Laws and rules

New Rules

New rules are posted on this page for six months after they are final.

Click on a rule title below for details.

Insurance regulation

Amend: OAR 836-011-0000

This rulemaking prescribes, for reporting year 2016, the required forms for the annual and supplemental financial statements required of insurers and health care service contractors under ORS 731.574, as well as the necessary instructions for completing the forms.

This rulemaking repeals and replaces the current unexpired temporary rule of the same number.

Adopted: April 20, 2017

Effective: April 27, 2017

Documents:
​​

Repeal: OAR 836-014-0400

In 2002, the department learned of difficulties in the construction contractors market. Contractors, required to have general liability insurance were having difficulty obtaining coverage. The department determined that there was a likelihood of consumer harm if contractors were unable to acquire general liability insurance coverage to support their license. The department and the Construction Contractors Board (CCB) formed a work-group to develop possible solutions. The work-group developed an outline for the Market Assistance Plan (MAP) website. The website was hosted by the CCB from 2004 until 2016.

During discussions about the website, the department and CCB, in conjunction with an advisory committee, determined that the site was outdated and might not be continuing to serve the purpose for which it was first developed. The department determined that the market for general liability coverage for contractors is now well developed. This repeal is necessary to remove the rule related to the successful, but now unnecessary, market assistance plan related to construction contractor general liability coverage.

Adopted: April 14, 2017

Effective: April 14, 2017

Documents:

​​

Amend: OAR 836-053-0015

ORS 743B.020 requires the Department to adopt by rule the method for determining whether an employer is a small employer for purposes of group health benefit plans. ORS 743B.005 links the definition of "small employer" to a federal definition that currently defines a small employer as an employer having at least one but not more than 50 employees, but allows the department to further modify that definition in accordance with guidance issued by three federal agencies. The federal law also includes an option that allows states to define small employer as an employer with 1 to 100 employees.

The Department defines small employers in OAR 836-053-0015 as those with "an average of at least one but not more than 50 employees on business days during the preceding calendar year and who employs at least one employee on the first day of the plan year." This definition is applicable from January 1, 2016 through December 31, 2017.

The amendments would abolish the sunset provision and maintain the current definition of small employer indefinitely.

Adopted: March 9, 2017

Effective: March 9, 2017

Documents:

Exhibits

​​

Amend: OAR 836-011-0000

This rulemaking prescribes, for reporting year 2016, the required forms for the annual and supplemental financial statements required for insurers and health care service contractors under ORS 731.574, as well as the necessary instructions for completing the forms.

Adopted: January 31, 2017

Effective: January 31, 2017 to July 1, 2017

Documents:
​​

Adopt: OAR 836-005-0405

ORS 731.264 as amended by Senate Bill 1591, provides that the Director of the Department of Consumer and Business Services (DCBS) may provide to any requester information about complaints against insurers for unlawful practices described under ORS 746.230. The statute does not further define what types of records and under what circumstances records must be disclosed. The rule clarifies the method in which individuals may request information about complaints, the types of records and information that DCBS could and could not disclose, and the circumstances and manner in which DCBS would disclose that information.

Adopted: January 6, 2017

Effective: January 10, 2017

Documents:

Amend: OAR 836-010-0135, 836-010-0140

ORS 731.438 requires that title plants post a general index, adequate maps, and tract or geographic indexes. The amendment to OAR 836-010-0135 revises the definition of "general index" so that title plants that are able to access records through a subscription to the Oregon Judicial Case Information Network (OJCIN) will no longer have to duplicate that information in the index. The amendments explicitly allow tract or geographic indexes to be stored electronically. The rule makes several technical and non-substantive corrections to the text of OAR 836-010-0135 and OAR 836-010-0140

Adopted: November 14, 2016

Effective: January 9, 2017

Documents:

Adopt: OAR 836-031-0605, 836-011-0030

House Bill 2469, enacted in 2015, established requirements for insurers to maintain a risk management framework and to complete an own risk and solvency assessment. Own risk and solvency assessments are confidential internal assessments of material and relevant risks associated with an insurer's or insurance group's business plan and of the sufficiency of capital resources to support the business plan. This rulemaking adopts the Own Risk and Solvency Assessment Guidance Manual insurers will use when conducting an own risk and solvency assessment.

If an insurer is a member of an insurance group for which the Director is the lead state director, the insurer is required to submit an own risk and solvency assessment report to the Director each year. The rules clarify how the Director will determine when those annual reports will be due.

House Bill 2469 also established a process for insurers to implement principle-based reserving which uses one or more methods or one or more assumptions when computing reserve valuations for policies it has written. This rulemaking adopts and sets the operative date of the Valuation Manual insurers will be required to use when establishing reserves using a principle-based valuation method.

Adopted: December 21, 2016

Effective: December 21, 2016

Documents:

​​​​
​​

Financial institutions regulation

Amend: OAR 441-745-0000, 441-745-0300, 441-745-0310, 441-745-0330

These rules establish the process by which money transmitter licensees and applicants submit applications, renewals, and other information through the Nationwide Multistate Licensing System and Registry (NMLS). Currently, licensed money transmitters and applicants submit registration materials by paper documentation. The department found the current registration system needed greater efficiency and a capacity to facilitate uniformity for multi-state entities. The NMLS creates efficiencies for the industry, consumers, and department as a replacement for the current system. These proposed rules modify and clarify the licensing and application procedures to make the use of the NMLS mandatory. This includes all registration and renewal activity, including surety bonds, for money transmitters to the NMLS. These proposed rules are necessary to enact a uniform application process resulting in greater efficiencies to the state and industry.

Adopted: April 14, 2017

Effective: April 14, 2017

Documents:

Amend: OAR 441-810-0020, 441-810-0030, 441-810-0040, 441-810-0050, 441-810-0080

These rules establish the process by which collection agency registrants and applicants submit applications, renewals, and other information through the Nationwide Multistate Licensing System and Registry (NMLS). Currently, registered collection agencies and applicants submit registration materials by paper documentation. The department found the current registration system needed for greater efficiency and to facilitate uniformity for multi-state entities. The NMLS creates efficiencies for the industry, consumers, and department as a replacement for the current system. These proposed rules modify and clarify the registration and application procedures to make the use of the NMLS mandatory. This includes all registration and renewal activity for collection agencies to the NMLS. These proposed rules are necessary to enact a uniform application process resulting in greater efficiencies to the state and industry.

Adopted: April 14, 2017

Effective: April 14, 2017

Documents:

Amend: OAR 441-910-0010, 441-910-0030, 441-910-0050, 441-910-0055

These rules establish the process by which registrants and applicants for a debt management service provider submit applications, renewals, and other information through the Nationwide Mortgage Licensing System and Registry (NMLS). Currently, registered debt management service providers and applicants submit registration materials by paper documentation. The department found the current registration system needed for greater efficiency and to facilitate uniformity for multi-state entities. The NMLS creates efficiencies for the industry, consumers, and department as a replacement for the current system. These proposed rules modify and clarify the registration and application procedures to make the use of the NMLS mandatory. This includes all registration and renewal activity, including surety bonds, for debt management service providers to the NMLS. These proposed rules are necessary to enact a uniform application process resulting in greater efficiencies to the state and industry.

ORS 697.612 exempts non-profit entities that provide advice, assistance, instructional materials in return for a fee reasonably calculated to pay the cost of making the advice, assistance, or material available. Currently the rules cap reasonably fees at $25. The department has learned that the current $25 cap is too low to reasonably cover the cost of those services and it is impacting the availability of credit repair services in Oregon. These proposed rules would add a requirement that credit repair organizations comply with the federal Credit Repair Organizations Act, and remove the reference to the non-profit credit repair organization fee.

Adopted: April 14, 2017

Effective: April 14, 2017

Documents:

​​

Amend: OAR 441-505-3090, 441-505-3030

Please note that this rulemaking involves two parts: OAR 441-505-3090 and 441-505-3030. In 2012, the Department of Consumer and Business Services (DCBS or department) adopted OAR 441-505-3090 permitting Oregon chartered banks to act, as an intermediary, in customer-driven interest rate swap transactions and to pledge bank assets as collateral for such transactions. In 2015, the legislature amended ORS 708A.010 to clarify that Oregon banks could engage, as principal or agent, in activities permissible for national banks. The proposed changes to OAR 441-505-3090 simply update the rule to accommodate the legislative changes to ORS 708A.010 and, under the department's wildcard authority contained in ORS 706.795, expressly provide authority for Oregon chartered banks to pledge collateral to counterparties in connection with swap transactions.

This rulemaking further addresses when Oregon commercial banks may use an evaluation rather than an appraisal to establish the market value of other real estate owned. With respect to OAR 441-505-3030, ORS 708A.175 (3) and (4) require Oregon chartered commercial banks to use appraisals that are current at the time the banks acquire real property to satisfy a lien on a real estate loan. Collectively, property acquired under ORS 708A.175(3) and (4) is known as Other Real Estate Owned (OREO). Unlike Oregon commercial banks, national banks may use an evaluation rather than an appraisal to establish the market value of OREO when its value is less than $250,000. 12 C.F.R. § 34.43. The proposed changes to OAR 441-505-3030 will enhance and maintain competition between Oregon chartered commercial banks and national banks by allowing Oregon banks to use evaluations determine the fair market value of OREO under similar circumstances. Where the value of the property is over $250,000, the proposed changes also give banks three months time following the date the property is acquired as OREO to obtain an appraisal.

Adopted: February 1, 2017

Effective: February 1, 2017

Documents:

​​

Amend: OAR 441-500-0020

Under the Oregon Bank Act, the Director of the Department of Consumer and Business Services (DCBS or department) may assess financial institutions a fee under a schedule adopted by rule. In adopting the schedule, the Director takes into consideration three factors: the amount of other moneys available for the director to use in performing the director's duties, the costs the director will incur in performing the director's duties in the year in which the director will collect the fee, and the amount the director needs to establish and maintain a reasonable emergency fund. ORS 706.530. Under long-standing administrative policy, the department interprets the meaning of the term "reasonable emergency fund" as requiring the set-aside of two to four quarters of operating costs.

The department's fee schedule developed under the terms of the statute assesses financial institutions a base fee, and then a variable fee determined by multiplying all assets by a fractional number. The department divides the schedule into tiers in order to equitably assess financial institutions fees based on the institution's size. In 2016, the department adopted a temporary rule that increased assessment rates by five percent and also extended the due date for the fees by 15 days to provide banks and trust companies additional time to pay the revised assessment. The department revised its regulations to make fees more equitable and to ensure that Oregon chartered banks and trust companies pay fees that reasonably reflect the costs of supervision. The changes to fee assessments under the proposed rule incorporate the five percent increase under the temporary rule and raises the assessment by 2.5 percent for a total increase of approximately 7.5 percent. Operating revenue for the banking program is calculated on the average assets of Oregon based institutions, based on quarterly Call Reports of Condition and Income filed with the applicable federal supervisory agency for the calendar year immediately preceding the due date of the fee assessment. Since 2010, the revenue for the banking program has dropped significantly due to the declining number of Oregon state-chartered banks. As a consequence, and despite best efforts to control expenses, between FY 2009 and FY 2014, expenses have exceeded revenues every year except in FY 2012 when the banking program intentionally left examiner positions vacant and received higher than normal amounts of risk-based assessment premiums due to the large number of banks that required more supervision based on their less-than-satisfactory ratings. The revised fees are not being used to pay for an expansion of the banking program or to cover the cost of any special pay increases to banking program employees; rather, the increase in fees will help to cover the ongoing expenses of the banking program.

Adopted: February 1, 2017

Effective: February 1, 2017

Documents:

​​​​

Amend: OAR 441-025-0005, 441-025-0121, 441-025-0020, 441-025-0050, 441-035-0005, 441-035-0030, 441-035-0045, 441-049-1001, 441-049-1011, 441-049-1051, 441-175-0002, 441-175-0020, 441-175-0030

Repeal: OAR 441-025-0010, 441-035-0040, 441-035-0270

This proposed rulemaking makes technical changes to several rules addressing new statutory sections at the state and federal levels. The rules propose repealing the "exchange exemption" and relying on the federal rules regarding exchanges. The proposed rules remove references to Standard and Poor's Manual which ceased publication in May 2016. In order to provide adequate options for broker-dealers and salespersons utilizing the "manual exemption" provided for in ORS 59.025(5) these rules propose adding the OTCQX and OTCQB Markets to the manual exemption for equity security offerings. The proposed rulemaking also makes changes to the registration requirements for SEC Rule 701 employee benefit stock option plans. The proposed rules would repeal the registration requirement, annual renewal, and salesperson licensing fees and establish a notice filing. The proposed rules also raise filing and renewal fees for investment company portfolios and reduce the fees related to broker-dealer salesperson registration renewals. The proposed rules are consistent with the intent of Oregon Revised Statute Chapter 59 to ensure licensing of individuals engaged in brokering or selling securities to the public.

Adopted: January 31, 2017

Effective: February 1, 2017

Documents:

​​

Amend: OAR 441-730-0026, 441-860-0020, 441-860-0025, 441-860-0050, 441-885-0010

The Department of Consumer and Business Services has been working toward full utilization of the Nationwide Mortgage Licensing System and Registry's (NMLS) features. The NMLS released the first phase allowing for the electronic submission of surety bonds in January 2016. The feature will be fully available, and licensees will be able to electronically submit surety bonds to the Director of the Department through NMLS, by the end of 2016. Requiring electronic submission of the surety bond will make it easier for consumers to access the bond information and will streamline the mortgage licensing process. Currently, the surety bond is the only piece of paper that is still required for the mortgage licensing process. The proposed rules also remove the grace period after a bond is cancelled that was meant to provide time for new bonds to be sent through the U.S. mail. This protects consumers by reducing the period during which a mortgage loan originator may originate loans without the protection of a bond. Because NMLS can be used to quickly notify, and continually remind, licensees of their bond status licensees will receive more effective notice regarding their bonds.

Adopted: January 31, 2017

Effective: April 1, 2017

Documents:

​​

Amend: 441-880-0310

The Department of Consumer and Business Services has been working toward full utilization of and alignment with the Nationwide Mortgage Licensing System and Registry's (NMLS) features. Under the federal Secure and Fair Enforcement for Mortgage Licensing Act (SAFE Act) each prospective mortgage loan originator licensee must complete pre-licensure education. Currently, within the NMLS pre-license education does not expire regardless of whether the person actually obtained a license. Department license specialists verify that the pre-licensing education has been completed but not how long ago. In July 2014, the NMLS issued a request for public comments on a proposed expiration of pre-licensure education credits. The NMLS determined that it will develop its licensing database so that pre-licensure education will expire within 3 years if a person has not obtained a license, or if a person fails to maintain an originator license or registration in any jurisdiction for 3 years. Currently, Oregon's rules do not align with the NMLS but all mortgage licensees must apply and renew through the NMLS. Oregon must amend its rules to correspond to NMLS processes.

File date: 12/21/16

Effective date: 1/1/17

Documents:

​​​​​​​​

Effective: September 9, 2016

Adopt: 441-880-0009

The Secure and Fair Enforcement for Mortgage Licensing Act of 2008 (S.A.F.E. Act), 12 U.S.C. § 5101 et seq., requires states to license "loan originators" who are individuals that take a residential mortgage loan application and offer or negotiate terms of a "residential mortgage loan" for compensation or gain. The S.A.F.E. Act defines "residential mortgage loan" as "any loan primarily for personal, family, or household use that is secured by a mortgage, deed of trust, or other equivalent consensual security interest on a dwelling ... or residential real estate upon which is constructed or intended to be constructed a dwelling (as so defined)."

To carry out the S.A.F.E. Act, ORS 86A.203 requires individuals engaged in business as a mortgage loan originator to obtain a license from DCBS. Subsection (5) grants authority to the DCBS Director to exempt an individual from the licensing requirement if the U.S. Consumer Financial Protection Bureau permits the exemption under 12 U.S.C. § 5101 et seq. Federal law only requires licensing for individual who deal in loans primarily for personal, family, or household use. This rule exempts lenders who make commercial construction loans from this licensing requirement under certain circumstances. To qualify for the exemption under this rule , a lender would have to verify that the borrower is a licensed general contractor, verify that the loan is for a business purpose and will be used to construct a residential structure, and refrain from certain other prohibited activities.

Documents:

​​​​​​​​
​​​
​​​​​​​​

Agency Mailing / Interested Party List:

If you are interested in receiving notices of all Division of Financial Regulation administrative rule changes, please sign-up via the link below and select "Proposed Rules" and "Recently Adopted Rules"

Email notification

This electronic notification service is used to send notifications of all administrative rule changes per ORS 183.335(8). Please note each subscriber must keep their subscription choices and email address up to date to ensure they receive the appropriate notices.

If you have questions or if you need to request hard copy notices, you may contact Karen Winkel via email at Karen.j.winkel@oregon.gov.

Key links

Oregon Revised Statutes​​​​​