The Oregon Administrative Rules contain OARs filed through January 15, 2010

DEPARTMENT OF CONSUMER AND BUSINESS SERVICES,
DIRECTOR'S OFFICE

440-015-0001

Authority for Rules

These rules are promulgated pursuant to the director's specific rulemaking authority under ORS 705.135.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0010

Purpose

(1) The purpose of these rules is to identify the circumstances under which employees or any category of employees of the department may or may not become indebted to, employed by, or hold any interest in an entity subject to the regulation of the department.

(2) These rules also provide procedures for when and how employees must report their indebtedness, employment or interests for the purposes of preventing or resolving possible conflicts of interest.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135 & ORS 731.228
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0020

Applicability of Rules

(1) These rules carry out the provisions of ORS 705.135(3).

(2) The provisions of OAR Chapter 440, Division 015, apply to all public officials and employees of the department with the exclusion of the public officials and employees of the Workers' Compensation Board.

(3) These rules are in addition to, and not in lieu of, the provisions of ORS Chapter 244, 731.228 and any other applicable statutes and rules that specifically govern holdings, indebtedness and financial interests of public officials.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0030

Definitions

For the purpose of these rules unless the context requires otherwise:

(1) "Business with Which an Employee is Associated" means any business in which the employee or a member of the employee's household, is a director, officer, owner, or employee; or any corporation in which the employee or a member of the employee's household owns or has owned stock at any point in the preceding calendar year.

(2) "Department" means the Department of Consumer and Business Services.

(3) "Designated Public Official" or "Designated Employee" means a public official designated by the director, or by the administrator of a division to which the public official or employee is assigned, who by their assigned responsibilities could influence the regulation of an entity regulated by the department.

(4) "Director" means the director of the department.

(5) "Division" means those organizations as designated by the director which make up the structures of the department and include, but are not limited to, the Business Administration Division, Division of Finance and Corporate Securities, Information Management Division, Insurance Division, Oregon Occupational Safety and Health Division, and the Workers' Compensation Division.

(6) "Member of Household" means any relative who resides with the public official. For the purposes of this section, "Relative" means the spouse of the public official and any children of either, the brother, sister, parent, father-in-law or mother-in-law of the public official or of the public official's spouse.

(7) "Public Official" or "Employee" means any employee, board member, agent, or other person serving the department, whether paid or unpaid.

(8) "Potential Conflict of Interest" means any transaction where an employee, acting in their official capacity, takes any action or makes any decision or recommendation, the effect of which would be to the employee's pecuniary benefit or detriment, unless the pecuniary benefit or detriment arises out of the following:

(a) An interest or membership in a particular business, industry, occupation or other class required by law as a prerequisite to the holding by the employee of the office or position;

(b) Any action in the employee's official capacity which could affect to the same degree a class consisting of an industry, occupation, or other group including one of which or in which the employee, or a member of the employee's household or business with which the employee is associated, is a member, or is engaged.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0040

Potential Conflicts of Interest

The following are examples, but not an all inclusive list, of potential conflicts of interest requiring action by an employee pursuant to OAR 440-015-0060:

(1) Indebtedness to any person regulated or licensed by the department in which the employee by virtue of assigned duties could affect the regulation of the person or entity.

(2) Employment by or having a financial, business, or other economic interest in any person regulated or licensed by the department in which the employees by virtue of assigned duties could affect the regulation of the person or entity.

(3) Receipt of a gift or honoraria from any person for services or activities performed in their official capacity as an employee, to the extent such gifts or honoraria exceed the value permitted under the department's ethics policy.

(4) Taking official action by virtue of assigned duties toward any person who is a member of the employee's household, related to the employee or any person to whom the employee is personally acquainted or has information or knowledge thereof that could be perceived as a conflict of interest.

(5) For the purpose of this rule, "a person to whom the employee is personally acquainted" includes, but is not limited to, a close friend, a cohabitant, an ex-spouse, etc.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0050

Conduct of Department Employees

Except as provided for in ORS 731.228 and any other statutes or rules restricting the indebtedness and interests of employees, department employees may be indebted to or hold an economic interest in an entity regulated by the department as long as they do not use their position in any way to obtain financial gain for themselves, other than for salary or reimbursement of expenses, or for any member of the household, or any business with which they or a member of the household are associated.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0060

Resolving Potential Conflicts of Interest

(1) Upon becoming aware of a potential conflict of interest, an employee must report the potential conflict in the following manner:

(a) Not later than the end of the employee's next full work shift, the employee shall report the potential conflict of interest to their immediate supervisor in the form and format prescribed by the director;

(b) The supervisor of the employee must submit the completed conflict of interest form to the division administrator or designee for resolution.

(2) The administrator or designee shall review the employee's potential conflict of interest to verify whether a potential conflict of interest exists. If the administrator or designee finds that a potential conflict of interest does exist, the administrator or designee shall take necessary measures to ensure that the conflict is resolved. Such measures may include any or all of the following:

(a) Require the employee to complete a financial disclosure form as prescribed in OAR 440-015-0070 by designating the employee as a "designated employee";

(b) Reassign the employee to different duties to eliminate the potential conflict;

(c) Take any other reasonable actions necessary to resolve the potential conflict.

(3) Not later than the tenth day after disposing of a potential conflict of interest pursuant to section (2) of this rule, the subject employee shall submit a completed disposition report detailing the manner in which the conflict was disposed. The disposition report, in the form and manner as prescribed by the director, shall include but not be limited to:

(a) Description of the actual or potential conflict of interest;

(b) Persons affected by the actual or potential conflict of interest;

(c) Manner in which the potential conflict of interest was disposed;

(d) The dates the action was taken to resolve the potential conflict; and

(e) The signatures of the employee and the division administrator or designee.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0070

Reporting of Indebtedness and Interests

(1) All designated employees shall complete a financial disclosure form prescribed by the director which lists the entities to which they and each member of their household are indebted or have interests.

(2) The financial disclosure form shall be completed upon hiring and updated when there are any changes in information from the previous report. Revised reports must be filed within ten working days of the change in information.

(3) Designated employees hired prior to the effective date of these rules, shall complete a financial disclosure form within sixty days of the effective date of these rules.

(4) Annually, at the time of each employee's merit review date, division administrators or their designees shall evaluate whether the employee should be designated as an employee who must complete a financial disclosure form and shall ensure that all designated employees have an up-to-date financial disclosure form on file in the department.

(5) Routine bank accounts, credit cards, personal home/auto insurance coverage, employer provided insurance, investments by the Public Employes' Retirement System and deferred compensation are excluded from reporting requirements. The date or dates on which each indebtedness or interest was incurred must be reported on the form. The dollar amounts of the indebtedness or interests do not need to be reported.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0080

Penalties

(1) In addition to any other penalties prescribed by law, an employee in violation of these rules shall be subject to personnel actions, which may include termination of employment.

(2) Any such action under this rule shall be in accordance with appropriate statutes, rules and policies, and applicable collective bargaining agreements.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

440-015-0090

Review

(1) Any employee who is aggrieved by any decision made pursuant to these rules may have the decision reviewed by the director.

(2) To obtain review by the director, the aggrieved employee must submit a request for review to the director within 30 days of the decision concerning the incident or the action giving rise to the grievance. The request for review, in the form and format prescribed by the director, shall include:

(a) Description of the decision being aggrieved;

(b) Reasons the decision is considered inappropriate;

(c) Corrective action desired; and

(d) Any supporting documentation the employee wishes the director to consider.

(3) The director shall review the matter and issue a response within 30 days of receipt of the request for review.

(4) This review process is in addition to any other review process authorized by any applicable statute, rule or collective bargaining agreement.

Stat. Auth.: ORS 705.135
Stats. Implemented: ORS 705.135
Hist.: IF 1-1993, f. & cert. ef. 7-14-93

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