72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
SA to A-Eng. HB 2168
LC 560/HB 2168-A5
SENATE AMENDMENTS TO
A-ENGROSSED HOUSE BILL 2168
By COMMITTEE ON REVENUE
August 13
On page 1 of the printed A-engrossed bill, line 2, after ' ORS'
insert '291.349, 291.351, 293.701, 305.792 and'.
On page 3, after line 34, insert:
' { + SECTION 3. + } { + (1) The General Fund Operating
Reserve Fund is established in the State Treasury, separate and
distinct from the General Fund. Moneys in the General Fund
Operating Reserve Fund shall be invested as provided in ORS
293.701 to 293.790. Interest and other earnings of the General
Fund Operating Reserve Fund shall be credited to the reserve
fund.
' (2) The General Fund Operating Reserve Fund consists of
moneys deposited in the reserve fund under ORS 291.349 and any
interest earned by the reserve fund.
' (3) The Legislative Assembly may enact legislation to
appropriate or transfer any portion of the reserve fund for
general government expenditures only when an appropriation or
transfer is permitted under section 14 (9), Article IX of the
Oregon Constitution. + }
' { + SECTION 4. + } ORS 291.349 is amended to read:
' 291.349. (1) As soon as practicable after adjournment sine
die of the regular session of the Legislative Assembly, the
Oregon Department of Administrative Services shall report to the
Emergency Board the estimate as of July 1 of the first year of
the biennium of General Fund and State Lottery Fund revenues that
will be received by the state during that biennium. The Oregon
Department of Administrative Services shall base its estimate on
the last forecast given to the Legislative Assembly before
adjournment sine die of the regular session on which the printed,
adopted budget prepared in the Oregon Department of
Administrative Services is based, adjusted only insofar as
necessary to reflect changes in laws adopted at that session. The
report shall contain the estimated revenues from corporate income
and excise taxes separately from the estimated revenues from
other General Fund sources. The Oregon Department of
Administrative Services may revise the estimate if necessary
following adjournment sine die of any special or emergency
session of the Legislative Assembly but any revision does not
affect the basis of the computation described in subsection
{ - (3) or (4) - } { + (5)(c) or (d) + } of this section.
' (2) As soon as practicable after the end of the biennium, the
Oregon Department of Administrative Services shall report to the
Emergency Board, or the Legislative Assembly if it is in session,
the amount of General Fund revenues collected as of the last June
30 of the preceding biennium. The report shall contain the
collections from corporate income and excise taxes separately
from collections from other sources.
' (3) If the revenues received from the corporate income and
excise taxes during the biennium exceed the amounts estimated to
be received from such taxes for the biennium, as estimated after
adjournment sine die of the regular session, { - by two percent
or more, the total amount of that excess shall be credited to
corporate income and excise taxpayers in a percentage amount of
corporate excise and income tax liability as determined under
subsection (5) of this section. However, no credit shall be
allowed against tax liability imposed by ORS 317.090. - } { +
the amount of revenues received that exceeds by one percent or
more the amount estimated to be received shall be deposited in
the General Fund Operating Reserve Fund established under section
3 of this 2003 Act. + }
' (4) If the revenues received from General Fund revenue
sources, exclusive of those described in subsection (3) of this
section, during the biennium exceed the amounts estimated to be
received from such sources for the biennium, as estimated after
adjournment sine die of the regular session, { - by two percent
or more, there shall be refunded from personal income tax
revenues an amount equal to the total amount of that excess,
reduced by the cost certified by the Department of Revenue under
ORS 291.351 as being allocable to payments described under this
subsection. The excess amount to be refunded shall be paid to
personal income taxpayers in a percentage amount of prior year
personal income tax liability as determined under subsection (6)
of this section. - } { + the amount of revenues received that
exceeds by one percent or more the amount estimated to be
received shall be deposited in the General Fund Operating Reserve
Fund established under section 3 of this 2003 Act.
' (5)(a) If the amount of the reserve fund exceeds 10 percent
of the amount of the General Fund budget approved at the regular
session of the Legislative Assembly for that biennium, the total
amount of the excess shall be returned to corporate income and
excise taxpayers and to personal income taxpayers in proportion
to the amounts contributed to the reserve fund for the previous
biennium under subsections (3) and (4) of this section.
' (b) Notwithstanding paragraph (a) of this subsection, the
Legislative Assembly, by a two-thirds majority vote of all
members elected to each house, may enact legislation to prevent a
return of all or a portion of excess revenues to taxpayers.
' (c) If an amount is returned to corporate income and excise
taxpayers under this subsection, the total amount that is
returned shall be credited in a percentage amount of corporate
excise and income tax liability as determined under subsection
(6) of this section. However, no credit shall be allowed against
tax liability imposed by ORS 317.090.
' (d) If an amount is returned to personal income taxpayers
under this subsection, the total amount that is returned shall be
refunded from personal income tax revenues in an amount equal to
the total amount that is returned, reduced by the cost certified
by the Department of Revenue under ORS 291.351 as being allocable
to payments described under this paragraph. The amount to be
refunded shall be paid to personal income taxpayers in a
percentage amount of prior year personal income tax liability as
determined under subsection (7) of this section. + }
' { - (5) - } { + (6) + } If there is an { - excess - }
{ + amount + } to be credited under subsection { - (3) - }
{ + (5)(c) + } of this section, on or before October 1,
following the end of each biennium, the Oregon Department of
Administrative Services shall determine and certify to the
Department of Revenue the percentage amount of credit for
purposes of subsection { - (3) - } { + (5)(c) + } of this
section. The percentage amount determined shall be a percentage
amount to the nearest one-tenth of a percent that will distribute
the { - excess - } { + amount + } to be credited to corporate
excise and income taxpayers for
{ - taxable - } { + tax + } years beginning in the calendar
year during which the { - excess - } { + amount to be
returned + }is determined. The credit shall be computed after
the allowance of any other credit or offset against tax liability
allowed or allowable under any provision of law of this state,
and before the application of estimated tax payments, withholding
or other advance tax payments.
' { - (6)(a) - } { + (7)(a) + } If there is an
{ - excess - } { + amount + } to be refunded under subsection
{ - (4) - } { + (5)(d) + } of this section, on or before
September 15, following the end of each biennium, the Oregon
Department of Administrative Services shall determine and certify
to the Department of Revenue the percentage amount of refund
payment for purposes of subsection { - (4) - } { + (5)(d) + }
of this section. The percentage amount so determined shall be a
percentage amount to the nearest one-hundredth of a percent that
will distribute the { - excess - } { + amount + } to be
refunded to personal income taxpayers under subsection
{ - (4) - } { + (5)(d) + } of this section. The percentage
amount shall equal the amount distributed under subsection
{ - (4) - } { + (5)(d) + } of this section divided by the
estimated total personal income tax liability for all personal
income taxpayers for tax years beginning in the calendar year
immediately preceding the calendar year in which the
{ - excess - } { + amount to be returned + } is determined.
' (b) The Department of Revenue shall multiply the percentage
amount determined under paragraph (a) of this subsection by the
total amount of a personal income taxpayer's tax liability for
the tax year beginning in the calendar year immediately preceding
the calendar year in which the { - excess - } { + amount to
be returned + } is determined in order to calculate the amount of
the refund to be made to the taxpayer.
' (c) The refund described under this subsection shall be
subject to the rules allowing setoff of refunds or sums due
debtors of this state under ORS 293.250.
' (d) The refund described under this subsection shall be
mailed by the Department of Revenue to personal income taxpayers
eligible for the payment on or before December 1 following the
end of the biennium for which the payment described under this
subsection is being made.
' (e) Notwithstanding paragraph (d) of this subsection, the
Department of Revenue shall mail the refund at the earliest date
of practicable convenience in the case of a return:
' (A) For a tax year beginning in the calendar year immediately
preceding the calendar year in which the { - excess - } { +
amount to be returned + } is determined for which refund is being
made; and
' (B) That is first filed on or after August 15 after the end
of the biennium.
' { - (7) - } { + (8) + } No refund shall be made to a
taxpayer if, after making the calculation described under
subsection { - (6) - } { + (7) + } of this section, the
amount calculated is less than $1.
' { + SECTION 5. + } ORS 291.351 is amended to read:
' 291.351. If, based on the report made under ORS 291.349 (2),
refund will be made under ORS 291.349 { - (4) - } { +
(5)(d) + }, the Department of Revenue shall certify the costs
that are incurred in calculating and making the refunds under ORS
291.349 { - (4) - } { + (5)(d) + }. Costs shall be certified
by the department within 15 days of the date the report under ORS
291.349 (2) is made. As used in this section, 'costs' means and
is limited to those costs that, absent the requirement of making
a refund under ORS 291.349 { - (4) - } { + (5)(d) + }, would
not be incurred by the department.
' { + SECTION 6. + } ORS 305.792 is amended to read:
' 305.792. (1) The Department of Revenue shall cause a checkoff
box to be printed on the personal income and corporate income or
excise tax returns for the appropriate tax year, by which a
taxpayer may indicate that a surplus refund payment or credit
that the taxpayer may otherwise be entitled to under ORS 291.349
shall instead be used for funding education.
' (2)(a) A personal income taxpayer may elect to donate a
surplus refund payment to be made under ORS 291.349 to public
elementary and secondary school education. The taxpayer may make
the election by checking the appropriate checkoff box on the
taxpayer's return indicating the taxpayer's intention to donate
the surplus refund payment to public elementary and secondary
education.
' (b) Once made, the election is irrevocable for any surplus
refund payments received until a subsequent return is filed for a
later tax year, and on which the checkoff box is not checked.
' (3)(a) A corporate excise or income taxpayer may elect to not
claim a surplus refund credit that the taxpayer would otherwise
be entitled to pursuant to ORS 291.349, in order to achieve a
corresponding transfer of such moneys from the General Fund to
the State School Fund for the support of public elementary and
secondary school education. The taxpayer may make the election by
checking the appropriate checkoff box on the taxpayer's return
and by not using the surplus refund credit percentage to reduce
the taxpayer's tax liability.
' (b) A taxpayer that checks the appropriate checkoff box
indicating that the credit will not be claimed but that
nevertheless claims the credit in determining the taxpayer's tax
liability shall be considered to have not made the election under
this subsection.
' (c) The election to not claim a credit under this subsection
may not be revoked by filing an amended return.
' (4) After the determination that surplus refund payments are
to be made under ORS 291.349 { - (4) and (6) - } { + (5)(d)
and (7) + }, the department shall determine the total amount of
such payments for which an election to donate to public
elementary and secondary education has been made and shall
certify this amount to the State Treasurer. Following the
department's certification to the State Treasurer, an election to
donate that biennium's surplus refund payments under subsection
(2) of this section is irrevocable.
' (5) Following the determination to credit corporate income
and excise taxes pursuant to ORS 291.349 { - (3) and (5) - }
{ + (5)(c) and (6) + }, the department shall annually certify
the total amount of allowable credits that have not been claimed
pursuant to an election made under subsection (3) of this
section. The certification shall be made on or before December 31
of each year, until the tax year for which the credit would
otherwise be claimed becomes a closed tax year.
' { + SECTION 7. + } { + The amendments to ORS 291.349,
291.351 and 305.792 by sections 4 to 6 of this 2003 Act apply to
biennia beginning on or after July 1, 2003. + }
' { + SECTION 8. + } ORS 293.701, as amended by section 9,
chapter 6, Oregon Laws 2002 (third special session), 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) Education Stability Fund established by ORS 348.696;
' (w) Deferred Compensation Fund established under ORS 243.411;
{ - and - }
' (x) Trust for Cultural Development Account established under
ORS 359.405 { - . - } { + ; and
' (y) General Fund Operating Reserve Fund established under
section 3 of this 2003 Act. + }
' (3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
' { + SECTION 9. + } { + Sections 3 and 7 of this 2003 Act
and the amendments to ORS 291.349, 291.351, 293.701 and 305.792
by sections 4 to 6 and 8 of this 2003 Act do not become operative
unless the amendment to the Oregon Constitution proposed by
Senate Joint Resolution 18 (2003) is approved by the people at
the next regular general election held throughout this state.
Sections 3 and 7 of this 2003 Act and the amendments to ORS
291.349, 291.351, 293.701 and 305.792 by sections 4 to 6 and 8 of
this 2003 Act become operative on the effective date of Senate
Joint Resolution 18 (2003). + } ' .
In line 35, delete '3' and insert '10'.
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