72nd OREGON LEGISLATIVE ASSEMBLY--2003 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 806
 
                         House Bill 2134
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of State Treasurer Randall
  Edwards)
 
 
                             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.
 
  Provides that certain transfers of moneys that are required to
be made by warrant, check or electronic funds transfer may be
made by other means. Requires Oregon Department of Administrative
Services to determine appropriate other means.
 
                        A BILL FOR AN ACT
Relating to transfers of moneys; amending ORS 238.660 and
  291.001.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 291.001 is amended to read:
  291.001. (1) As used in the statute laws of this state, unless
the context or specially applicable definition requires
otherwise, the words 'subaccounts,' 'accounts' or 'funds
 { - , - } '
  { - and 'electronic funds transfers,' 'checks' or '
warrants,' - }  are used interchangeably, where such use is
consistent with state accounting principles and is
 { - approved - }  { +  accepted for use + } by the State
Treasurer.
   { +  (2) Unless the context or a specific provision of law
provides otherwise, when a law of this state requires that a
payment or transfer of moneys be made by warrant, check or
electronic funds transfer the payment or transfer may be made by
warrant, check, electronic funds transfer or an accounting entry
in the appropriate records of any affected state agency. The
Oregon Department of Administrative Services shall determine
which method of payment or transfer is most appropriate, taking
into consideration the established state banking, funds transfer
and accounting practices at the time of the payment or
transfer. + }
    { - (2) - }  { +  (3) + } The State Treasurer, in
consultation with the Oregon Department of Administrative
Services, may establish or designate, whenever necessary or
convenient to the carrying out or administration of the
accounting, budget preparation, cash management, financial
management, financial reporting or similar laws of this state,
subaccounts, accounts and funds in addition to or within the
subaccounts, accounts and funds created by the Oregon
Constitution and statutes. Subaccounts, accounts and funds
established or designated under this subsection shall be
administered as prescribed by written directive or policy issued
or approved by the State Treasurer. The authority granted by this
subsection is in addition to, and not in limitation of, the
authority granted by ORS 293.445 and 293.447.
  SECTION 2. ORS 238.660 is amended to read:
  238.660. (1) The Public Employees Retirement Fund is declared
to be a trust fund, separate and distinct from the General Fund,
for the uses and purposes set forth in this chapter and ORS
237.950 to 237.980, and for no other use or purpose, except that
this provision shall not be deemed to amend or impair the force
or effect of any law of this state specifically authorizing the
investment of moneys from the fund. Interest earned by the fund
shall be credited to the fund. Except as otherwise specifically
provided by law, the Public Employees Retirement Board
established by ORS 238.630 is declared to be the trustee of the
fund.  Consistent with the legislative intent expressed in ORS
238.601, and to the extent it is consistent with the board's
fiduciary duties, the board shall give equal consideration to the
interests of participating public employers and the interests of
members.  Nothing in this subsection shall be construed to impose
a fiduciary duty on the board to consider the interests of public
employers, and the board shall consider the interests of public
employers only with respect to matters unrelated to the board's
fiduciary duties as trustee of the fund.
  (2) Until all liabilities to members and their beneficiaries
are satisfied, assets of the fund may not be diverted or
otherwise put to any use that is not for the exclusive benefit of
members and their beneficiaries. This subsection does not limit
return of employer contributions for health benefits in the
manner provided by ORS 238.410, 238.415 and 238.420 upon
satisfaction of all liabilities for health benefits under those
sections.
  (3) The State of Oregon and other public employers that make
contributions to the fund have no proprietary interest in the
fund or in the contributions made to the fund by them. The state
and other public employers disclaim any right to reclaim those
contributions and waive any right of reclamation they may have in
the fund. This subsection does not prohibit alteration or refund
of employer contributions if the alteration or refund is
authorized under this chapter and is due to erroneous payment or
decreased liability for employer contributions under the system.
  (4) The board may accept gifts of money or other property from
any source, given for the uses and purposes of the system.  Money
so received shall be paid into the fund. Money or other property
so received shall be used for the purposes for which received.
Unless otherwise prescribed by the source from which the money or
other property is received, the money shall be considered as
income of the fund and the other property shall be retained,
managed and disposed of as are investments of the fund.
  (5) All moneys paid into the fund shall be deposited with the
State Treasurer, who shall be custodian of the fund and pay all
warrants drawn on it in compliance with law. No such warrant
shall be paid until the claim for which it is drawn is first
approved by the director or designee and otherwise audited and
verified as required by law. Monthly, each beneficiary's gross
benefit shall be calculated; applicable deductions made for
taxes, insurance and other withholdings; and the net amount paid
to the beneficiary, by check or by electronic funds transfer
(EFT) to the beneficiary's bank. A deduction summary shall be
made, by type, and a check issued for the aggregate of each type
for transmittal to the appropriate taxing jurisdiction, vendor or
institution. A voucher shall be prepared and transmitted to the
Oregon Department of Administrative Services for reimbursement of
the checking account, and the department shall draw a warrant on
 
the State Treasurer, payable to the Public Employees Retirement
System, for the amount thereof.
  (6) Any warrant, check or order for the payment of benefits or
refunds under the system out of the fund issued by the board
which is canceled, declared void or otherwise made unpayable
pursuant to law because it is outstanding and unpaid for a period
of more than two years, may be reissued by the board without bond
if the payee is located after such warrant, check or order is
canceled, declared void or otherwise made unpayable pursuant to
law.
  (7) All references in this chapter to checks or warrants are
subject to the provisions of ORS 291.001   { - (1) - } .
  (8) The board shall provide for an annual audit of the
retirement fund and for an annual report to the Legislative
Assembly and to all members of, retirees of, and all employers
participating in, the system. The annual report must contain
financial statements prepared in accordance with generally
accepted accounting principles. The financial statements must
include the report of any independent auditor.
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