71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 1601
House Bill 2021
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
Presession filed (at the request of House Interim Revenue
Committee)
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Appropriates ___ percent of moneys collected from personal
income tax to cities and counties. Deletes provisions for revenue
sharing from liquor and cigarette taxes.
A BILL FOR AN ACT
Relating to revenue sharing; creating new provisions; amending
ORS 190.530, 190.540, 190.620, 197.335, 199.755, 221.760,
221.785, 294.565, 297.466, 323.455, 391.800 and 471.810;
repealing ORS 221.770; and appropriating money.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + ___ percent of moneys collected from personal
income tax is appropriated to the cities and counties of this
state, to be distributed as follows:
(1) ___ percent to the cities of the state in such shares as
the population of each city bears to the total population of the
cities of the state, as certified by the State Board of Higher
Education last preceding such apportionment, under ORS 190.510 to
190.610.
(2) ___ percent to the counties of the state in such shares as
the population of each county bears to the total population of
the state, as certified annually by the State Board of Higher
Education. + }
SECTION 2. ORS 323.455 is amended to read:
323.455. (1) All moneys received by the Department of Revenue
from the tax imposed by ORS 323.030 (1) shall be paid over to the
State Treasurer to be held in a suspense account established
under ORS 293.445. After the payment of refunds, { - 89.65 - }
{ + 96.55 + } percent shall be { - appropriated - } { +
credited + } to the General Fund { - , 3.45 percent shall be
appropriated to the cities of this state, 3.45 percent shall be
appropriated to the counties of this state - } and 3.45 percent
{ - shall be - } { + is continuously + } appropriated to the
Department of Transportation for the purpose of financing and
improving transportation services for elderly and disabled
individuals as provided in ORS 391.800 to 391.830.
{ - (2) The moneys so appropriated to cities and counties
shall be paid on a monthly basis within 35 days after the end of
the month for which a distribution is made. Each city shall
receive such share of the money appropriated to all cities as its
population, as determined under ORS 190.510 to 190.590 last
preceding such apportionment, bears to the total population of
the cities of the state, and each county shall receive such share
of the money as its population, determined under ORS 190.510 to
190.590 last preceding such apportionment, bears to the total
population of the state. - }
{ - (3) - } { + (2) + } The moneys appropriated to the
Department of Transportation under subsection (1) of this section
shall be distributed and transferred to the Elderly and Disabled
Special Transportation Fund established by ORS 391.800 { - at
the same time as the cigarette tax moneys are distributed to
cities and counties under this section - } { + on a monthly
basis within 35 days after the end of the month for which a
distribution is made + }.
{ - (4) - } { + (3) + } Of the moneys
{ - appropriated - } { + credited + } to the General Fund
under this section { - 51.92 - } { + 48.21 + } percent shall
be dedicated to funding the maintenance and expansion of the
number of persons eligible for medical assistance under the
Oregon Health Plan, or to funding the maintenance of the benefits
available under the Oregon Health Plan, or both, and
{ - 5.77 - } { + 5.36 + } percent shall be credited to the
Tobacco Use Reduction Account established under ORS 431.832.
SECTION 3. ORS 471.810 is amended to read:
471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of money available
for distribution in the Oregon Liquor Control Commission Account,
and after withholding such money as it may deem necessary to pay
its outstanding obligations shall within 35 days of the month for
which a distribution is made direct the State Treasurer to
{ + credit the remaining money to the General Fund, to be
available for general governmental purposes. Money credited to
the General Fund under this section shall be considered as
revenue during the quarter immediately preceding receipt + }
{ - pay the amounts due, upon warrants drawn by the Oregon
Department of Administrative Services, as follows: - }
{ - (a) Fifty-six percent, or the amount remaining after the
distribution under subsection (3) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt; - }
{ - (b) Twenty percent to the cities of the state in such
shares as the population of each city bears to the population of
the cities of the state, as determined by the State Board of
Higher Education last preceding such apportionment, under ORS
190.510 to 190.610; - }
{ - (c) Ten percent to counties in such shares as their
respective populations bear to the total population of the state,
as estimated from time to time by the State Board of Higher
Education; and - }
{ - (d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section - } .
(2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030, 473.035 and 473.040 to the
Mental Health Alcoholism and Drug Services Account in the General
Fund to be paid monthly as provided in ORS 430.380.
{ - (3) Notwithstanding subsection (1) of this section, no
city or county shall receive for any fiscal year an amount less
than the amount distributed to the city or county in accordance
with ORS 471.350 (1965 Replacement Part), 471.810, 473.190 and
473.210 (1965 Replacement Part) during the 1966-1967 fiscal year
unless the city or county had a decline in population as shown by
its census. If the population declined, the per capita
distribution to the city or county shall be not less than the
total per capita distribution during the 1966-1967 fiscal year.
Any additional funds required to maintain the level of
distribution under this subsection shall be paid from funds
credited under subsection (1)(a) of this section. - }
SECTION 4. ORS 190.530 is amended to read:
190.530. Upon petition from a city, county, political
subdivision, public corporation or state agency for
reconsideration, or upon its own motion, the State Board of
Higher Education may revise its determination of the population
of a city, county or other area. Payment of funds to a city,
county or other area under ORS { - 323.455, - } 366.785 to
366.820 or { - 471.810 - } { + section 1 of this 2001 Act + }
shall be affected by a subsequent filing of a corrected
certificate under this section in the manner provided by ORS
190.620.
SECTION 5. ORS 190.540 is amended to read:
190.540. (1) The population shown in the certificate of
population of the State Board of Higher Education filed pursuant
to ORS 190.520 or 190.530 shall be the official population of the
city, county or other area covered by the certificate until a
later certificate covering such city, county or other area is
filed by the board.
(2) After a certificate of population is filed pursuant to ORS
190.520 or 190.530, the population of a city, county or other
area as shown in the certificate shall be the official and
exclusive basis for determining per capita allocation and payment
of funds to such city, county or other area under ORS 366.785 to
366.820 and { - 471.810 - } { + section 1 of this 2001
Act + } until the filing by the board of a later certificate for
such city, county or other area.
SECTION 6. ORS 190.620 is amended to read:
190.620. (1) Whenever a corrected certificate of census is
filed and the correction is such that payment of funds under ORS
{ - 323.455, - } 366.785 to 366.820 or { - 471.810 - } { +
section 1 of this 2001 Act + } was more or less than the city,
county or other area would have been entitled, the payment shall
be corrected in the distribution of funds next following the
erroneous distribution. In computing the corrected distribution,
the amount due any city or county or other area under the
corrected certificate shall be distributed first, and the amounts
payable that would otherwise be distributed shall be adjusted
accordingly.
(2) The provisions of subsection (1) of this section shall
apply to all distributions made after December 31, 1970, if a
corrected certificate has been filed prior to the distribution
next following the erroneous distribution. If the corrected
certificate is not filed before the distribution next following
the erroneous distribution, no adjustments are required and the
corrected certificate shall affect only those distributions made
after the corrected certificate is filed.
SECTION 7. ORS 197.335 is amended to read:
197.335. (1) An order issued under ORS 197.328 and the copy of
the order mailed to the local government, state agency or special
district shall set forth:
(a) The nature of the noncompliance, including, but not limited
to, the contents of the comprehensive plan or land use
regulation, if any, of a local government that do not comply with
the goals or the contents of a plan, program or regulation
affecting land use adopted by a state agency or special district
that do not comply with the goals. In the case of a pattern or
practice of decision-making which violates the goals,
comprehensive plan or land use regulations, the order shall
specify the decision-making which constitutes the pattern or
practice, including specific provisions the Land Conservation and
Development Commission believes are being misapplied;
(b) The specific lands, if any, within a local government for
which the existing plan or land use regulation, if any, does not
comply with the goals; and
(c) The corrective action decided upon by the commission,
including the specific requirements, with which the local
government, state agency or special district must comply. In the
case of a pattern or practice of decision-making that violates an
acknowledged comprehensive plan or land use regulation, the
commission may require revisions to the comprehensive plan, land
use regulations or local procedures which the commission believes
are necessary to correct the pattern or practice. Notwithstanding
the provisions of this section, except as provided in subsection
(3)(c) of this section, an enforcement order does not affect:
(A) Land use applications filed with a local government prior
to the date of adoption of the enforcement order unless
specifically identified by the order;
(B) Land use approvals issued by a local government prior to
the date of adoption of the enforcement order; or
(C) The time limit for exercising land use approvals issued by
a local government prior to the date of adoption of the
enforcement order.
(2) Judicial review of a final order of the commission shall be
governed by the provisions of ORS 183.310 to 183.550 applicable
to contested cases except as otherwise stated in this section.
The commission's final order shall include a clear statement of
findings which set forth the basis for the order. Where a
petition to review the order has been filed in the Court of
Appeals, the commission shall transmit to the court the entire
administrative record of the proceeding under review.
Notwithstanding ORS 183.482 (3) relating to a stay of enforcement
of an agency order, an appellate court, before it may stay an
order of the commission, shall give due consideration to the
public interest in the continued enforcement of the commission's
order and may consider testimony or affidavits thereon. Upon
review, an appellate court may affirm, reverse, modify or remand
the order. The court shall reverse, modify or remand the order
only if it finds:
(a) The order to be unlawful in substance or procedure, but
error in procedure shall not be cause for reversal, modification
or remand unless the court shall find that substantial rights of
any party were prejudiced thereby;
(b) The order to be unconstitutional;
(c) The order is invalid because it exceeds the statutory
authority of the agency; or
(d) The order is not supported by substantial evidence in the
whole record.
(3)(a) If the commission finds that in the interim period
during which a local government, state agency or special district
would be bringing itself into compliance with the commission's
order under ORS 197.320 or subsection (2) of this section it
would be contrary to the public interest in the conservation or
sound development of land to allow the continuation of some or
all categories of land use decisions or limited land use
decisions, it shall, as part of its order, limit, prohibit or
require the approval by the local government of applications for
subdivisions, partitions, building permits, limited land use
decisions or land use decisions until the plan, land use
regulation or subsequent land use decisions and limited land use
decisions are brought into compliance. The commission may issue
an order that requires review of local decisions by a hearings
officer or the Department of Land Conservation and Development
before the local decision becomes final.
(b) Any requirement under this subsection may be imposed only
if the commission finds that the activity, if continued,
aggravates the goal, comprehensive plan or land use regulation
violation and that the requirement is necessary to correct the
violation.
(c) The limitations on enforcement orders under subsection
(1)(c)(B) of this section shall not be interpreted to affect the
commission's authority to limit, prohibit or require application
of specified criteria to subsequent land use decisions involving
land use approvals issued by a local government prior to the date
of adoption of the enforcement order.
(4) As part of its order under ORS 197.320 or subsection (2) of
this section, the commission may withhold grant funds from the
local government to which the order is directed. As part of an
order issued under this section, the commission may notify the
officer responsible for disbursing state-shared revenues to
withhold that portion of state-shared revenues to which the local
government is entitled under ORS { - 221.770, 323.455, - }
366.525 and 366.800 { - and ORS chapter 471 - } { + and
section 1 of this 2001 Act + } which represents the amount of
state planning grant moneys previously provided the local
government by the commission. The officer responsible for
disbursing state-shared revenues shall withhold state-shared
revenues as outlined in this section and shall release funds to
the local government or department when notified to so do by the
commission or its designee. The commission may retain a portion
of the withheld revenues to cover costs of providing services
incurred under the order, including use of a hearings officer or
staff resources to monitor land use decisions and limited land
use decisions or conduct hearings. The remainder of the funds
withheld under this provision shall be released to the local
government upon completion of requirements of the commission
order.
(5)(a) As part of its order under this section, the commission
may notify the officer responsible for disbursing funds from any
grant or loan made by a state agency to withhold such funds from
a special district to which the order is directed. The officer
responsible for disbursing funds shall withhold funds as outlined
in this section and shall release funds to the special district
or department when notified to do so by the commission.
(b) The commission may retain a portion of the funds withheld
to cover costs of providing services incurred under the order,
including use of a hearings officer or staff resources to monitor
land use decisions and limited land use decisions or conduct
hearings. The remainder of the funds withheld under this
provision shall be released to the special district upon
completion of the requirements of the commission order.
(6) The commission may institute actions or proceedings for
legal or equitable remedies in the Circuit Court for Marion
County or in the circuit court for the county to which the
commission's order is directed or within which all or a portion
of the applicable city is located to enforce compliance with the
provisions of any order issued under this section or to restrain
violations thereof. Such actions or proceedings may be instituted
without the necessity of prior agency notice, hearing and order
on an alleged violation.
SECTION 8. ORS 199.755 is amended to read:
199.755. (1) A city-county shall receive a share of the
revenues allocated to counties under ORS { - 323.455 - } ,
366.525 and
{ - 471.810 - } { + section 1 of this 2001 Act + }. Subject
to subsections (2) and (3) of this section, it shall also receive
a share allocated under ORS { - 323.455, - } 366.800 and
{ - 471.810 - } { + section 1 of this 2001 Act + } to cities.
(2) Starting with the first full calendar month after the
effective date of the consolidation, a city-county shall receive
a share of such revenues allocated to cities on the same basis as
a city. In computing such share, population shall be determined
as provided by subsection (3) of this section.
(3) For the purposes of this section, population of a
city-county shall be determined:
(a) For the calendar year in which the consolidation becomes
effective, at 87 percent of the population of the city-county as
determined under ORS 190.510 to 190.590;
(b) For the first calendar year following the calendar year in
which the consolidation becomes effective, at 88 percent of the
population of the city-county as determined under ORS 190.510 to
190.590; and
(c) For the second calendar year following the calendar year in
which the consolidation becomes effective, at 89 percent; for the
third, at 91 percent; for the fourth, at 92 percent; for the
fifth, at 94 percent; for the sixth, at 95 percent; for the
seventh, at 97 percent; for the eighth, at 98 percent; for the
ninth, at 99 percent; and for the 10th and each succeeding
calendar year following the calendar year in which the
consolidation becomes effective, at 100 percent of the population
of the consolidated city-county as determined under ORS 190.510
to 190.590.
SECTION 9. ORS 221.760 is amended to read:
221.760. (1) The officer responsible for disbursing funds to
cities under ORS { - 323.455, - } 366.785 to 366.820 and
{ - 471.805 - } { + section 1 of this 2001 Act + } shall
disburse such funds in the case of a city located within a county
having more than 100,000 inhabitants, according to the most
recent federal decennial census, only if the officer reasonably
is satisfied that the city meets the requirements set out in
subsection (2) of this section, or if the city provides four or
more of the following municipal services:
(a) Police protection.
(b) Fire protection.
(c) Street construction, maintenance and lighting.
(d) Sanitary sewers.
(e) Storm sewers.
(f) Planning, zoning and subdivision control.
(g) One or more utility services.
(2) In the year in which any city is first incorporated and the
following two years it shall be considered a city for the
purposes of ORS { - 323.455, - } 366.785 to 366.820 and
{ - 471.805 - } { + section 1 of this 2001 Act + } if the city
charter gives the city power to provide four or more of the
municipal services enumerated in subsection (1) of this section.
SECTION 10. ORS 221.785 is amended to read:
221.785. (1) Notwithstanding ORS { - 221.770, 323.455, - }
366.785 to 366.820 and { - 471.810 - } { + section 1 of this
2001 Act + }, when a proceeding challenging the validity of the
incorporation of a city is commenced before a court or
administrative agency of this state within two years after the
incorporation, if the court or agency determines that the
incorporation is invalid, moneys otherwise payable to the city
under ORS { - 221.770, 323.455, - } 366.785 to 366.820 and
{ - 471.810 - } { + section 1 of this 2001 Act + } shall not
be distributed to the city, but shall be deposited with the State
Treasurer as provided in subsection (3) of this section.
(2) Not later than 30 days after the issuance of an order or
judgment declaring the incorporation of a city invalid, the party
challenging the incorporation shall send a certified copy of the
order or judgment to the State Treasurer, Department of
Transportation { - , - } { + and + } Department of Revenue
{ - and the Oregon Liquor Control Commission - } .
(3) Upon receiving a certified copy of the order or judgment
under subsection (2) of this section, the state officer or
department having responsibility for the distribution of moneys
under ORS { - 221.770, 323.455, - } 366.785 to 366.820 and
{ - 471.810 - } { + section 1 of this 2001 Act + } shall
deposit those moneys in an escrow account administered by the
State Treasurer.
(4) Upon final determination of the validity of an
incorporation by judgment or decree rendered by the highest court
in which a decision could be had, the moneys in the escrow
account established under subsection (3) of this section shall be
distributed as follows:
(a) If the incorporation is determined to be valid, to the
city.
(b) If the incorporation is determined to be invalid, each city
in this state shall receive such share of the moneys as its
population bears to the total population of the cities of the
state.
(5) The State Treasurer, upon receiving a certified copy of the
judgment or decree of the court which constitutes the final
determination of the validity of the challenged incorporation
shall distribute moneys in the escrow account as provided in
subsection (4) of this section.
(6) The State Treasurer shall retain interest earned on moneys
deposited in the escrow account and shall distribute the interest
in the same manner as other moneys in the account are
distributed.
SECTION 11. ORS 294.565 is amended to read:
294.565. If any city shall fail to file its documents or
reports required by ORS 294.555 or 297.405 to 297.555 with the
Department of Revenue or Secretary of State, as the case may be,
within 30 days after a request therefor has been made by
certified mail to the city, the Department of Revenue or
Secretary of State may certify to the officer responsible for
disbursing funds to cities under ORS { - 323.455, - } 366.785
to 366.820 and { - 471.810 - } { + section 1 of this 2001
Act + } the fact of such failure to file the documents or
reports. Notwithstanding the requirements under ORS
{ - 323.455, - } 366.785 to 366.820 and { - 471.810 - }
{ + section 1 of this 2001 Act + } for prompt payment of funds
due a city, such officer shall withhold payment to the city of
any funds ordinarily payable to it under ORS { - 323.455, - }
366.785 to 366.820 and { - 471.810 - } { + section 1 of this
2001 Act + } until notified by the Department of Revenue or
Secretary of State that the required document or report has been
received as required by law. A copy of such certification and
request shall be furnished the delinquent city.
SECTION 12. ORS 297.466 is amended to read:
297.466. (1) In performing an audit and review required under
ORS 297.425, the accountant under contract with the municipal
corporation or the Secretary of State, whoever performs the audit
and review, shall determine if the municipal corporation has, or
has not, followed generally accepted governmental accounting
principles in reporting its financial condition and operations,
established appropriate accounting systems and internal controls
and substantially complied with legal requirements in conducting
its financial affairs. The determination shall either be included
in the signed expression of opinion or otherwise disclosed in the
audit report required under ORS 297.465.
(2) Upon receipt of an audit report under ORS 297.465 the
governing body of a county or city shall determine the measures
it considers necessary to correct any deficiencies disclosed in
the report. The governing body shall adopt a resolution setting
forth the corrective measures it proposes and the period of time
estimated to complete them.
(3) Within 30 days after a county or city files a copy of its
audit report with the Secretary of State under ORS 297.465 a copy
of the resolution prepared under subsection (2) of this section
shall also be filed. Upon receipt of the audit report and the
resolution, the Secretary of State shall either acknowledge the
city or county's plans to correct deficiencies cited in the audit
report or notify the county or city of those deficiencies which,
if not corrected, could result in withholding of funds under this
section. At the request of the governing body of the city or
county the Secretary of State shall make suggestions for
correcting those deficiencies. If the governing body of the
county or city does not agree with the notification by the
Secretary of State, it shall be granted an opportunity for a
conference regarding the notification, audit determinations or
corrective measures to be taken.
(4) If the Secretary of State concurs with determinations made
under subsection (1) of this section in two successive audits and
reviews of the same county or city, and determines that the
governing body of the county or city has not taken adequate
action to correct the deficiencies cited in the notifications
given under subsection (3) of this section, the Secretary of
State may certify these facts to the State Treasurer, the
Director of the Department of Revenue { - , - } { + and + }
the Director of Transportation { - and the Director of the
Oregon Department of Administrative Services - } . The
certificate of the Secretary of State shall only be issued after
notice, opportunity to be heard and hearing pursuant to the
provisions of ORS 183.310 to 183.550, governing contested cases.
The hearing shall be held within the jurisdiction of the county
or city.
(5) Upon receipt of a certificate from the Secretary of State
under subsection (4) of this section, the State Treasurer, the
Director of the Department of Revenue { - , - } { + and + }
the Director of Transportation { - and the Director of the
Oregon Department of Administrative Services - } shall withhold
from distribution to the county or city 10 percent of the moneys
otherwise to be distributed to it under ORS { - 221.770,
323.455, - } 366.525 to 366.540, 366.785 to 366.820 { - ,
471.805 and 471.810 - } { + and section 1 of this 2001 Act + }.
The moneys withheld shall be disbursed to the county or city only
after the officer responsible for disbursement has received
notice from the Secretary of State that the governing body of the
county or city has taken action to follow generally accepted
governmental accounting principles in reporting financial
condition and operations and establish appropriate accounting
systems and internal controls and will substantially comply with
legal requirements in conducting its financial affairs.
(6) The Secretary of State shall not issue a certificate under
subsection (4) of this section for failure to follow generally
accepted governmental accounting principles if a county or city
has followed accounting practices authorized by state law.
(7) As used in this section, 'generally accepted governmental
accounting principles' means those accounting principles
sanctioned by recognized authoritative bodies such as the
National Council on Governmental Accounting, the American
Institute of Certified Public Accountants, the Financial
Accounting Standards Board or their successors.
SECTION 13. ORS 391.800 is amended to read:
391.800. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Elderly and
Disabled Special Transportation Fund. All moneys in the Elderly
and Disabled Special Transportation Fund are appropriated
continuously to the Department of Transportation for payment of
the department's administrative costs of the program and payment
to mass transit districts, transportation districts and counties
as provided in ORS 391.810.
(2) The Elderly and Disabled Special Transportation Fund shall
consist of:
(a) Moneys transferred to the fund under ORS 323.455
{ - (3) - } ;
(b) Other moneys appropriated to the fund by the Legislative
Assembly; and
(c) Moneys obtained from interest earned on the investment of
such moneys.
(3) Moneys in the Elderly and Disabled Special Transportation
Fund, with the approval of the State Treasurer, may be invested
as provided by ORS 293.701 to 293.820, and the earnings from such
investments shall be credited to the Elderly and Disabled Special
Transportation Fund.
SECTION 14. { + ORS 221.770 is repealed. + }
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