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Under ORS 706.530, the Director of the Department of Consumer and Business Services 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. This proposed rulemaking activity revises the current fee schedule consistent with the policy considerations written into the enabling statute.
On September 16, 2014, the Department of Consumer and Business Services adopted numerous changes to the administrative rules governing mortgage lending, though implementation of the rules was delayed until January 1, 2015. Unfortunately, the department inadvertently omitted citations to two amended rules that revised bonding calculations from the original notice, even though the original statement of need and fiscal impact addressed them. Additionally, the original notice proposed the adoption of OAR 441-875-0075 – which deemed filing false reports of condition as a dishonest, fraudulent or illegal practice or conduct – though the rule was meant to be codified in chapter 441, division 870. This limited rulemaking activity only gives formal notice of amendments to 441-860-0085 and 441-860-0090, as well as renumbering 441-875-0075 to 441-870-0075.
This proposed rule repeals a provision allowing pawnbrokers to pass through a "reasonable" fee for the preparation and posting of a notice of forfeiture through certified mail. In 2014, House Bill 4011 amended statutory language that a pledgor would bear postal costs and could be assessed a reasonable fee by a pawnbroker for preparing the notice to be delivered by certified mail. HB 4011 removed the requirement for certified mail and shifted the cost of postage from the pledgor to the pawnbroker. In order to comply with the new language of ORS 726.400(5), the division is proposing to repeal the rule.
Title III of the Jumpstart Our Business Startups Act (JOBS Act), enacted in 2012, created a federal exemption for equity crowdfunding. Federal rules under the JOBS exemption have not yet been finalized. Under the federal intrastate exemption, Oregon may enact its own exemption from securities registration for purely domestic offerings unrelated to federal law. ORS 59.035(15) provides that the Director of the Department of Consumer and Business Services may create transactional exemptions for securities through rule. This proposed rulemaking establishes an exemption for small amounts raised by Oregon small businesses through a "community public offering" or what is generally referred to as "crowdfunding." The proposed rules place certain substantive restrictions on Oregon businesses relying on the exemption, such as individual investor and total offering caps. The rulemaking activity also requires disclosures be given to prospective investors and places restrictions on general advertising of the securities to the public.
The rule reduces the hourly examination fee payable by money transmitters to the hourly fee set in statute. In 2008, the Division of Finance and Corporate Securities updated hourly examination fees to be consistent throughout its programs. During the process, the hourly fee for money transmitter examinations was raised. The authorizing statute sets the hourly fee for an examiner at $60. The division performs very few examinations of money transmitters because most are out-of-state businesses.
In 2008, Congress passed the Secure and Fair Enforcement for Mortgage Licensing Act. The Act, more commonly known as the S.A.F.E. Act, required states to license individuals that take applications and negotiate terms for residential mortgage loans as mortgage loan originators. To implement this new federal licensing requirement, Congress encouraged the states to establish a Nationwide Mortgage Licensing System (NMLS) to provide a comprehensive licensing database. Because of the close supervision of mortgage loan originators by their employers, most states also license mortgage lending business through NMLS. These permanent rules are adopted to ensure that Oregon business licensees may continue to efficiently do business through the NMLS system. Furthermore, because the regulation of mortgage lending businesses has evolved since passage of the S.A.F.E. Act, these rules make minor changes to definitions, application submissions, bonding calculations, reporting requirements, and testing.
In 2014, the Legislature enacted Senate Bill 1520. This act exempts renewable energy cooperative corporations from registering membership shares or capital stock as securities. The Legislature conditioned this exemption on any rules adopted by the Director of the Department of Consumer and Business Services. This proposed rulemaking places certain substantive restrictions on a renewable energy cooperative corporations relying on this exemption, such as restrictions on the amount of raised money from non-accredited investors. The rulemaking activity also requires two disclosures be given to prospective members: a general disclosure that discusses the workings of the renewable energy cooperative corporation and risks associated with developing renewable energy generations facilities, and a specific disclosure discussing the risks endemic to a specific project.
These temporary rules suspend 441-740-0015, which allows pawnbrokers to pass through a "reasonable" fee for the preparation and posting of a notice through certified mail. In 2014, House Bill 4011 amended statutory language that a pledgor would bear postal costs and could be assessed a reasonable fee by a pawnbroker for preparing a notice to be delivered by certified mail. HB 4011 removed the requirement for certified mail and shifted the cost of postage from the pledgor to the pawnbroker. In order to comply with the new language of ORS 726.400 (5), the division must suspend the rule pending the process to permanently repeal the rule.
Statutes: This links to the general Oregon Revised Statues Web site. It provides search and index functions as well as an overview to the Oregon Revised Statutes.
Rules: This is a general link to the Div. of Finance and Corporate Securities Rules as posted on the Secretary of State's Oregon State Archives Web site. Search and index functions available.