6) and 240.321;
  (b) ORS 279.800 to 279.830;
  (c) ORS 279.835 to 279.855;
  (d) ORS 282.210 to 282.230; and
  (e) ORS 293.240.
  (3) In carrying out the duties, functions and powers of the
board, the board may contract with any state agency for the
performance of duties, functions and powers as the board
considers appropriate. A state agency shall not charge the board
an amount that exceeds the actual cost of those services.
Sections 2 to 9 of this 2001 Act do not require a state agency to
provide services to the board other than pursuant to a voluntary
interagency agreement or contract.
  (4) The board shall adopt personnel policies and contracting
and purchasing procedures. The Oregon Department of
Administrative Services shall review those policies and
procedures for compliance with applicable state and federal laws
and collective bargaining contracts.
  (5) Except as otherwise provided by law, members and employees
of the board are eligible to receive the same benefits as state
employees and are entitled to retain their State of Oregon hire
dates, transfer rights and job bidding rights, all without loss
of seniority, and to the direct transfer of all accumulated state
agency leaves. + }
  SECTION 4.  { + (1) The Appraiser Certification and Licensure
Board shall adopt budgets on a biennial basis using
classifications of expenditures and revenues required by ORS
291.206 (1), but the budget shall not be subject to review and
approval by the Legislative Assembly or to future modification by
the Emergency Board or the Legislative Assembly.
  (2) The budget referred to in subsection (1) of this section
shall be adopted in accordance with applicable provisions of ORS
183.310 to 183.550. The board shall adopt or modify a budget only
after a public hearing on the budget. The board must give notice
of the hearing to all holders of licenses issued by the board.
  (3) The board shall follow generally accepted accounting
principles and keep financial and statistical information as
necessary to completely and accurately disclose the financial
condition and financial operations of the board as may be
required by the Secretary of State.
  (4) The board shall prepare an annual financial statement of
board revenues and expenses and shall make the statement
available for public review. The board shall provide a copy of
the statement to the Oregon Department of Administrative Services
not later than the 90th day after the end of the state fiscal
year. + }
  SECTION 5.  { + Sections 2 to 9 of this 2001 Act do not affect
the duty and authority of the Secretary of State to audit public
accounts. The Secretary of State shall enter into agreements with
the Appraiser Certification and Licensure Board to set an
appropriate audit schedule for the board. The audit schedule
shall be set to allow board compliance with section 9 of this
2001 Act.  In lieu of conducting an audit, the Secretary of State
may elect to accept the report of an independent certified public
accountant. + }
  SECTION 6.  { + In addition to other powers granted by sections
2 to 9 of this 2001 Act and by the statutes specifically
applicable to the Appraiser Certification and Licensure Board,
the board may:
  (1) Sue and be sued in its own name.
  (2) Notwithstanding ORS chapter 279, enter into contracts and
acquire, hold, own, encumber, issue, replace, deal in and with
and dispose of real and personal property.
 
  (3) Fix a per diem amount to be paid to a board member for each
day or portion thereof during which the member is actually
engaged in the performance of official duties. Board members may
also receive actual and necessary travel expenses or other
expenses actually incurred in the performance of their duties. If
an advisory council or peer review committee is established under
the law that governs the board, the board may also fix and pay
amounts and expenses for members of the council or committee.
  (4) Set the amount of any fee required by statute and establish
by rule and collect other fees as determined by the board. Fees
shall not exceed amounts necessary for the purpose of carrying
out the functions of the board. Notwithstanding ORS 183.335 and
except as provided in this subsection, the board shall hold a
public hearing prior to adopting or modifying any fee without
regard to the number of requests received to hold a hearing. The
board shall give notice to all licensees of the board prior to
holding a hearing on the adoption or modification of any fee. The
board may adopt fees in conjunction with the budget adoption
process described in section 4 of this 2001 Act.
  (5) Subject to any other statutory provisions, adopt procedures
and requirements governing the manner of making application for
issuance, renewal, suspension, revocation, restoration and
related activities concerning licenses that are under the
jurisdiction of the board. + }
  SECTION 7.  { + (1) The administrator of the Appraiser
Certification and Licensure Board may employ persons as the board
determines to be necessary for carrying out the business and
responsibilities of the board.
  (2) Notwithstanding subsection (1) of this section, the board
shall continue to employ all classified employees employed by the
board on the operative date of section 1 of this 2001 Act,
subject to state personnel laws and collective bargaining
agreements.
  (3) Notwithstanding subsection (1) of this section, the board
shall be bound by any collective bargaining agreement entered
into by this state on behalf of the board before or after the
operative date of section 1 of this 2001 Act.
  (4) Changes in board status under section 1 of this 2001 Act do
not affect the status of any collective bargaining unit as the
appropriate bargaining unit for board employees. + }
  SECTION 8.  { + (1) Except where otherwise specifically
provided by ORS 674.850 and 674.990, all moneys collected or
received by the Appraiser Certification and Licensure Board,
placed to the credit of the board and remaining unexpended and
unobligated on the operative date of section 1 of this 2001 Act,
and all moneys collected or received by the board after the
operative date of section 1 of this 2001 Act shall be deposited
into an account established by the board in a depository bank
insured by the Federal Deposit Insurance Corporation. In a manner
consistent with the requirements of ORS chapter 295, the
chairperson of the board shall ensure that sufficient collateral
secures any amount of funds on deposit that exceeds the limits of
the Federal Deposit Insurance Corporation's coverage. All moneys
in the account are continuously appropriated to the board for the
purpose of carrying out the functions of the board.
  (2) Subject to the approval of the chairperson, the board may
invest moneys collected or received by the board. Investments
made by the board are:
  (a) Limited to investments described in ORS 294.035;
  (b) Subject to the investment maturity date limitations
described in ORS 294.135; and
  (c) Subject to the conduct prohibitions listed in ORS 294.145.
  (3) Interest earned from any moneys invested under subsection
(2) of this section shall be made available to the board in a
manner consistent with the board's annual budget.
 
  (4) Subject to the approval of the chairperson, all necessary
board expenses shall be paid from the moneys collected or earned
by the board.
  (5) As used in this section, 'depository bank' has the meaning
given that term in ORS 295.005. + }
  SECTION 9.  { + Not later than the first day of each regular
session of the Legislative Assembly, the Appraiser Certification
and Licensure Board shall submit a report to the Legislative
Assembly as provided in ORS 192.245 and to the Governor. The
report shall include the following:
  (1) A copy of the most recent audit required by section 5 of
this 2001 Act;
  (2) A copy of the budget adopted by the board for the
subsequent biennium in accordance with section 4 of this 2001
Act;
  (3) A description of the public hearing process for setting
budgets;
  (4) A description of fee changes and justifications for fee
changes;
  (5) A description of the number of licenses issued and revoked;
  (6) A description of the number of complaints reported and
investigated and a list of the number and types of sanctions
imposed;
  (7) A description of all rules adopted or repealed, including
temporary and permanent rules;
  (8) A description of the number of public meetings or work
sessions held by the board;
  (9) A description of the board's consumer publications and
outreach programs;
  (10) An explanation of any revenue increase causing revenue to
exceed the prior biennium's budget level, including what portion
of the increase, if any, is due to an increase in the number of
licenses issued;
  (11) An explanation of how any revenue increase that caused
revenue to exceed the prior biennium's budget level was expended;
  (12) An explanation of how the board has adequately and
effectively discharged the lawful responsibilities of the board
concerning:
  (a) Licensing;
  (b) Enforcement;
  (c) Consumer and professional education and information;
  (d) Responses to consumer complaints; and
  (e) Responses to requests from the Governor's office; and
  (13) A statement of whether the personnel policies and
contracting and purchasing procedures followed by the board:
  (a) Comply with applicable state and federal law; and
  (b) Have resulted in time or resource savings and the amount
and use made of any savings. + }
  SECTION 10.  { + Notwithstanding section 4 of this 2001 Act,
for the biennium ending on June 30, 2003, the Appraiser
Certification and Licensure Board may adopt its budget by
temporary rule under ORS 183.335. + }
  SECTION 11. ORS 674.305 is amended to read:
  674.305. (1)   { - There is created in the Department of
Consumer and Business Services an - }  { +  The + } Appraiser
Certification and Licensure Board   { - consisting - }
 { + shall operate as a semi-independent state agency subject to
sections 2 to 9 of this 2001 Act for purposes of carrying out the
provisions of this chapter. The board shall consist  + }of
 { - 10 members, nine of whom are voting - }   { + seven + }
members { + . The members shall be appointed by the Governor and
must be  + }  { - who are - }  residents of this state
 { - appointed by the Governor - } .
  (2) The board shall be composed of:
  (a)   { - Four - }   { + Five + } appraisers certified  { + or
licensed + } under ORS 674.310;
    { - (b) One appraiser licensed under ORS 674.310; - }
    { - (c) Two individuals who are - }   { + (b) One individual
who is + } employed by a financial institution or a mortgage
banker { + ; and + }   { - or one individual from each; - }
    { - (d) Two individuals who are public members - }   { + (c)
One individual who is a public member + } and who:
  (A)   { - Are - }   { + Is + } not engaged in professional real
estate activity;
  (B)   { - Are not - }   { + Is not a + } state certified or
state licensed
  { - appraisers - }  { +  appraiser + };
  (C)   { - Are - }   { + Is + } not employed by  { + a + }
financial   { - institutions - }  { +  institution + } or
 { + a + } mortgage   { - bankers - }  { +  banker + }; and
  (D)   { - Do - }   { + Does + } not have a direct financial
interest in any person who is required, or whose employees or
agents are required, to be state licensed or state certified
appraisers { + . + }  { - ; and - }
    { - (e) The Director of the Department of Consumer and
Business Services, or a designated representative, who shall
serve as a nonvoting member of the board. - }
  (3) The term of office of each member is four years with two
terms maximum, but a member serves at the pleasure of the
Governor. Before the expiration of the term of a member, the
Governor shall appoint a successor whose term begins on July 1
next following. A member is eligible for reappointment. If there
is a vacancy for any cause, the Governor shall make an
appointment to become immediately effective for the unexpired
term.   { - No individual - }   { + A member + }   { - shall - }
 { + may not + } be appointed to serve more than two consecutive
terms on the board.
  (4) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495.
  (5) The board shall select one of its members as chairperson
and another as vice chairperson, for such terms and with duties
and powers necessary for the performance of the functions of such
offices as the board determines.
  (6) A majority of the members of the board constitutes a quorum
for the transaction of business.
  (7) The board shall meet at least once every three months at a
place, day and hour determined by the board. The board also shall
meet at other times and places specified by the call of the
chairperson or of a majority of the members of the board.
  (8) In accordance with applicable provisions of ORS 183.310 to
183.550, the board shall adopt rules necessary for the
administration of this chapter.
  (9) The appointment of   { - the - }   { + a member of the + }
board is subject to confirmation by the Senate in the manner
prescribed in ORS 171.562 and 171.565.
  (10) The   { - director - }   { + chairperson + } shall appoint
an administrator subject to the approval of the board who shall
be in the unclassified service and fix the compensation of such
officer.
  SECTION 12. ORS 674.310 is amended to read:
  674.310. (1) The Appraiser Certification and Licensure Board
shall:
  (a) Have the power to do all things necessary and convenient to
carry into effect the provisions of this chapter and the federal
Act and to regulate the activities of state licensed appraisers
and state certified appraisers to ensure that all real estate
appraisals conform to the law in effect on the date of the real
estate appraisal activity.
  (b) Certify and license appraisers as necessary to carry out
the federal Act and the purposes set forth in ORS 674.010.
  (c) Supervise the activities of state certified and state
licensed appraisers as provided in this chapter, to ensure that
they perform all real estate appraisal activity in strict
conformance with the provisions of this chapter and of the
federal Act, and that they otherwise comply with the provisions
of this chapter in the conduct of their professional activities.
  (d) Establish, keep current and, no less than annually,
transmit to the Appraisal Subcommittee a roster listing state
certified appraisers and state licensed appraisers.
  (e) Collect and remit annual registry fees as required by ORS
674.330.
  (2) All rules adopted by the board to govern real estate
appraiser certification and licensure shall conform in all
respects with the requirements of the federal Act. The board
shall adopt rules including but not limited to:
  (a) Establishing programs for the certification and licensure
of individuals who engage in real estate appraisal activity.
  (b) Establishing educational requirements for certification and
licensure of appraisers that ensure protection of the public
interest and comply in all respects with the requirements of the
federal Act. Education requirements for state certified
appraisers shall specifically meet the minimum criteria
established by the Appraiser Qualification Board of the Appraisal
Foundation.
  (c) Establishing a professional code of responsibility for
state certified appraisers and state licensed appraisers that is
in conformance with the federal Act.
  (d) Providing for registration of out-of-state appraisers as
provided for under ORS 674.120.
  (3) No individual shall be a state certified appraiser unless
the individual has achieved a passing grade upon a suitable
examination equivalent to the Uniform Certification Examination
issued or indorsed by the Appraisal Qualification Board of the
Appraisal Foundation.
  (4) The Appraiser Certification and Licensure Board, acting
through the administrator, may issue subpoenas to compel the
attendance of witnesses and the production of papers, books,
records, correspondence, agreements, memoranda and other material
or relevant documents in all investigations or proceedings
pertaining to the powers and duties of the board.
  (5) In the case of a person who refuses to respond to a
subpoena issued by the board, the judge of the circuit court
 { - or of any county - } , on the application of the board
administrator, shall order compliance with the board subpoena in
the same manner as a proceeding for contempt for failure to
respond to a subpoena of the court.
  SECTION 13. ORS 674.340 is amended to read:
  674.340. (1)   { - The Appraiser Account is established as an
account in the Consumer and Business Services Fund created by ORS
705.145. - }  All moneys, fees and charges collected or received
by the Appraiser Certification and Licensure Board pursuant to
ORS 674.330 shall be paid into { +  the account created by the
board under section 8 of this 2001 Act. + }   { - the Consumer
and Business Services Fund created by ORS 705.145 and credited to
the account. - }  All moneys in the account are appropriated
continuously to the
  { - Department of Consumer and Business Services - }  { +
board + } to carry out the duties   { - which - }   { + that + }
the board is charged with administering.
  (2) The Federal Registry Fund is established in the
  { - Appraiser Account in the Consumer and Business Services
Fund - }  { + account created by the board under section 8 of
this 2001 Act + }.  Proceeds received under ORS 674.330 (1) shall
be deposited in the Federal Registry Fund   { - of the Appraiser
Account in the Consumer and Business Services Fund - } . The
moneys in the Federal Registry Fund shall be used solely as set
forth in ORS 674.330 (1).
 
  SECTION 14.  { + Notwithstanding sections 1 to 10 and 15 to 18
of this 2001 Act and the amendments to ORS 674.305, 674.310 and
674.340 by sections 11 to 13 of this 2001 Act, the lawful rules
of the Appraiser Certification and Licensure Board in effect
immediately prior to the operative date of section 1 of this 2001
Act shall continue in full force and effect unless superseded by
temporary or permanent rules lawfully adopted on or after the
operative date of section 1 of this 2001 Act. + }
  SECTION 15.  { + Notwithstanding sections 1 to 10, 14 and 16 to
18 of this 2001 Act and the amendments to ORS 674.305, 674.310
and 674.340 by sections 11 to 13 of this 2001 Act, the fee
structure utilized by the Appraiser Certification and Licensure
Board immediately prior to the operative date of section 1 of
this 2001 Act shall continue in full force and effect except as
superseded by a fee structure adopted on or after the operative
date of section 1 of this 2001 Act. + }
  SECTION 16.  { + (1) The transfer of the Appraiser
Certification and Licensure Board to semi-independent state
agency status by section 1 of this 2001 Act and the application
of sections 2 to 9 of this 2001 Act to the board shall not act to
cancel, suspend or prevent:
  (a) Any lawful debt owing by or to the board;
  (b) Any fine, penalty, tax or obligation;
  (c) Any contract or other obligation; or
  (d) Any action taken by or on behalf of the board in the
administration and enforcement of its duty.
  (2) The application of sections 2 to 9 of this 2001 Act to the
board does not require the board to reexecute any action that is
consistent with the provisions of sections 2 to 9 of this 2001
Act.
  (3) All supplies, materials, equipment, records, books, papers
and facilities of the board shall continue under the control of
the board as though the transfer had not occurred. + }
  SECTION 17. { +  Prior to the operative date of section 1 of
this 2001 Act, the Appraiser Certification and Licensure Board
may undertake any reasonable and necessary action to facilitate
carrying out the purposes of sections 1 to 10 and 14 to 18 of
this 2001 Act and the amendments to ORS 674.305, 674.310 and
674.340 by sections 11 to 13 of this 2001 Act on or after the
operative date of section 1 of this 2001 Act. + }
  SECTION 18.  { + Sections 1 to 10 and 14 to 18 of this 2001 Act
and the amendments to ORS 674.305, 674.310 and 674.340 by
sections 11 to 13 of this 2001 Act become operative July 1, 2001,
or 60 days after the effective date of this 2001 Act, whichever
is later. + }
  SECTION 19.  { + This 2001 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2001 Act takes effect on
its passage. + }
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