75th OREGON LEGISLATIVE ASSEMBLY--2010 Special 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 32
                        Updated Sponsors
 
                         House Bill 3603
 
Sponsored by Representative WEIDNER; Representatives BENTZ,
  ESQUIVEL, HANNA, HUFFMAN, KRIEGER, MAURER, RICHARDSON,
  SPRENGER, THATCHER, THOMPSON, WHISNANT, WINGARD (Presession
  filed.)
 
 
                             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.
 
  Repeals health insurance premium assessment.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to repeal of assessment on health insurance premiums;
  amending ORS 291.055, 414.721, 731.292, 731.840 and 743.990;
  repealing ORS 743.960, 743.961 and 743.965 and section 8,
  chapter 867, Oregon Laws 2009; and declaring an emergency.
  Whereas Oregon's first provider tax was created in 2003 by the
Seventy-second Legislative Assembly; and
  Whereas the provider tax was assessed on large hospitals, long
term care facilities, Medicaid managed care organizations and
each program of all-inclusive care for elderly persons; and
  Whereas Oregon encourages individuals to purchase their own
individual health insurance plan; and
  Whereas the large hospitals, long term care facilities and
Medicaid managed care organizations receive Medicaid funds, which
help offset the provider tax, while the private insurers do not;
now, therefore,
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + ORS 743.960, 743.961 and 743.965 and section 8,
chapter 867, Oregon Laws 2009, are repealed. + }
  SECTION 2. ORS 291.055 is amended to read:
  291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted after July 1 of any
odd-numbered year:
  (a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
  (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  (e) Are rescinded on July 1 of the next following odd-numbered
year, or on adjournment sine die of the regular session of the
Legislative Assembly meeting in that year, whichever is later,
unless otherwise authorized by enabling legislation setting forth
the approved fees.
  (2) This section does not apply to:
  (a) Any tuition or fees charged by the State Board of Higher
Education and state institutions of higher education.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.
  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951   { - and 743.961 - } .
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Insurance Division
of the Department of Consumer and Business Services pursuant to
ORS 731.804 or fees charged by the Division of Finance and
Corporate Securities of the Department of Consumer and Business
Services to banks, trusts and credit unions pursuant to ORS
706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget for the agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 3. ORS 414.721 is amended to read:
  414.721. The Oregon Health Authority shall promptly seek
federal approval necessary to obtain federal financial
participation in the costs of programs and services funded with
assessments paid under ORS 743.951   { - and 743.961 - }  and
section 9, chapter 867, Oregon Laws 2009.
  SECTION 4. ORS 731.292 is amended to read:
  731.292. (1) Except as provided in subsections (2), (3) and (4)
of this section, all fees, charges and other moneys received by
the Department of Consumer and Business Services or the Director
of the Department of Consumer and Business Services under the
Insurance Code shall be deposited in the fund created by ORS
705.145 and are continuously appropriated to the department for
the payment of the expenses of the department in carrying out the
Insurance Code.
  (2) All taxes, fines and penalties paid pursuant to the
Insurance Code shall be paid to the director and after deductions
of refunds shall be paid by the director to the State Treasurer,
at the end of every calendar month or more often in the
director's discretion, for deposit in the General Fund to become
available for general governmental expenses.
  (3) All premium taxes received by the director pursuant to ORS
731.820 shall be paid by the director to the State Treasurer for
deposit in the State Fire Marshal Fund.
  (4) Assessments received by the department under ORS 743.951
  { - and 743.961 - }  and penalties received by the department
under ORS 743.990 and section 10, chapter 867, Oregon Laws 2009,
shall be paid into the State Treasury and credited to the Health
System Fund established in section 1, chapter 867, Oregon Laws
2009, after deducting the   { - following amounts: - }
    { - (a) - }  amounts needed to reimburse the department for
expenses in administering ORS 743.951   { - to 743.965 - }  and
743.990 { + . + }  { - ; and - }
    { - (b) Amounts needed to reimburse the General Fund for
reductions in revenue caused by the effect of ORS 743.961 on the
retaliatory tax imposed under ORS 731.854 and 731.859. - }
  SECTION 5. ORS 731.840 is amended to read:
  731.840. (1) The retaliatory tax imposed upon a foreign or
alien insurer under ORS 731.854 and 731.859, or the corporate
excise tax imposed upon a foreign or alien insurer under ORS
chapter 317, is in lieu of all other state taxes upon premiums,
taxes upon income, franchise or other taxes measured by income
that might otherwise be imposed upon the foreign or alien insurer
except the fire insurance premiums tax imposed under ORS 731.820
 { - , - }  { +  and + } the tax imposed upon wet marine and
transportation insurers under ORS 731.824 and 731.828  { - , and
the assessment imposed under ORS 743.961 - } . However, all real
and personal property, if any, of the insurer shall be listed,
assessed and taxed the same as real and personal property of like
character of noninsurers. Nothing in this subsection shall be
construed to preclude the imposition of the assessments imposed
under ORS 656.612 upon a foreign or alien insurer.
  (2) Subsection (1) of this section applies to a reciprocal
insurer and its attorney in its capacity as such.
  (3) Subsection (1) of this section applies to foreign or alien
title insurers and to foreign or alien wet marine and
 
transportation insurers issuing policies and subject to taxes
referred to in ORS 731.824 and 731.828.
  (4) The State of Oregon hereby preempts the field of regulating
or of imposing excise, privilege, franchise, income, license,
permit, registration, and similar taxes, licenses and fees upon
insurers and their insurance producers and other representatives
as such, and:
  (a) No county, city, district, or other political subdivision
or agency in this state shall so regulate, or shall levy upon
insurers, or upon their insurance producers and representatives
as such, any such tax, license or fee; except that whenever a
county, city, district or other political subdivision levies or
imposes generally on a nondiscriminatory basis throughout the
jurisdiction of the taxing authority a payroll, excise or income
tax, as otherwise provided by law, such tax may be levied or
imposed upon domestic insurers; and
  (b) No county, city, district, political subdivision or agency
in this state shall require of any insurer, insurance producer or
representative, duly authorized or licensed as such under the
Insurance Code, any additional authorization, license, or permit
of any kind for conducting therein transactions otherwise lawful
under the authority or license granted under this code.
  SECTION 6. ORS 743.990 is amended to read:
  743.990. (1) If the Public Employees' Benefit Board   { - or an
insurer - }  fails to timely file a verified form or to pay an
assessment required under ORS 743.951   { - or 743.961 - } ,
 { - the insurer or - }  the board shall be subject to a penalty
of up to $500 per day of delinquency. The total amount of
penalties imposed under this section for a calendar quarter may
not exceed five percent of the assessment due for that calendar
quarter.
  (2) Any penalty imposed under this section is in addition to
and not in lieu of the assessment imposed under ORS 743.951
 { - and 743.961 - } .
  SECTION 7.  { + This 2010 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2010 Act takes effect on its
passage. + }
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