75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
Enrolled
Senate Bill 773
Sponsored by COMMITTEE ON RULES
CHAPTER ................
AN ACT
Relating to legal expense trust funds; creating new provisions;
amending ORS 244.205, 244.209 and 244.211; and declaring an
emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 244.205 is amended to read:
244.205. (1) Subject to the authorization of the Oregon
Government Ethics Commission as described in ORS 244.209, a
public official may establish a legal expense trust fund if the
public official incurs or reasonably expects to incur legal
expenses described in subsection (2) of this section.
(2) Proceeds from the trust fund may be used by the public
official to defray legal expenses incurred by the public official
in any civil, criminal or other legal proceeding or investigation
that relates to or arises from the course and scope of duties of
the person as a public official. The legal expenses must be
incurred in connection with:
(a) The issuance of a court's stalking protective order under
ORS 30.866 or 163.738;
(b) The issuance of a citation under ORS 163.735;
(c) A criminal prosecution under ORS 163.732;
(d) A civil action under ORS 30.866; or
(e) Defending the public official in a proceeding or
investigation brought or maintained by a public body as defined
in ORS 174.109.
(3) Except as provided in subsection (2) of this section, a
public official may not use proceeds from the trust fund for any
personal use.
(4) A public official may not establish or maintain more than
one legal expense trust fund at any one time.
{ - (5) A public official who establishes a legal expense
trust fund may not solicit, receive or handle any contributions
to the fund. - }
{ - (6) - } { + (5) + } The provisions of ORS chapter 130
do not apply to a trust fund established under ORS 244.205 to
244.221.
SECTION 2. ORS 244.211 is amended to read:
244.211. (1) The trustee of a legal expense trust fund is
responsible for:
(a) The receipt and deposit of contributions to the trust fund;
(b) The authorization of expenditures and disbursements from
the trust fund;
Enrolled Senate Bill 773 (SB 773-INTRO) Page 1
(c) The filing of quarterly statements required under ORS
244.217; and
(d) The performance of other tasks incident to the
administration of the trust fund.
{ - (2) The trustee may not: - }
{ - (a) Be a public official who serves the same public body
as the public official who establishes the trust fund; - }
{ - (b) Be a relative of the public official who establishes
the trust fund; - }
{ - (c) Be an attorney for the public official in the legal
proceeding for which the trust fund is established, or a member,
partner, associate or employee of the firm employing the
attorney; or - }
{ - (d) Have a business or employment relationship with the
public official who establishes the trust fund. - }
{ + (2) The public official who establishes the trust fund
may either serve as the public official's own trustee or may
appoint and certify to the Oregon Government Ethics Commission
the name and address of a trustee. Any default or violation by
the trustee shall be conclusively considered a default or
violation by the public official. + }
SECTION 3. ORS 244.209 is amended to read:
244.209. (1) A public official may apply to establish a legal
expense trust fund by filing an application with the Oregon
Government Ethics Commission. The application must contain:
(a) A copy of an executed trust agreement described in
subsection (2) of this section;
(b) A sworn affidavit described in subsection (3) of this
section signed by the public official; and
(c) A sworn affidavit described in subsection (4) of this
section signed by the trustee.
(2) The trust agreement must contain the following:
(a) A provision incorporating by reference the provisions of
ORS 244.205 to 244.221; and
(b) A designation of a trustee { - who meets the requirements
of - } { + under + } ORS 244.211.
(3) The affidavit of the public official must state:
(a) The nature of the legal proceeding that requires
establishment of the trust fund;
(b) That the public official will comply with the provisions of
ORS 244.205 to 244.221; and
(c) That the public official is responsible for the proper
administration of the trust fund { - , even though a trustee of
the fund has been designated - } .
(4) The affidavit of the trustee must state that the trustee:
(a) Has read and understands ORS 244.205 to 244.221; and
(b) Consents to administer the trust fund in compliance with
ORS 244.205 to 244.221.
(5) Upon receiving an application under this section, the
commission shall review the trust agreement, the affidavits and
any supporting documents or instruments filed to determine
whether the application meets the requirements of ORS 244.205 to
244.221. If the commission determines that the application meets
the requirements of ORS 244.205 to 244.221, the commission shall
grant written authorization to the public official to establish
the trust fund.
(6) The commission shall review the quarterly statements
required under ORS 244.217 and shall monitor the activities of
each trust fund to ensure continued compliance with ORS 244.205
to 244.221.
Enrolled Senate Bill 773 (SB 773-INTRO) Page 2
(7) Unless subject to the attorney-client privilege, all
documents required to be filed relating to the creation and
administration of a trust fund are public records subject to
disclosure as provided in ORS 192.410 to 192.505.
(8) A public official may not establish a legal expense trust
fund without receiving prior written authorization of the
commission as described in this section.
(9) A public official may file an amendment to a trust
agreement approved as part of a trust fund under this section.
The commission shall approve the amendment if the commission
determines the amendment meets the requirements of ORS 244.205 to
244.221.
SECTION 4. { + The amendments to ORS 244.205, 244.209 and
244.211 by sections 1, 2 and 3 of this 2009 Act apply to legal
expense trust funds established on or after the effective date of
this 2009 Act. + }
SECTION 5. { + This 2009 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2009 Act takes effect on its
passage. + }
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Passed by Senate May 21, 2009
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House June 10, 2009
...........................................................
Speaker of House
Enrolled Senate Bill 773 (SB 773-INTRO) Page 3
Received by Governor:
......M.,............., 2009
Approved:
......M.,............., 2009
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2009
...........................................................
Secretary of State
Enrolled Senate Bill 773 (SB 773-INTRO) Page 4