(1) The Director of Human Services may delegate the following functions pertaining to regulation of adult foster homes for elderly persons and persons with disabilities to a type B area agency:

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(a) Conducting inspections and issuing and renewing licenses under ORS § 443.735;

(b) Investigating complaints under ORS § 443.765; and

(c) Other regulatory functions designated by the director by rule.

(2) This section does not apply to adult foster homes in counties that have been granted an exemption under ORS § 443.780.

(3) As used in this section, ‘adult foster home’ has the meaning given that term in ORS § 443.705. [2005 c.219 § 2; 2007 c.70 § 174]