Chapter 743 Oregon Laws 1999

Session Law

AN ACT

HB 2241

Relating to child care facilities; creating new provisions; amending ORS 285B.180, 307.145, 315.208, 419B.005, 657A.250, 657A.270, 657A.275, 657A.280, 657A.290, 657A.300, 657A.310, 657A.330, 657A.350, 657A.360, 657A.390, 657A.400, 657A.410, 657A.440, 657A.610 and 742.260; and repealing sections 1 and 2, chapter 858, Oregon Laws 1999 (Enrolled House Bill 2240).

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

SECTION 1. ORS 657A.250 is amended to read:

657A.250. As used in ORS 657A.030 and 657A.250 to 657A.450, unless the context requires otherwise:

(1) "Babysitter" means a person who goes into the home of a child to give care during the temporary absence of the parent or legal guardian or custodian.

(2) "Certification" means the certification that is issued by the Child Care Division to a group child care home, child care center or other child care facility pursuant to ORS 657A.280.

[(2)] (3) "Child" means a child under 13 years of age.

[(3)] (4) Subject to ORS 657A.440, "child care" means the care, supervision and guidance on a regular basis of a child, unaccompanied by a parent, guardian or custodian, provided to a child during a part of the 24 hours of the day, in a place other than the child's home, with or without compensation. "Child care" does not include care provided:

(a) In the home of the child;

(b) By the child's parent, guardian, or person acting in loco parentis;

(d) On an occasional basis by a person not ordinarily engaged in providing child care;

(e) By providers of medical services;

(f) By a babysitter;

(g) By a person who cares for children from only one family other than the person's own family; or

(h) By a person who cares for no more than three children other than the person's own children.

[(4)] (5) "Child care facility" means any facility that provides child care to children, including a day nursery, nursery school group, [home of a family child care provider] group child care home, child care center, family child care home or similar unit operating under any name, but not including any:

(a) Facility providing care that is primarily educational, unless provided to a preschool child for more than four hours a day.

(b) Facility providing care that is primarily supervised training in a specific subject, including but not limited to dancing, drama, music or religion.

(c) Facility providing care that is primarily an incident of group athletic or social activities sponsored by or under the supervision of an organized club or hobby group.

(d) Facility operated by a school district as defined in ORS 332.002, political subdivision of this state or a governmental agency.

(e) Residential facility licensed under ORS 443.400 to 443.455.

(f) Babysitters.

[(5)] (6) "Division" means the Child Care Division of the Employment Department.

[(6)] (7) "Family" has the meaning given that term in ORS 329.145.

[(7) "Family child care provider" means a child care provider who regularly provides child care in the provider's home in the family living quarters.]

(8) "Occasional" means that care is provided for no more than 70 days in any calendar year.

(9) "Registration" means the registration that is issued by the Child Care Division to a family child care home where care is provided in the family living quarters of the provider's home pursuant to ORS 657A.330.

[(9)] (10) "School age" means of an age eligible to be enrolled in the first grade or above and, during the months of summer vacation from school, means of an age eligible to be enrolled in first grade or above in the next school year.

SECTION 2. ORS 657A.270 is amended to read:

657A.270. (1) A [certificate of approval or a certificate of] certification or registration [without inspection] authorized by ORS 657A.030 and 657A.250 to 657A.450 and issued to a child care facility may be renewed upon submission of an application and payment of the required fee not later than 30 days prior to the expiration date of the current [certificate] certification or registration, if the Child Care Division of the Employment Department finds that the child care facility [for which] that is seeking renewal of the [certificate is sought] certification or registration is in compliance with the requirements of ORS 181.537, 657A.030 and 657A.250 to 657A.450 and the rules promulgated pursuant thereto.

(2) Upon submission of an application for renewal in proper time, manner and form, and payment of the required fee, the current [certificate] certification or registration, unless officially revoked, shall remain in force until the Child Care Division has acted on the application for renewal and has given notice of the action taken.

(3) The division shall not renew a [certificate of approval or a certificate of registration without inspection] certification or registration unless all of the child care providers employed by the child care facility have completed at least two hours of training in child abuse and neglect [training] issues during the most recent certification or registration period.

SECTION 3. ORS 657A.275 is amended to read:

657A.275. (1) Subject to prior approval of the Oregon Department of Administrative Services and a report to the Legislative Assembly prior to adopting the fees and charges, the fees and charges established under ORS 181.537, 657A.030 and 657A.250 to 657A.450 shall not exceed the cost of administering the program of the Child Care Division of the Employment Department pertaining to the purpose for which the fee is established, as authorized by the Legislative Assembly within the budget of the division.

(2) Notwithstanding subsection (1) of this section and any other provision of this chapter, the following fees established by the division under ORS 657A.030 and 657A.250 to 657A.450 shall not exceed:

(a) For [Family] Group Child Care Home Initial Certification, $25;

(b) For [Family] Group Child Care Home Annual Fee Per Certified Space, $2;

(d) For Child Care Center Annual Fee Per Certified Space, $2;

(e) For Family Child Care Home Initial [Certificate of] Registration, $30; and

(f) For enrollment in the Criminal History Registry, the cost of administering the program, including fees for:

(A) Duplicate enrollment in the Criminal History Registry;

(B) Law Enforcement Data System criminal records check; and

SECTION 4. ORS 657A.280 is amended to read:

657A.280. (1) No person shall operate a child care facility caring for seven or more children without a [certificate of approval] certification for such facility from the Child Care Division.

(2) The Child Care Division shall adopt rules for the certification of a group child care [facility] home caring for not more than 12 children. The rules shall be specifically adopted for the regulation of certified child care facilities operated [by family child care providers] in a facility constructed as a single-family dwelling. [These rules shall account for the fact that family child care is provided in homes.] Notwithstanding fire and other safety regulations, the rules that the Child Care Division adopts for certified [family] child care facilities shall set standards [which] that can be met without significant architectural modification of a typical home. In adopting the rules, the Child Care Division may consider and set limits according to factors including the age of children in care, the ambulatory ability of children in care, the number of the provider's children present, the length of time a particular child is continuously cared for and the total amount of time a particular child is cared for within a given unit of time.

(3) In addition to rules adopted for and applied to child care facilities providing child care for not more than 12 children, the Child Care Division [may] shall adopt and apply separate rules appropriate for any child care facility that is a child care center that cares for more than 12 children [and is not the home of a family child care provider].

[(3)] (4) Any person [operating] seeking to operate a child care facility may apply for a [certificate of approval] certification for such facility from the Child Care Division, and receive a [certificate of approval] certification upon meeting certification requirements.

SECTION 5. (1) The amendments to ORS 657A.280 by section 4 of this 1999 Act are intended to change the name of the certificate of approval, which is issued by the Child Care Division of the Employment Department, to certification.

(2) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the certificate of approval, which is issued by the Child Care Division of the Employment Department, wherever they occur in Oregon Revised Statutes, other words designating certification.

SECTION 6. ORS 657A.290 is amended to read:

657A.290. A person applying for a [certificate of approval] certification for a child care facility shall demonstrate to the satisfaction of the Child Care Division that:

(1) The moral character and habits of the person will not endanger the well-being of children for whom the person is to provide care.

(2) The attitude of the person toward children and understanding of their needs qualify the person to care for children.

(3) The person is physically and mentally capable of caring for children.

(4) The facility and its operation are adequate to protect the health, the safety and the physical, moral and mental well-being of the children to be cared for in the facility, including but not limited to:

(a) Adequate staffing by suitable persons qualified by education or experience to meet their respective responsibilities in the care of children.

(b) Adequate physical facilities for the care of children, such as building construction, sanitation, plumbing, heating, lighting, ventilation, maintenance, indoor and outdoor activity areas and fire protection.

(c) A program of activities conforming to recognized practices in the areas of child welfare, education and physical and mental health to provide opportunity for development and recreation.

(d) Exclusion from the facility of individuals whose presence may be detrimental to the welfare of children, including exclusion of any individual with a criminal record indicating conviction of any crime which would bar the individual from operating or being employed in a child care facility under ORS 657A.260.

SECTION 7. ORS 657A.300 is amended to read:

657A.300. (1) Upon receipt of an application for a [certificate of approval] certification, accompanied by the required fee, the Child Care Division [may cause an investigation to be made and, subject to reasonable terms and conditions,] shall issue a [certificate of approval] certification if [it] the division finds that the child care facility and its operations are in compliance with the requirements of ORS 181.537, 657A.030 and 657A.250 to 657A.450 and the rules promulgated pursuant thereto.

(2) The Child Care Division may issue a temporary [certificate of approval] certification, subject to reasonable terms and conditions, for a period not longer than 180 days to a child care facility [which] that does not comply with the requirements and rules if the division finds that the health and safety of any child will not be endangered thereby. Not more than one temporary [certificate of approval] certification shall be issued for the same child care facility in any 12-month period.

(3) The Child Care Division shall serve as the state agency authorized, upon request, to certify compliance with applicable federal child care standards or requirements by any facility providing child care in the state.

SECTION 8. ORS 657A.310 is amended to read:

657A.310. (1) Application for a [certificate of approval] certification or for the annual renewal thereof shall be made to the Child Care Division on forms provided by the division and accompanied by a nonrefundable fee. The fee shall vary according to the type of facility and the number of children for which the facility is requesting to be certified, and shall be determined and applied through rules adopted by the division pursuant to ORS 657A.275.

(2) All fees received under subsection (1) of this section shall be deposited in the Child Care Fund established under ORS 657A.010 (2) and may be used for the administration of ORS 181.537, 657A.030 and 657A.250 to 657A.450.

(3) Any [certificate of approval] certification issued pursuant to ORS 657A.030 and 657A.250 to 657A.450 authorizes operation of the facility only on the premises described in the [certificate] certification and only by the person named in the [certificate] certification.

(4) Unless sooner revoked, a temporary [certificate of approval] certification expires on the date specified therein. Unless sooner revoked and except as provided in ORS 657A.270 (2), an annual [certificate of approval] certification expires one year from the date of issuance.

SECTION 9. ORS 657A.330 is amended to read:

657A.330. (1) A [person] provider operating a family child care home where care is provided in the family living quarters of the provider's home that is not subject to the [certificate of approval] certification requirements of ORS 657A.280 may not operate a child care facility without [a certificate of registration without inspection from] registering with the Child Care Division of the Employment Department.

(2) A child care facility holding a [certificate of] registration [without inspection] may care for a maximum of 10 children younger than 13 years of age, including the provider's own children. Of the 10 children:

(a) No more than six may be younger than school age; and

(b) No more than two may be 24 months of age or younger.

(3)(a) To obtain a [certificate of] registration [without inspection], a provider must apply to the Child Care Division by submitting a completed application work sheet and a nonrefundable fee. The fee shall vary according to the number of children for which the facility is requesting to be [certified] registered, and shall be determined and applied through rules adopted by the division pursuant to ORS 657A.275. The fee shall be deposited as provided in ORS 657A.310 (2). The division may waive any or all of the fee if the division determines that imposition of the fee would impose a hardship on the provider.

(b) Upon receipt of an initial application satisfactory to the division [and upon receipt of], the division shall conduct an on-site review of the child care facility under this section. The on-site review shall be conducted within 30 days of the receipt of a satisfactory application. If the division determines that the application meets the requirements of ORS 181.537, 657A.030 and 657A.250 to 657A.450 and the rules promulgated pursuant thereto, and receives a satisfactory records check, including criminal offender information and protective services records, the division shall issue a [certificate of] registration [without inspection]. Unless the registration is revoked as provided in ORS 657A.350, the [certificate] registration is valid for a period of two years from the date of issuance.

(4) A [certificate of] registration [without inspection] authorizes operation of the facility only on the premises described in the [certificate] registration and only by the person named in the [certificate] registration.

(5) The division shall adopt rules:

(a) Creating the application work sheet required under subsection (3) of this section;

(b) Defining full-time and part-time care;

(d) Establishing health and safety procedures and standards on:

(A) The number and type of toilets and sinks available to children;

(B) Availability of steps or blocks for use by children;

(D) Lighting of rooms occupied by children;

(E) Glass panels on doors;

(F) Condition of floors;

(G) Availability of emergency telephone numbers; and

(H) Smoking.

(6) The division shall adopt the application work sheet required by subsection (3) of this section. The work sheet must include, but need not be limited to, the following:

(a) The number and ages of the children to be cared for at the facility; and

(b) The health and safety procedures in place and followed at the facility.

(7) The division, upon good cause shown, may waive one or more of the [certification] registration requirements. The division may waive a requirement only if appropriate conditions or safeguards are imposed to protect the welfare of the children and the consumer interests of the parents of the children. The division may not waive the on-site review requirement for applicants applying for an initial registration.

(8) The division, by rule, shall develop a list of recommended standards consistent with standards established by professional organizations regarding child care programs for child care facilities. Compliance with the standards is not required for a [certificate of] registration, [without inspection] but the division shall encourage voluntary compliance and shall provide technical assistance to a child care facility attempting to comply with the standards. The child care facility shall distribute the list of recommended minimum standards to the parents of all children cared for at the facility.

(9) In adopting rules relating to [certificates of] registration [without inspection], the division shall consult with the appropriate legislative committee in developing the rules to be adopted. If the rules are being adopted during a period when the Legislative Assembly is not in session, the division shall consult with the appropriate interim legislative committee.

(10) A person who violates this section is subject to a civil penalty not to exceed $100. The Child Care Division may impose the civil penalty for violation of any of the terms or conditions of a [certificate of] registration [without inspection].

[(11) Any person operating a child care facility may apply for a certificate of approval for such facility from the Child Care Division and receive a certificate of approval upon meeting certification requirements.]

SECTION 10. The on-site reviews required by ORS 657A.330, as amended by section 9 of this 1999 Act, shall first apply to new applications for registration submitted on or after January 1, 2000.

SECTION 11. (1) The amendments to ORS 657A.330 by section 9 of this 1999 Act are intended to change the name of the certificate of registration without inspection, which is issued by the Child Care Division of the Employment Department, to registration.

(2) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the certificate of registration without inspection, which is issued by the Child Care Division of the Employment Department, wherever they occur in Oregon Revised Statutes, other words designating registration.

SECTION 12. ORS 657A.350 is amended to read:

657A.350. An initial application from a child care facility for [a certificate of approval or a certificate of registration without inspection] certification or registration or a renewal application from a child care facility for certification or registration may be denied, or a temporary or regular [certificate of approval or certificate of] certification or regular registration [without inspection] may be revoked or suspended, if the Child Care Division of the Employment Department finds:

(1) That the facility or its operation does not comply with ORS 181.537, 657A.030 and 657A.250 to 657A.450 or with applicable rules or with any term or condition imposed under the [certificate] certification or registration; or

(2) That visitation, on-site review or inspection of a facility or its records authorized by ORS 657A.390 or 657A.400 has not been permitted.

SECTION 13. ORS 657A.360 is amended to read:

657A.360. (1) Upon deciding to deny, revoke, suspend or not to renew a [certificate of approval or a certificate of] certification or registration [without inspection], the Child Care Division of the Employment Department shall give notice and opportunity for hearing as provided in ORS 183.310 to 183.550.

(2) The Child Care Division shall make the final decision and notice thereof shall be sent by certified mail to the address of the child care facility as shown on the records of the division. The decision of the division is reviewable by the Court of Appeals in the manner provided in ORS 183.480 for the review of orders in contested cases.

SECTION 14. ORS 657A.390 is amended to read:

657A.390. (1) Whenever an authorized representative of the Child Care Division is advised or has reason to believe that child care [is being provided] that is subject to regulation by the division is being provided without a [certificate of approval] certification or registration, the authorized representative may visit and [inspect] conduct an on-site investigation of the premises of the facility at any reasonable time to determine whether the facility is subject to the requirements of ORS 181.537, 657A.030 and 657A.250 to 657A.450.

(2) At any reasonable time, an authorized representative of the Child Care Division may [inspect] conduct an on-site investigation of the premises of any certified or registered child care facility [to which a certificate of approval has been issued at any reasonable time] to determine whether [it] the child care facility is in conformity with ORS 181.537, 657A.030 and 657A.250 to 657A.450 and the rules promulgated pursuant thereto.

(3) The director and operator of a child care facility shall permit an authorized representative of the division to inspect records of the facility and shall furnish promptly reports and information required by the division.

SECTION 14a. If House Bill 2240 becomes law, sections 1 (amending ORS 657A.390) and 2, chapter 858, Oregon Laws 1999 (Enrolled House Bill 2240), are repealed and ORS 657A.390, as amended by section 14 of this 1999 Act, is amended to read:

657A.390. (1) Whenever an authorized representative of the Child Care Division is advised or has reason to believe that child care that is subject to regulation by the division is being provided without a certification or registration, the authorized representative may visit and conduct an on-site investigation of the premises of the facility at any reasonable time to determine whether the facility is subject to the requirements of ORS 181.537, 657A.030 and 657A.250 to 657A.450.

(2) At any reasonable time, an authorized representative of the Child Care Division may conduct an on-site investigation of the premises of any certified or registered child care facility to determine whether the child care facility is in conformity with ORS 181.537, 657A.030 and 657A.250 to 657A.450 and the rules promulgated pursuant thereto.

(3) An authorized representative of the Child Care Division shall conduct an on-site investigation of the premises of any certified or registered child care facility or of any other child care facility that is subject to regulation by the division if the division receives a serious complaint about the child care facility. The division, by rule, shall adopt a definition for "serious complaint."

(4) Any state agency that receives a complaint about a certified or registered child care facility shall notify the Child Care Division about the complaint and any subsequent action taken by the state agency based on that complaint.

[(3)] (5) The director and operator of a child care facility shall permit an authorized representative of the division to inspect records of the facility and shall furnish promptly reports and information required by the division.

SECTION 14b. The amendments to ORS 657A.390 by section 14a of this 1999 Act shall first apply to complaints received by the Child Care Division of the Employment Department or any other state agency after the effective date of this 1999 Act.

SECTION 15. ORS 657A.400 is amended to read:

657A.400. (1) An authorized representative of the Health Division may inspect the premises of a child care facility caring for seven or more children to determine whether the facility is in conformity with applicable laws and regulations relating to health and sanitation.

(2) An authorized representative of the Health Division shall inspect any child care facility when requested to do so by the Child Care Division in accordance with arrangements under ORS 657A.420 and shall submit written findings to the Child Care Division. The Child Care Division shall not issue or renew any [certificate of approval] certification for any child care facility for which an inspection by the Health Division has been requested unless an authorized representative of the Health Division submits a written finding that the facility is in compliance with applicable laws and regulations relating to health and sanitation.

(3) A sanitarian's inspection may be performed by a private consultant so long as the consultant is registered under ORS chapter 700.

SECTION 16. ORS 657A.410 is amended to read:

657A.410. (1) In the event that any authorized representative of the Child Care Division, Health Division or other agency is denied access to any premises for the purpose of making an inspection in the administration of ORS 181.537, 657A.030 and 657A.250 to 657A.450, the representative shall not inspect the premises without a search warrant.

(2) Application for a search warrant to inspect the premises shall be made to any magistrate authorized to issue a warrant of arrest. The application must be supported by an affidavit filed with the magistrate showing probable cause for the inspection by stating the purpose and extent of the proposed inspection, the statutes and rules which provide the basis for inspection, whether it is a routine or periodic inspection, an on-site review or an [inspection] investigation instituted by complaint and other specific or general information concerning the premises.

(3) If the magistrate is satisfied that there is probable cause to believe that the grounds of the application exist, the magistrate shall issue the search warrant specifying the purpose and extent of the inspection, on-site review or investigation of the premises covered by the warrant.

SECTION 17. ORS 657A.440 is amended to read:

657A.440. (1) A [family child care provider's home] registered child care facility or certified group child care home shall be considered a residential use of property for zoning purposes. The [home] registered child care facility or certified group child care home shall be a permitted use in all areas zoned for residential or commercial purposes, including areas zoned for single-family dwellings. No city or county shall enact or enforce zoning ordinances prohibiting the use of a residential dwelling, located in an area zoned for residential or commercial use, as a [family child care provider's home] registered child care facility or certified group child care home.

(2) A city or county may impose zoning conditions on the establishment and maintenance of a [family child care provider's home] registered child care facility or certified group child care home in an area zoned for residential or commercial use, provided that such conditions are no more restrictive than conditions imposed on other residential dwellings in the same zone.

(3) A county may:

(a) Allow a [family child care provider's home] registered child care facility or certified group child care home in an existing dwelling in any area zoned for farm use, including an exclusive farm use zone established under ORS 215.203;

(b) Impose reasonable conditions on the establishment of a [family child care provider's home] registered child care facility or certified group child care home in an area zoned for farm use; and

(c) Allow a division of land for a [family child care provider's home] registered child care facility or certified group child care home in an exclusive farm use zone only as provided in ORS 215.263 (8).

(4) This section applies only to any [family child care provider who provides care] registered child care facility or certified group child care home where child care is offered in the home of the provider to fewer than 13 children, including children of the provider, regardless of full-time or part-time status.

SECTION 18. ORS 657A.610 is amended to read:

657A.610. (1) The membership of the Commission for Child Care shall be comprised of 15 members, to include three representatives from the Legislative Assembly, one appointed by the President of the Senate and two appointed by the Speaker of the House of Representatives who shall serve as nonvoting members on matters other than those described in ORS 657A.600. Twelve voting members shall be appointed as follows:

(a) Two persons who [are certified to] provide or engage in the provision of child care services at a child care facility certified or registered under ORS 657A.030 and 657A.250 to 657A.460, one of whom must be a trainer of child care facility employees, appointed by the Governor;

(b) Two persons who are representatives of state or local government, one of whom is appointed by the Speaker of the House of Representatives and one by the President of the Senate;

(c) One person who is qualified by education or experience to render an opinion with regard to the tax and legal issues concerning child care appointed by the Governor;

(d) One person who is representative of business management appointed by the President of the Senate;

(e) One person who is representative of labor appointed by the Speaker of the House of Representatives;

(f) One person who is a member at large appointed by the Governor;

(g) One person whose profession involves the physical and mental well-being of children appointed by the Governor;

(h) Two persons who are consumers of child care, as defined in ORS 657A.250, one of whom is receiving or is qualified to receive state-subsidized child care assistance, one appointed by the Speaker of the House of Representatives and one by the President of the Senate; and

(i) One person who is a representative of a child care resource and referral agency appointed by the Governor.

(2) Appointed members shall serve for three-year terms. Legislators shall serve two-year terms.

(3) The Governor shall designate the chairperson of the commission to serve for a term of one year.

(4) Members shall meet at the call of the chairperson no more than once every 30 days.

(5) Consistent with Oregon law, the Child Care Division on behalf of the commission may receive and accept grants, gifts and other funds and disburse such grants, gifts or other funds for purposes consistent with the purposes of the commission.

(6) The commission shall make recommendations to the Director of the Employment Department regarding staffing or contracting for staff services necessary to assist the commission in the performance of its duties.

SECTION 19. ORS 285B.180 is amended to read:

285B.180. (1) The small business development centers shall develop and offer special courses in management training for [family child care providers and owner operators of child care businesses] child care facilities.

(2) As part of promotional efforts, the centers shall concentrate on encouraging women, [family] child care providers and members of minority groups to participate in programs developed under this section and ORS 285B.177.

SECTION 19a. If Senate Bill 1128 becomes law, section 19 of this 1999 Act (amending ORS 285B.180) is repealed.

SECTION 20. ORS 307.145 is amended to read:

307.145. (1) If not otherwise exempt by law, upon compliance with ORS 307.162, the child care facilities, schools, academies and student housing accommodations, owned or being purchased by incorporated eleemosynary institutions or by incorporated religious organizations, used exclusively by such institutions or organizations for or in immediate connection with educational purposes, are exempt from taxation.

(2) Property described in subsection (1) of this section which is exclusively for or in the immediate connection with educational purposes shall continue to be exempt when leased to a political subdivision of the State of Oregon, or to another incorporated eleemosynary institution or incorporated religious organization for an amount not to exceed the cost of repairs, maintenance and upkeep.

(3)(a) As used in this section, "child care facility" means a facility certified by the Child Care Division of the Employment Department under ORS 657A.280 to provide educational child care for seven or more children.

(b) Before an exemption for a child care facility is allowed under this section, in addition to any other information required under ORS 307.162, the statement shall:

(A) Describe the property and declare or be accompanied by proof that the corporation is an eleemosynary institution or religious organization.

(B) Declare or be accompanied by proof that the division has issued [a certificate of approval to] the facility a certification to provide educational child care for seven or more children.

SECTION 21. ORS 315.208 is amended to read:

315.208. (1) A credit against the taxes otherwise due under ORS chapter 316 (or, if the taxpayer is a corporation that is an employer, under ORS chapter 317 or 318) is allowed to an employer, based upon costs actually paid or incurred by the employer, to acquire, construct, reconstruct, renovate or otherwise improve real property so that the property may be used primarily as a dependent care facility.

(2) The credit allowed under this section shall be the lesser of:

(a) $2,500, multiplied by the number of full-time equivalent employees employed by the employer (on the property or within such proximity to the property that any dependents of the employees may be cared for in the facility) on any date within the two years immediately preceding the end of the first tax year for which credit is first claimed; or

(b) Fifty percent of the cost of the acquisition, construction, reconstruction, renovation or other improvement; or

(3) To qualify for the credit allowed under subsection (1) of this section:

(a) The amounts paid or incurred by the employer for the acquisition, construction, reconstruction, renovation or other improvement to real property may be paid or incurred either:

(A) To another to be used to acquire, construct, reconstruct, renovate or otherwise improve real property to the end that it may be used as a dependent care facility with which the employer contracts to make dependent care assistance payments which payments are wholly or partially entitled to exclusion from income of the employee for federal tax purposes under section 129 of the Internal Revenue Code; or

(B) To acquire, construct, reconstruct, renovate or otherwise improve real property to the end that it may be operated by the employer, or a combination of employers, to provide dependent care assistance to the employees of the employer under a program or programs under which the assistance is, under section 129 of the Internal Revenue Code, wholly or partially excluded from the income of the employee.

(b) The property must be in actual use as a dependent care facility on the last day of the tax year for which credit is claimed and dependent care services assisted by the employer must take place on the acquired, constructed, reconstructed, renovated or improved property and must be entitled to an exclusion (whole or partial) from the income of the employee for federal tax purposes under section 129 of the Internal Revenue Code on the last day of the tax year for which credit is claimed.

(c) The person or persons operating the dependent care facility on the property acquired, constructed, reconstructed, renovated or improved must hold a [certificate of approval] certification (temporary or not) issued under ORS 657A.030 and 657A.250 to 657A.450 by the Child Care Division to operate the facility on the property on the last day of the tax year of any tax year in which credit under this section is claimed.

(d) The dependent care facility acquired, constructed, reconstructed, renovated or otherwise improved must be located in Oregon. No credit shall be allowed under this section if the dependent care facility is not acquired, constructed, reconstructed, renovated or improved to accommodate six or more children.

(e) The employer must meet any other requirements or furnish any information, including information furnished by the employees or person operating the dependent care facility, to the Department of Revenue that the department requires under its rules to carry out the purposes of this section.

(f) The dependent care facility, the costs of the acquisition, construction, reconstruction, renovation or improvement upon which the credit granted under this section is based, must be placed in operation before January 1, 2002.

(4) The total amount of the costs upon which the credit allowable under this section is based, and the total amount of the credit, shall be determined by the employer, subject to any rules adopted by the department, during the tax year in which the property acquired, constructed, reconstructed, renovated or otherwise improved is first placed in operation as a dependent care facility certified by the Child Care Division under ORS 657A.030 and 657A.250 to 657A.450. One-tenth of the total credit is allowable in that tax year and one-tenth of the total credit is allowable in each succeeding tax year, not to exceed nine tax years, thereafter. No credit shall be allowed under this section for any tax year at the end of which the dependent care facility is not in actual operation under a current [certificate of approval] certification (temporary or not) issued by the Child Care Division nor shall any credit be allowed for any tax year at the end of which the employer is not providing dependent care assistance entitled to exclusion (whole or partial) from employee income for federal tax purposes under section 129 of the Internal Revenue Code for dependent care on the property. Any tax credit allowable under this section in a tax year may be carried forward in the same manner and to the same tax years as if it were a tax credit described in ORS 315.204.

(5) Nothing in this section shall affect the computation of depreciation or basis of a dependent care facility. If a deduction is allowed for purposes of ORS chapter 316, 317 or 318 for the amounts paid or incurred upon which the credit under this section is based, the deduction shall be reduced by the dollar amount of the credit granted under this section.

(6) For purposes of the credit allowed under this section:

(a) The definitions and special rules contained in section 129(e) of the Internal Revenue Code shall apply to the extent applicable.

(b) "Employer" means a resident, part-year resident or full-year nonresident employer carrying on a business, trade, occupation or profession in this state.

(7) The department shall require that evidence that the person operating the dependent care facility on the date that the taxpayer's tax year ends holds a current [certificate of approval] certification (temporary or otherwise) to operate the facility accompany the tax return on which any amount of tax credit granted under this section is claimed, or that such evidence be separately furnished. If the evidence is not so furnished, no credit shall be allowed for the tax year for which the evidence is not furnished. The Child Care Division shall cooperate by making such evidence, in an appropriate form, available to the person operating the facility, if the person is currently [entitled to a certificate of approval] certified (temporary or not) so that, if necessary, it may be made available to the taxpayer.

SECTION 22. ORS 419B.005 is amended to read:

419B.005. As used in ORS 418.747, 418.748, 418.749 and 419B.005 to 419B.050, unless the context requires otherwise:

(1)(a) "Abuse" means:

(A) Any assault, as defined in ORS chapter 163, of a child and any physical injury to a child which has been caused by other than accidental means, including any injury which appears to be at variance with the explanation given of the injury.

(B) Any mental injury to a child, which shall include only observable and substantial impairment of the child's mental or psychological ability to function caused by cruelty to the child, with due regard to the culture of the child.

(C) Rape of a child, which includes but is not limited to rape, sodomy, unlawful sexual penetration and incest, as those acts are defined in ORS chapter 163.

(D) Sexual abuse, as defined in ORS chapter 163.

(E) Sexual exploitation, including but not limited to:

(i) Contributing to the sexual delinquency of a minor, as defined in ORS chapter 163, and any other conduct which allows, employs, authorizes, permits, induces or encourages a child to engage in the performing for people to observe or the photographing, filming, tape recording or other exhibition which, in whole or in part, depicts sexual conduct or contact, as defined in ORS 167.002 or described in ORS 163.665 and 163.670, sexual abuse involving a child or rape of a child, but not including any conduct which is part of any investigation conducted pursuant to ORS 419B.020 or which is designed to serve educational or other legitimate purposes; and

(ii) Allowing, permitting, encouraging or hiring a child to engage in prostitution, as defined in ORS chapter 167.

(F) Negligent treatment or maltreatment of a child, including but not limited to the failure to provide adequate food, clothing, shelter or medical care. However, any child who is under care or treatment solely by spiritual means pursuant to the religious beliefs or practices of the child or the child's parent or guardian shall not, for this reason alone, be considered a neglected or maltreated child under this section.

(G) Threatened harm to a child, which means subjecting a child to a substantial risk of harm to the child's health or welfare.

(H) Buying or selling a person under 18 years of age as described in ORS 163.537.

(b) "Abuse" does not include reasonable discipline unless the discipline results in one of the conditions described in paragraph (a) of this subsection.

(2) "Child" means an unmarried person who is under 18 years of age.

(3) "Public or private official" means:

(a) Physician, including any intern or resident.

(b) Dentist.

(d) Licensed practical nurse or registered nurse.

(e) Employee of the Department of Human Resources, State Commission on Children and Families, Child Care Division of the Employment Department, the Oregon Youth Authority, a county health department, a community mental health and developmental disabilities program, a county juvenile department, a licensed child-caring agency or an alcohol and drug treatment program.

(f) Peace officer.

(g) Psychologist.

(h) Clergyman.

(i) Licensed clinical social worker.

(j) Optometrist.

(k) Chiropractor.

(L) Certified provider of [child care or] foster care, or an employee thereof.

(m) Attorney.

(n) Naturopathic physician.

(o) Licensed professional counselor.

(p) Licensed marriage and family therapist.

(q) Firefighter or emergency medical technician.

(r) A court appointed special advocate, as defined in ORS 419A.004.

(s) A child care provider registered or certified under ORS 657A.030 and 657A.250 to 657A.450.

(4) "Law enforcement agency" means:

(a) Any city or municipal police department.

(b) Any county sheriff's office.

(d) A county juvenile department.

SECTION 23. ORS 742.260 is amended to read:

742.260. (1) An insurer offering homeowner or renter liability or fire insurance may not cancel or refuse to issue or renew a policy on a private home solely on the basis that the policyholder [is] operates a [family child care provider] child care facility if the policyholder [has a certificate of approval or a certificate of registration] is registered or certified [as a family child care provider] pursuant to ORS 657A.030 and 657A.250 to 657A.450.

(2) A homeowner or renter liability or fire insurance policy may not provide coverage for losses arising out of or in connection with child care provided by a [family child care provider] registered or certified child care facility. Coverage for losses arising out of or in connection with child care by a [family child care provider who has a certificate of approval or a certificate of registration] registered or certified child care facility may be provided only by a separate policy or indorsement for which premiums are assessed and paid.

(3) As used in this section, ["family child care provider"] "child care facility" has the meaning given in ORS 657A.250.

Approved by the Governor July 15, 1999

Filed in the office of Secretary of State July 15, 1999

Effective date October 23, 1999

__________