72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 501
A-Engrossed
House Bill 2156
Ordered by the House May 16
Including House Amendments dated May 16
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of Governor Theodore
R. Kulongoski for Department of Human 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.
Authorizes Department of Human Services to present for
recordation request for notice of { - transaction - }
{ + transfer or encumbrance of real property + } in deed and
mortgage records of county in which public assistance recipient
holds { - interest - } { + record title + } in real
property { + or is purchaser under land sale contract + }.
Requires title insurance company { - to provide notice of
transaction to department when instrument affecting interest in
real property is recorded - } { + or agent to notify Department
of Human Services within 30 days of transfer or encumbrance that
results in issuance of certificate of title and disclose request
in title report + }.
A BILL FOR AN ACT
Relating to public assistance; creating new provisions; and
amending ORS 205.246.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 3 of this 2003 Act, '
encumbrance' means a voluntary instrument granting a security
interest in the affected real property to secure a monetary
obligation. + }
SECTION 2. { + (1) When an individual receives public
assistance as defined in ORS 411.010 and the individual is the
holder of record title to real property or the purchaser under a
land sale contract, the Department of Human Services may present
to the county clerk for recordation in the deed and mortgage
records of a county a request for notice of transfer or
encumbrance of the real property.
(2) A title insurance company or agent shall provide the
department with a notice of transfer or encumbrance as required
by section 3 of this 2003 Act.
(3) If the department has caused a request for notice of
transfer or encumbrance to be recorded in the deed and mortgage
records, the department shall present to the county clerk for
recordation a termination of request for notice of transfer or
encumbrance when, in the judgment of the department, it is no
longer necessary or appropriate for the department to monitor
transfers or encumbrances related to the real property.
(4) The department shall adopt by rule a form of the request
for notice of transfer or encumbrance, the notice of transfer or
encumbrance and the termination of request for notice of transfer
or encumbrance that, at a minimum:
(a) Contains the name of the public assistance recipient, a
departmental case identifier or other appropriate information
that links the individual who is the holder of record title to
real property or the purchaser under a land sale contract to the
individual's public assistance records;
(b) Contains the legal description of the real property;
(c) Contains a mailing address for the department to receive
the notice of transfer or encumbrance; and
(d) Complies with the requirements for recordation in ORS
205.232 and 205.234 for those forms intended to be recorded.
(5) The department shall pay the recordation fee required by
the county clerk under ORS 205.320.
(6) The request for notice of transfer or encumbrance described
in this section does not affect title to real property and is not
a lien on, encumbrance of or other interest in the real
property. + }
SECTION 3. { + (1) A title insurance company or agent that
discovers the presence of a request for notice of transfer or
encumbrance pursuant to section 2 of this 2003 Act in the deed
and mortgage records when performing a title search on real
property shall: + }
{ + (a) Provide the Department of Human Services with a
notice of transfer or encumbrance of the real property within 30
days of a transfer or encumbrance that results in the issuance of
a certificate of title insurance; and + }
{ + (b) Disclose the presence of the request for notice of
transfer or encumbrance in any report preliminary to, or any
commitment to offer, a certificate of title insurance for the
real property. + }
{ + (2) If the Department of Human Services has caused to be
recorded a termination of request for notice of transfer or
encumbrance in the deed and mortgage records, a title insurance
company or agent is no longer required to provide the notice of
transfer or encumbrance required by subsection (1)(a) of this
section for the affected real property. + }
{ + (3) The Department of Human Services shall adopt by rule
a model form for notice of transfer or encumbrance required by
subsection (1)(a) of this section. A title insurance company or
agent shall use the model form or a form substantially similar to
the model form when notifying the department under subsection
(1)(a) of this section. + }
SECTION 4. ORS 205.246 is amended to read:
205.246. (1) The county clerk shall record the following
instruments required or permitted by law to be recorded and
entered in the office of the county clerk:
(a) Financing statements recorded in the office of the county
clerk under ORS 79.0501 (1)(a);
(b) Hospital and physician liens recorded under ORS 87.565;
(c) Federal tax liens and certificates and notices affecting
federal tax liens recorded under ORS 87.806;
(d) Cooperative contracts recorded under ORS 62.360;
(e) Special district assessments attaching to real property;
(f) Lien foreclosure statements recorded under ORS 87.202;
(g) A certified copy of the judgment or a lien record abstract
or other liens affecting the title to real property;
(h) Building code exemptions required under ORS 455.320 and
455.345;
(i) Construction liens recorded under ORS 87.050;
(j) Liens upon chattels recorded under ORS 87.246;
(k) Liens on real property recorded under ORS 87.372;
(L) Employee benefit plan liens recorded under ORS 87.860;
(m) Attorney liens recorded under ORS 87.455 and 87.460;
(n) Long term care liens recorded under ORS 87.517;
(o) Ambulance services liens recorded under ORS 87.623;
(p) Community property records recorded under ORS 108.530;
(q) Sheriff transfer of records recorded under ORS 206.100;
(r) Corrected instruments required under ORS 205.244;
(s) Mineral and mining records required under ORS 517.030,
517.052, 517.160, 517.180, 517.210, 517.220, 517.280, 517.310 and
517.320;
(t) Copies of records certified by a county clerk or court
clerk;
(u) Subdivision and partition plats recorded under ORS 92.140;
{ - and - }
(v) Condominiums recorded under ORS chapter 100 { + ; and
(w) Requests for notice of transfer or encumbrance or
terminations of requests for notice of transfer or encumbrance
presented for recordation under section 2 of this 2003 Act + }.
(2) The county clerk shall charge and collect fees specified in
ORS 205.320, 205.327 and 205.350 for recording any instrument
required to be recorded under subsection (1) of this section.
(3) Indexes may be maintained for instruments recorded under
subsection (1) of this section in the same manner as provided in
ORS 205.160.
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