72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
 
                            Enrolled
 
                         House Bill 3051
 
Sponsored by COMMITTEE ON REVENUE (at the request of Oregon Fire
  Chiefs' Association, Oregon Fire District Directors'
  Association, AFSCME, Oregon State Fire Fighters Council)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to insurance guaranty association assessments; creating
  new provisions; amending ORS 734.575; prescribing an effective
  date; and providing for revenue raising that requires approval
  by a three-fifths majority.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1.  { + Section 2 of this 2003 Act is added to and made
a part of ORS 734.510 to 734.710. + }
  SECTION 2.  { + (1) Each member insurer subject to an Oregon
Insurance Guaranty Association assessment pursuant to ORS 734.570
(3) shall recoup the amount of the assessment through a
recoupment assessment imposed on net direct written premiums. The
member insurer shall fix the amount of the recoupment assessment
at an amount sufficient to reimburse the member insurer for the
amount of Oregon Insurance Guaranty Association assessments paid
by the member insurer.
  (2) Each member insurer shall annually certify to the Director
of the Department of Consumer and Business Services the total
amount of recoupment assessments assessed for the year and that
the amount assessed does not exceed the amount of Oregon
Insurance Guaranty Association assessments imposed and not
previously recouped or offset against corporate excise taxes or
fire insurance gross premiums taxes.
  (3) The director may by rule establish a minimum threshold for
which a recoupment assessment under subsection (1) of this
section need not be made.
  (4) The Department of Consumer and Business Services, pursuant
to rules adopted by the director, may audit member insurer
determinations of recoupment assessments.
  (5) Recoupment assessments shall be separately stated on
premium billing statements. Recoupment assessments may not be
considered gross premiums for any purpose. + }
  SECTION 3.  { + Section 2 of this 2003 Act applies to the
recoupment of:
  (1) Oregon Insurance Guaranty Association assessments imposed
on or after January 1, 2003; and
  (2) Oregon Insurance Guaranty Association assessments imposed
prior to January 1, 2003, that have not been fully recouped
through corporate excise tax offsets or fire insurance gross
premiums tax offsets. + }
  SECTION 4. ORS 734.575 is amended to read:
 
 
Enrolled House Bill 3051 (HB 3051-A)                       Page 1
 
 
 
  734.575.   { - (1) A member insurer may offset the assessment
described in ORS 734.570 (3) first against its corporate excise
tax imposed under ORS 317.070 and second against its fire
insurance gross premiums tax imposed under ORS 731.820, in that
order. The offset may be taken at a rate of 20 percent of the
amount of the assessment for each of the five calendar years
following the year in which the assessment was paid. If a member
insurer ceases doing business, all uncredited assessments may be
credited against its tax liabilities referred to in this
subsection for the year in which it ceases doing business. - }
    { - (2) - }  Any sums acquired by refund from the Oregon
Insurance Guaranty Association that have previously been written
off by contributing insurers and offset against   { - taxes as
provided under subsection (1) of this section - }  { +  corporate
excise taxes or fire insurance gross premiums taxes + }, and are
not then needed for purposes of ORS 734.510 to 734.710, shall be
paid by the association to the Director of the Department of
Consumer and Business Services and deposited with the State
Treasurer for credit to the General Fund of this state.
  SECTION 5.  { + The amendments to ORS 734.575 by section 4 of
this 2003 Act apply to:
  (1) Corporate excise taxes for excise tax years beginning on or
after January 1, 2003; and
  (2) Fire insurance gross premiums taxes for gross premiums tax
reporting periods beginning on or after January 1, 2003. + }
  SECTION 6.  { + This 2003 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-second
Legislative Assembly adjourns sine die. + }
                         ----------
 
 
Passed by House May 9, 2003
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate June 25, 2003
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 3051 (HB 3051-A)                       Page 2
 
 
 
 
 
Received by Governor:
 
......M.,............., 2003
 
Approved:
 
......M.,............., 2003
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2003
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 3051 (HB 3051-A)                       Page 3