Chapter 981 Oregon Laws 1999

Session Law

AN ACT

HB 2391

Relating to Public Safety Memorial Fund; creating new provisions; amending ORS 137.290, 137.303 and 316.680; appropriating money; and limiting expenditures.

Be It Enacted by the People of the State of Oregon:

SECTION 1. ORS 137.290 is amended to read:

137.290. (1) In all cases of conviction for the commission of a crime, violation or infraction, excluding parking violations, the trial court, whether a circuit, justice or municipal court, shall impose upon the defendant, in addition to any other monetary obligation imposed, a unitary assessment under this section. The unitary assessment shall also be imposed by the circuit court and county court in juvenile cases under ORS 419C.005 (1). The unitary assessment is a penal obligation in the nature of a fine and shall be in an amount as follows:

(a) [$100] $101 in the case of a felony.

(b) [$60] $61 in the case of a misdemeanor.

(d) [$30] $31 in the case of any offense punishable only by a fine.

(2) The unitary assessment shall include, in addition to the amount in subsection (1) of this section:

(a) $40 if the defendant was driving a vehicle that requires a commercial driver license to operate and the conviction was for violating:

(A) ORS 811.100 by driving at a speed at least 10 miles per hour greater than is reasonable and prudent under the circumstances; or

(B) ORS 811.115 by driving at least 65 miles per hour; and

(b) $500 if the crime of conviction is a crime found in ORS chapter 163.

(3) The court in any case may waive payment of the unitary assessment, in whole or in part, if, upon consideration, the court finds that payment of the assessment or portion thereof would impose upon the defendant a total monetary obligation inconsistent with justice in the case. In making its determination under this subsection, the court shall consider:

(a) The financial resources of the defendant and the burden that payment of the unitary assessment will impose, with due regard to the other obligations of the defendant; and

(b) The extent to which such burden can be alleviated by allowing the defendant to pay the monetary obligations imposed by the court on an installment basis or on other conditions to be fixed by the court.

SECTION 2. ORS 137.303 is amended to read:

137.303. (1) The Department of Revenue is responsible for [assuring] ensuring that moneys in the Criminal Fine and Assessment Account are properly distributed and shall distribute the moneys monthly according to the following formula:

(a) [15.6365] 15.5251 percent of moneys in the account shall be transferred to the Police Standards and Training Account established under ORS 181.690.

(b) [8.7570] 8.6946 percent of moneys in the account shall be transferred to the Criminal Injuries Compensation Account established under ORS 147.225.

(c) [4.2299] 4.1998 percent of moneys in the account shall be transferred to the Intoxicated Driver Program Fund established under ORS 813.270.

(d) [48.6727] 48.3259 percent of moneys in the account shall be transferred to the General Fund to be used for general governmental expenses.

(e) [2.3452] 2.3285 percent of the moneys in the account shall be reserved to be distributed as provided in ORS 137.305.

(f) [2.7608] 2.7411 percent of the moneys in the account shall be transferred to the Department of State Police and is continuously appropriated to the department.

(g) [0.7870] 0.7814 percent of moneys in the account shall be transferred to the Department of State Police and is continuously appropriated to the department for the purpose of enhanced enforcement of traffic laws against drivers of commercial motor vehicles.

(h) [8.7570] 8.6946 percent of the moneys in the account shall be transferred to the Child Abuse Multidisciplinary Intervention Account established in ORS 418.746.

(i) [0.8820] 0.8757 percent of the moneys in the account shall be transferred to the Domestic Violence Fund established under ORS 108.660.

(j) [3.4586] 3.4340 percent of the moneys in the account shall be transferred to the Department of State Police and is continuously appropriated to the department for the purpose of performing forensic laboratory analyses and maintaining the forensic services implied consent unit.

(k) [1.2015] 1.1929 percent of the moneys in the account shall be transferred to the Domestic Violence Fund established under ORS 108.660 and is continuously appropriated for the purposes of ORS 108.620 (1)(a) to (c).

(L) [0.4508] 0.4476 percent of the moneys in the account shall be transferred to the Safety Education Fund created by ORS 802.155.

(m) [2.061] 2.0463 percent of the moneys in the account shall be transferred to the Children's Trust Endowment Fund established under ORS 418.198.

(n) 0.7125 percent of the moneys in the account shall be transferred to the Public Safety Memorial Fund established by section 3 of this 1999 Act.

(2) The Department of Revenue shall report to the State Office for Services to Children and Families monthly on the amount of moneys transferred to the Child Abuse Multidisciplinary Intervention Account under subsection (1)(h) of this section. In making the report, the Department of Revenue shall specify the amount of moneys received from the state courts in each county and from each city court.

SECTION 3. The Public Safety Memorial Fund is established in the State Treasury, separate and distinct from the General Fund. Interest earned, if any, shall inure to the benefit of the Public Safety Memorial Fund. All moneys deposited in the fund are continuously appropriated to the Department of Public Safety Standards and Training for the purposes of sections 4 to 13 of this 1999 Act, to be expended by the Public Safety Memorial Fund Board, established by section 14 of this 1999 Act, as provided in sections 4 to 13 of this 1999 Act. However, the board may not expend more than $60,000 per biennium of the moneys for administrative costs of the board incurred under sections 4 to 13 of this 1999 Act.

SECTION 4. As used in this section and sections 5 and 6 of this 1999 Act:

(1) "Family member" means:

(a) The spouse of a public safety officer.

(b) A child of a public safety officer.

(c) A person who qualifies as a dependent of a public safety officer for state income tax purposes.

(2) "Public safety officer" means:

(a) Corrections officers, as defined in ORS 181.610.

(b) Fire service professionals, as defined in ORS 181.610, and includes volunteer firefighters as defined in ORS 652.050.

(c) Parole and probation officers, as defined in ORS 181.610.

(d) Police officers, as defined in ORS 181.610, and includes reserve officers, as defined in ORS 181.610.

(e) Youth correction officers, as defined in ORS 181.610.

SECTION 5. (1)(a) A person is eligible for an award of benefits from the Public Safety Memorial Fund if the person:

(A) Is a family member of a public safety officer who:

(i) Was killed in the line of duty or, if off duty, while interceding in a crime; or

(ii) Has a job-related permanent total disability, as defined in ORS 656.206; and

(B) Has submitted an application for an award of benefits under section 6 of this 1999 Act within six months of the date of the public safety officer's death or disability.

(b) Notwithstanding paragraph (a) of this subsection, a person is not eligible for an award of benefits if:

(A) The person's actions were a substantial contributing factor to the death or disability of the public safety officer;

(B) The public safety officer's intentional misconduct caused the death or disability;

(C) The public safety officer intended to bring about the officer's death or disability;

(D) The public safety officer was voluntarily intoxicated at the time of the injury that caused the death or disability; or

(E) The public safety officer was performing the officer's duties in a grossly negligent manner at the time of the injury that caused the death or disability.

(c) As used in this subsection, "disability" means a disability resulting from a sudden, severe and unexpected injury.

(2) Notwithstanding subsection (1) of this section, within 14 days after notification from an employer that a public safety officer has been killed as described in subsection (1) of this section, the Public Safety Memorial Fund Board, or the chairperson of the board if the board is unable to meet in a timely manner, may pay $25,000 to the person designated on the beneficiary form described in section 15 of this 1999 Act.

(3) The board:

(a) Shall award benefits to the spouse and each child of the public safety officer in an amount sufficient to allow the spouse and children to purchase health and dental insurance comparable to that provided by the public safety officer:

(A) For five years or until the spouse remarries, whichever occurs first; and

(B) Until the child attains 18 years of age or, if the child is attending school, 23 years of age.

(b) May award benefits to an eligible applicant under section 6 of this 1999 Act:

(A) Who is the spouse of the public safety officer, in an amount up to the equivalent of 12 monthly mortgage payments on the residence of the spouse if there is no mortgage insurance to cover the cost.

(B) Who is a family member of the public safety officer, in the form of scholarships for the applicant's higher education. The board may award scholarships for an applicant's undergraduate degree only. In determining the amount of a scholarship, the board shall consider the applicant's financial need, the funds available in the Public Safety Memorial Fund and the anticipated demands on the fund. The board may not grant a scholarship in an amount exceeding the highest tuition charged by a state institution of higher education for an undergraduate program.

SECTION 6. (1) An applicant for benefits under this section must file an application under oath on a form furnished by the Public Safety Memorial Fund Board. The application must include:

(a) The name and address of the applicant and the applicant's relationship to the public safety officer;

(b) The public safety officer's name and date of death or disability, and the agency that employed the public safety officer;

(c) The amount of benefits, payments or awards, if any, payable from any source, that the applicant has received or for which the applicant is eligible as a result of the death or disability of the public safety officer;

(d) Releases authorizing the surrender to the board of reports, documents and other information relating to matters specified in this subsection; and

(e) Any other information that the board determines is necessary.

(2) The board may require that an applicant submit with the application any materials that substantiate the facts stated in the application.

(3) If the board finds that an application does not contain the required information or materials or finds that the facts stated therein have not been substantiated, it shall notify the applicant in writing that specific additional items of information or materials are required and that the applicant has 180 days from the date of mailing of the notice in which to furnish the additional items to the board. Unless an applicant requests and is granted an extension of time by the board, the board shall reject with prejudice the claim of the applicant for failure to file the additional information or materials within the specified time.

(4) An applicant may file an amended application or additional substantiating materials to correct inadvertent errors or omissions at any time before the board has completed its consideration of the original application.

(5)(a) An applicant who is otherwise eligible for an award of benefits under section 5 of this 1999 Act may, notwithstanding section 5 (1)(a)(B) of this 1999 Act, file an application requesting an award for higher education expenses at any time up to:

(A) Five years after the date on which the applicant graduated from high school if:

(i) The applicant was a minor at the time the public safety officer died or became disabled; and

(ii) An application for an award of some type of benefits was filed by any eligible applicant within the six-month period required by section 5 of this 1999 Act; or

(B) The date the applicant remarries, if the applicant is the surviving spouse of a public safety officer who was killed, or the date the applicant divorces the public safety officer, if the applicant is the spouse of a public safety officer who has a job-related permanent total disability.

(b) An applicant under paragraph (a)(A) of this subsection need not be the same person who made the original application. An application filed under this subsection is a supplemental application.

(c) The board may extend the time period for applying under paragraph (a)(A) of this subsection.

(6) Additional information or materials, an amended application or a supplemental application pursuant to subsection (3), (4) or (5) of this section is considered to have been filed at the same time as the original application.

SECTION 7. All information submitted to the Public Safety Memorial Fund Board by an applicant is a public record under ORS 192.410 and is open to public inspection unless the board determines that the information should be kept confidential.

SECTION 8. (1) In determining the amount of benefits for which an applicant is eligible, the Public Safety Memorial Fund Board shall:

(a) Consider the facts stated in the application filed pursuant to section 6 of this 1999 Act;

(b) Consider the amount of funds available for benefit awards, as provided in the current biennial board budget approved by the Legislative Assembly or the Emergency Board, and the anticipated claims against those funds; and

(c) Award the resultant amount to the applicant as provided in section 11 of this 1999 Act.

(2) In determining the amount of an award to be made to an applicant, the board may consider the number and type of claims filed and the number and type of claims anticipated to be filed with the board during the current biennial budget period. If the board determines that insufficient funds will be available during the current biennial budget period to pay all approved and anticipated claims, the board may prioritize claims or prorate the amounts awarded based upon the anticipated available funds. The board's decision to prioritize claims or prorate the amounts awarded is not subject to administrative or judicial review, including review under section 10 of this 1999 Act.

SECTION 9. After processing an application filed under section 6 of this 1999 Act, the Public Safety Memorial Fund Board shall enter an order stating:

(1) The board's findings of fact;

(2) The board's decision as to whether benefits are due under sections 4 to 13 of this 1999 Act;

(3) The amount of benefits, if any, that is due under sections 4 to 13 of this 1999 Act, as determined under section 8 of this 1999 Act; and

(4) The manner in which the board will pay the award pursuant to section 11 of this 1999 Act.

SECTION 10. If an applicant disagrees with the order entered under section 9 of this 1999 Act, the applicant may request reconsideration by the Public Safety Memorial Fund Board. The board shall reconsider any order for which a request for reconsideration is received. The board shall notify the applicant of its decision on reconsideration within 30 days of the board's receipt of the request for reconsideration. The board's decision is final and not subject to administrative or judicial review.

SECTION 11. (1) The Public Safety Memorial Fund Board shall pay an award made under sections 4 to 13 of this 1999 Act. Payment may be made in a lump sum or in periodic payments to the applicant or payee or may be made directly to service providers.

(2) When a person eligible to receive an award under sections 4 to 13 of this 1999 Act is younger than 18 years of age or is incompetent, the award may be paid to a relative, guardian or attorney of such person on behalf of and for the benefit of such person. In such case, the payee shall:

(a) File an annual accounting of the award with the board; and

(b) Take such other action that the board determines is necessary and appropriate for the benefit of the beneficiary of the award.

(3) Payment of claims is subject to availability of funds for benefit awards as provided in the board's current biennial budget approved by the Legislative Assembly or the Emergency Board.

SECTION 12. (1) Except as otherwise provided in subsection (2) of this section, sections 4 to 13 of this 1999 Act apply to public safety officers who die or become disabled as described in section 5 of this 1999 Act on or after the effective date of this 1999 Act.

(2) Subject to the availability of funds, the Public Safety Memorial Fund Board may award benefits under sections 4 to 13 of this 1999 Act to family members of public safety officers who died or became disabled as described in section 5 of this 1999 Act after January 1, 1997, but prior to the effective date of this 1999 Act.

SECTION 13. To carry out the provisions and purposes of sections 4 to 13 of this 1999 Act, the Public Safety Memorial Fund Board may:

(1) Request from law enforcement officials and from any other agency of the state or any local governmental unit such assistance and information as will enable the board to carry out its functions and duties.

(2) Request the assistance of the State Treasurer.

(3) Accept gifts, grants and donations from public and private sources. Such gifts, grants and donations shall be deposited by the board in the Public Safety Memorial Fund.

(4) Adopt rules pursuant to ORS 183.310 to 183.550.

(5) Determine all claims for awards filed with the board under section 6 of this 1999 Act.

(6) Report biennially to the Governor and the Legislative Assembly on its activities, pursuant to ORS 192.245.

SECTION 14. (1) There is established within the Board on Public Safety Standards and Training a Public Safety Memorial Fund Board consisting of six members appointed by the Governor from the membership of the Board on Public Safety Standards and Training. The Governor shall appoint members to represent each of the following:

(a) Police officers;

(b) Fire service professionals;

(c) Corrections personnel; and

(d) The public.

(2)(a) Before the expiration of the term of a member of the Public Safety Memorial Fund Board, the Governor shall appoint a successor whose term begins immediately upon the expiration of the term of the current member. A member is eligible for reappointment.

(b) In case of a vacancy for any cause, the Governor shall appoint a person to fill the office for the unexpired term.

(3)(a) The Public Safety Memorial Fund Board shall select one of its members as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of such offices as the board determines.

(b) A majority of the members of the board constitutes a quorum for the transaction of business.

(4) The Public Safety Memorial Fund Board shall meet at least once every three months at a place, day and hour determined by the board. The board also shall meet at other times and places specified by the call of the chairperson or of a majority of the members of the board.

(5) The Department of Public Safety Standards and Training shall provide staff for the Public Safety Memorial Fund Board.

(6) Members of the Public Safety Memorial Fund Board are entitled to per diem and expenses as provided in ORS 292.495.

SECTION 15. (1) As used in this section, "public safety officer" has the meaning given that term in section 4 of this 1999 Act.

(2) At the time a public safety officer is hired or utilized as a volunteer, the agency employing or utilizing the public safety officer shall provide the public safety officer with a designation of beneficiary form on which the public safety officer may designate a person to receive a benefit under section 5 (2) of this 1999 Act. Upon completion of the beneficiary form, the agency shall send the beneficiary form to the Public Safety Memorial Fund Board.

(3) No later than three days after a public safety officer is killed as described in section 5 (1) of this 1999 Act, the agency employing or utilizing the public safety officer shall notify the board of that fact.

SECTION 16. ORS 316.680 is amended to read:

316.680. (1) There shall be subtracted from federal taxable income:

(a) The interest or dividends on obligations of the United States and its territories and possessions or of any authority, commission or instrumentality of the United States to the extent includable in gross income for federal income tax purposes but exempt from state income taxes under the laws of the United States. However, the amount subtracted under this paragraph shall be reduced by any interest on indebtedness incurred to carry the obligations or securities described in this paragraph, and by any expenses incurred in the production of interest or dividend income described in this paragraph to the extent that such expenses, including amortizable bond premiums, are deductible in determining federal taxable income.

(b) The amount of any federal income taxes accrued by the taxpayer during the taxable year as described in ORS 316.685, less the amount of any refunds of federal taxes previously accrued for which a tax benefit was received.

(c)(A) If the taxpayer does not qualify for the subtraction under subparagraph (B) of this paragraph, compensation (other than pension or retirement pay) received for active service performed by a member of the Armed Forces of the United States in an amount not to exceed $3,000 per annum.

(B) For the tax year of initial draft or enlistment into the Armed Forces of the United States or for the tax year of discharge from or termination of full-time active duty for the Armed Forces of the United States, compensation (other than pension or retirement pay or pay for service when on military reserve duty) paid by the Armed Forces of the United States for services performed outside this state, if the taxpayer is on active duty as a full-time officer, enlistee or draftee, with the Armed Forces of the United States.

(d) For taxable years open to audit on October 5, 1973, the amount of any deferred income which was added to federal taxable income for state tax purposes under subsection (2)(e) of this section in a prior taxable year and which is now added to federal taxable income. For purposes of this paragraph, the amount subtracted shall not exceed the amount of gain now reported on the federal return. If the gain is a capital gain or subject to capital gain treatment, the adjustments under this paragraph shall be similar to the adjustments made under subsection (2)(e) of this section in the prior year.

(e) Amounts allowable under sections 2621(a)(2) and 2622(b) of the Internal Revenue Code to the extent that the taxpayer does not elect under section 642(g) of the Internal Revenue Code to reduce federal taxable income by those amounts.

(f) Any supplemental payments made to JOBS Plus Program participants under ORS 411.892.

(g) Any amounts awarded to the taxpayer by the Public Safety Memorial Fund Board under sections 4 to 13 of this 1999 Act to the extent that the taxpayer has not taken the amount as a deduction in determining the taxpayer's federal taxable income for the tax year.

(2) There shall be added to federal taxable income:

(a) Interest or dividends, exempt from federal income tax, on obligations or securities of any foreign state or of a political subdivision or authority of any foreign state. However, the amount added under this paragraph shall be reduced by any interest on indebtedness incurred to carry the obligations or securities described in this paragraph and by any expenses incurred in the production of interest or dividend income described in this paragraph.

(b) Interest or dividends on obligations of any authority, commission, instrumentality and territorial possession of the United States which by the laws of the United States are exempt from federal income tax but not from state income taxes. However, the amount added under this paragraph shall be reduced by any interest on indebtedness incurred to carry the obligations or securities described in this paragraph and by any expenses incurred in the production of interest or dividend income described in this paragraph.

(d) The amount of any allowance for depletion in excess of the taxpayer's adjusted basis in the property depleted, deducted on the taxpayer's federal income tax return for the taxable year, pursuant to sections 613, 613A, 614, 616 and 617 of the Internal Revenue Code.

(e) The amount of any gain which is deferred for tax recognition purposes upon the voluntary or involuntary conversion or exchange of tangible real or personal property as provided under ORS 314.290.

(f) For taxable years beginning on or after January 1, 1985, the dollar amount deducted under section 151 of the Internal Revenue Code for personal exemptions for the taxable year.

(g) The amount taken as a deduction on the taxpayer's federal return for unused qualified business credits under section 196 of the Internal Revenue Code.

(h) The amount of any increased benefits paid to a taxpayer under chapter 569, Oregon Laws 1995, under the provisions of chapter 796, Oregon Laws 1991, and under section 26, chapter 815, Oregon Laws 1991, that is not includable in the taxpayer's federal taxable income under the Internal Revenue Code.

(3) Discount and gain or loss on retirement or disposition of obligations described under subsection (2)(a) of this section issued on or after January 1, 1985, shall be treated for purposes of this chapter in the same manner as under sections 1271 to 1283 and other pertinent sections of the Internal Revenue Code as if the obligations, although issued by a foreign state or a political subdivision of a foreign state, were not tax exempt under the Internal Revenue Code.

SECTION 17. The amendments to ORS 316.680 by section 16 of this 1999 Act first apply to tax years beginning on or after January 1, 2000.

SECTION 18. The Public Safety Memorial Fund Board shall investigate whether gifts made to the board under section 13 of this 1999 Act are, or could be, tax deductible contributions for the donors. If the gifts do not qualify as tax deductible contributions, the board shall take whatever actions are necessary to ensure that gifts meet the requirements for tax deductibility, unless such action would alter the purposes of sections 4 to 13 of this 1999 Act.

SECTION 19. Notwithstanding any law limiting expenditures of the Department of Public Safety Standards and Training for the payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding lottery funds and federal funds, collected or received by the Department of Public Safety Standards and Training for the biennium beginning July 1, 1999, the limitation of expenditures established by section 1, chapter 14, Oregon Laws 1999 (Enrolled House Bill 5046), is increased by the following amounts for the following purposes:

(1) Benefit awards from the

Public Safety Memorial Fund......... $ 500,000

(2) Administrative costs of the

Public Safety Memorial

Fund Board...................................... $ 60,000

Approved by the Governor August 18, 1999

Filed in the office of Secretary of State August 23, 1999

Effective date October 23, 1999

__________