71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
Senate Bill 657
Sponsored by Senator FISHER (at the request of Jim Main)
CHAPTER ................
AN ACT
Relating to collection of amounts owed by prisoners; creating new
provisions; and amending ORS 293.250 and 314.415.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Pursuant to ORS 293.250, a county may collect
any moneys owed to the county pursuant to a judgment obtained
under ORS 169.151. The county shall provide to the Department of
Revenue the amount owed and the name, Social Security number and
address of the person who owes the moneys. + }
SECTION 2. ORS 293.250 is amended to read:
293.250. (1) There is hereby created a Collections Unit in the
Department of Revenue.
(2) The Department of Revenue may render assistance in the
collection of any delinquent account owing to any state officer,
board, commission, corporation, institution, department or other
state organization { + , or to a county pursuant to a judgment
obtained under ORS 169.151, + } assigned by the agency { + or
county + } to which the delinquent account is owed to the
Department of Revenue for collection.
(3)(a) Subject to rules prescribed by the Oregon Department of
Administrative Services for collection of delinquent accounts
owing to the respective officers, departments, boards and
commissions of state government, { + and to counties, + } the
Department of Revenue shall render assistance in such collection
and shall charge such officers { + , + } { - and - } agencies
{ + and counties + } separately for the cost of such assistance,
provided that charges shall not exceed the proceeds of collection
credited to such officer { + , + } { - or - } agency { + or
county + } for the same biennium. The Department of Revenue may
designate a single percentage to retain from the proceeds of
collection as a charge for the cost of assistance. If the
Department of Revenue finds that accounts assigned to the
Department of Revenue for collection by certain
officers { + , + } { - or - } agencies { + or counties + }
lack sufficient information to properly and efficiently identify
the debtor or that the account information must be put into a
form usable by the Department of Revenue in order to efficiently
provide collection services, the Department of Revenue may
establish a separate percentage charge to be retained from
collections for the officer { + , + } { - or - } agency { +
or county + }. The charge must reflect the average of the actual
cost to provide collection services for all accounts assigned by
that officer { + , + }
Enrolled Senate Bill 657 (SB 657-B) Page 1
{ - or - } agency { + or county + }. In providing assistance,
the Department of Revenue shall utilize all means available to
collect the delinquent accounts including the setoff of any
refunds or sums due to the debtor from the Department of Revenue
or any other state agency. { + The Department of Revenue may
offset any refunds or sums due to the debtor from the department
or any other state agency against delinquent accounts assigned by
a county to the department for collection under this section. + }
The Department of Revenue may prescribe criteria for the kinds of
accounts that may be assigned under this section, including a
minimum dollar amount owed.
(b) No setoff will be made by the Department of Revenue unless
the debt is in a liquidated amount.
(c) When the Department of Revenue has notified the assigning
agency { + or county + }that a refund or other sum due to the
debtor is available for setoff, the debtor may arrange with the
Department of Revenue for payment of the debt in full before the
setoff is made. However, the assigning agency { + or county + }
shall not enter into any agreement with the debtor for payment of
the debt before the setoff is made.
(d) At the time any setoff is made the debtor shall be notified
by the Department of Revenue of its intention to apply sums due
from a state agency against the debtor's delinquent account. The
notice shall provide that the debtor within 30 days may request a
hearing before the claimant agency { + or county + }. No issues
at the hearing may be considered that have been litigated
previously, or if the debtor after being given due notice of
rights of appeal has failed to exercise them timely.
(e) All moneys received by the Department of Revenue in payment
of charges made under paragraph (a) of this subsection shall be
paid into the State Treasury and deposited in a miscellaneous
receipts account for the Department of Revenue.
(f) Net proceeds of collections of delinquent accounts shall be
credited to the account or fund of the officer { + , + }
{ - or - } agency { + or county + } to which the debt was
originally owing.
(4)(a) In providing assistance in the collection of any
delinquent account under this section, the Department of Revenue
may issue a warrant for the collection of the delinquent account.
The warrant may be recorded in the County Clerk Lien Record
maintained under ORS 205.130.
(b) A warrant shall not be issued under this subsection unless
the debt is in a liquidated amount.
(c) The amount of any warrant issued under this subsection
shall include the principal amount of the debt, any added
penalties or interest attributable to the delinquent account and
any costs associated with recording, indexing or service of the
warrant and any satisfaction or release thereof.
(d) A warrant shall not be issued under this subsection before
the debtor has been notified that the department intends to issue
the warrant and of the collection action that may be taken under
the warrant.
(5) Nothing in this section shall prohibit the collection of:
(a) A child or spousal support obligation as provided in ORS
25.610; or
(b) Criminal judgments that impose monetary obligations,
including judgments requiring the payment of fines, costs,
assessments, compensatory fines, attorney fees, forfeitures or
restitution.
Enrolled Senate Bill 657 (SB 657-B) Page 2
SECTION 2a. { + If House Bill 2856 becomes law, section 2 of
this 2001 Act (amending ORS 293.250) is repealed and ORS 293.250,
as amended by section 2, chapter ___, Oregon Laws 2001 (Enrolled
House Bill 2856), is amended to read: + }
293.250. (1) There is hereby created a Collections Unit in the
Department of Revenue.
(2) As used in this section, 'state agency' has the meaning
given that term in ORS 293.235.
(3) The Department of Revenue may render assistance in the
collection of any delinquent account owing to any state
agency { + , or to a county pursuant to a judgment obtained under
ORS 169.151, + } assigned by the agency { + or county + } to
which the delinquent account is owed to the Department of Revenue
for collection.
(4)(a) Subject to rules prescribed by the Oregon Department of
Administrative Services for collection of delinquent accounts
owing to state agencies, { + and to counties, + } the Department
of Revenue shall render assistance in such collection and shall
charge the agencies { + and counties + } separately for the cost
of such assistance, provided that charges shall not exceed the
proceeds of collection credited to the agency { + or county + }
for the same biennium. The Department of Revenue may designate a
single percentage to retain from the proceeds of collection as a
charge for the cost of assistance. If the Department of Revenue
finds that accounts assigned to the Department of Revenue for
collection by certain state agencies { + or counties + } lack
sufficient information to properly and efficiently identify the
debtor or that the account information must be put into a form
usable by the Department of Revenue in order to efficiently
provide collection services, the Department of Revenue may
establish a separate percentage charge to be retained from
collections for the agency { + or county + }. The charge must
reflect the average of the actual cost to provide collection
services for all accounts assigned by that state agency { + or
county + }. In providing assistance, the Department of Revenue
shall utilize all means available to collect the delinquent
accounts including the setoff of any refunds or sums due to the
debtor from the Department of Revenue or any other state agency.
{ + The Department of Revenue may offset any refunds or sums
due to the debtor from the department or any other state agency
against delinquent accounts assigned by a county to the
department for collection under this section. + } The Department
of Revenue may prescribe criteria for the kinds of accounts that
may be assigned under this section, including a minimum dollar
amount owed.
(b) A state agency authorized to use the services of the
Collections Unit may add a reasonable fee to the amount of the
debt, payable by the debtor, for the Collections Unit fee
incurred or to be incurred. The state agency may not add a fee
under this paragraph that exceeds the collection fee established
by the Collections Unit.
(c) No setoff will be made by the Department of Revenue unless
the debt is in a liquidated amount.
(d) When the Department of Revenue has notified the assigning
state agency { + or county + }that a refund or other sum due to
the debtor is available for setoff, the debtor may arrange with
the Department of Revenue for payment of the debt in full before
the setoff is made. However, the assigning state agency { + or
county + } shall not enter into any agreement with the debtor for
payment of the debt before the setoff is made.
Enrolled Senate Bill 657 (SB 657-B) Page 3
(e) At the time any setoff is made the debtor shall be notified
by the Department of Revenue of its intention to apply sums due
from a state agency against the debtor's delinquent account. The
notice shall provide that the debtor within 30 days may request a
hearing before the claimant agency { + or county + }. No issues
at the hearing may be considered that have been litigated
previously, or if the debtor after being given due notice of
rights of appeal has failed to exercise them timely.
(f) All moneys received by the Department of Revenue in payment
of charges made under paragraph (a) of this subsection shall be
paid into the State Treasury and deposited in a miscellaneous
receipts account for the Department of Revenue.
(g) Net proceeds of collections of delinquent accounts shall be
credited to the account or fund of the state agency { + or
county + } to which the debt was originally owing.
(5)(a) In providing assistance in the collection of any
delinquent account under this section, the Department of Revenue
may issue a warrant for the collection of the delinquent account.
The warrant may be recorded in the County Clerk Lien Record
maintained under ORS 205.130.
(b) A warrant shall not be issued under this subsection unless
the debt is in a liquidated amount.
(c) The amount of any warrant issued under this subsection
shall include the principal amount of the debt, any added fees,
penalties or interest attributable to the delinquent account and
any costs associated with recording, indexing or service of the
warrant and any satisfaction or release thereof.
(d) A warrant shall not be issued under this subsection before
the debtor has been notified that the department intends to issue
the warrant and of the collection action that may be taken under
the warrant.
(6) Nothing in this section shall prohibit the collection of:
(a) A child or spousal support obligation as provided in ORS
25.610; or
(b) Criminal judgments that impose monetary obligations,
including judgments requiring the payment of fines, costs,
assessments, compensatory fines, attorney fees, forfeitures or
restitution.
SECTION 3. ORS 314.415 is amended to read:
314.415. (1)(a) If the Department of Revenue determines
pursuant to ORS 305.270 that the amount of the tax due is less
than the amount theretofore paid, the excess shall be refunded by
the department with interest at the rate established under ORS
305.220, for each month or fraction of a month during a period
beginning 45 days after the due date of the return or the date
the tax was paid, whichever is the later, to the time the refund
is made.
(b)(A) No refund shall be allowed or made after three years
from the time the return was filed, or two years from the time
the tax or a portion thereof was paid, whichever period expires
the later, unless before the expiration of such period a claim
for refund is filed by the taxpayer in compliance with ORS
305.270, nor shall a refund claimed on an original return be
allowed or made in any case unless the return is filed within
three years of the due date, excluding extensions, of the return
in respect of which the tax might have been credited. If a refund
is disallowed for the tax year during which excess tax was paid
for any reason set forth in this paragraph, the excess shall not
be allowed as a credit against any tax occurring on a return
filed for a subsequent year. If the tax owed after offsets for
Enrolled Senate Bill 657 (SB 657-B) Page 4
all amounts owed the state { + , or a county pursuant to a
judgment obtained under ORS 169.151, + } is less than $1, no
refund shall be made.
(B) If a taxpayer would qualify under section 6511(h) of the
Internal Revenue Code for a suspension of the running of the
periods specified for filing a claim for refund of federal income
tax, the period specified in subparagraph (A) of this paragraph
shall also be suspended.
(c) No interest on a refund to an employee of a tax withheld by
an employer shall be paid for any period prior to the time the
employee filed a personal income tax return for the tax year
involved, nor for any period prior to the day which is 45 days
after the date when the employee's annual return for that year
was filed or was due, whichever is the later.
(d) No interest on a refund of estimated tax paid under ORS
314.505 to 314.525 or 316.557 to 316.589 shall be paid for any
period prior to the time the taxpayer filed a tax return for the
tax year involved, nor for any period prior to the day which is
45 days after the date when the tax return for that year was
filed or was due, whichever is later.
(e) The amount of the refund, exclusive of interest thereon,
shall not exceed the portion of the tax paid during such period
preceding the filing of the claim or, if no claim is filed, then
during the period preceding the allowance of the refund during
which a claim might have been filed. Where there has been an
overpayment of any tax imposed, the amount of the overpayment and
interest thereon shall be credited against any tax, penalty or
interest then due from the taxpayer, and only the balance shall
be refunded.
(f) Except as provided in ORS 305.265 (12), if, pursuant to a
notice of deficiency or assessment, the taxpayer pays the amount
specified in the notice, or any part thereof, and if, upon
appeal, the Oregon Tax Court or the Oregon Supreme Court orders
that all or any part of the deficiency amount specified in the
notice and paid by the taxpayer be refunded, the amount so
ordered to be refunded shall bear interest at the rate
established for refunds in ORS 305.220. Interest shall be
computed from the date of payment to the department. Nothing in
this paragraph shall require that interest be paid upon any
amount for any period for which interest upon the same amount for
the same period is required to be paid under ORS 305.419.
(2) Notwithstanding any provision to the contrary in ORS
305.265 or 305.270 or subsection (1) of this section, if, prior
to the expiration of the period prescribed in subsection (1)(b)
of this section, the department and the taxpayer consent in
writing to the refund of tax after the expiration of the period
prescribed, the refund shall be made at any time prior to the
expiration of the period agreed upon and no refund shall be made
or allowed after the expiration of the period agreed upon unless
a claim for refund is filed by the taxpayer before the expiration
of the period agreed upon in compliance with the manner
prescribed by the department. The period so agreed upon may be
extended by subsequent agreements in writing made before the
expiration of the period previously agreed upon. The department
shall have the power to consent to such refund only where the
taxpayer has consented to assessment of additional tax, if such
be determined upon audit, after the expiration of the applicable
three-year or five-year period prescribed in ORS 314.410 (1) and
(2).
Enrolled Senate Bill 657 (SB 657-B) Page 5
(3) If the claim for credit or refund relates to an overpayment
on account of the deductibility by the taxpayer, or by a
partnership, of the worthlessness of a share of stock in a
corporation, of the right to subscribe for or to receive a share
of stock in a corporation, or of a debt, in lieu of the
three-year period of limitation prescribed in subsection (1) of
this section, the period shall be seven years from the date
prescribed by law for the filing of the return for the year with
respect to which the claim is made; provided, that if the claim
is made in reliance upon this subsection after the expiration of
the three-year period prescribed in subsection (1)(b) of this
section, no interest shall be allowed with respect to any credit
or refund determined to be due upon such claim for the period
beginning at the close of the three-year period prescribed in
subsection (1) of this section and ending at the expiration of
six months after the date on which the claim is filed.
(4)(a) If the claim for credit or refund relates to an
overpayment attributable to a net operating loss carryback or a
net capital loss carryback, in lieu of the three-year period of
limitation prescribed in subsection (1) of this section, the
period shall be that period which ends three years after the time
prescribed by law for filing the return (including extensions
thereof) for the taxable year of the net operating loss or net
capital loss which results in such carryback. In the case of such
a claim, the amount of the credit or refund may exceed the
portion of the tax paid within the period provided in subsection
(1)(a) or (b) of this section or subsection (2) of this section,
whichever is applicable, to the extent of the amount of the
overpayment attributable to such carryback. If the allowance of a
credit or refund of an overpayment of tax attributable to a net
operating loss carryback or a net capital loss carryback is
otherwise prevented by the operation of any law or rule of law
other than ORS 305.150, relating to closing agreements, such
credit or refund may be allowed or made, if claim therefor is
filed within the period provided in this subsection. To the
extent that the carryback was not an issue in any proceeding in
which the determination of a court, including the Oregon Tax
Court, has become final, the claimed credit or refund applicable
to that carryback may be allowed or made under this subsection.
(b) For purposes of subsection (1) of this section, if any
overpayment of tax results from a carryback of a net operating
loss or net capital loss, such overpayment shall be deemed not to
have been made prior to the later of:
(A) The due date of the return for the taxable year in which
such net operating loss or net capital loss arises;
(B) The date the return for the year in which the net operating
or net capital loss arises is filed; or
(C) The date of filing of the return for the year to which the
net operating loss or net capital loss is carried back.
(5) Notwithstanding any provision to the contrary in ORS
305.265 or 305.270, or other provisions of this section, if the
taxpayer has agreed with the United States Commissioner of
Internal Revenue for an extension, or renewals thereof, of the
period for proposing and assessing deficiencies in federal income
tax for any year, the period within which a claim for credit or
refund may be filed or credit or refund allowed or made if no
claim is filed shall be the period provided within subsections
(1) to (4) of this section or six months after the date of the
expiration of the agreed period for assessing deficiency in
federal income tax, whichever period expires the later.
Enrolled Senate Bill 657 (SB 657-B) Page 6
(6) The department may make separate refunds of withheld taxes
upon request by a husband or wife who has filed a joint return,
the refund payable to each spouse being proportioned to the gross
earnings of each shown by the information returns filed by the
employer or otherwise shown to the satisfaction of the
department.
(7) If a taxpayer entitled to a refund under subsection (1) of
this section dies, the department may issue a draft for payment
of such refund under the terms and conditions set out in ORS
293.490 to 293.500 exercising the same powers and subject to the
same restrictions pursuant to which the State Treasurer is
authorized to pay the amounts of warrants, checks or orders under
those statutes.
SECTION 4. { + Neither the Department of Corrections nor any
city or county may seek reimbursement for expenses incurred in
safekeeping and maintaining prisoners through a counterclaim or
request for setoff in an action by a person against the
department or the county or city. + }
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Passed by Senate April 16, 2001
Repassed by Senate June 15, 2001
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 12, 2001
...........................................................
Speaker of House
Enrolled Senate Bill 657 (SB 657-B) Page 7
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled Senate Bill 657 (SB 657-B) Page 8