74th OREGON LEGISLATIVE ASSEMBLY--2007 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 2327
 
                         Senate Bill 664
 
Sponsored by COMMITTEE ON COMMERCE
 
 
                             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 local government collecting, contributing or
receiving funds to provide fringe benefits for employees may use
funds only for that purpose.
 
                        A BILL FOR AN ACT
Relating to fringe benefits for employees of local government.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) As used in this section:
  (a) 'Fringe benefit' means any program providing insurance or
other form of coverage, reimbursement or incentives for costs
associated with:
  (A) A program under section 125 of the Internal Revenue Code,
or other similar program; or
  (B) Health care, dental care, vision care, disability or death.
For purposes of this subparagraph, 'health care' has the meaning
given that term in ORS 243.303.
  (b) 'Funds' includes:
  (A) Moneys collected from or contributed by an employer,
employee or employee organization for the purpose of providing
fringe benefits; and
  (B) Rebates, refunds, repayments or returns on premiums
received from a provider or administrator of fringe benefits and
provided to a local government.
  (c) 'Local government' has the meaning given that term in ORS
174.116.
  (2) A local government that collects, contributes or receives
funds for the provision of fringe benefits to its employees may
not use the funds for any purpose other than to pay:
  (a) Costs directly associated with providing the fringe
benefits; or
  (b) Administrative expenses arising from and directly related
to the provision of fringe benefits.
  (3) All funds collected, contributed or received by a local
government for the provision of fringe benefits to its employees
shall be kept in an account separate and distinct from other
accounts of the local government. + }
  SECTION 2.  { + Section 1 of this 2007 Act applies to funds
collected, contributed or received on or after the effective date
of this 2007 Act. + }
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