Chapter 594 Oregon Laws 2003

AN ACT

HB 2268

Relating to water; creating new provisions; amending ORS 536.009, 536.050, 537.020, 537.040, 537.534, 537.545, 537.747, 537.762 and 537.763; and declaring an emergency.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 536.050 is amended to read:

536.050. (1) [For applications filed after July 23, 1997, the following fees shall be collected by] The Water Resources Department may collect the following fees in advance:

[(a) Except as provided under ORS 543.280 for an application for a hydroelectric project, for examining an application for a permit to appropriate water, $250, plus $150 for the first second-foot or fraction thereof, plus $75 for each additional second-foot or fraction thereof.]

[(b) For examining an application for a permit:]

[(A) To store water under ORS 537.400 or 537.534 (4), $250, plus $10 for the first acre-foot up to 10 acre-feet, plus $1 for each additional acre-foot up to 1,000 acre-feet, plus 25 cents for each additional acre-foot in excess of 1,000.]

[(B) To exclusively appropriate stored water, $100, plus $10 for the first acre-foot up to 10 acre-feet, plus $1 for each additional acre-foot up to 1,000 acre-feet, plus 25 cents for each additional acre-foot in excess of 1,000.]

(a) For examining an application for a permit:

(A) To appropriate water, except as provided under ORS 543.280 for an application for a hydroelectric project:

(i) A base fee of $300;

(ii) $200 for the first second-foot or fraction thereof;

(iii) $100 for each additional second-foot or fraction thereof; and

(iv) If appropriating stored water, $20 for the first acre-foot or fraction thereof up to 10 acre-feet, plus $1 for each additional acre-foot or fraction thereof.

(B) To store water under ORS 537.400 or 537.534 (4):

(i) A base fee of $300; and

(ii) $20 for the first acre-foot or fraction thereof up to 10 acre-feet, plus $1 for each additional acre-foot or fraction thereof.

(C) To exclusively appropriate stored water:

(i) A base fee of $150; and

(ii) $15 for the first acre-foot or fraction thereof up to 10 acre-feet, plus $1 for each additional acre-foot or fraction thereof.

[(c)] (b) For recording a permit to appropriate or store water, [$175] $250.

[(d)] (c) For filing or recording any other water right instrument, $25 for the first page and $5 for each additional page.

[(e)] (d) For copying records in the department, $2 for the first page and 50 cents for each additional page.

[(f)] (e) For certifying [to] copies, documents, records[,] or maps, $10 for each certificate.

[(g)] (f) For a blueprint copy of any map or drawing, the actual cost of the work.

(g) For a computer-generated map, the actual cost of the work.

(h) For examining an application for approval of a change to an existing water right[, $200, plus $100 for each additional type of change requested, plus, if a request for a change in place of use or type of use or for a water exchange under ORS 540.533, $100 for each second-foot or fraction thereof requested in addition to the first second-foot.] or permit:

(A) A base fee of $350;

(B) $350 for each additional type of change requested; and

(C) For a request for a change in place of use or type of use or for a water exchange under ORS 540.533, $175 for each second-foot or fraction thereof requested beyond the first second-foot.

(i) For examining an application for a temporary change in place of use under ORS 540.523 or 540.570, [$100, plus] a base fee of $175 and:

(A) For nonirrigation uses, [$50] $75 for each second-foot or fraction thereof requested [in addition to] beyond the first second-foot; or

(B) For irrigation uses, $1 per acre of land irrigated or, if the application and required map are submitted to the department in a department-approved digital format, 25 cents per acre of land irrigated.

(j) For submitting a protest [under ORS 537.153, 537.621 or 543A.120, $200, reduced by the amount of any protest previously paid toward the same application and for filing any other protest with the department, $25] to the department, $250.

(k) For filing an application for extension of time within which irrigation or other works shall be completed or [the] a water right perfected, [$100] $250.

(L) For a limited license under ORS 537.143 or 537.534 (2), the fee established by rule by the Water Resources Commission.

(m) For filing, examining and certifying a petition under ORS 541.329, $250 plus 10 cents per acre of water involved in the application. For purposes of computing this fee, when any acreage within a quarter quarter of a section is involved, the 10 cents per acre shall apply to all acres in that quarter quarter of a section.

(n) For requesting standing under ORS 537.153 [(5)], 537.621 [(6)] or 543A.120, $50.

(o) For participating in a contested case proceeding under ORS 537.170 [(2)], 537.622 [(2)] or 543A.130, [$150] $200.

(p) Except for an applicant, for obtaining a copy of both a proposed final order and [a copy of] a final order for a water right application under ORS 537.140 to 537.252, 537.505 to 537.795 or 543A.005 to 543A.300, $10.

(q) For [submitting an application for a water right permit for a reservoir under ORS 537.409, $10 for each acre-foot, but not more than $100 per application] examining an application to store water under ORS 537.409:

(A) A base fee of $40; and

(B) $10 for each acre-foot or fraction thereof, not to exceed a total of $250.

(r) For submitting a notice of intent under ORS 543A.030 or 543A.075, the amount established by the Water Resources Director under ORS 543A.410.

(s) For examining an application for a substitution made under ORS 540.524, [$100] $250.

(t) For examining an application for an allocation of conserved water under ORS 537.455 to 537.500, $700.

(u) For submitting a water management and conservation plan pursuant to rules of the Water Resources Commission:

(A) $250, if the plan is submitted by an agricultural water supplier;

(B) $500, if the plan is submitted by a municipal water supplier serving a population of 1,000 or fewer persons; or

(C) $1,000, if the plan is submitted by a municipal water supplier serving a population of more than 1,000 persons.

(v) For examining a new application for an in-stream water right lease under ORS 537.348:

(A) $200 for an application for a lease with four or more landowners or four or more water rights; or

(B) $100 for all other applications.

(w) For examining an application for an in-stream water right lease renewal, $50.

(2) Notwithstanding the fees established under subsection (1) of this section, the Water Resources Commission may [by rule] establish [examination and permit fees lower than those under subsection (1) of this section] lower examination and permit fees by rule for:

(a) The right to appropriate water for a storage project of five acre-feet or less; or

(b) The right to appropriate water for the purpose of allowing the applicant to water livestock outside of a riparian area, as that term is defined in ORS 541.351. [As used in this paragraph, “riparian area” has the meaning given that term in ORS 541.351.]

[(3) Notwithstanding subsections (5) and (6) of this section, if the Water Resources Director determines a refund of a fee paid under this section is appropriate in the interest of fairness to the public or necessary to correct an error of the department, the director may refund all or part of a fee paid to the department.]

[(4) Notwithstanding subsections (5) and (6) of this section, the Water Resources Director may waive all or part of a fee for a change to a water right permit under ORS 537.211 (4) or a water right subject to transfer under ORS 540.520 or 540.523, if the change is made pursuant to ORS 537.348, is necessary to complete a project funded under ORS 541.375, or is approved by the State Department of Fish and Wildlife as a change that will result in a net benefit to fish and wildlife habitat.]

[(5) Except as provided in subsection (6) of this section, all moneys received under subsection (1) of this section shall be deposited in the Water Resources Department Operating Account and credited to the Water Resources Department. Such moneys are continuously appropriated to the Water Resources Department to pay the department’s expenses in administering and enforcing the provisions of ORS chapters 536 to 543A.]

[(6) All fees received for power purposes under ORS 543.280 shall be paid to the Water Resources Department Hydroelectric Fund established in ORS 536.015.]

(3) The Water Resources Director may refund all or part of a fee paid to the department under this section if the director determines that a refund of the fee is appropriate in the interests of fairness to the public or necessary to correct an error of the department.

(4) The director may waive all or part of a fee for a change to a water right permit under ORS 537.211 (4), a change to a water right subject to transfer under ORS 540.520 or 540.523 or an allocation of conserved water under ORS 537.470, if the change or allocation of conserved water is:

(a) Made pursuant to ORS 537.348;

(b) Necessary to complete a project funded under ORS 541.375; or

(c) Approved by the State Department of Fish and Wildlife as a change or allocation of conserved water that will result in a net benefit to fish and wildlife habitat.

(5) All moneys received under this section, less any amounts refunded under subsection (3) of this section, shall be deposited in the Water Resources Department Water Right Operating Fund.

(6) Notwithstanding subsection (5) of this section, all fees received by the department for power purposes under ORS 543.280 shall be deposited in the Water Resources Department Hydroelectric Fund established by ORS 536.015.

SECTION 2. ORS 537.545 is amended to read:

537.545. (1) [Except as provided in subsection (4) of this section,] No registration, certificate of registration, application for a permit, permit, certificate of completion or ground water right certificate under ORS 537.505 to 537.795 and 537.992 is required for the use of ground water for:

(a) Stockwatering purposes;

(b) Watering any lawn or noncommercial garden not exceeding one-half acre in area;

(c) Watering the lawns, grounds and fields not exceeding 10 acres in area of schools located within a critical ground water area established pursuant to ORS 537.730 to 537.740;

(d) Single or group domestic purposes in an amount not exceeding 15,000 gallons a day;

(e) Down-hole heat exchange purposes;

(f) Any single industrial or commercial purpose in an amount not exceeding 5,000 gallons a day; or

(g) Land application, so long as the ground water:

(A) Has first been appropriated and used under a permit or certificate issued under ORS 537.625 or 537.630 for a water right issued for industrial purposes or a water right authorizing use of water for confined animal feeding purposes;

(B) Is reused for irrigation purposes and the period of irrigation is a period during which the reused water has never been discharged to the waters of the state; and

(C) Is applied pursuant to a permit issued by the Department of Environmental Quality or the State Department of Agriculture under either ORS 468B.050 to construct and operate a disposal system or ORS 468B.215 to operate a confined animal feeding operation.

(2) The use of ground water for a use exempt under subsection (1) of this section, to the extent that it is beneficial, constitutes a right to appropriate ground water equal to that established by a ground water right certificate issued under ORS 537.700. Except for the use of water under subsection (1)(g) of this section, the Water Resources Commission by rule may require any person or public agency using ground water for any such purpose to furnish information with regard to such ground water and the use thereof. For a use of water described in subsection (1)(g) of this section, the Department of Environmental Quality or the State Department of Agriculture shall provide to the Water Resources Department a copy of the permit issued under ORS 468B.050 or 468B.215 authorizing the land application of ground water for reuse. The permit shall provide the information regarding the place of use of such water and the nature of the beneficial reuse.

(3) If it is necessary for the Water Resources Department to regulate the use or distribution of ground water, including uses exempt under subsection (1) of this section, the department shall use as a priority date for the exempt uses the date indicated in the log for the well filed with the department under ORS 537.765 or other documentation provided by the well owner showing when water use began.

[(4) After declaration of a ground water management area, any person intending to make a new use of ground water that is exempt under subsection (1) of this section shall apply for a ground water permit under ORS 537.505 to 537.795 and 537.992 to use the water. Any person applying for a permit for an otherwise exempt use shall not be required to pay a fee for the permit.]

SECTION 3. ORS 537.762 is amended to read:

537.762. (1) Each person required to possess a license under ORS 537.747 who has entered into a contract to construct, alter, abandon or convert a well or cause a well to be constructed, altered, abandoned or converted shall, before beginning work on the well, make a report to the Water Resources Commission containing:

(a) The name and post-office address of the owner of the [proposed] well.

(b) The approximate location of the [proposed] well.

(d) The proposed purpose or use of the ground water from the [proposed] well.

(2) The commission shall furnish a convenient means for reports referred to in subsection (1) of this section to each person who possesses a license under ORS 537.747.

(3) A separate report shall be furnished under subsection (1) of this section for each well that is constructed, altered, abandoned or converted.

(4) The report furnished under subsection (1) of this section shall be confidential and maintained as such for one year or until the well log required under ORS 537.765 is received by the commission, whichever is earlier. Nothing in this subsection prohibits the commission from using the report for enforcement actions during the period the report is considered confidential.

(5) Each report form submitted under subsection (1) of this section for the construction of a new well, deepening of an existing well, or conversion of a well shall be accompanied by a fee of [$75] $125.

(6) The moneys paid to the [Water Resources Department] commission under subsection (5) of this section shall be paid into the Water Resources Department Operating Fund. All interest, if any, from moneys received under subsection (5) of this section shall inure to the benefit of the Water Resources Department. Such moneys and interest earned on such moneys are continuously appropriated to the department to be used to pay the costs of the [Water Resources] department to employ personnel to inspect wells and well construction.

SECTION 4. ORS 537.763 is amended to read:

537.763. (1) There is established in the State Treasury the Water Resources Department Operating Fund to provide for the payment of the administrative expenses of the Water Resources Commission in carrying out the provisions of ORS 537.762.

(2) The Water Resources Department Operating Fund [created under subsection (1) of this section] shall consist of:

(a) Fees received pursuant to ORS 537.762.

(b) All moneys received on behalf of [this account] the fund by gift, grant or appropriation, from whatever source.

(3) The Water Resources Department Operating Fund [established by this section] shall be separate and distinct from the General Fund. All interest, if any, shall inure to the benefit of [this] the Water Resources Department Operating Fund.

(4) In expending moneys in the Water Resources Department Operating Fund received from fees pursuant to ORS 537.762, the biennial limitations on expenditures of the Water Resources Department shall be:

(a) No more than five percent for well inspection administrative support;

(b) No more than 20 percent for well inspection technical and information services; and

(c) No less than 75 percent for well inspection field investigation and enforcement.

SECTION 5. ORS 536.009 is amended to read:

536.009. [(1) There hereby is established in the General Fund of the State Treasury the Water Resources Department Operating Account to provide for the payment of the administrative expenses of the Water Resources Commission and the Water Resources Department in carrying out the provisions of ORS 536.050 and 537.747.]

[(2) The account created by subsection (1) of this section shall consist of:]

[(a) Fees received pursuant to ORS 536.050 (1) and 537.747 (6).]

[(b) All moneys received on behalf of this account by gift, grant or appropriation, from whatever source.]

(1) There is established in the State Treasury the Water Resources Department Water Right Operating Fund, separate and distinct from the General Fund, to provide for the payment of the program and administrative expenses of the Water Resources Commission and the Water Resources Department in carrying out the provisions of ORS chapters 536, 537, 540 and 541. Interest earned by the fund shall be credited to the fund.

(2) The fund shall consist of:

(a) All moneys received under ORS 536.050 and 537.747.

(b) All moneys received on behalf of the fund by gift, grant or appropriation from whatever source.

(3) All moneys in the fund are continuously appropriated to the Water Resources Department for payment of expenses as described in this section.

SECTION 6. ORS 537.534 is amended to read:

537.534. (1) In accordance with this section, the Water Resources Commission shall establish rules for the permitting and administration of aquifer storage and recovery projects. The rules shall establish the Water Resources Department as the sole permitting agency for the projects, but the Department of Environmental Quality and the Department of Human Services may comment on permits for a project and recommend conditions to be included on the permit. When necessary, the applicant also shall obtain land use and development approval from a local government.

(2) Notwithstanding the provisions of ORS 537.130, the Water Resources Commission shall establish by rule a procedure to allow a person to obtain a limited license to store and use water injected into an underground aquifer for aquifer storage and recovery testing purposes for a short term or fixed duration after the person complies with the notice provision set forth in ORS 537.144. The rules shall provide a 30-day public comment period before issuance of a limited license. The Water Resources Department may attach conditions to the limited license regarding monitoring, sampling and rates of recovery up to 100 percent of the injection quantity. Aquifer storage and recovery under a limited license may be conditioned by the Water Resources Department to protect existing ground water rights that rely upon the receiving aquifer and the injection source water. The Water Resources Department may revoke or modify the limited license to use the stored water acquired under a limited license if that use causes injury to any other water right or to a minimum perennial streamflow. The Water Resources Director may issue a limited license for aquifer storage and recovery purposes for a term of not more than five years. The license may be renewed if the applicant demonstrates further testing is necessary.

(3) To obtain a limited license for aquifer storage and recovery, the applicant shall provide to the Water Resources Department:

(a) Well construction information;

(b) Test results of the quality of the injection source water;

(d) The proposed injected water storage time, recovery rates and recovery schedule;

(e) Preliminary hydrogeologic information including a description of the aquifer, estimated flow direction and rate of movement, allocation of surface water, springs or wells within the area affected by aquifer storage and recovery wells;

(f) The fee established by rule by the commission pursuant to ORS 536.050 (1)(L); and

(g) Any other information required by rule of the commission.

(4) Only after completion of a test program under a limited license issued under subsection (3) of this section may the applicant apply for a permanent aquifer storage and recovery permit. Each application for an aquifer storage and recovery permit shall be accompanied by the fee set forth in ORS 536.050 [(1)(b)(A)] for examination of an application for a permit to store water. The Water Resources Department shall be the sole permitting agency for the project and may place conditions on the permit consistent with rules adopted by the commission, but the Department of Environmental Quality and the Department of Human Services may review, comment on and recommend conditions to be included on the permit. When necessary, the applicant shall obtain land use and development approval from a local government. Where existing water rights for the injection source water have been issued, the Water Resources Department shall receive comments from interested parties or agencies, but the public interest review standards shall apply only to the matters raised by the aquifer storage and recovery permit application in the same manner as any new water right application, not to the underlying water rights. If new water rights for injection source water and aquifer storage and recovery are necessary, then the public interest review standards shall apply to the new permit application in the same manner as any new water right application. The Water Resources Director may refer policy matters to the commission for decision.

(5) The commission shall adopt rules consistent with this section to implement an aquifer storage and recovery program. The rules shall include:

(a) Requirements for reporting and monitoring the aquifer storage and recovery project aquifer impacts and for constituents reasonably expected to be found in the injection source water.

(b) Provisions that allow any person operating an aquifer storage and recovery project under a permit, upon approval by the Water Resources Department, to recover up to 100 percent of the water stored in the aquifer storage facility if valid scientific data gathered during operations under the limited license or permit demonstrate that the injected source water is not lost through migration or other means and that ground water otherwise present in the aquifer has not been irretrievably lost as a result of aquifer storage or retrieval. The Water Resources Department may place such other conditions on withdrawal of stored water necessary to protect the public health and environment, including conditions allowing reconsideration of the permit to comply with ORS 537.532.

(c) The procedure for allowing the Department of Environmental Quality and the Department of Human Services to comment on and recommend permit conditions.

(6) The use of water under a permit as injection source water for an aquifer storage and recovery project up to the limits allowed in subsection (5)(b) of this section shall not affect the priority date of the water right permit or otherwise affect the right evidenced by the permit.

(7) The holder of a permit for aquifer storage and recovery shall apply for a transfer or change of use if the use of recovered water is different from that which is allowed in the source water permit or certificate.

SECTION 7. ORS 537.040 is amended to read:

537.040. (1) In lieu of applying for a permit for a water right under ORS 537.130, a public agency having jurisdiction over roads or highways may register a water use for road and highway maintenance, construction and reconstruction purposes.

(2) A public agency applying to register a water use under subsection (1) of this section shall:

(a) Submit a completed application to register the water use;

(b) Pay a fee of $300 to be deposited in the Water Resources Department [Operating Account in the manner described in ORS 536.050 (5)] Water Right Operating Fund;

(d) Identify the sources of surface water or ground water to be used;

(e) Specify the maximum amount of water to be used during a calendar year and during any 24-hour period; and

(f) If the public agency is withdrawing water from a conveyance or storage facility that is a perfected or certificated water right:

(A) Identify the permit or certificate number of the conveyance or storage right; and

(B) Provide written authorization from the owner of the perfected or certificated water right that allows the public agency to use water from the conveyance or storage facility.

(3) A use of water registered under subsection (1) of this section shall continue until the public agency voluntarily withdraws the registration. However, the public agency shall submit an annual renewal statement accompanied by an annual fee of $50 to be deposited in the Water Resources Department [Operating Account to be used in the manner described in ORS 536.050] Water Right Operating Fund. The annual renewal statement shall specify any change in the map, the sources of water to be used or maximum amount of water to be used.

(4) The use of water registered under subsection (1) of this section:

(a) Shall not have priority over any water right exercised under a permit, water right certificate, certificate of registration, order of the Water Resources Commission or the Water Resources Director and related court decrees;

(b) Shall be subordinate to all other future permitted or certificated rights; and

(5) The commission may require a public agency to cease withdrawal or diversion of water at any time the director has reason to believe the registered use is causing a significant adverse impact upon:

(a) The affected watershed;

(b) Any other water user entitled to use water under a permit issued under ORS 537.211 or 537.625 or a certificate issued under ORS 537.250, 537.630 or 539.140; or

(6) The commission may adopt rules to implement this section. The commission shall not require the map to be prepared by a water right examiner certified under ORS 537.798.

(7) As used in this section, “public agency” means the State of Oregon, any agency of the State of Oregon, a county, a special road district of a county, a city, town, incorporated municipality and any federal agency that has jurisdiction over a roadway in this state.

SECTION 8. ORS 537.020 is amended to read:

537.020. (1) Except as provided in subsection (2) of this section, a person applying to register a water use shall:

(a) Submit a completed notice of registration in conjunction with the application for a permit under ORS 537.140. The notice of registration shall be on forms provided by the Water Resources Department and shall require the applicant to list the name and address of each adjacent property owner.

(b) Mail a copy of the completed notice of registration and application to each adjacent property owner.

(c) Pay fees equivalent to the fees under ORS 536.050 for an application for a permit to appropriate water to be deposited in the Water Resources Department [Operating Account as described in ORS 536.050 (5)] Water Right Operating Fund.

(d) Provide a map indicating the location of the water use that complies with requirements established by rule by the Water Resources Commission. Except as provided in subsection (3) of this section, the map need not be prepared by a certified water right examiner under ORS 537.798.

(e) Provide any other information the commission may require by rule.

(2) Except as provided in subsection (3) of this section, up to 10 reservoirs may be included in an application under subsection (1) of this section if all the reservoirs are within the same ownership on contiguous property and within the same drainage basin as defined by the commission.

(3) A person may register a reservoir that stores 9.2 acre-feet or more of water or includes a dam 10 feet or higher for wetland, stream and riparian restoration or storm water management if the use qualifies under ORS 537.020 to 537.027. A person applying to register a reservoir that stores 9.2 acre-feet or more of water or includes a dam 10 feet or higher shall:

(a) Submit a separate, completed notice of registration and application for a permit under ORS 537.140 for each reservoir;

(b) Pay fees equivalent to the fees paid under ORS 536.050 for an application for a permit to appropriate water to be deposited in the Water Resources Department [Operating Account as described in ORS 536.050 (5)] Water Right Operating Fund;

(d) Provide any other information the commission may require by rule.

SECTION 9. ORS 537.747 is amended to read:

537.747. (1) No person shall advertise services to construct, alter, abandon or convert wells, offer to enter or enter into a contract with another person or public agency to construct, alter, abandon or convert a well for such other person, cause any well construction, alteration, abandonment or conversion to be performed under such a contract or operate well drilling machinery without possessing a water well constructor’s license therefor in good standing issued by the Water Resources Department. The department shall adopt a single water well constructor’s license that may specify the type of well, type of well alteration or construction or type of well drilling machine operation for which the water well constructor is qualified.

(2) Notwithstanding subsection (1) of this section, a person may operate a well drilling machine without a water well constructor’s license if supervised by one who possesses such a license.

(3) A person shall be qualified to receive a water well constructor’s license if the person:

(a) Is at least 18 years of age.

(b) Has passed a written examination conducted by the department to determine fitness to operate as a water well constructor.

(c) Has paid a license fee and an examination fee according to the fee schedule set forth under subsection (6) of this section.

(d) Has one year or more experience in the operation of well drilling machinery.

(4) Upon fulfillment of all the requirements set out in subsection (3) of this section, the department shall issue the applicant a water well constructor’s license in a form prescribed by the department. The license may be issued for a period of two years.

(5) A water well constructor’s license shall expire on June 30. A person may renew a license by submitting an application and the appropriate fees any time before the license expires but not later than one year after the license expires. At the time of application, the person shall provide the department with evidence of compliance with the continuing education requirements established pursuant to section 4, chapter 496, Oregon Laws 2001. A person who renews a license within the 12 months after the license expires may either pay a penalty fee set forth under subsection (6)(d) of this section or requalify for a water well constructor’s license in accordance with subsection (3) of this section. If a person fails to renew a license within 12 months after expiration the person must comply with the requirements of subsection (3) of this section for a new water well constructor’s license.

(6) The department shall collect in advance the following fees:

(a) An examination fee of $20.

(b) A license fee of $150.

(d) Unless a person requalifies for a water well constructor’s license in accordance with subsection (3) of this section, a water well constructor shall pay a renewal fee of $250 if the license is renewed within 12 months after expiration.

(e) If a person requalifies for a water well constructor’s license under subsection (3) of this section, the person shall pay the renewal fee established under paragraph (c) of this subsection.

(7) The department may revoke, suspend or refuse to renew any water well constructor’s license when it appears to the satisfaction of the department, after notice and opportunity to be heard by the licensee, that the licensee has failed to comply with the provisions of ORS 537.505 to 537.795 and 537.992 applicable to such licensee or any order or rule adopted thereunder applicable to such licensee, or has made a material misstatement of fact on an application for a license or well log or established a pattern of conduct that willfully or negligently violates any provision of ORS 537.505 to 537.795 and 537.992, or any rule adopted pursuant thereto, applicable to such licensee.

(8) The provisions of subsection (3) of this section requiring one year or more experience in the operation of well drilling machinery do not apply to any person who, on July 1, 1981, holds the license required by this section and who continues thereafter to maintain the license in good standing.

(9) The fees collected under subsection (6) of this section shall be paid into the Water Resources Department [Operating Account to the credit of the Water Resources Department] Water Right Operating Fund. Such moneys are continuously appropriated to the Water Resources Department to pay the department’s expenses in administering and enforcing the water well constructor’s licensing program.

SECTION 10. ORS 537.747, as amended by section 8, chapter 496, Oregon Laws 2001, is amended to read:

(2) Notwithstanding subsection (1) of this section, a person may operate a well drilling machine without a water well constructor’s license if supervised by one who possesses such a license.

(3) A person shall be qualified to receive a water well constructor’s license if the person:

(a) Is at least 18 years of age.

(b) Has passed a written examination conducted by the department to determine fitness to operate as a water well constructor.

(c) Has paid a license fee and an examination fee according to the fee schedule set forth under subsection (6) of this section.

(d) Has one year or more experience in the operation of well drilling machinery.

(5) A water well constructor’s license shall expire on June 30. A person may renew a license by submitting an application and the appropriate fees any time before the license expires but not later than one year after the license expires. A person who renews a license within the 12 months after the license expires may either pay a penalty fee set forth under subsection (6)(d) of this section or requalify for a water well constructor’s license in accordance with subsection (3) of this section. If a person fails to renew a license within 12 months after expiration the person must comply with the requirements of subsection (3) of this section for a new water well constructor’s license.

(6) The department shall collect in advance the following fees:

(a) An examination fee of $20.

(b) A license fee of $50 for a license issued for one year, or $200 for a license issued for a period of five years.

(c) A renewal fee of $50 for a one-year license renewed before the license expires or $200 for a five-year license renewed before the license expires.

(d) Unless a person requalifies for a water well constructor’s license in accordance with subsection (3) of this section, a water well constructor shall pay a renewal fee of $100 for a one-year license if the license is renewed within 12 months after expiration or $250 for a five-year license if the license is renewed within 12 months after expiration.

(e) If a person requalifies for a water well constructor’s license under subsection (3) of this section, the person shall pay the renewal fee established under paragraph (c) of this subsection.

SECTION 11. The Water Resources Department shall establish an administrative fee work group consisting of members of constituent groups, the Water Resources Commission and department staff to research and evaluate the relevance, equity and sufficiency of fees established under ORS 536.050 and 537.762. The work group shall consider, at a minimum, opportunities for process streamlining and efficiency, opportunities to contract out process services and functions to private entities, methods of creating financial incentives to promote public interest activities, cost-containment strategies, inflation trends and the workload of the department. The department shall report the findings and recommendations of the work group to the Seventy-third Legislative Assembly and to any interim committee that requests a copy of the report.

SECTION 12. Section 11 of this 2003 Act is repealed on January 2, 2006.

SECTION 13. The amendments to ORS 536.009, 536.050, 537.534, 537.545, 537.762 and 537.763 by sections 1 to 6 of this 2003 Act apply to fees collected by the Water Resources Department on or after the effective date of this 2003 Act.

SECTION 14. Notwithstanding the amendments to ORS 536.050 by section 1 of this 2003 Act, until October 1, 2003, the Water Resources Department may collect only the fees established by, and in the amounts specified by, ORS 536.050 in effect on January 1, 2003. On and after October 1, 2003, the department shall collect the fees established by ORS 536.050 as amended by section 1 of this 2003 Act.

SECTION 15. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect on its passage.

Approved by the Governor July 21, 2003

Filed in the office of Secretary of State July 21, 2003

Effective date July 21, 2003

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