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
House Bill 2815
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 as
introduced.
Establishes Interagency Compliance Network. Prescribes duties
of network relating to persons doing business on cash basis for
purpose of avoiding compliance with laws relating to taxation and
employment, and enforcing compliance with laws relating to
independent contractor status. Provides that agency with
representative on committee may enter into agreement to provide
information to another 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.
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 representatives 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 Governor;
(g) The Construction Contractors Board; and
(h) Such other agencies as may be designated by the Governor.
(2) The Interagency Compliance Network established under this
section shall:
(a) Work to establish uniform rules relating to the status of
independent contractors;
(b) Gather and share information relating to persons doing
business on a cash basis for the purpose of avoiding compliance
with laws relating to taxation and employment;
(c) Gather and share information relating to persons
compensated as independent contractors;
(d) Study investigative methods for auditing persons who
conduct business on a cash basis, or who provide compensation to
any other person based on the contention that the other person is
an independent contractor;
(e) Conduct joint audits of persons doing business on a cash
basis and of persons who provide compensation to any other person
based on the contention that the other person is an independent
contractor;
(f) Identify opportunities and obstacles to improving
compliance with the laws relating to taxation and employment;
(g) Create a streamlined compliance process for the laws
relating to independent contractor status that is efficient, fair
and effective for the public and the regulatory agencies charged
with enforcing those laws; and
(h) Engage in public outreach efforts to educate the public
generally on the distinctions between independent contractors and
employees, and the laws and regulations governing the duties
relating to classification of persons as independent contractors
or employees.
(3) Notwithstanding ORS 314.835 or any other law relating to
confidentiality of information, any agency with a representative
in the Interagency Compliance Network may enter into an agreement
with another agency with a representative in the network 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
doing business on a cash basis and to persons who provide
compensation to any other person based on the contention that the
other person is an independent contractor.
(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 doing business on a cash basis and to persons who
provide compensation to any other person based on the contention
that the other person is an independent contractor.
(c) ___ percent to the Department of Consumer and Business
Services, for the purpose of enforcing the laws related to
workers' compensation by engaging in compliance activities,
including audits and investigations, that are related to persons
doing business on a cash basis and to persons who provide
compensation to any other person based on the contention that the
other person is an independent contractor.
(d) ___ 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
doing business on a cash basis and to persons who provide
compensation to any other person based on the contention that the
other person is an independent contractor.
(e) ___ 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 doing business on a cash
basis or to persons who provide compensation to any other person
based on the contention that the other person is an independent
contractor.
(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 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 annual report delivered for filing to the
Secretary of State under ORS 60.787 and 63.787 and for each
delivery of articles of incorporation for filing under ORS 60.051
and articles of organization for filing under ORS 63.051. + }
{ - (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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