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 3154
Senate Bill 953
Sponsored by Senator HANNON, Representative BATES
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.
Requires board of directors of State Accident Insurance Fund
Corporation to sell corporation's assets. Directs that proceeds
from sale be paid into Integrated Health Benefits Trust Fund.
Eliminates statutory duties and responsibilities of State
Accident Insurance Fund Corporation.
Establishes and prescribes duties of Commission on Integrated
Health Benefits.
Requires insurer or health care service contractor to offer
integrated health benefits insurance. Requires insurer offering
workers' compensation insurance to offer integrated health
benefits insurance. Establishes requirements for insurers and
health care service contracts offering integrated health benefits
insurance.
Establishes tax credit against personal income or corporate
excise or income taxes for integrated health benefits insurance
premiums paid by employers. Limits amount of allowable credit.
Establishes Integrated Health Benefits Trust Fund. Directs that
amounts needed to reimburse General Fund for revenue loss due to
tax credit be transferred from Integrated Health Benefits Trust
Fund to General Fund.
Takes effect on 91st day following adjournment sine die.
A BILL FOR AN ACT
Relating to insurance; creating new provisions; amending ORS
278.415, 293.701, 314.752, 318.031, 353.100, 421.352, 652.710,
655.605, 655.615, 656.005, 656.017, 656.020, 656.027, 656.039,
656.054, 656.135, 656.506, 656.622, 656.726, 656.730, 656.990,
659.505, 731.554, 731.628 and 737.225; repealing ORS 543.560,
656.044, 656.502, 656.504, 656.505, 656.508, 656.526, 656.552,
656.554, 656.560, 656.562, 656.564, 656.566, 656.602, 656.635,
656.640, 656.642, 656.644, 656.751, 656.752, 656.753, 656.754,
656.758, 656.760 and 731.028; and prescribing an effective
date.
Be It Enacted by the People of the State of Oregon:
{ +
SALE OF STATE ACCIDENT INSURANCE FUND CORPORATION + }
SECTION 1. { + Section 2 of this 2001 Act is added to and made
a part of ORS chapter 656. + }
SECTION 2. { + Notwithstanding any other provision of law:
(1) Not later than 90 days after the effective date of this
2001 Act, the board of directors of the State Accident Insurance
Fund Corporation shall commence efforts to sell all assets of the
corporation to a private entity.
(2) All proceeds of the sale shall be paid to, and all moneys
remaining in the Industrial Accident Fund after the sale becomes
final shall be transferred to, the State Treasurer and shall be
deposited in the Integrated Health Benefits Trust Fund
established under section 14 of this 2001 Act.
(3) The Director of the Oregon Department of Administrative
Services and the Attorney General shall assist the board of
directors of the State Accident Insurance Fund Corporation in
negotiating the sale of the corporation's assets. The Director of
the Oregon Department of Administrative Services and the Attorney
General must approve the terms and conditions of the sale and
shall make sure that the contract of sale includes adequate
provisions for:
(a) Maintaining the trust terms and conditions specified in ORS
656.634 upon the proceeds of the sale of the corporation's
assets.
(b) Maintaining reserves necessary to meet the fiduciary
responsibilities established under ORS 656.636 to injured workers
arising from claim obligations of the State Accident Insurance
Fund Corporation.
(c) Processing and administering the claims that are being
processed and administered by the State Accident Insurance Fund
Corporation.
(d) Protecting employment, retirement and other fringe benefit
rights of the corporation's employees.
(e) Allocating responsibility between the purchaser and seller
for complying with federal and state laws regarding taxation and
all other laws regulating the sale transaction.
(4) After the date the sale becomes final, when a contract for
coverage under this chapter between the State Accident Insurance
Fund Corporation and a subject employer expires, the subject
employer shall become a self-insured employer or shall obtain
coverage from a guaranty contract insurer.
(5) The State Treasurer shall transfer the Industrial Accident
Fund, and all investments thereof, in accordance with the terms
and conditions of the contract of sale. + }
SECTION 3. { + The Attorney General shall notify the Speaker
of the House of Representatives, the President of the Senate and
the Legislative Counsel when the sale of the assets of the State
Accident Insurance Fund Corporation becomes final. + }
{ +
INTEGRATED HEALTH BENEFITS INSURANCE + }
SECTION 4. { + Sections 5 to 10 of this 2001 Act are added to
and made a part of the Insurance Code. + }
SECTION 5. { + As used in sections 5 to 9 of this 2001 Act:
(1) 'Group health insurance' has the meaning given that term in
ORS 743.522.
(2) 'Health care service contractor' has the meaning given that
term in ORS 750.005.
(3) 'Integrated health benefits insurance' means insurance that
provides coverage for medical services described in ORS 656.245
and for health care services as defined in ORS 750.005 for
employees and their spouses and eligible dependents. + }
SECTION 6. { + (1) If an insurer or health care service
contractor offers group health insurance, the insurer or health
care service contractor must offer integrated health benefits
insurance.
(2) If an insurer offers workers' compensation insurance, the
insurer must offer integrated health benefits insurance. + }
SECTION 7. { + (1) Except as the Director of the Department of
Consumer and Business Services otherwise provides by rule, for
purposes of providing insurance for medical services described in
ORS 656.245, insurers that offer individual or group health
insurance and health care service contractors are subject to the
requirements of ORS chapter 656.
(2) An insurer with a certificate of authority to transact
health insurance that offers integrated health benefits insurance
as provided in section 6 of this 2001 Act is not required to
obtain authorization under its certificate of authority to
transact workers' compensation insurance in order to offer
integrated health benefits insurance.
(3) An insurer with a certificate of authority to transact
workers' compensation insurance that offers integrated health
benefits insurance as provided in section 6 of this 2001 Act is
not required to obtain authorization under its certificate of
authority to transact health insurance in order to offer
integrated health benefits insurance.
(4) A health care service contractor that offers integrated
health benefits insurance as provided in section 6 of this 2001
Act is not required to obtain separate authority to transact
workers' compensation insurance in order to offer integrated
health benefits insurance. + }
SECTION 8. { + The presentation of a medical bill to an
insurer, a health care service contractor or an employer does not
in itself constitute a claim under ORS chapter 656. A claim for
benefits under ORS chapter 656 must be filed in the manner
prescribed in ORS chapter 656. + }
SECTION 9. { + The Director of the Department of Consumer and
Business Services shall adopt rules to implement and administer
sections 5 to 9 of this 2001 Act. The director may by rule exempt
insurers that offer individual or group health insurance and
health care service contractors offering integrated health
benefits insurance from the administrative provisions of ORS
chapter 656. The director may not establish exemptions affecting
rights to medical services or other rights of subject workers or
other persons whose benefits derive from the subject worker. + }
SECTION 10. { + If the State Accident Insurance Fund
Corporation is sold under section 2 of this 2001 Act to a person
who does not have a certificate of authority to transact
insurance in this state, the Director of the Department of
Consumer and Business Services shall expedite the application of
the purchaser to obtain a certificate of authority. + }
{ +
TAX CREDIT PROVISIONS + }
SECTION 11. { + Section 12 of this 2001 Act is added to and
made a part of ORS chapter 315. + }
SECTION 12. { + (1) As used in this section:
(a) 'Dependent' means an individual for whom a personal
exemption may be claimed under section 151(c) of the Internal
Revenue Code.
(b) 'Employee' includes a sole proprietor or a member of a
limited liability company, a partner of a partnership or an S
corporation shareholder if the member, partner or shareholder is
involved in ordinary business operations of the company,
partnership or corporation.
(c) 'Integrated health benefits insurance' means insurance that
provides coverage for medical services required under ORS 656.245
and for health care services as defined in ORS 750.005 for
employees and their spouses and eligible dependents.
(2) An employer shall be allowed a credit against the taxes
that are otherwise due under ORS chapter 316 or, if the employer
is a corporation, under ORS chapter 317 or 318 for premiums paid
or incurred by the employer during the tax year for integrated
health benefits insurance for employees and their spouses and
dependents.
(3) The amount of the credit shall equal ___ percent of the
premiums paid or incurred by the employer during the tax year,
but may not exceed $___ per full-time equivalent employee.
(4) The credit allowed under this section may not exceed the
tax liability of the taxpayer and may not be carried to another
tax year.
(5)(a) A nonresident shall be allowed the credit provided under
subsection (3) of this section computed in the same manner and
subject to the same limitations as the credit allowed to a
resident of this state. However, the credit shall be prorated
using the proportion provided in ORS 316.117.
(b) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed by subsection (3) of this section shall be
prorated or computed in a manner consistent with ORS 314.085.
(c) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by subsection (3) of this section shall be determined in
a manner consistent with ORS 316.117.
(6) The credit allowed under this section is in addition to and
not in lieu of any deduction otherwise allowable to the
employer. + }
SECTION 13. { + Section 12 of this 2001 Act applies only to
integrated health benefits insurance premiums paid or incurred in
tax years beginning in the calendar year that follows the sale of
the State Accident Insurance Fund Corporation under section 2 of
this 2001 Act, and to tax years beginning after that calendar
year. + }
{ +
TRUST FUND + }
SECTION 14. { + (1) The Integrated Health Benefits Trust Fund
is established, separate and distinct from the General Fund.
Earnings of the Integrated Health Benefits Trust Fund shall be
retained by the Integrated Health Benefits Trust Fund.
(2) The Integrated Health Benefits Trust Fund shall be an
investment fund for purposes of ORS 293.701 to 293.820.
(3) On or before September 1 of each fiscal year, an amount of
moneys equal to the revenue loss for the previous fiscal year
from the tax credit granted under section 12 of this 2001 Act, as
estimated and reported by the Department of Revenue pursuant to
section 15 of this 2001 Act, shall be transferred from the
Integrated Health Benefits Trust Fund to the General Fund. The
amount transferred shall be for the purpose of reimbursing the
General Fund for the revenue loss resulting from tax credits
allowed under section 12 of this 2001 Act.
(4) Transfers made under subsection (3) of this section are
deemed to meet the trust terms and conditions specified under ORS
656.634. + }
SECTION 15. { + (1) On or before August 15 of each fiscal
year, the Department of Revenue shall estimate the total amount
of tax credits allowed under section 12 of this 2001 Act during
the previous fiscal year. The department shall reduce the
estimate by the amount of previously claimed tax credits under
section 12 of this 2001 Act that were subsequently disallowed
during the previous fiscal year and may further adjust the
estimate to reflect revisions in previous estimates made under
this section.
(2) The department shall report the amount estimated under
subsection (1) of this section to the State Treasurer for the
purpose of making the transfer described in section 14 (3) of
this 2001 Act. + }
{ +
COMMISSION ON INTEGRATED HEALTH BENEFITS + }
SECTION 16. { + (1) There is created the Commission on
Integrated Health Benefits, consisting of 12 members. The
membership of the commission shall be as follows:
(a) The President of the Senate shall appoint four members:
(A) One member who is a member of the Senate;
(B) One member who represents the interests of small employers;
(C) One member who represents the interests of large employers;
and
(D) One member who represents the interests of organized labor.
(b) The Speaker of the House of Representatives shall appoint
four members:
(A) One member who is a member of the House of Representatives;
(B) One member who represents health insurers;
(C) One member who represents workers' compensation insurers;
and
(D) One member who represents self-insured employers.
(c) The Governor shall appoint four members:
(A) Two members who represent employees;
(B) The Administrator of the Workers' Compensation Division of
the Department of Consumer and Business Services; and
(C) The Insurance Commissioner.
(2) The term of office of each member is four years. If there
is a vacancy in the office of a member, the appointing authority
shall make an appointment to become immediately effective for the
unexpired term.
(3) The commission shall select one of its members as
chairperson.
(4) The commission shall meet at least four times a year.
Additional meetings may be called by the chair.
(5) A majority of the members of the commission constitutes a
quorum for the transaction of business. + }
SECTION 17. { + (1) The duties of the Commission on Integrated
Health Benefits include but are not limited to:
(a) Overseeing the implementation of this 2001 Act;
(b) Recommending policies and procedures to facilitate the
transition to an integrated health benefits system; and
(c) Advising the Legislative Assembly of legislation required
to address changes resulting from implementation of this 2001
Act.
(2) The Department of Consumer and Business Services shall
provide the commission with staffing and support services. + }
SECTION 18. { + Sections 16 and 17 of this 2001 Act are
repealed January 2, 2006. + }
{ +
SAIF CONFORMING AMENDMENTS + }
SECTION 19. ORS 353.100 is amended to read:
353.100. (1) The provisions of ORS chapters 35, 190, 192, 244,
281 and 295 and ORS 30.260 to 30.460, 200.005 to 200.025, 200.045
to 200.090, 236.605 to 236.640, 243.650 to 243.782, 297.040,
307.090 and 307.112 shall apply to Oregon Health Sciences
University under the same terms as they apply to public bodies
other than the state.
(2) Except as otherwise provided by law, the provisions of ORS
chapters 182, 183, 240, 270, 273, 276, 279, 283, 291, 292, 293,
294 and 297 and ORS 180.060, 180.210 to 180.235, 184.305 to
184.345, 190.430, 190.480, 190.490, 192.105, 200.035, 236.380,
243.105 to 243.585, 243.696, 278.011 to 278.120, 278.315 to
278.415, 281.210 to 281.260, 282.010 to 282.150 { - , - } { +
and + } 357.805 to 357.895 { - and 656.017 (2) - } shall not
apply to the university.
(3) As a distinct governmental entity, the university shall not
be subject to any provision of law enacted after January 1, 1995,
with respect to any governmental entity, unless the provision
specifically provides that it applies to the university.
SECTION 20. ORS 421.352 is amended to read:
421.352. (1) The provisions of ORS chapters 182, 183, 240, 270,
273, 276, 279, 283, 291, 292 and 293 and ORS 184.345, 190.430,
190.490, 200.035, 236.380, 236.605 to 236.640, 243.303, 243.305,
243.315, 243.325 to 243.335, 243.345, 243.350, 243.696, 281.210
to 281.260 { - , - } { + and + } 282.010 to 282.150 { - and
656.017 (2) - } shall not apply to Oregon Corrections
Enterprises.
(2) Oregon Corrections Enterprises shall not be subject to any
provision of law enacted after December 2, 1999, that governs
state agencies generally unless the provision specifically
provides that it applies to Oregon Corrections Enterprises.
SECTION 21. ORS 652.710 is amended to read:
652.710. (1) All moneys collected by an employer from employees
or retained from their wages for the purpose of providing for or
furnishing to such employees medical and surgical attention,
hospital care, X-rays, ambulance, nursing or any related service
or care contingent upon sickness or injury pursuant to a contract
are trust funds and shall be placed and kept in separate accounts
by the employer and shall promptly be paid over to the
contractor. Such funds shall in no event become a part of the
assets of the employer.
(2) If the employer fails to place and keep such funds in
separate accounts and pay them over to the contractor or if the
funds become commingled with the funds of the employer and the
employer becomes bankrupt, insolvent or goes through voluntary or
involuntary liquidation, or if a receiver is appointed to operate
or liquidate the affairs of the employer, the funds not paid to
the contractor shall be { - entitled to the same preference as
given to claims of the State Accident Insurance Fund Corporation,
as provided in ORS 656.562. - } { + deemed preferred to all
general claims in all bankruptcy proceedings, proceedings for the
administration of estates and receiverships involving the
employer liable therefor or the property of such employer. + }
(3) On and after July 1, 1992, when an employer that is a group
health insurance policyholder subject to the provisions of ORS
743.560 receives notice that the group health insurance policy is
terminated by the insurer and the employer does not replace
coverage with any other group health insurance policy, the
employer shall notify all employees who were covered under the
terminated group policy. The employer's notification to the
employees shall:
(a) Explain the employee's rights regarding continuation or
conversion of coverage under state and federal law; and
(b) Be delivered to each employee in person or to the
employee's home address as recorded in the employer's records not
later than 10 working days after the receipt of notice from the
insurer pursuant to ORS 743.560 (1) to (3).
(4) In addition to any other penalty provided by law, the
Commissioner of the Bureau of Labor and Industries may assess a
civil penalty not to exceed $1,000 for each violation of
subsection (1) or (3) of this section.
(5) Civil penalties under this section shall be imposed as
provided in ORS 183.090.
(6) All sums collected as penalties pursuant to this section
shall be first applied toward reimbursement of the costs incurred
in determining the violations, conducting hearings under this
section and assessing and collecting such penalties. The
remainder, if any, of the sums collected as penalties pursuant to
this section shall be paid over by the commissioner to the
Division of State Lands for the benefit of the Common School Fund
of this state. The division shall issue a receipt for the money
to the commissioner.
(7) The Commissioner of the Bureau of Labor and Industries may
adopt rules reasonably necessary for the administration of this
section.
SECTION 22. ORS 655.605 is amended to read:
655.605. As used in ORS 655.605 and 655.615:
(1) 'Employer' means any person who provides on-the-job
training for trainees in cooperation with the Vocational
Rehabilitation Division or the Commission for the Blind even
though no wages or salary is paid to the trainee.
(2) 'Employment' means work experience through nonremunerative,
on-the-job training as a part of a special training program of
the Vocational Rehabilitation Division or the Commission for the
Blind occurring on the premises of the employer or at such other
places as the Vocational Rehabilitation Division or the
Commission for the Blind and the employer may agree.
(3) 'Injury' means any personal injury sustained by a trainee
by accident, disease or infection arising out of and in the
course of employment, or death resulting proximately therefrom as
provided in ORS chapter 656.
(4) { - ' State Accident Insurance Fund Corporation' and '
corporation' mean the State Accident Insurance Fund Corporation
created under ORS 656.752. - } { + 'Insurer' has the meaning
given that term in ORS 656.005 (14). + }
(5) 'Trainee' or 'client' means an occupationally limited
person who is participating in a special training or evaluation
program of the Vocational Rehabilitation Division or the
Commission for the Blind in which the trainee is enrolled.
(6) 'Division' means the Vocational Rehabilitation Division or
the Commission for the Blind.
SECTION 23. ORS 655.615 is amended to read:
655.615. (1) All clients participating in a work evaluation or
work experience program of the division are considered as workers
subject to ORS chapter 656 for purposes of this section.
(2) The division shall submit a written statement to the
{ - State Accident Insurance Fund Corporation - }
{ + insurer + } { + providing coverage + } { + for the
employment of clients + } that includes a description of the work
to be performed by such clients.
(3) Upon receiving the written statement, the
{ - corporation - } { + insurer + } { + providing coverage + }
{ + for the employment of clients + } may fix assumed wage rates
for the clients enrolled in the work evaluation or work
experience program, without regard to ORS chapter 652, ORS
653.010 to 653.545 or 653.991, which may be used only for
purposes of computations under ORS chapter 656.
(4) The division shall maintain a separate list of the names of
those enrolled in its work evaluation or work experience program;
and shall, upon request, furnish or make such list available to
the { - corporation - } { + insurer + } { + providing
coverage + } { + for the employment of clients + }. Clients
covered under this section are entitled to the benefits of ORS
chapter 656 and they are entitled to such benefits if injured as
provided in ORS 656.156 and 656.202 while performing any duties
arising out of and in the course of their participation in the
work evaluation or work experience program, provided the duties
being performed are among those described in the written
statement referred to in subsection (2) of this section.
(5) The filing of claims for benefits under this section is the
exclusive remedy of a trainee or the beneficiary of the trainee
for injuries compensable under ORS chapter 656 against the state,
its political subdivisions, its officers and employees, or the
person who provides on-the-job training or job evaluation
services for the injured client, regardless of negligence except
that the exclusive remedy provisions shall not apply in the case
of suits brought under the provisions of ORS 656.576 to 656.596
against third parties.
SECTION 24. ORS 656.005 is amended to read:
656.005. (1) 'Average weekly wage' means the Oregon average
weekly wage in covered employment, as determined by the
Employment Department, for the last quarter of the calendar year
preceding the fiscal year in which the injury occurred.
(2) 'Beneficiary' means an injured worker, and the husband,
wife, child or dependent of a worker, who is entitled to receive
payments under this chapter. 'Beneficiary' does not include:
(a) A spouse of an injured worker living in a state of
abandonment for more than one year at the time of the injury or
subsequently. A spouse who has lived separate and apart from the
worker for a period of two years and who has not during that time
received or attempted by process of law to collect funds for
support or maintenance is considered living in a state of
abandonment.
(b) A person who intentionally causes the compensable injury to
or death of an injured worker.
(3) 'Board' means the Workers' Compensation Board.
(4) 'Carrier-insured employer' means an employer who provides
workers' compensation coverage with a guaranty contract insurer.
(5) 'Child' includes a posthumous child, a child legally
adopted prior to the injury, a child toward whom the worker
stands in loco parentis, an illegitimate child and a stepchild,
if such stepchild was, at the time of the injury, a member of the
worker's family and substantially dependent upon the worker for
support. An invalid dependent child is a child, for purposes of
benefits, regardless of age, so long as the child was an invalid
at the time of the accident and thereafter remains an invalid
substantially dependent on the worker for support. For purposes
of this chapter, an invalid dependent child is considered to be a
child under 18 years of age.
(6) 'Claim' means a written request for compensation from a
subject worker or someone on the worker's behalf, or any
compensable injury of which a subject employer has notice or
knowledge.
(7)(a) A 'compensable injury' is an accidental injury, or
accidental injury to prosthetic appliances, arising out of and in
the course of employment requiring medical services or resulting
in disability or death; an injury is accidental if the result is
an accident, whether or not due to accidental means, if it is
established by medical evidence supported by objective findings,
subject to the following limitations:
(A) No injury or disease is compensable as a consequence of a
compensable injury unless the compensable injury is the major
contributing cause of the consequential condition.
(B) If an otherwise compensable injury combines at any time
with a preexisting condition to cause or prolong disability or a
need for treatment, the combined condition is compensable only
if, so long as and to the extent that the otherwise compensable
injury is the major contributing cause of the disability of the
combined condition or the major contributing cause of the need
for treatment of the combined condition.
(b) 'Compensable injury' does not include:
(A) Injury to any active participant in assaults or combats
which are not connected to the job assignment and which amount to
a deviation from customary duties;
(B) Injury incurred while engaging in or performing, or as the
result of engaging in or performing, any recreational or social
activities primarily for the worker's personal pleasure; or
(C) Injury the major contributing cause of which is
demonstrated to be by a preponderance of the evidence the injured
worker's consumption of alcoholic beverages or the unlawful
consumption of any controlled substance, unless the employer
permitted, encouraged or had actual knowledge of such
consumption.
(c) A 'disabling compensable injury' is an injury which
entitles the worker to compensation for disability or death. An
injury is not disabling if no temporary benefits are due and
payable, unless there is a reasonable expectation that permanent
disability will result from the injury.
(d) A 'nondisabling compensable injury' is any injury which
requires medical services only.
(8) 'Compensation' includes all benefits, including medical
services, provided for a compensable injury to a subject worker
or the worker's beneficiaries by an insurer or self-insured
employer pursuant to this chapter.
(9) 'Department' means the Department of Consumer and Business
Services.
(10) 'Dependent' means any of the following-named relatives of
a worker whose death results from any injury: Father, mother,
grandfather, grandmother, stepfather, stepmother, grandson,
granddaughter, brother, sister, half sister, half brother, niece
or nephew, who at the time of the accident, are dependent in
whole or in part for their support upon the earnings of the
worker. Unless otherwise provided by treaty, aliens not residing
within the United States at the time of the accident other than
father, mother, husband, wife or children are not included within
the term ' dependent. '
(11) 'Director' means the Director of the Department of
Consumer and Business Services.
(12)(a) 'Doctor' or 'physician' means a person duly licensed to
practice one or more of the healing arts in any country or in any
state, territory or possession of the United States within the
limits of the license of the licentiate.
(b) Except as otherwise provided for workers subject to a
managed care contract, 'attending physician' means a doctor or
physician who is primarily responsible for the treatment of a
worker's compensable injury and who is:
(A) A medical doctor or doctor of osteopathy licensed under ORS
677.100 to 677.228 by the Board of Medical Examiners for the
State of Oregon or an oral and maxillofacial surgeon licensed by
the Oregon Board of Dentistry or a similarly licensed doctor in
any country or in any state, territory or possession of the
United States; or
(B) For a period of 30 days from the date of first visit on the
initial claim or for 12 visits, whichever first occurs, a doctor
or physician licensed by the State Board of Chiropractic
Examiners for the State of Oregon or a similarly licensed doctor
or physician in any country or in any state, territory or
possession of the United States.
(c) 'Consulting physician' means a doctor or physician who
examines a worker or the worker's medical record to advise the
attending physician regarding treatment of a worker's compensable
injury.
(13)(a) 'Employer' means any person, including receiver,
administrator, executor or trustee, and the state, state
agencies, counties, municipal corporations, school districts and
other public corporations or political subdivisions, who
contracts to pay a remuneration for and secures the right to
direct and control the services of any person.
(b) Notwithstanding paragraph (a) of this subsection, for
purposes of this chapter, the client of a temporary service
provider is not the employer of temporary workers provided by the
temporary service provider.
(c) As used in paragraph (b) of this subsection, 'temporary
service provider' has the meaning for that term provided in ORS
656.850.
(14) 'Guaranty contract insurer' and 'insurer' mean { - the
State Accident Insurance Fund Corporation or - } an insurer
authorized under ORS chapter 731 to transact workers'
compensation insurance in this state or an assigned claims agent
selected by the director under ORS 656.054.
(15) 'Consumer and Business Services Fund' means the fund
created by ORS 705.145.
(16) 'Invalid' means one who is physically or mentally
incapacitated from earning a livelihood.
(17) 'Medically stationary' means that no further material
improvement would reasonably be expected from medical treatment,
or the passage of time.
(18) 'Noncomplying employer' means a subject employer who has
failed to comply with ORS 656.017.
(19) 'Objective findings' in support of medical evidence are
verifiable indications of injury or disease that may include, but
are not limited to, range of motion, atrophy, muscle strength and
palpable muscle spasm. 'Objective findings' does not include
physical findings or subjective responses to physical
examinations that are not reproducible, measurable or observable.
(20) 'Palliative care' means medical service rendered to reduce
or moderate temporarily the intensity of an otherwise stable
medical condition, but does not include those medical services
rendered to diagnose, heal or permanently alleviate or eliminate
a medical condition.
(21) 'Party' means a claimant for compensation, the employer of
the injured worker at the time of injury and the insurer, if any,
of such employer.
(22) 'Payroll' means a record of wages payable to workers for
their services and includes commissions, value of exchange labor
and the reasonable value of board, rent, housing, lodging or
similar advantage received from the employer. However, 'payroll '
does not include overtime pay, vacation pay, bonus pay, tips,
amounts payable under profit-sharing agreements or bonus payments
to reward workers for safe working practices. Bonus pay is
limited to payments which are not anticipated under the contract
of employment and which are paid at the sole discretion of the
employer. The exclusion from payroll of bonus payments to reward
workers for safe working practices is only for the purpose of
calculations based on payroll to determine premium for workers'
compensation insurance, and does not affect any other calculation
or determination based on payroll for the purposes of this
chapter.
(23) 'Person' includes partnership, joint venture, association,
limited liability company and corporation.
(24) 'Preexisting condition' means any injury, disease,
congenital abnormality, personality disorder or similar condition
that contributes or predisposes a worker to disability or need
for treatment and that precedes the onset of an initial claim for
an injury or occupational disease, or that precedes a claim for
worsening pursuant to ORS 656.273.
(25) 'Self-insured employer' means an employer or group of
employers certified under ORS 656.430 as meeting the
qualifications set out by ORS 656.407.
{ - (26) 'State Accident Insurance Fund Corporation' and '
corporation' mean the State Accident Insurance Fund Corporation
created under ORS 656.752. - }
{ - (27) - } { + (26) + } 'Subject employer' means an
employer who is subject to this chapter as provided by ORS
656.023.
{ - (28) - } { + (27) + } 'Subject worker' means a worker
who is subject to this chapter as provided by ORS 656.027.
{ - (29) - } { + (28) + } 'Wages' means the money rate at
which the service rendered is recompensed under the contract of
hiring in force at the time of the accident, including reasonable
value of board, rent, housing, lodging or similar advantage
received from the employer, and includes the amount of tips
required to be reported by the employer pursuant to section 6053
of the Internal Revenue Code of 1954, as amended, and the
regulations promulgated pursuant thereto, or the amount of actual
tips reported, whichever amount is greater. { - The State
Accident Insurance Fund Corporation may establish assumed minimum
and maximum wages, in conformity with recognized insurance
principles, at which any worker shall be carried upon the payroll
of the employer for the purpose of determining the premium of the
employer. - }
{ - (30) - } { + (29) + } 'Worker' means any person,
including a minor whether lawfully or unlawfully employed, who
engages to furnish services for a remuneration, subject to the
direction and control of an employer and includes salaried,
elected and appointed officials of the state, state agencies,
counties, cities, school districts and other public corporations,
but does not include any person whose services are performed as
an inmate or ward of a state institution or as part of the
eligibility requirements for a general or public assistance
grant.
{ - (31) - } { + (30) + } 'Independent contractor' has the
meaning for that term provided in ORS 670.600.
SECTION 25. ORS 656.017 is amended to read:
656.017. (1) Every employer subject to this chapter shall
maintain assurance with the Director of the Department of
Consumer and Business Services that subject workers of the
employer and their beneficiaries will receive compensation for
compensable injuries as provided by this chapter and that the
employer will perform all duties and pay other obligations
required under this chapter, by qualifying:
(a) As a carrier-insured employer; or
(b) As a self-insured employer as provided by ORS 656.407.
{ - (2) Notwithstanding ORS chapter 278, this state shall
provide compensation insurance for its employees through the
State Accident Insurance Fund Corporation. - }
{ - (3) - } { + (2) + } Any employer required by the
statutes of this state other than this chapter or by the rules,
regulations, contracts or procedures of any agency of the federal
government, this state or a political subdivision of this state
to provide or agree to provide workers' compensation coverage,
either directly or through bond requirements, may provide such
coverage by any method provided in this section.
SECTION 26. ORS 656.020 is amended to read:
656.020. Actions for damages may be brought by an injured
worker or the legal representative of the injured worker against
any employer who has failed to comply with ORS 656.017 { - or
is in default under ORS 656.560 - } . Except for the provisions
of ORS 656.578 to 656.593 and this section, such noncomplying
employer is liable as the noncomplying employer would have been
if this chapter had never been enacted. In such actions, it is no
defense for the employer to show that:
(1) The injury was caused in whole or in part by the negligence
of a fellow-servant of the injured worker.
(2) The negligence of the injured worker, other than a willful
act committed for the purpose of sustaining the injury,
contributed to the accident.
(3) The injured worker had knowledge of the danger or assumed
the risk that resulted in the injury.
SECTION 27. ORS 656.027 is amended to read:
656.027. All workers are subject to this chapter except those
nonsubject workers described in the following subsections:
(1) A worker employed as a domestic servant in or about a
private home. For the purposes of this subsection 'domestic
servant' means any worker engaged in household domestic service
by private employment contract, including, but not limited to,
home health workers.
(2) A worker employed to do gardening, maintenance, repair,
remodeling or similar work in or about the private home of the
person employing the worker.
(3)(a) A worker whose employment is casual and either:
(A) The employment is not in the course of the trade, business
or profession of the employer; or
(B) The employment is in the course of the trade, business or
profession of a nonsubject employer.
(b) For the purpose of this subsection, 'casual' refers only to
employments where the work in any 30-day period, without regard
to the number of workers employed, involves a total labor cost of
less than $500.
(4) A person for whom a rule of liability for injury or death
arising out of and in the course of employment is provided by the
laws of the United States.
(5) A worker engaged in the transportation in interstate
commerce of goods, persons or property for hire by rail, water,
aircraft or motor vehicle, and whose employer has no fixed place
of business in this state.
(6) Workers of any city having a population of more than
200,000 that provides by ordinance or charter compensation
equivalent to compensation under this chapter except for the
provisions of ORS 656.802 to 656.807.
(7)(a) Sole proprietors, except those described in paragraph
(b) of this subsection. When labor or services are performed
under contract, the sole proprietor must qualify as an
independent contractor.
(b) Sole proprietors actively registered under ORS 671.525 or
licensed under ORS 701.035. When labor or services are performed
under contract for remuneration, notwithstanding ORS 656.005
{ - (30) - } { + (29) + }, the sole proprietor must qualify
as an independent contractor. Any sole proprietor registered
under ORS 671.525 or licensed under ORS 701.035 and involved in
activities subject thereto is conclusively presumed to be an
independent contractor.
(8) Except as provided in subsection (23) of this section,
partners who are not engaged in work performed in direct
connection with the construction, alteration, repair,
improvement, moving or demolition of an improvement on real
property or appurtenances thereto. When labor or services are
performed under contract, the partnership must qualify as an
independent contractor.
(9) Except as provided in subsection (25) of this section,
members, including members who are managers, of limited liability
companies, regardless of the nature of the work performed.
However, members, including members who are managers, of limited
liability companies with more than one member, while engaged in
work performed in direct connection with the construction,
alteration, repair, improvement, moving or demolition of an
improvement on real property or appurtenances thereto, are
subject workers. When labor or services are performed under
contract, the limited liability company must qualify as an
independent contractor.
(10) Except as provided in subsection (24) of this section,
corporate officers who are directors of the corporation and who
have a substantial ownership interest in the corporation,
regardless of the nature of the work performed by such officers,
subject to the following limitations:
(a) If the activities of the corporation are conducted on land
that receives farm use tax assessment pursuant to ORS chapter
308A, corporate officer includes all individuals identified as
directors in the corporate bylaws, regardless of ownership
interest, and who are members of the same family, whether related
by blood, marriage or adoption.
(b) If the activities of the corporation involve the commercial
harvest of timber and all officers of the corporation are members
of the same family and are parents, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, then all such
officers may elect to be nonsubject workers. For all other
corporations involving the commercial harvest of timber, the
maximum number of exempt corporate officers for the corporation
shall be whichever is the greater of the following:
(A) Two corporate officers; or
(B) One corporate officer for each 10 corporate employees.
(c) When labor or services are performed under contract, the
corporation must qualify as an independent contractor.
(11) A person performing services primarily for board and
lodging received from any religious, charitable or relief
organization.
(12) A newspaper carrier utilized in compliance with the
provisions of ORS 656.070 and 656.075.
(13) A person who has been declared an amateur athlete under
the rules of the United States Olympic Committee or the Canadian
Olympic Committee and who receives no remuneration for
performance of services as an athlete other than board, room,
rent, housing, lodging or other reasonable incidental subsistence
allowance, or any amateur sports official who is certified by a
recognized Oregon or national certifying authority, which
requires or provides liability and accident insurance for such
officials. A roster of recognized Oregon and national certifying
authorities will be maintained by the Department of Consumer and
Business Services, from lists of certifying organizations
submitted by the Oregon School Activities Association and the
Oregon Park and Recreation Society.
(14) Volunteer personnel participating in the ACTION programs,
organized under the Domestic Volunteer Service Act of 1973, P.L.
93-113, known as the Foster Grandparent Program and the Senior
Companion Program, whether or not the volunteers receive a
stipend or nominal reimbursement for time and travel expenses.
(15) A person who has an ownership or leasehold interest in
equipment and who furnishes, maintains and operates the
equipment. As used in this subsection 'equipment' means:
(a) A motor vehicle used in the transportation of logs, poles
or piling.
(b) A motor vehicle used in the transportation of rocks,
gravel, sand, dirt or asphalt concrete.
(c) A motor vehicle operated as a taxicab as defined in ORS
825.017.
(16) A person engaged in the transportation of the public for
recreational down-river boating activities on the waters of this
state pursuant to a federal permit when the person furnishes the
equipment necessary for the activity. As used in this subsection,
' recreational down-river boating activities' means those boating
activities for the purpose of recreational fishing, swimming or
sightseeing utilizing a float craft with oars or paddles as the
primary source of power.
(17) A person who performs volunteer ski patrol activities who
receives no wage other than noncash remuneration.
(18) A person 19 years of age or older who contracts with a
newspaper publishing company or independent newspaper dealer or
contractor to distribute newspapers to the general public and
perform or undertake any necessary or attendant functions related
thereto.
(19) A person performing foster parent or adult foster care
duties pursuant to ORS chapter 411, 418, 430 or 443.
(20) A person performing services on a volunteer basis for a
nonprofit, religious, charitable or relief organization, whether
or not such person receives meals or lodging or nominal
reimbursements or vouchers for meals, lodging or expenses.
(21) A person performing services under a property tax work-off
program established under ORS 310.800.
(22) A person who performs service as a caddy at a golf course
in an established program for the training and supervision of
caddies under the direction of a person who is an employee of the
golf course.
(23)(a) Partners who are actively registered under ORS 671.525
or licensed under ORS 701.035 and who have a substantial
ownership interest in a partnership. If all partners are members
of the same family and are parents, spouses, sisters, brothers,
daughters or sons, daughters-in-law or sons-in-law or
grandchildren, all such partners may elect to be nonsubject
workers. For all other partnerships registered under ORS 671.510
to 671.710 or licensed under ORS chapter 701, the maximum number
of exempt partners shall be whichever is the greater of the
following:
(A) Two partners; or
(B) One partner for each 10 partnership employees.
(b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 { - (30) - } { +
(29) + }, the partnership qualifies as an independent contractor.
Any partnership registered under ORS 671.525 or licensed under
ORS 701.035 and involved in activities subject thereto is
conclusively presumed to be an independent contractor.
(24)(a) Corporate officers who are directors of a corporation
actively registered under ORS 671.525 or licensed under ORS
701.035 and who have a substantial ownership interest in the
corporation, regardless of the nature of the work performed. If
all officers of the corporation are members of the same family
and are parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, all such
officers may elect to be nonsubject workers. For all other
corporations registered under ORS 671.510 to 671.710 or licensed
under ORS chapter 701, the maximum number of exempt corporate
officers shall be whichever is the greater of the following:
(A) Two corporate officers; or
(B) One corporate officer for each 10 corporate employees.
(b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 { - (30) - } { +
(29) + }, the corporation qualifies as an independent contractor.
Any corporation registered under ORS 671.525 or licensed under
ORS 701.035 and involved in activities subject thereto is
conclusively presumed to be an independent contractor.
(25)(a) Limited liability company members who are members of a
company actively registered under ORS 671.525 or licensed under
ORS 701.035 and who have a substantial ownership interest in the
company, regardless of the nature of the work performed. If all
members of the company are members of the same family and are
parents, spouses, sisters, brothers, daughters or sons,
daughters-in-law or sons-in-law or grandchildren, all such
members may elect to be nonsubject workers. For all other
companies registered under ORS 671.510 to 671.710 or licensed
under ORS chapter 701, the maximum number of exempt company
members shall be whichever is the greater of the following:
(A) Two company members; or
(B) One company member for each 10 company employees.
(b) When labor or services are performed under contract for
remuneration, notwithstanding ORS 656.005 { - (30) - } { +
(29) + }, the company qualifies as an independent contractor. Any
company registered under ORS 671.525 or licensed under ORS
701.035 and involved in activities subject thereto is
conclusively presumed to be an independent contractor.
SECTION 28. ORS 656.039 is amended to read:
656.039. (1) An employer of one or more persons defined as
nonsubject workers or not defined as subject workers may elect to
make them subject workers. If the employer is or becomes a
carrier-insured employer, the election shall be made by filing
written notice thereof with the insurer with a copy to the
Director of the Department of Consumer and Business Services. The
effective date of coverage is governed by ORS 656.419 (3). If the
employer is or becomes a self-insured employer, the election
shall be made by filing written notice thereof with the director,
the effective date of coverage to be the date specified in the
notice.
(2) Any election under subsection (1) of this section may be
canceled by written notice thereof to the insurer or, in the case
of a self-insured employer, by notice thereof to the director.
The cancellation is effective at 12 midnight ending the day the
notice is received by the insurer or the director, unless a later
date is specified in the notice. The insurer shall, within 10
days after receipt of a notice of cancellation under this
section, send a copy of the notice to the director.
(3) When necessary the insurer or the director shall fix
assumed minimum or maximum wages for persons made subject workers
under this section.
(4) Notwithstanding any other provision of this section, a
person or employer not subject to this chapter who elects to
become covered may apply to a guaranty contract insurer for
coverage. { - An insurer other than the State Accident
Insurance Fund Corporation may provide such coverage. However,
the State Accident Insurance Fund Corporation shall accept any
written notice filed and provide coverage as provided in this
section if all subject workers of the employers will be insured
with the State Accident Insurance Fund Corporation and the
coverage of those subject workers is not considered by the State
Accident Insurance Fund Corporation to be a risk properly
assignable to the assigned risk pool. - }
SECTION 29. ORS 656.054 is amended to read:
656.054. (1) A compensable injury to a subject worker while in
the employ of a noncomplying employer is compensable to the same
extent as if the employer had complied with this chapter. The
Director of the Department of Consumer and Business Services
shall refer the claim for such an injury to an assigned claims
agent within 60 days of the date the director has notice of the
claim. At the time of referral of the claim, the director shall
notify the employer in writing regarding the referral of the
claim and the employer's right to object to the claim. A claim
for compensation made by such a worker shall be processed by the
assigned claims agent in the same manner as a claim made by a
worker employed by a carrier-insured employer, except that the
time within which the first installment of compensation is to be
paid, pursuant to ORS 656.262 (4), shall not begin to run until
the director has referred the claim to the assigned claims agent.
At any time within which the claim may be accepted or denied as
provided in ORS 656.262, the employer may request a hearing to
object to the claim. If an order becomes final holding the claim
to be compensable, the employer is liable for all costs imposed
by this chapter, including reasonable attorney fees to be paid to
the worker's attorney for services rendered in connection with
the employer's objection to the claim.
(2) Whenever a subject worker suffers a compensable injury
while in the employ of a noncomplying employer, the director
shall, after an order closing the claim has become final, serve
upon the employer a notice of proposed penalty to be assessed
pursuant to ORS 656.735 (3).
(3) In addition to, and not in lieu of, any civil penalties
assessed pursuant to ORS 656.735, all costs to the Workers'
Benefit Fund incurred under subsection (1) of this section shall
be a liability of the noncomplying employer. Such costs include
compensation, disputed claim settlements pursuant to ORS 656.289
and claim disposition agreements pursuant to ORS 656.236, whether
or not the noncomplying employer agrees and executes such
documents, reasonable administrative costs and claims processing
costs provided by contract, attorney fees related to
compensability issues and any attorney fees awarded to the
claimant, but do not include assessments for reserves in the
Workers' Benefit Fund. The director shall recover such costs from
the employer. The director periodically shall pay the assigned
claims agent from the Workers' Benefit Fund for any costs the
assigned claims agent incurs under this section in accordance
with the terms of the contract. When the director prevails in any
action brought pursuant to this subsection, the director is
entitled to recover from the noncomplying employer court costs
and attorney fees incurred by the director.
(4) Periodically, or upon the request of a noncomplying
employer in a particular claim, the director shall audit the
files of { - the State Accident Insurance Fund Corporation
and - } any assigned claims agents to validate the amount
reimbursed pursuant to subsection (3) of this section. The
conditions for granting or denying of reimbursement shall be
specified in the contract with the assigned claims agent. The
contract at least shall provide for denial of reimbursement if,
upon such audit, any of the following are found to apply:
(a) Compensation has been paid as a result of untimely,
inaccurate, or improper claims processing;
(b) Compensation has been paid negligently for treatment of any
condition unrelated to the compensable condition;
(c) The compensability of an accepted claim is questionable and
the rationale for acceptance has not been reasonably documented
in accordance with generally accepted claims management
procedures;
(d) The separate payments of compensation have not been
documented in accordance with generally accepted accounting
procedures; or
(e) The payments were made pursuant to a disposition agreement
as provided by ORS 656.236 without the prior approval of the
director.
(5) { - The State Accident Insurance Fund Corporation and - }
Any assigned claims agent may appeal any disapproval of
reimbursement made by the director under this section pursuant to
ORS 183.310 to 183.550 and such procedural rules as the director
may prescribe.
(6) Claims of injured workers of noncomplying employers may be
assigned and reassigned by the director for claims processing
regardless of the date of the worker's injury.
(7) In selecting an assigned claims agent, the director must
consider the assigned claims agent's ability to deliver timely
and appropriate benefits to injured workers, the ability to
control both claims cost and administrative cost and such other
factors as the director considers appropriate.
(8) If no qualified entity agrees to be an assigned claims
agent, the director may require one or more of the three highest
premium producing insurers to be assigned claims agents.
Notwithstanding any other provision of law, the director's
selection of assigned claims agents shall be made at the sole
discretion of the director. Such selections shall not be subject
to review by any court or other administrative body.
(9) Any assigned claims agent { - , except the State Accident
Insurance Fund, - } may employ legal counsel of its choice for
representation under this section, provided the counsel selected
is authorized by the Attorney General to act as a special
assistant attorney general.
(10) As used in this section, 'assigned claims agent' means an
insurer, casualty adjuster or a third party administrator with
whom the director contracts to manage claims of injured workers
of noncomplying employers.
SECTION 30. ORS 656.506 is amended to read:
656.506. (1) As used in this section:
(a) 'Employee' means a subject worker as defined in ORS 656.005
{ - (28) - } { + (27) + }.
(b) 'Employer' means a subject employer as defined in ORS
656.005 { - (27) - } { + (26) + }.
(2) Every employer shall retain from the moneys earned by all
employees an amount determined by the Director of the Department
of Consumer and Business Services for each hour or part of an
hour the employee is employed and pay the money retained in the
manner and at such intervals as the Director of the Department of
Consumer and Business Services shall direct.
(3) In addition to all moneys retained under subsection (2) of
this section, the director shall assess each employer an amount
equal to that assessed pursuant to subsection (2) of this
section. The assessment shall be paid in such manner and at such
intervals as the director may direct.
(4) Moneys collected pursuant to subsections (2) and (3) of
this section, and any accrued cash balances, shall be deposited
by the Department of Consumer and Business Services into the
Workers' Benefit Fund. Subject to the limitations in subsections
(2) and (3) of this section, the amount of the hourly assessments
provided in subsections (2) and (3) of this section annually may
be adjusted to meet the needs of the Workers' Benefit Fund for
the expenditures of the department in carrying out its functions
and duties pursuant to subsection (7) of this section and ORS
656.622, 656.625, 656.628 and 656.630. Factors to be considered
in making such adjustment of the assessments shall include, but
not be limited to, the cash balance as determined by the director
and estimated expenditures and revenues of the Workers' Benefit
Fund.
(5) It is the intent of the Legislative Assembly that the
department set rates for the collection of assessments pursuant
to subsections (2) and (3) of this section in a manner so that at
the end of the period for which the rates shall be effective, the
cash balance shall be an amount approximating 12 months of
projected expenditures from the Workers' Benefit Fund in regard
to its functions and duties under subsection (7) of this section
and ORS 656.622, 656.625, 656.628 and 656.630, in a manner that
minimizes the volatility of the rates assessed. The department
may set the assessment rate at a higher level if the department
determines that a higher rate is necessary to avoid unintentional
program or benefit reductions in the time period immediately
following the period for which the rate is being set.
(6) Every employer required to pay the assessments referred to
in this section shall make and file a quarterly report of
employee hours worked and amounts due under this section upon a
combined quarterly report form prescribed by the Department of
Revenue. The report shall be filed with the Department of Revenue
at the times and in the manner prescribed in ORS 316.168 and
316.171.
(7) There is established a Retroactive Program for the purpose
of providing increased benefits to claimants or beneficiaries
eligible to receive compensation under the benefit schedules of
ORS 656.204, 656.206, 656.208 and 656.210 which are lower than
currently being paid for like injuries. However, benefits payable
under ORS 656.210 shall not be increased by the Retroactive
Program for claimants whose injury occurred on or after April 1,
1974. Notwithstanding the formulas for computing benefits
provided in ORS 656.204, 656.206, 656.208 and 656.210, the
increased benefits payable under this subsection shall be in such
amount as the director considers appropriate. The director
annually shall compute the amount which may be available during
the succeeding year for payment of such increased benefits and
determine the level of benefits to be paid during such year. If,
during such year, it is determined by the director that there are
insufficient funds to increase benefits to the level fixed by the
director, the director may reduce the level of benefits payable
under this subsection. The increase in benefits to workers shall
be payable in the first instance by the insurer or self-insured
employer subject to reimbursement from the Workers' Benefit Fund
by the director. If the insurer is a member of the Oregon
Insurance Guaranty Association and becomes insolvent and the
Oregon Insurance Guaranty Association assumes the insurer's
obligations to pay covered claims of subject workers, including
Retroactive Program benefits, such benefits shall be payable in
the first instance by the Oregon Insurance Guaranty Association,
subject to reimbursement from the Workers' Benefit Fund by the
director.
SECTION 31. ORS 656.622 is amended to read:
656.622. (1) There is established a Reemployment Assistance
Program for the benefit of employers and their workers and for
the purpose of:
(a) Giving employers and their workers the benefits provided in
this section.
(b) Providing reimbursement of reasonable program
administration costs of self-insured employers and of insurers of
employers who participate in any program funded through the
Reemployment Assistance Program.
(2) In order to preclude or reduce nondisabling claims from
becoming disabling claims, preclude on-the-job injuries from
recurring, reduce disability by returning injured workers to work
sooner and to help injured workers remain employed, the Director
of the Department of Consumer and Business Services may provide
assistance to employers from the Reemployment Assistance Program
in such manner and amount as the director considers appropriate.
Assistance may include, but need not be limited to, modification
of work sites. For purposes of this subsection, work site
modification may include engineering design work and occupational
health consulting services. Factors to be considered by the
director in determining the extent of assistance must include but
need not be limited to the financial stability and solvency of
employers, the employer's record of returning injured workers to
the workplace and the cost-effectiveness of modifications.
Assistance may be provided in the form of grants and matching
contributions from employers for funds.
(3) In order to encourage the employment of individuals who
have incurred compensable injuries that result in disability
which may be a substantial obstacle to employment, the director
may provide, to employers who employ such individuals, assistance
from the Workers' Benefit Fund in such manner and amount as the
director considers appropriate.
(4)(a) In addition to such assistance as the director may
provide under this section, the director shall provide
reimbursement to self-insured employers or to the insurers of
employers who hire preferred workers for the claim costs incurred
for injuries to those workers during the first three years from
the date of hire, as follows:
(A) The claim costs of injuries incurred by those workers.
(B) Reasonable claims administration costs.
(b) As used in this subsection, 'preferred worker' means a
worker who, because of a permanent disability resulting from a
compensable injury or occupational disease, is unable to return
to the worker's regular employment, whether or not an order has
been issued awarding permanent disability.
(c) A worker may not waive eligibility for preferred worker
status in the claim by agreement pursuant to ORS 656.236.
(5)(a) In addition to such assistance as the Director of the
Department of Consumer and Business Services may provide under
subsection (3) of this section, the director shall provide to
participating self-insured employers and the insurers of
participating employers reimbursement of reasonable program
administration costs.
(b) As used in this subsection, 'participating employer' or '
participating self-insured employer' means an employer
participating in any program funded through the Reemployment
Assistance Program.
(6) Notwithstanding any other provision of law, determinations
by the director regarding assistance pursuant to this section are
not subject to review by any court or other administrative body.
(7) The Reemployment Assistance Program shall be funded with
moneys collected as provided in ORS 656.506.
(8) Any assistance from the Reemployment Assistance Program
shall be to the extent of the moneys available in the Workers'
Benefit Fund, for the purpose of the program as determined by the
director.
(9) The director may make such rules as may be required to
establish, regulate, manage and disburse moneys in the Workers'
Benefit Fund in accordance with the intent of this section. Such
rules shall include, but are not limited to, the eligibility
criteria to receive assistance under this section and the
issuance of identity cards to preferred workers to assist
employers in the administration of the program.
(10) Claims costs incurred as a result of an injury sustained
by a preferred worker during the three years after that worker is
hired shall not be included in any data used for ratemaking or
individual employer rating or dividend calculations by a guaranty
contract insurer, a rating organization licensed pursuant to ORS
chapter 737 { - , the State Accident Insurance Fund
Corporation - } or the Department of Consumer and Business
Services. Neither insurance premiums nor premium assessments
under this chapter are payable for preferred workers.
(11) Any moneys from the Workers' Benefit Fund reimbursed to an
agency for costs incurred in reemploying injured state workers in
the manner described in ORS 659.412 or in providing wage
subsidies for the reemployment of injured state workers shall be
outside the biennial expenditure limitation imposed on the agency
by the Legislative Assembly and shall be available for
expenditure by the agency as a continuous appropriation.
SECTION 32. ORS 656.726 is amended to read:
656.726. (1) The Workers' Compensation Board in its name and
the Director of the Department of Consumer and Business Services
in the director's name as director may sue and be sued, and each
shall have a seal.
(2) The board hereby is charged with reviewing appealed orders
of Administrative Law Judges in controversies concerning a claim
arising under this chapter, exercising own motion jurisdiction
under this chapter and providing such policy advice as the
director may request, and providing such other review functions
as may be prescribed by law. To that end any of its members or
assistants authorized thereto by the members shall have power to:
(a) Hold sessions at any place within the state.
(b) Administer oaths.
(c) Issue and serve by the board's representatives, or by any
sheriff, subpoenas for the attendance of witnesses and the
production of papers, contracts, books, accounts, documents and
testimony before any hearing under ORS 654.001 to 654.295,
654.750 to 654.780 and this chapter.
(d) Generally provide for the taking of testimony and for the
recording of proceedings.
(3) The board chairperson is hereby charged with the
administration of and responsibility for the Hearings Division.
(4) The director hereby is charged with duties of
administration, regulation and enforcement of ORS 654.001 to
654.295, 654.750 to 654.780 and this chapter. To that end the
director may:
(a) Make and declare all rules and issue orders which are
reasonably required in the performance of the director's duties.
Unless otherwise specified by law, all reports, claims or other
documents shall be deemed timely provided to the director or
board if mailed by regular mail or delivered within the time
required by law. Notwithstanding ORS 183.310 to 183.410, if a
matter comes before the director that is not addressed by rule
and the director finds that adoption of a rule to accommodate the
matter would be inefficient, unreasonable or unnecessarily
burdensome to the public, the director may resolve the matter by
issuing an order, subject to review under ORS 183.310 to 183.550.
Such order shall not have precedential effect as to any other
situation.
(b) Hold sessions at any place within the state.
(c) Administer oaths.
(d) Issue and serve by representatives of the director, or by
any sheriff, subpoenas for the attendance of witnesses and the
production of papers, contracts, books, accounts, documents and
testimony in any inquiry, investigation, proceeding or rulemaking
hearing conducted by the director or the director's
representatives. The director may require the attendance and
testimony of employers, their officers and representatives in any
inquiry under this chapter, and the production by employers of
books, records, papers and documents without the payment or
tender of witness fees on account of such attendance.
(e) Generally provide for the taking of testimony and for the
recording of such proceedings.
(f) Provide standards for the evaluation of disabilities. The
following provisions apply to the standards:
(A) The criteria for evaluation of disabilities under ORS
656.214 (5) shall be permanent impairment due to the industrial
injury as modified by the factors of age, education and
adaptability to perform a given job.
(B) Impairment is established by a preponderance of medical
evidence based upon objective findings.
(C) When, upon reconsideration of a notice of closure pursuant
to ORS 656.268, it is found that the worker's disability is not
addressed by the standards adopted pursuant to this paragraph,
notwithstanding ORS 656.268, the director shall stay further
proceedings on the reconsideration of the claim and shall adopt
temporary rules amending the standards to accommodate the
worker's impairment. When the director adopts temporary rules
amending the standards, the director shall submit those temporary
rules to the Workers' Compensation Management-Labor Advisory
Committee for review at their next meeting.
(D) Notwithstanding any other provision of this section,
impairment is the only factor to be considered in evaluation of
the worker's disability under ORS 656.214 (5) if:
(i) The worker returns to regular work at the job held at the
time of injury;
(ii) The attending physician releases the worker to regular
work at the job held at the time of injury and the job is
available but the worker fails or refuses to return to that job;
or
(iii) The attending physician releases the worker to regular
work at the job held at the time of injury but the worker's
employment is terminated for cause unrelated to the injury.
(g) Prescribe procedural rules for and conduct hearings,
investigations and other proceedings pursuant to ORS 654.001 to
654.295, 654.750 to 654.780 and this chapter regarding all
matters other than those specifically allocated to the board or
the Hearings Division.
(h) Participate fully in any proceeding before the Hearings
Division, board or Court of Appeals in which the director
determines that the proceeding involves a matter that affects or
could affect the discharge of the director's duties of
administration, regulation and enforcement of ORS 654.001 to
654.295 and 654.750 to 654.780 and this chapter.
(5) The board may make and declare all rules which are
reasonably required in the performance of its duties, including
but not limited to rules of practice and procedure in connection
with hearing and review proceedings and exercising its authority
under ORS 656.278. The board shall adopt standards governing the
format and timing of the evidence. The standards shall be
uniformly followed by all Administrative Law Judges and
practitioners. The rules may provide for informal prehearing
conferences in order to expedite claim adjudication, amicably
dispose of controversies, if possible, narrow issues and simplify
the method of proof at hearings. The rules shall specify who may
appear with parties at prehearing conferences and hearings.
(6) The director and the board chairperson may incur such
expenses as they respectively determine are reasonably necessary
to perform their authorized functions.
(7) The director { - , - } { + and + } the board chairperson
{ - and the State Accident Insurance Fund Corporation - } shall
have the right, not subject to review, to contract for the
exchange of, or payment for, such services between them as will
reduce the overall cost of administering this chapter.
(8) The director shall { - have lien and enforcement
powers - } { + adopt rules for establishing and enforcing
liens + } regarding assessments to be paid by subject employers
{ - in the same manner and to the same extent as is provided
for lien and enforcement of collection of premiums and
assessments by the corporation under ORS 656.552 to 656.566 - } .
(9) The director shall have the { - same powers regarding - }
{ + authority to order + } inspection of books, records and
payrolls of employers { - as are granted the corporation under
ORS 656.758 - } { + subject to the provisions of this
chapter + }. The director may disclose information obtained from
such inspections to the Director of the Department of Revenue to
the extent the Director of the Department of Revenue requires
such information to determine that a person complies with the
revenue and tax laws of this state and to the Director of the
Employment Department to the extent the Director of the
Employment Department requires such information to determine that
a person complies with ORS chapter 657.
(10) The director shall collect hours-worked data information
in addition to total payroll for workers engaged in various jobs
in the construction industry classifications described in the job
classification portion of the Workers' Compensation and Employers
Liability Manual and the Oregon Special Rules Section published
by the National Council on Compensation Insurance. The
information shall be collected in the form and format necessary
for the National Council on Compensation Insurance to analyze
premium equity.
SECTION 33. ORS 656.730 is amended to read:
656.730. (1) The Director of the Department of Consumer and
Business Services shall promulgate a plan for the equitable
apportionment among { - the State Accident Insurance Fund
Corporation and - } all members of workers' compensation rating
organizations in the state coverage required by ORS 656.017 for
subject employers whose coverage { - the fund, or any - }
members of such rating organizations { - , - } object to
providing. The plan shall include provisions authorized pursuant
to ORS 737.265 (2), except that:
(a) Regardless of the rating plans adopted by any rating
organization, the plan shall provide a rating structure with
differing rate tiers for insureds too small to qualify for
experience rating and for insureds large enough to be experience
rated; and
(b) The plan shall seek and be entitled to receive approval for
all classification exceptions approved by the director for any
insurer.
(2) If any insurer issuing guaranty contracts under this
chapter refuses to accept its equitable apportionment under such
plan, the director shall revoke the insurer's authority to issue
guaranty contracts.
SECTION 34. ORS 656.990 is amended to read:
656.990. (1) Any person who knowingly makes any false statement
or representation to the Workers' Compensation Board or its
employees, the Workers' Compensation Board chairperson, the
Director of the Department of Consumer and Business Services or
employees of the director, the insurer or self-insured employer
for the purpose of obtaining any benefit or payment under this
chapter, either for self or any other person, or who knowingly
misrepresents to the board, the board chairperson { - , - }
{ + or + } the director { - or the corporation - } or any of
their representatives the amount of a payroll, or who knowingly
submits a false payroll report to the board, the board
chairperson, { + or + } the director { - or the
corporation, - } is punishable, upon conviction, by imprisonment
for a term of not more than one year or by a fine of not more
than $1,000, or by both.
(2) Violation of ORS 656.052 is a Class D violation. Each day
during which an employer engages in any subject occupation in
violation of ORS 656.052 constitutes a separate offense.
(3) Violation of ORS 656.056 is a Class D violation.
(4) The individual refusing to keep the payroll in accordance
with ORS 656.726 { - or 656.758 - } when demanded by the
director { - or corporation, - } is punishable, upon
conviction, by a fine of not more than $100 or by imprisonment in
the county jail for not more than 90 days, or by both. Circuit
courts and justice courts shall have concurrent jurisdiction of
this offense.
{ - (5) Failure on the part of an employer to send the signed
payroll statement required by ORS 656.504 within 30 days after
receipt of notice by the director or corporation is a
misdemeanor. - }
{ - (6) Violation of ORS 656.560 (4) is a Class D
violation. - }
SECTION 35. ORS 659.505 is amended to read:
659.505. As used in ORS 240.316, 659.035 and 659.505 to
659.545:
(1) 'Disciplinary action' includes but is not limited to any
discrimination, dismissal, demotion, transfer, reassignment,
supervisory reprimand, warning of possible dismissal or
withholding of work, whether or not the action affects or will
affect employee compensation.
(2) 'Employee' means a person employed by or under contract
with:
(a) The state or any agency of or political subdivision in the
state;
(b) Any person authorized to act on behalf of the state, or
agency of the state or subdivision in the state, with respect to
control, management or supervision of any employee;
{ - (c) Employees of the public corporation created under ORS
656.751; - }
{ - (d) - } { + (c) + } Employees of a contractor who
performs services for the state, agency or subdivision, other
than employees of a contractor under contract to construct a
public improvement; and
{ - (e) - } { + (d) + } Any person authorized by contract
to act on behalf of the state, agency or subdivision.
(3) 'Public employer' means:
(a) The state or any agency of or political subdivision in the
state; and
(b) Any person authorized to act on behalf of the state, or any
agency of or political subdivision in the state, with respect to
control, management or supervision of any employee.
SECTION 36. ORS 278.415 is amended to read:
278.415. No state agency shall purchase insurance, other than
for employee benefits, except as authorized by the Oregon
Department of Administrative Services and in accordance with the
terms, conditions and procurement methods as may be established
by the department { - except for the transaction of workers'
compensation insurance and reinsurance business by the State
Accident Insurance Fund Corporation - } . However, nothing in
this section applies to professional liability insurance acquired
under ORS 9.080 (2).
SECTION 37. ORS 656.135 is amended to read:
656.135. (1) As used in this section 'school' means the Oregon
State School for the Deaf or the Oregon State School for the
Blind.
(2) All persons participating as trainees in a work experience
program of a school in which such persons are enrolled are
considered as workers of the school subject to this chapter for
purposes of this section.
(3) On behalf of a school conducting a work experience program,
the Department of Education shall submit a written statement to
the { - State Accident Insurance Fund Corporation - }
{ + insurer providing workers' compensation coverage for the
school + } that includes a description of the work to be
performed by such persons.
(4) Upon receiving the written statement, the
{ - corporation - } { + insurer + } may fix assumed wage rates
for the persons enrolled in the work experience program, without
regard to ORS chapter 652 or ORS 653.010 to 653.545 and 653.991,
which may be used only for purposes of computations under this
chapter.
(5) The Department of Education shall furnish the
{ - corporation - } { + insurer + } with a list of the names
of those enrolled in work experience programs in the schools and
shall notify the
{ - corporation - } { + insurer + } of any changes therein.
Only those persons whose names appear on such list prior to their
personal injury by accident are entitled to the benefits of this
chapter and they are entitled to such benefits if injured as
provided in ORS 656.156 and 656.202 while performing any duties
arising out of and in the course of their participation in the
work experience program, provided the duties being performed are
among those:
(a) Described on the application of the department; and
(b) Required of similar full-time paid employees.
(6) The filing of claims for benefits under this section is the
exclusive remedy of a trainee or beneficiary of the trainee for
injuries compensable under this chapter against the state, the
school, the department, its officers and employees, or any
employer, regardless of negligence.
(7) The provisions of this section shall be inapplicable to any
trainee who is earning wages for such employment.
{ +
INSURANCE CODE CONFORMING AMENDMENTS + }
SECTION 38. ORS 731.554 is amended to read:
731.554. (1) Except as provided in subsections (2) to
{ - (6) - } { + (7) + } of this section and ORS 731.562 and
731.566, to qualify for authority to transact insurance in this
state an insurer shall possess and thereafter maintain capital or
surplus, or any combination thereof, of not less than $1 million.
(2) An insurer transacting any workers' compensation insurance
business shall possess and thereafter maintain capital or
surplus, or any combination thereof, of not less than $3 million.
(3) An insurer transacting mortgage insurance shall possess and
thereafter maintain capital or surplus, or any combination
thereof, of not less than $4 million.
(4) A home protection insurer shall possess and thereafter
maintain capital or surplus, or any combination thereof, of not
less than 10 percent of the aggregate of premiums charged on its
policies currently in force, but the required amount shall not be
less than $40,000 or more than $1 million.
(5) A domestic insurer applying for its original certificate of
authority in this state shall possess, when first so authorized,
additional capital or surplus, or any combination thereof, of not
less than $500,000. However, the additional amount in the case of
a home protection insurer shall be not less than $10,000.
{ + (6) An insurer or health care service contractor
transacting integrated health benefits insurance shall possess
and thereafter maintain capital or surplus, or any combination
thereof, of not less than $3 million. + }
{ - (6) - } { + (7) + } For the protection of the public,
the Director of the Department of Consumer and Business Services
may require an insurer to possess and maintain capital or
surplus, or any combination thereof, in excess of the amount
otherwise required under this section, ORS 731.562 or 731.566,
owing to the type, volume and nature of insurance business
transacted by the insurer, if the director determines that the
greater amount is necessary for maintaining the insurer's
solvency according to standards established by rule. In
developing such standards, the director shall consider model
standards adopted by the National Association of Insurance
Commissioners. For the purpose of determining the reasonableness
and adequacy of an insurer's capital and surplus, the director
must consider at least the following factors, as applicable:
(a) The size of the insurer, as measured by its assets, capital
and surplus, reserves, premium writings, insurance in force and
other appropriate criteria.
(b) The extent to which the business of the insurer is
diversified among the several lines of insurance.
(c) The number and size of risks insured in each line of
business.
(d) The extent of the geographical dispersion of the insured
risks of the insurer.
(e) The nature and extent of the reinsurance program of the
insurer.
(f) The quality, diversification and liquidity of the
investment portfolio of the insurer.
(g) The recent past and projected future trend in the size of
the investment portfolio of the insurer.
(h) The combined capital and surplus maintained by other
comparable insurers.
(i) The adequacy of the reserves of the insurer.
(j) The quality and liquidity of investments in affiliates.
The director may treat any such investment as a disallowed asset
for purposes of determining the adequacy of combined capital and
surplus whenever in the judgment of the director the investment
so warrants.
(k) The quality of the earnings of the insurer and the extent
to which the reported earnings include extraordinary items.
SECTION 39. ORS 731.628 is amended to read:
731.628. (1) In addition to any other requirement therefor
under the Insurance Code, each insurer { - other than the State
Accident Insurance Fund Corporation - } that issues guaranty
contracts to employers under ORS chapter 656 shall deposit with
the Department of Consumer and Business Services an amount that
is the greater of the following amounts:
(a) $100,000.
(b) An amount equal to the sum described in this paragraph less
credits for approved reinsurance that the insurer may take under
subsection (2) of this section. The sum under this paragraph is
the sum of the following, computed as of December 31 next
preceding in respect to guaranty contracts written subject to ORS
chapter 656:
(A) The aggregate of the present values at four percent
interest of the determined and estimated future loss and
loss-expense payments upon claims incurred more than three years
next preceding the date of computation.
(B) The aggregate of the amounts computed under this
subparagraph for each of the three years next preceding the date
of computation. The amount for each year shall be 65 percent of
the earned premiums for the year less all loss and loss-expense
payments made upon claims incurred in the corresponding year,
except that the amount for any year shall not be less than the
present value at four percent interest of the determined and
estimated future loss and loss-expense payments upon claims
incurred in that year.
(2) Before an insurer may take a credit for reinsurance under
subsection (1)(b) of this section, the reinsurer must deposit
with the department an amount equal to the credit to be taken.
(3) An insurer may be allowed the credit referred to in
subsection (1)(b) of this section only when the reinsurer has
deposited with the department an amount equal to the credit.
{ + (4) The Director of the Department of Consumer and
Business Services shall prescribe by rule the deposit required of
an insurer or health care service contractor offering integrated
health benefits insurance. + }
SECTION 40. ORS 737.225 is amended to read:
737.225. (1) Each insurer, rating organization or advisory
organization shall maintain reasonable records, of the type and
kind reasonably adapted to its method of operation, of its
experience or the experience of its members and of the data,
statistics or information collected or used by it in connection
with the rates, rating plans, rating systems, underwriting rules,
policy or bond forms, surveys or inspections made or used by it.
An insurer providing workers' compensation insurance shall
maintain reasonable records showing investment income earned by
the insurer, insurer profit on workers' compensation insurance,
accumulated reserves for vocational rehabilitation services and
accumulated reserves for claim costs related to orders or awards
made pursuant to ORS 656.278.
(2) The maintenance of such records in the office of a licensed
rating organization of which an insurer is a member or subscriber
will be sufficient compliance with this section for any insurer
maintaining membership or subscribership in such organization, to
the extent that the insurer uses the rates, rating plans, rating
systems or underwriting rules of such organization.
(3) Such records shall be available to the Director of the
Department of Consumer and Business Services for examination and
inspection at any time in order to determine whether the filings
made pursuant to ORS 737.205 comply with this chapter.
(4) Each insurer shall maintain statistics under statistical
plans compatible with the rating plans used by the insurer. An
insurer may report its statistics through a recognized agency or
advisory organization, except that workers' compensation
insurance statistics shall be reported to the workers'
compensation rating organization of which the insurer is a
member. The director shall prescribe by rule the statistical plan
for workers' compensation insurance { + and integrated health
benefits insurance + }.
(5)(a) The director shall designate one workers' compensation
statistical agency from the licensed rating organizations as the
agent to which all licensed workers' compensation rating
organizations shall report workers' compensation insurance
statistics. The director shall adopt rules to ensure a
competitive process in the designation of the one workers'
compensation statistical agency.
(b) The designated workers' compensation statistical agency
shall assist the director in gathering workers' compensation
insurance statistics and making compilations of those statistics
and shall make the compilations available to insurers and other
licensed workers' compensation rating organizations, subject to
rules adopted by the director.
(c) If the director licenses only one workers' compensation
rating organization under ORS 737.355 (2), that rating
organization shall be the designated statistical agent under this
subsection.
(6) The ownership of the financial and statistical data
submitted to a workers' compensation statistical agency is vested
in the submitting member insurer. The financial and statistical
data shall be confidential and may not be disclosed, provided
that the ownership rights of an insurer shall not limit access by
the director for the purposes of performing the regulatory duties
of the Department of Consumer and Business Services.
{ +
FUND AND TAX CREDIT CONFORMING AMENDMENTS + }
SECTION 41. ORS 293.701, as amended by section 67, chapter
1078, Oregon Laws 1999, is amended to read:
293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
(1) 'Council' means the Oregon Investment Council.
(2) 'Investment funds' means:
(a) Public Employees Retirement Fund referred to in ORS
238.660;
(b) Industrial Accident Fund referred to in ORS 656.632;
(c) Consumer and Business Services Fund referred to in ORS
705.145;
(d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
(e) Insurance Fund referred to in ORS 278.425;
(f) Funds under the control and administration of the Division
of State Lands;
(g) Oregon Student Assistance Fund referred to in ORS 348.570;
(h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
(i) Forest rehabilitation bonds sinking fund referred to in ORS
530.280;
(j) Oregon War Veterans' Fund referred to in ORS 407.495;
(k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
(L) World War II Veterans' Compensation Fund;
(m) World War II Veterans' Bond Sinking Fund;
(n) Savings and loan association funds in the hands of the
Director of the Department of Consumer and Business Services;
(o) Funds in the hands of the State Treasurer that are not
required to meet current demands;
(p) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
(q) Funds derived from the sale of state bonds;
(r) Social Security Revolving Account referred to in ORS
237.490;
(s) Investment funds of the State Board of Higher Education
lawfully available for investment or reinvestment;
(t) Local Government Employer Benefit Trust Fund referred to in
ORS 657.513;
(u) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
(v) Oregon Resource and Technology Development Account
established by ORS 284.630;
(w) Education Endowment Fund established by ORS 348.696; and
(x) Deferred Compensation Fund established under ORS 243.411.
{ + (y) Integrated Health Benefits Trust Fund established
under section 14 of this 2001 Act. + }
(3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
SECTION 42. ORS 314.752 is amended to read:
314.752. (1) Except as provided in ORS 314.740 (5)(b), the tax
credits allowed or allowable to a C corporation for purposes of
ORS chapter 317 or 318 shall not be allowed to an S corporation.
The business tax credits allowed or allowable for purposes of ORS
chapter 316 shall be allowed or are allowable to the shareholders
of the S corporation.
(2) In determining the tax imposed under ORS chapter 316, as
provided under ORS 314.734, on income of the shareholder of an S
corporation, there shall be taken into account the shareholder's
pro rata share of business tax credit (or item thereof) that
would be allowed to the corporation (but for subsection (1) of
this section) or recapture or recovery thereof. The credit (or
item thereof), recapture or recovery shall be passed through to
shareholders in pro rata shares as determined in the manner
prescribed under section 1377(a) of the Internal Revenue Code.
(3) The character of any item included in a shareholder's pro
rata share under subsection (2) of this section shall be
determined as if such item were realized directly from the source
from which realized by the corporation, or incurred in the same
manner as incurred by the corporation.
(4) If the shareholder is a nonresident and there is a
requirement applicable for the business tax credit that in the
case of a nonresident that the credit be allowed in the
proportion provided in ORS 316.117, then that provision shall
apply to the nonresident shareholder.
(5) As used in this section, 'business tax credit' means a tax
credit granted to personal income taxpayers to encourage certain
investment, to create employment, economic opportunity or
incentive or for charitable, educational, scientific, literary or
public purposes that is listed under this subsection as a
business tax credit or is designated as a business tax credit by
law or by the Department of Revenue by rule and includes but is
not limited to the following credits: ORS 315.104 (forestation
and reforestation), ORS 315.134 (fish habitat improvement), ORS
315.138 (fish screening, by-pass devices, fishways), ORS 315.156
(crop gleaning), ORS 315.164 (farmworker housing), ORS 315.204
(dependent care assistance), ORS 315.208 (dependent care
facilities), ORS 315.234 (child development program
contributions), ORS 315.254 (youth apprenticeship sponsorship),
ORS 315.304 (pollution control facility), ORS 315.324 (plastics
recycling), ORS 315.354 and ORS 469.207 (energy conservation
facilities), ORS 315.504 (Oregon Capital Corporation), ORS
315.604 (bone marrow transplant expenses) and ORS 317.115
(fueling stations necessary to operate an alternative fuel
vehicle) { + and section 12 of this 2001 Act (integrated health
benefits insurance premiums) + }.
SECTION 43. ORS 318.031 is amended to read:
318.031. It being the intention of the Legislative Assembly
that this chapter and the Corporation Excise Tax Law of 1929
shall be administered as uniformly as possible (allowance being
made for the difference in imposition of the taxes and the
operative date of this chapter), the provisions of ORS 305.140
and 305.150 and ORS chapter 314 and of the following sections of
ORS chapter 315 or 317, as amended on or before August 3, 1955,
and as they may thereafter be amended, are incorporated into this
chapter by this reference and made a part hereof: ORS 315.104,
315.134, 315.156, 315.204, 315.208, 315.234, 315.254, 315.304,
315.504 and 315.604 (all only to the extent applicable for a
corporation) and ORS 317.010, 317.013, 317.018 to 317.022,
317.030, 317.035, 317.038, 317.080, 317.152 to 317.154, 317.259
to 317.303, 317.310 to 317.386, 317.476 to 317.485, 317.510 to
317.635 and 317.705 to 317.725 and section 40, chapter 835,
Oregon Laws 1997, and section 4, chapter 358, Oregon Laws
1999 { + , and section 12 of this 2001 Act + }.
{ +
REPEALS; EFFECTIVE AND OPERATIVE DATES; + }
{ +
MISCELLANEOUS + }
SECTION 44. { + ORS 543.560, 656.044, 656.502, 656.504,
656.505, 656.508, 656.526, 656.552, 656.554, 656.560, 656.562,
656.564, 656.566, 656.602, 656.635, 656.640, 656.642, 656.644,
656.751, 656.752, 656.753, 656.754, 656.758, 656.760 and 731.028
are repealed. + }
SECTION 45. { + Sections 4 to 15 of this 2001 Act and the
amendments to ORS 278.415, 293.701, 314.752, 318.031, 353.100,
421.352, 652.710, 655.605, 655.615, 656.005, 656.017, 656.020,
656.027, 656.039, 656.054, 656.135, 656.506, 656.622, 656.726,
656.730, 656.990, 659.505, 731.554, 731.628 and 737.225 by
sections 19 to 43 of this 2001 Act and the repeal of ORS 543.560,
656.044, 656.502, 656.504, 656.505, 656.508, 656.526, 656.552,
656.554, 656.560, 656.562, 656.564, 656.566, 656.602, 656.635,
656.640, 656.642, 656.644, 656.751, 656.752, 656.753, 656.754,
656.758, 656.760 and 731.028 by section 44 of this 2001 Act
become operative 30 days after the notification required by
section 3 of this 2001 Act is received. + }
SECTION 46. { + The unit captions used in this 2001 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2001 Act. + }
SECTION 47. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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