(1) The Real Estate Commissioner shall provide by rule for the progressive discipline of real estate licensees and an objective method for investigation of complaints alleging grounds for discipline under ORS 696.301.
(2) The rules adopted by the commissioner under this section:
(a) Must establish procedures for the discovery of material facts relevant to an investigation and for the reporting of those facts without conclusions of violation or grounds for discipline to the commissioner or the commissioner’s designee by the individual assigned to investigate the complaint.
(b) Must provide for progressive discipline designed and implemented to correct inappropriate behavior.
(c) May not authorize imposition of a suspension or a revocation of a real estate license unless the material facts establish a violation of a ground for discipline under ORS 696.301 that:
(A) Results in significant damage or injury;
(B) Exhibits incompetence in the performance of professional real estate activity;
(C) Exhibits dishonesty or fraudulent conduct; or
(D) Repeats conduct or an act that is substantially similar to conduct or an act for which the real estate licensee was disciplined previously.