Committee approves psychology board fee-recovery measure despite objections over contested-case costs

The Education Subcommittee recommended Senate Bill 789 be reported out with a do‑pass recommendation. The bill would authorize the Oregon Board of Psychology to recover costs associated with successful disciplinary actions — including certain attorney and administrative costs — using a tiered fee structure for respondents who do not prevail in disciplinary proceedings.

Senator McLean challenged the proposal on grounds it could expose licensees to large contested‑case costs and deter individuals from exercising their right to a hearing. Committee staff told members the fiscal assumption estimated modest recoverable revenue: about $16,911 in other funds revenue under a 25% recovery assumption, but members noted contested-case costs cited elsewhere had ranged much higher. “If the individual wants to have an adversarial hearing…and if they’re found noncompliant…they have to pay the agencies $30,000 to $50,000,” McLean said, arguing that requirement chills due process.

Supporters said the measure aligns the psychology board with other professional licensing boards that have similar cost-recovery structures and that the tiered structure includes thresholds below which the board cannot recover fees. Legislative Fiscal Office staff explained the statute’s tier: no recovery under $3,000; recover 50% between $3,000 and $6,000; and higher recovery above $6,000 depending on the final language.

After extended discussion and a roll‑call process for objections, the committee reported SB 789 out as recommended. Members asked for broader legislative consideration of cost‑recovery policy across professional licensing bodies in future work.