71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
SA to A-Eng. HB 2057
LC 407/HB 2057-A13
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2057
By COMMITTEE ON RULES AND REDISTRICTING
June 29
On page 1 of the printed A-engrossed bill, line 2, after the
semicolon insert 'creating new provisions; amending ORS 291.349
and 291.353; appropriating money;'.
Delete line 25 and delete page 2 and insert:
' { + SECTION 1. + } { + (1) The Economic Security Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the Economic Security Fund
shall be credited to the fund.
' (2) Except as provided in subsection (5) of this section, the
following moneys shall be transferred to the Economic Security
Fund:
' (a) The greater of:
' (A) One-half of the total amount estimated in the
legislatively adopted budget for a biennium to be the
unappropriated balance in the General Fund on the last day of the
biennium, if the actual General Fund ending balance on the last
day of the biennium is greater than the amount estimated; or
' (B) The total amount of excess revenues described in ORS
291.349 (8); and
' (b) For each biennium beginning after June 30, 2003, one-half
of all moneys that are paid during the biennium to this state by
United States tobacco products manufacturers under the Master
Settlement Agreement of 1998.
' (3) Moneys shall be transferred to the Economic Security Fund
as required by subsection (2) of this section as soon as
practicable after the end of the biennium.
' (4) Moneys may not be appropriated or otherwise transferred
from the Economic Security Fund until the fund has a balance of
$250 million. After the fund first reaches a balance of $250
million, moneys in the fund may be appropriated or otherwise
transferred from the fund in accordance with the provisions of
subsection (6) or (7) of this section, regardless of the
resulting balance.
' (5) If the Economic Security Fund has a balance at the
beginning of a biennium, prior to any transfers under subsection
(2) of this section, that exceeds five percent of the General
Fund appropriations for the prior biennium:
' (a) Interest earnings from the Economic Security Fund shall
be transferred to the General Fund;
' (b) The Legislative Assembly may not appropriate or transfer
moneys to the Economic Security Fund; and
' (c) Moneys described in subsection (2) of this section may
not be transferred to the fund.
' (6) Except as provided in subsections (5)(a) and (7) of this
section, moneys may be appropriated or transferred from the
Economic Security Fund only if:
' (a) The Legislative Assembly finds one of the following:
' (A) That the last quarterly economic and revenue forecast for
a biennium indicates that moneys available to the General Fund
for the next biennium will be at least three percent less than
appropriations from the General Fund for the current biennium;
' (B) That there has been a decline for two or more consecutive
quarters in the last 12 months in seasonally adjusted nonfarm
payroll employment; or
' (C) That a quarterly economic and revenue forecast projects
that revenues in the General Fund in the current biennium will be
at least two percent below what they were projected to be in the
revenue forecast on which the legislatively adopted budget for
the current biennium was based; and
' (b) The proposed appropriation or transfer is approved by
three-fifths of the members serving in each house of the
Legislative Assembly.
' (7) Moneys may be appropriated or transferred from the
Economic Security Fund if the Governor declares an emergency and
the proposed appropriation or transfer is approved by two-thirds
of the members serving in each house of the Legislative Assembly.
' (8) The Legislative Assembly may by law prescribe the
procedures to be used and identify the persons required to make
the forecasts described in subsection (6) of this section. + }
' { + SECTION 2. + } ORS 291.349 is amended to read:
' 291.349. (1) As soon as practicable after adjournment sine
die of the regular session of the Legislative Assembly, the
Oregon Department of Administrative Services shall report to the
Emergency Board the estimate as of July 1 of the first year of
the biennium of General Fund and State Lottery Fund revenues that
will be received by the state during that biennium. The Oregon
Department of Administrative Services shall base its estimate on
the last forecast given to the Legislative Assembly before
adjournment sine die of the regular session on which the printed,
adopted budget prepared in the Oregon Department of
Administrative Services is based, adjusted only insofar as
necessary to reflect changes in laws adopted at that session. The
report shall contain the estimated revenues from corporate income
and excise taxes separately from the estimated revenues from
other General Fund sources. The Oregon Department of
Administrative Services may revise the estimate if necessary
following adjournment sine die of any special or emergency
session of the Legislative Assembly but any revision does not
affect the basis of the computation described in subsection (3)
or (4) of this section.
' (2) As soon as practicable after the end of the biennium, the
Oregon Department of Administrative Services shall report to the
Emergency Board, or the Legislative Assembly if it is in session,
the amount of General Fund revenues collected as of the last June
30 of the preceding biennium. The report shall contain the
collections from corporate income and excise taxes separately
from collections from other sources.
' (3) If the revenues received from the corporate income and
excise taxes during the biennium exceed the amounts estimated to
be received from such taxes for the biennium, as estimated after
adjournment sine die of the regular session, by two percent or
more, the total amount of that excess shall be credited to
corporate income and excise taxpayers in a percentage amount of
corporate excise and income tax liability as determined under
subsection (5) of this section. However, no credit shall be
allowed against tax liability imposed by ORS 317.090.
' (4) If the revenues received from General Fund revenue
sources, exclusive of those described in subsection (3) of this
section, during the biennium exceed the amounts estimated to be
received from such sources for the biennium, as estimated after
adjournment sine die of the regular session, by two percent or
more, there shall be refunded from personal income tax revenues
an amount equal to the total amount of that excess, reduced by
the cost certified by the Department of Revenue under ORS 291.351
as being allocable to payments described under this subsection.
The excess amount to be refunded shall be paid to personal income
taxpayers in a percentage amount of prior year personal income
tax liability as determined under subsection (6) of this section.
' (5) If there is an excess to be credited under subsection (3)
of this section, on or before October 1, following the end of
each biennium, the Oregon Department of Administrative Services
shall determine and certify to the Department of Revenue the
percentage amount of credit for purposes of subsection (3) of
this section. The percentage amount determined shall be a
percentage amount to the nearest one-tenth of a percent that will
distribute the excess to be credited to corporate excise and
income taxpayers for taxable years beginning in the calendar year
during which the excess is determined. The credit shall be
computed after the allowance of any other credit or offset
against tax liability allowed or allowable under any provision of
law of this state, and before the application of estimated tax
payments, withholding or other advance tax payments.
' (6)(a) If there is an excess to be refunded under subsection
(4) of this section, on or before September 15, following the end
of each biennium, the Oregon Department of Administrative
Services shall determine and certify to the Department of Revenue
the percentage amount of refund payment for purposes of
subsection (4) of this section. The percentage amount so
determined shall be a percentage amount to the nearest
one-hundredth of a percent that will distribute the excess to be
refunded to personal income taxpayers under subsection (4) of
this section. The percentage amount shall equal the amount
distributed under subsection (4) of this section divided by the
estimated total personal income tax liability for all personal
income taxpayers for tax years beginning in the calendar year
immediately preceding the calendar year in which the excess is
determined.
' (b) The Department of Revenue shall multiply the percentage
amount determined under paragraph (a) of this subsection by the
total amount of a personal income taxpayer's tax liability for
the tax year beginning in the calendar year immediately preceding
the calendar year in which the excess is determined in order to
calculate the amount of the refund to be made to the taxpayer.
' (c) The refund described under this subsection shall be
subject to the rules allowing setoff of refunds or sums due
debtors of this state under ORS 293.250.
' (d) The refund described under this subsection shall be
mailed by the Department of Revenue to personal income taxpayers
eligible for the payment on or before December 1 following the
end of the biennium for which the payment described under this
subsection is being made.
' (e) Notwithstanding paragraph (d) of this subsection, the
Department of Revenue shall mail the refund at the earliest date
of practicable convenience in the case of a return:
' (A) For a tax year beginning in the calendar year immediately
preceding the calendar year in which the excess is determined for
which refund is being made; and
' (B) That is first filed on or after August 15 after the end
of the biennium.
' (7) No refund shall be made to a taxpayer if, after making
the calculation described under subsection (6) of this section,
the amount calculated is less than $1.
' { + (8)(a) If the revenues received from the corporate
income and excise taxes during the biennium exceed the amounts
estimated to be received from such taxes for the biennium, as
estimated after adjournment sine die of the regular session, by
less than two percent, the total amount of that excess shall be
transferred to the Economic Security Fund established by section
1 of this 2001 Act if the excess, when added to the excess
described in paragraph (b) of this subsection, is the greater of
the amounts described in section 1 (2)(a) of this 2001 Act.
' (b) If the revenues received from General Fund revenue
sources, exclusive of those described in paragraph (a) of this
subsection, during the biennium exceed the amounts estimated to
be received from such sources for the biennium, as estimated
after adjournment sine die of the regular session, by less than
two percent, the total amount of that excess shall be transferred
to the Economic Security Fund established by section 1 of this
2001 Act if the excess, when added to the excess described in
paragraph (a) of this subsection, is the greater of the amounts
described in section 1 (2)(a) of this 2001 Act. + }
' { + SECTION 3. + } ORS 291.353 is amended to read:
' 291.353. (1) The Surplus Kicker Cost Account is established
in the General Fund of the State Treasury.
' (2) Upon cost certification by the Department of Revenue
under ORS 291.351, an amount equal to the total amount certified
shall be credited from the General Fund to the Surplus Kicker
Cost Account. All moneys in the account are appropriated
continuously to the Department of Revenue for the purpose of
carrying out the provisions of ORS 291.349 { + (1) to (7) + }.
' { + SECTION 4. + } { + There is appropriated to the
Economic Security Fund established under section 1 of this 2001
Act, for the biennium beginning July 1, 2001, out of the moneys
paid to this state by the United States tobacco products
manufacturers under the Master Settlement Agreement of 1998, the
amount of $60,000,000. + }
' { + SECTION 5. + } { + (1) Notwithstanding any other
provision of law, each quarter of the biennium that begins on
July 1, 2001, the Oregon Department of Administrative Services
shall transfer to the Economic Security Fund established under
section 1 of this 2001 Act one-third of the moneys that are
transferred under section 1, chapter 405, Oregon Laws 2001
(Enrolled Senate Bill 963), by the Department of Human Services
to the Medicaid Upper Payment Limit Account established in
section 1, chapter 405, Oregon Laws 2001 (Enrolled Senate Bill
963).
' (2) In addition to moneys transferred under subsection (1) of
this section, as soon as practicable after June 30, 2003, the
Oregon Department of Administrative Services shall transfer to
the Economic Security Fund all moneys that remain in the Medicaid
Upper Payment Limit Account after all transfers, allocations or
other payments from the account that are required by the
Seventy-first Legislative Assembly for the biennium beginning
July 1, 2001, have been made. + }
' { + SECTION 6. + } { + The Legislative Assembly may not
appropriate, or in any other way transfer, moneys from the
Industrial Accident Fund referred to in ORS 656.632 to the
Economic Security Fund established by section 1 of this 2001
Act. + }
' { + SECTION 7. + } { + This 2001 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2001 Act
takes effect on its passage. + } ' .
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