75th OREGON LEGISLATIVE ASSEMBLY--2009 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 1700
A-Engrossed
House Bill 2815
Ordered by the House April 10
Including House Amendments dated April 10
Sponsored by Representatives HOLVEY, GARRETT, Senator PROZANSKI;
Representatives BAILEY, BARKER, BARNHART, BUCKLEY, CLEM,
GREENLICK, HARKER, HUNT, KAHL, KOMP, NATHANSON, NOLAN, READ,
RILEY, SHIELDS, J SMITH, WITT, Senators BONAMICI, BURDICK,
DEVLIN, ROSENBAUM
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.
Establishes Interagency Compliance Network. Prescribes duties
of network relating to { - persons doing business on cash
basis - } { + classification of workers and persons who pay
workers in cash + } for purpose of avoiding compliance with laws
relating to taxation and employment { - , and enforcing
compliance with laws relating to independent contractor
status - } . Provides that { + member + } agency { - with
representative on committee - } may enter into agreement to
provide information to another { + member + } agency { - with
representative on committee - } .
Establishes Interagency Compliance Network Account. Provides
that moneys in account are continuously appropriated to specified
state agencies for purpose of compliance activities, including
audits and investigations, that are related to persons
{ - doing business on cash basis and to persons who provide
compensation to other person based on contention that other
person is independent contractor - } { + who pay workers in
cash, misclassify workers and do not comply with laws relating to
taxation and employment + }.
Increases fee for certain business filings made with Secretary
of State. Directs that amounts generated from fee increase be
deposited in Interagency Compliance Network Account.
A BILL FOR AN ACT
Relating to compliance with laws relating to the conduct of
business; creating new provisions; amending ORS 56.041 and
56.140; appropriating money; 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. { + (1) There is established an Interagency
Compliance Network consisting of:
(a) The Department of Justice;
(b) The Department of Revenue;
(c) The Employment Department;
(d) The Department of Consumer and Business Services;
(e) The Bureau of Labor and Industries;
(f) The Construction Contractors Board;
(g) The State Landscape Contractors Board; and
(h) Other state agencies that enter into the intergovernmental
agreement as described in subsection (3) of this section.
(2) The Interagency Compliance Network established under this
section shall:
(a) Work to establish consistency in agency determinations
relating to the classification of workers, including but not
limited to classification of workers as independent contractors;
(b) Gather and share information relating to persons who pay
workers in cash and who do not comply with laws relating to
taxation and employment;
(c) Gather and share information relating to the
misclassification of workers, including but not limited to
misclassification as independent contractors;
(d) Develop investigative methods for auditing persons who pay
workers in cash, or who misclassify workers, and who do not
comply with laws relating to taxation and employment;
(e) Conduct joint audits of persons who pay workers in cash, or
who misclassify workers, and who do not comply with laws relating
to taxation and employment;
(f) Identify opportunities for and obstacles to improving
compliance with the laws relating to the classification of
workers, taxation and employment;
(g) Create a coordinated enforcement process for the laws
relating to classification of workers that is efficient, fair and
effective for the public and the regulatory agencies charged with
enforcing laws relating to taxation and employment;
(h) Engage in public outreach efforts to educate the public
generally on the distinctions between independent contractors and
employees and on the laws and regulations governing the duties
relating to classification of workers; and
(i) Take such other action as the member agencies deem
appropriate to improve compliance with laws relating to taxation
and employment that are administered by the member agencies.
(3) The agencies identified in subsection (1)(a) to (g) of this
section shall enter into an intergovernmental agreement for the
purpose of coordinating the efforts of the agencies under this
section. Any other agency of state government, as defined in ORS
174.111, that has in interest in compliance with laws relating to
taxation and employment may become a member of the Interagency
Compliance Network by entering into the agreement on such terms
as may be prescribed by the agencies identified in subsection
(1)(a) to (g) of this section.
(4) Notwithstanding ORS 314.835 or any other law relating to
confidentiality of information, any agency that is a member of
the Interagency Compliance Network may enter into an agreement
with another member agency to provide information to the other
agency. Information provided to an agency under this subsection
may be used by the agency only for the purpose of enforcing
compliance of laws that are administered by the agency. + }
SECTION 2. { + (1) The Interagency Compliance Network Account
is established in the General Fund of the State Treasury. The
account consists of amounts deposited in the account under ORS
56.041.
(2) At least once each month, moneys in the Interagency
Compliance Network Account shall be distributed as follows:
(a) ___ percent to the Department of Revenue, for the purpose
of enforcing the tax laws by engaging in compliance activities,
including audits and investigations, that are related to persons
who pay workers in cash, or who misclassify workers, and who do
not comply with laws relating to taxation.
(b) ___ percent to the Employment Department, for the purpose
of enforcing the unemployment tax laws by engaging in compliance
activities, including audits and investigations, that are related
to persons who pay workers in cash, or who misclassify workers,
and who do not comply with laws relating to taxation.
(c) ___ percent to the Department of Consumer and Business
Services, for the purpose of compliance activities, including
audits and investigations, that are related to persons who pay
workers in cash, or who misclassify workers, and who do not
comply with laws relating to employment or taxation.
(d) ___ percent to the Construction Contractors Board, for the
purpose of compliance activities, including audits and
investigations, that are related to persons who pay workers in
cash, or misclassify workers, and who do not comply with laws
relating to employment or taxation.
(e) ___ percent to the Bureau of Labor and Industries, for the
purpose of enforcing the laws related to wage and hours, and to
prevailing wage rates, by engaging in compliance activities,
including audits and investigations, that are related to persons
who pay workers in cash, or who misclassify workers, and who do
not comply with laws relating to employment.
(f) ___ percent to the Department of Justice to investigate and
prosecute criminal activities discovered by reason of audits,
investigations and other compliance activities described in this
subsection, or that otherwise come to the attention of the
department and that relate to persons who pay workers in cash, or
who misclassify workers, and who do not comply with laws relating
to employment and taxation.
(g) ___ percent to the Department of Revenue, for the purpose
of distribution to members of the Interagency Compliance Network
pursuant to the terms of the intergovernmental agreement entered
into under section 1 (3) of this 2009 Act.
(3) All moneys distributed to an agency under subsection (2) of
this section are continuously appropriated to the agency for the
purposes specified by subsection (2) of this section. + }
SECTION 2a. { + The member agencies of the Interagency
Compliance Network shall prepare a report once every two years
that details the activities of the network during the two-year
period. The report shall identify the manner in which the funding
provided by section 2 of this 2009 Act has been expended, and an
estimate of the revenue impact of the network's activities. The
report shall be provided to the Governor, and to the Legislative
Assembly in the manner provided by ORS 192.245. + }
SECTION 3. ORS 56.140 is amended to read:
56.140. (1) { + Except as provided in subsection (2) of this
section, + }the Secretary of State shall collect a nonrefundable
fee of $50 for each document delivered for filing to the
Secretary of State as part of the secretary's business registry
functions described in ORS 56.022.
{ + (2) The Secretary of State shall collect a nonrefundable
fee of $___ for each of the following documents delivered to the
Secretary of State for filing:
(a) Articles of incorporation delivered for filing under ORS
60.051.
(b) Articles of organization delivered for filing under ORS
63.051.
(c) Applications for authority to transact business in this
state delivered under ORS 60.707 and 63.707.
(d) Annual reports delivered for filing under ORS 60.787 and
63.787. + }
{ - (2) - } { + (3) + } The Secretary of State by rule may
establish fees, in addition to those provided for in
{ - subsection (1) - } { + subsections (1) and (2) + } of this
section, for:
(a) Copying any public record maintained by the secretary and
relating to the secretary's business registry functions, and for
certifying the copy; and
(b) Certifying to other facts of record, including certificates
of existence, relating to the secretary's business registry
functions.
{ - (3) - } { + (4) + } The Secretary of State shall
collect a nonrefundable fee of $20 each time process { + that is
related to the Secretary of State's business registry
functions + } is served on the Secretary of State { - and the
process relates to the secretary's business registry
functions - } .
{ - (4) - } { + (5) + } The Secretary of State may waive
collection of any fee, charge or interest { - , - } or portion
of a fee, charge or interest { - , - } that is collectible by
the Secretary of State as part of the secretary's business
registry functions.
{ - (5) - } { + (6) + } The Secretary of State by rule
shall establish and collect reasonable fees for the following
services relating to the secretary's business registry functions:
(a) Computer generated lists on electronic data processing
media.
(b) Terminal access to the files of the office.
(c) Microfilm records of the files of the office.
(d) Microfilm processing and development services.
(e) Copies of the programs and files on paper or electronic
data processing media.
SECTION 4. ORS 56.041 is amended to read:
56.041. (1) The Operating Account is established in the General
Fund of the State Treasury.
(2) The net amount accruing to the Secretary of State from all
fees, charges, interest, fines, penalties and miscellaneous
revenues from all sources relating to business registry
functions, and moneys received by the Secretary of State under
ORS chapters 79 and 194 and ORS 80.100 to 80.130, 87.246, 87.767
and 87.806 to 87.831 shall, after deduction of refunds, be paid
over to the State Treasurer and deposited at least monthly in the
Operating Account.
(3) { + Except for moneys attributable to fees collected under
ORS 56.140 (2), + }moneys deposited to the credit of the
Operating Account are continuously appropriated { + to the
Secretary of State + } for the expenses of carrying out the
functions and duties of the Secretary of State relating to
business registry, and the functions and duties of the Secretary
of State under ORS chapters 79 and 194 and ORS 80.100 to 80.130,
87.246, 87.767 and 87.806 to 87.831. { + Moneys attributable to
fees collected under ORS 56.140 (2) shall be transferred to and
deposited in the Interagency Compliance Network Account
established under section 2 of this 2009 Act and may be used only
for the purposes specified in section 2 of this 2009 Act. + }
(4) At the end of each month { + , + } { - : - }
{ - (a) - } the Secretary of State shall determine for that
month the number of business registry filings for which the
Secretary of State collected the { - fee - } { + fees + }
described in ORS 56.140 { + + } { + and shall transfer + }
{ - ; and - }
{ - (b) - } an amount equal to $30 for each business
registry filing { - described in paragraph (a) of this
subsection shall be transferred - } to the General Fund { + ,
which amount + } { - and - } shall become available for
general governmental expenses.
(5) { - As of - } { + Not later than + } July 1 of each
year, { + the Secretary of State shall transfer to the General
Fund + } any unexpended and unobligated balance in the Operating
Account { + that is attributable to the fee collected under ORS
56.140 (1) and + } that is in excess of the amount that is
necessary to administer the functions and duties of the Secretary
of State as described in subsection (3) of this section for two
months, as certified by the Secretary of State { - , shall be
transferred to the General Fund and shall become - } { + . The
moneys transferred under this subsection are + } available for
general governmental expenses.
SECTION 5. { + The amendments to ORS 56.041 and 56.140 by
sections 3 and 4 of this 2009 Act apply only to documents filed
with the Secretary of State on or after the effective date of
this 2009 Act. + }
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