Bill Text: OR HB2456 | 2011 | Regular Session | Enrolled
Bill Title: Relating to payments made under Public Employees Retirement System that are not subject to Oregon income tax; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2011-08-02 - Chapter 653, (2011 Laws): Effective date August 2, 2011. [HB2456 Detail]
Download: Oregon-2011-HB2456-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
Enrolled
House Bill 2456
Introduced and printed pursuant to House Rule 12.00. Presession
filed (at the request of House Interim Committee on Rules)
CHAPTER ................
AN ACT
Relating to payments made under Public Employees Retirement
System that are not subject to Oregon income tax; creating new
provisions; amending ORS 237.637 and 314.840; limiting
expenditures; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + Sections 2 to 7 of this 2011 Act are added to
and made a part of ORS chapter 238. + }
SECTION 2. { + Increased benefits under chapter 569, Oregon
Laws 1995, not payable to nonresidents. (1) Except as provided in
sections 2 to 7 of this 2011 Act, the Public Employees Retirement
Board may not pay the increased benefit provided by chapter 569,
Oregon Laws 1995, if the board receives notice under sections 2
to 7 of this 2011 Act that the payments made to the person under
this chapter are not subject to Oregon personal income tax under
ORS 316.127 (9).
(2) The provisions of sections 2 to 7 of this 2011 Act do not
apply to:
(a) A retired member of the system who is receiving payments
under this chapter and whose effective date of retirement is
before January 1, 2012;
(b) A person who is receiving payments under this chapter by
reason of the retirement of a member whose effective date of
retirement is before January 1, 2012; and
(c) Any other person who receives payments under this chapter
that began before January 1, 2012.
(3) The board shall give written notification of the provisions
of sections 2 to 7 of this 2011 Act to all persons applying for
or receiving payments under this chapter.
(4) A person receiving payments under this chapter that are not
increased under chapter 569, Oregon Laws 1995, by reason of
sections 2 to 7 of this 2011 Act has no right or claim to the
increased benefit provided by chapter 569, Oregon Laws 1995,
except as provided in sections 2 to 7 of this 2011 Act. + }
SECTION 3. { + Applicant's statement; resumption of
residency. (1) A person applying for payments under this chapter
shall give a written statement to the Public Employees Retirement
Board that indicates whether the payments will be subject to
Oregon personal income tax under ORS 316.127 (9). If the person
fails to provide the statement required by this subsection, or
the statement indicates that the payments will not be subject to
Oregon personal income tax under ORS 316.127 (9), the board may
Enrolled House Bill 2456 (HB 2456-B) Page 1
not pay the person the increased benefit provided by chapter 569,
Oregon Laws 1995.
(2) If a person is receiving payments under this chapter that
have not been increased under chapter 569, Oregon Laws 1995, by
reason of the provisions of subsection (1) of this section, and
thereafter the payments become subject to Oregon personal income
tax, the person shall promptly notify the Public Employees
Retirement Board by written statement that the payments are
subject to Oregon personal income tax.
(3) If a person is receiving payments under this chapter that
have not been increased under chapter 569, Oregon Laws 1995, by
reason of the provisions of subsection (1) of this section, and
the board receives notice under subsection (2) of this section
that payments to the person under this chapter are subject to
Oregon personal income tax, or determines under section 5 of this
2011 Act that payments to the person under this chapter are
subject to Oregon personal income tax, the board shall initiate
payment of the increased benefit provided by chapter 569, Oregon
Laws 1995. The increase in benefits becomes effective on the
first day of the calendar year following receipt of notice by the
board. + }
SECTION 4. { + Nonresidency after benefits commenced;
required statement; subsequent residency. (1) If a person is
receiving payments under this chapter, and after the payments
commence the payments cease to be subject to Oregon personal
income tax under ORS 316.127 (9), the person shall promptly
notify the Public Employees Retirement Board by written statement
that the payments are no longer subject to Oregon personal income
tax. The board shall reduce any benefits payable to the person by
the amount by which the benefits were increased under chapter
569, Oregon Laws 1995. The reduction in benefits becomes
effective on the first day of the calendar year following receipt
of notice by the board.
(2) If a person is receiving payments under this chapter that
have been reduced under the provisions of subsection (1) of this
section, and thereafter the payments become subject to Oregon
personal income tax, the person shall promptly notify the board
by written statement that the payments are once again subject to
Oregon personal income tax.
(3) If a person is receiving payments under this chapter that
have been reduced under the provisions of subsection (1) of this
section, and the board receives notice under subsection (2) of
this section that payments to the person under this chapter are
once again subject to Oregon personal income tax, or determines
under section 5 of this 2011 Act that payments to the person
under this chapter are once again subject to Oregon personal
income tax, the board shall resume payment of the increased
benefit provided by chapter 569, Oregon Laws 1995. The increase
in benefits becomes effective on the first day of the calendar
year following receipt of notice by the board. + }
SECTION 5. { + Information from Department of Revenue. (1)
Not less than once each calendar year, the Public Employees
Retirement Board shall provide to the Department of Revenue
information identifying persons to whom payments have been made
under this chapter. The Department of Revenue shall provide to
the board such information on Oregon personal income tax returns
as the board deems necessary to determine whether the payments
made to the person under this chapter are subject to Oregon
personal income tax under ORS 316.127 (9).
Enrolled House Bill 2456 (HB 2456-B) Page 2
(2) If the board determines that the payments made to a person
under this chapter are not subject to Oregon personal income tax
under ORS 316.127 (9) based on information provided by the
Department of Revenue under this section, and the person is
receiving the increased benefit provided by chapter 569, Oregon
Laws 1995, the board shall reduce the benefits payable to the
person as provided in section 4 (1) of this 2011 Act.
(3) If the board determines that the payments made to a person
under this chapter are subject to Oregon personal income tax
based on information provided by the Department of Revenue under
this section, and the person is not receiving the increased
benefit provided by chapter 569, Oregon Laws 1995, the board
shall increase the benefits payable to the person as provided in
section 3 (3) or 4 (3) of this 2011 Act. + }
SECTION 6. { + Statements constitute declaration under
penalty of perjury. A statement required under sections 2 to 7 of
this 2011 Act constitutes a declaration under penalty of perjury
and must include the following sentence in prominent letters
immediately above the signature of the declarant: 'I hereby
declare that the above statement is true to the best of my
knowledge and belief, and that I understand it is subject to
penalty for perjury.' + }
SECTION 7. { + Rules. The Public Employees Retirement Board
may establish rules for the administration of sections 2 to 7 of
this 2011 Act. + }
SECTION 8. ORS 237.637 is amended to read:
237.637. { + (1) + } Any public employer that provides
retirement benefits to its police officers and firefighters other
than by participation in the Public Employees Retirement System
pursuant to the provisions of ORS 237.620 shall provide increases
to the police officers and firefighters of the public employer,
both active and retired, that are equal to the increases in
retirement benefits that are provided for in chapter 569, Oregon
Laws 1995, for active and retired police officers or firefighters
who are members of the Public Employees Retirement System, or the
public employer shall provide to those police officers and
firefighters increases in retirement benefits that are the
actuarial equivalent of the increases in retirement benefits that
are provided for in chapter 569, Oregon Laws 1995, for police
officers or firefighters who are members of the Public Employees
Retirement System. Increases provided under this section shall
be reduced by the amount of any benefit increase provided by ORS
237.635 in the same manner that increases in retirement benefits
that are provided for in chapter 569, Oregon Laws 1995, for
active and retired police officers or firefighters who are
members of the Public Employees Retirement System are reduced to
reflect amounts paid to those members under the provisions of
chapter 796, Oregon Laws 1991. No other retirement benefit or
other benefit provided by those public employers shall be
decreased by the employer by reason of the increases mandated by
this section.
{ + (2) A public employer that is subject to the requirements
of this section shall cease paying increased benefits under this
section if the payments made to the person are not subject to
Oregon personal income tax under ORS 316.127 (9). A public
employer that is subject to the requirements of this section
shall adopt procedures similar to those described in sections 2
to 7 of this 2011 Act for the purpose of implementing this
subsection. The Department of Revenue shall provide to a public
employer that is subject to the requirements of this section such
Enrolled House Bill 2456 (HB 2456-B) Page 3
information regarding Oregon personal income tax returns as the
public employer deems necessary to determine whether the
retirement benefits paid to the person by the public employer are
subject to Oregon personal income tax under ORS 316.127 (9).
(3) The provisions of subsection (2) of this section do not
apply to:
(a) A retired police officer or firefighter who is receiving
payments under the public employer's plan and whose effective
date of retirement is before January 1, 2012;
(b) A person who is receiving payments under the public
employer's plan by reason of the retirement of a police officer
or firefighter whose effective date of retirement is before
January 1, 2012; and
(c) Any other person who receives payments under the public
employer's plan that began before January 1, 2012. + }
SECTION 9. { + Sections 2 to 7 of this 2011 Act and the
amendments to ORS 237.637 by section 8 of this 2011 Act do not
affect any benefit paid under chapter 569, Oregon Laws 1995,
before January 1, 2012. + }
SECTION 10. ORS 314.840 is amended to read:
314.840. (1) The Department of Revenue may:
(a) Furnish any taxpayer, representative authorized to
represent the taxpayer under ORS 305.230 or person designated by
the taxpayer under ORS 305.193, upon request of the taxpayer,
representative or designee, with a copy of the taxpayer's income
tax return filed with the department for any year, or with a copy
of any report filed by the taxpayer in connection with the
return, or with any other information the department considers
necessary.
(b) Publish lists of taxpayers who are entitled to unclaimed
tax refunds.
(c) Publish statistics so classified as to prevent the
identification of income or any particulars contained in any
report or return.
(d) Disclose a taxpayer's name, address, telephone number,
refund amount, amount due, Social Security number, employer
identification number or other taxpayer identification number to
the extent necessary in connection with collection activities or
the processing and mailing of correspondence or of forms for any
report, return or claim required in the administration of ORS
310.630 to 310.706, any local tax under ORS 305.620, or any law
imposing a tax upon or measured by net income.
(2) The department also may disclose and give access to
information described in ORS 314.835 to:
(a) The Governor of the State of Oregon or the authorized
representative of the Governor:
(A) With respect to an individual who is designated as being
under consideration for appointment or reappointment to an office
or for employment in the office of the Governor. The information
disclosed shall be confined to whether the individual:
(i) Has filed returns with respect to the taxes imposed by ORS
chapter 316 for those of not more than the three immediately
preceding years for which the individual was required to file an
Oregon individual income tax return.
(ii) Has failed to pay any tax within 30 days from the date of
mailing of a deficiency notice or otherwise respond to a
deficiency notice within 30 days of its mailing.
(iii) Has been assessed any penalty under the Oregon personal
income tax laws and the nature of the penalty.
Enrolled House Bill 2456 (HB 2456-B) Page 4
(iv) Has been or is under investigation for possible criminal
offenses under the Oregon personal income tax laws. Information
disclosed pursuant to this paragraph shall be used only for the
purpose of making the appointment, reappointment or decision to
employ or not to employ the individual in the office of the
Governor.
(B) For use by an officer or employee of the Oregon Department
of Administrative Services duly authorized or employed to prepare
revenue estimates, or a person contracting with the Oregon
Department of Administrative Services to prepare revenue
estimates, in the preparation of revenue estimates required for
the Governor's budget under ORS 291.201 to 291.226, or required
for submission to the Emergency Board, or if the Legislative
Assembly is in session, to the Joint Committee on Ways and Means,
and to the Legislative Revenue Officer under ORS 291.342, 291.348
and 291.445. The Department of Revenue shall disclose and give
access to the information described in ORS 314.835 for the
purposes of this subparagraph only if:
(i) The request for information is made in writing, specifies
the purposes for which the request is made and is signed by an
authorized representative of the Oregon Department of
Administrative Services. The form for request for information
shall be prescribed by the Oregon Department of Administrative
Services and approved by the Director of the Department of
Revenue.
(ii) The officer, employee or person receiving the information
does not remove from the premises of the Department of Revenue
any materials that would reveal the identity of a personal or
corporate taxpayer.
(b) The Commissioner of Internal Revenue or authorized
representative, for tax administration and compliance purposes
only.
(c) For tax administration and compliance purposes, the proper
officer or authorized representative of any of the following
entities that has or is governed by a provision of law that meets
the requirements of any applicable provision of the Internal
Revenue Code as to confidentiality:
(A) A state;
(B) A city, county or other political subdivision of a state;
(C) The District of Columbia; or
(D) An association established exclusively to provide services
to federal, state or local taxing authorities.
(d) The Multistate Tax Commission or its authorized
representatives, for tax administration and compliance purposes
only. The Multistate Tax Commission may make the information
available to the Commissioner of Internal Revenue or the proper
officer or authorized representative of any governmental entity
described in and meeting the qualifications of paragraph (c) of
this subsection.
(e) The Attorney General, assistants and employees in the
Department of Justice, or other legal representative of the State
of Oregon, to the extent the department deems disclosure or
access necessary for the performance of the duties of advising or
representing the department pursuant to ORS 180.010 to 180.240
and the tax laws of this state.
(f) Employees of the State of Oregon, other than of the
Department of Revenue or Department of Justice, to the extent the
department deems disclosure or access necessary for such
employees to perform their duties under contracts or agreements
between the department and any other department, agency or
Enrolled House Bill 2456 (HB 2456-B) Page 5
subdivision of the State of Oregon, in the department's
administration of the tax laws.
(g) Other persons, partnerships, corporations and other legal
entities, and their employees, to the extent the department deems
disclosure or access necessary for the performance of such
others' duties under contracts or agreements between the
department and such legal entities, in the department's
administration of the tax laws.
(h) The Legislative Revenue Officer or authorized
representatives upon compliance with ORS 173.850. Such officer or
representative shall not remove from the premises of the
department any materials that would reveal the identity of any
taxpayer or any other person.
(i) The Department of Consumer and Business Services, to the
extent the department requires such information to determine
whether it is appropriate to adjust those workers' compensation
benefits the amount of which is based pursuant to ORS chapter 656
on the amount of wages or earned income received by an
individual.
(j) Any agency of the State of Oregon, or any person, or any
officer or employee of such agency or person to whom disclosure
or access is given by state law and not otherwise referred to in
this section, including but not limited to the Secretary of State
as Auditor of Public Accounts under section 2, Article VI of the
Oregon Constitution; the Department of Human Services pursuant to
ORS 314.860 and 412.094; the Division of Child Support of the
Department of Justice and district attorney regarding cases for
which they are providing support enforcement services under ORS
25.080; the State Board of Tax Practitioners, pursuant to ORS
673.710; and the Oregon Board of Accountancy, pursuant to ORS
673.415.
(k) The Director of the Department of Consumer and Business
Services to determine that a person complies with ORS chapter 656
and the Director of the Employment Department to determine that a
person complies with ORS chapter 657, the following employer
information:
(A) Identification numbers.
(B) Names and addresses.
(C) Inception date as employer.
(D) Nature of business.
(E) Entity changes.
(F) Date of last payroll.
(L) The Director of Human Services to determine that a person
has the ability to pay for care that includes services provided
by the Eastern Oregon Training Center or the Department of Human
Services to collect any unpaid cost of care as provided by ORS
chapter 179.
(m) The Director of the Oregon Health Authority to determine
that a person has the ability to pay for care that includes
services provided by the Blue Mountain Recovery Center or the
Oregon State Hospital or the Oregon Health Authority to collect
any unpaid cost of care as provided by ORS chapter 179.
(n) Employees of the Employment Department to the extent the
Department of Revenue deems disclosure or access to information
on a combined tax report filed under ORS 316.168 is necessary to
performance of their duties in administering the tax imposed by
ORS chapter 657.
(o) The State Fire Marshal to assist the State Fire Marshal in
carrying out duties, functions and powers under ORS 453.307 to
Enrolled House Bill 2456 (HB 2456-B) Page 6
453.414, the employer or agent name, address, telephone number
and standard industrial classification, if available.
(p) Employees of the Department of State Lands for the purposes
of identifying, locating and publishing lists of taxpayers
entitled to unclaimed refunds as required by the provisions of
chapter 694, Oregon Laws 1993. The information shall be limited
to the taxpayer's name, address and the refund amount.
(q) In addition to the disclosure allowed under ORS 305.225,
state or local law enforcement agencies to assist in the
investigation or prosecution of the following criminal
activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(r) The United States Postal Inspection Service or a federal
law enforcement agency, including but not limited to the United
States Department of Justice, to assist in the investigation of
the following criminal activities:
(A) Mail theft of a check, in which case the information that
may be disclosed shall be limited to the stolen document, the
name, address and taxpayer identification number of the payee,
the amount of the check and the date printed on the check.
(B) The counterfeiting, forging or altering of a check
submitted by a taxpayer to the Department of Revenue or issued by
the Department of Revenue to a taxpayer, in which case the
information that may be disclosed shall be limited to the
counterfeit, forged or altered document, the name, address and
taxpayer identification number of the payee, the amount of the
check, the date printed on the check and the altered name and
address.
(s) The United States Financial Management Service, for
purposes of facilitating the reciprocal offsets described in ORS
305.612.
(t) A municipal corporation of this state for purposes of
assisting the municipal corporation in the administration of a
tax of the municipal corporation that is imposed on or measured
by income, wages or net earnings from self-employment. Any
disclosure under this paragraph may be made only pursuant to a
written agreement between the Department of Revenue and the
municipal corporation that ensures the confidentiality of the
information disclosed.
(u) A consumer reporting agency, to the extent necessary to
carry out the purposes of ORS 314.843.
{ + (v) The Public Employees Retirement Board, to the extent
necessary to carry out the purposes of sections 2 to 7 of this
2011 Act, and to any public employer, to the extent necessary to
carry out the purposes of ORS 237.637 (2). + }
(3)(a) Each officer or employee of the department and each
person described or referred to in subsection (2)(a), (e) to (k)
or (n) to (q) of this section to whom disclosure or access to the
tax information is given under subsection (2) of this section or
Enrolled House Bill 2456 (HB 2456-B) Page 7
any other provision of state law, prior to beginning employment
or the performance of duties involving such disclosure or access,
shall be advised in writing of the provisions of ORS 314.835 and
314.991, relating to penalties for the violation of ORS 314.835,
and shall as a condition of employment or performance of duties
execute a certificate for the department, in a form prescribed by
the department, stating in substance that the person has read
these provisions of law, that the person has had them explained
and that the person is aware of the penalties for the violation
of ORS 314.835.
(b) The disclosure authorized in subsection (2)(r) of this
section shall be made only after a written agreement has been
entered into between the Department of Revenue and the person
described in subsection (2)(r) of this section to whom disclosure
or access to the tax information is given, providing that:
(A) Any information described in ORS 314.835 that is received
by the person pursuant to subsection (2)(r) of this section is
confidential information that may not be disclosed, except to the
extent necessary to investigate or prosecute the criminal
activities described in subsection (2)(r) of this section;
(B) The information shall be protected as confidential under
applicable federal and state laws; and
(C) The United States Postal Inspection Service or the federal
law enforcement agency shall give notice to the Department of
Revenue of any request received under the federal Freedom of
Information Act, 5 U.S.C. 552, or other federal law relating to
the disclosure of information.
(4) The Department of Revenue may recover the costs of
furnishing the information described in subsection (2)(k) to (m)
and (o) to (q) of this section from the respective agencies.
SECTION 11. { + Sections 2 to 7 of this 2011 Act and the
amendments to ORS 237.637 by section 8 of this 2011 Act become
operative on January 1, 2012. + }
SECTION 12. { + (1) Jurisdiction is conferred on the Supreme
Court to determine in the manner provided by this section whether
the provisions of sections 2 to 7 of this 2011 Act and the
amendments to ORS 237.637 and 314.840 by sections 8 and 10 of
this 2011 Act breach any contract between members of the Public
Employees Retirement System and their employers, violate the
terms of the settlement agreement entered into in the case of
Stovall v. State, 324 Or. 92 (1996), or violate any
constitutional provision, including but not limited to impairment
of contract rights of members of the Public Employees Retirement
System under section 21, Article I of the Oregon Constitution, or
clause 1, section 10, Article I of the United States
Constitution.
(2) A person who is or who will be adversely affected by
sections 2 to 7 of this 2011 Act or the amendments to ORS 237.637
and 314.840 by sections 8 and 10 of this 2011 Act may institute a
proceeding for review by filing with the Supreme Court a petition
that meets the following requirements:
(a) The petition must be filed within 60 days after the
effective date of this 2011 Act.
(b) The petition must include the following:
(A) A statement of the basis of the challenge; and
(B) A statement and supporting affidavit showing how the
petitioner is adversely affected.
(3) The petitioner shall serve a copy of the petition by
registered or certified mail upon the Public Employees Retirement
Board, the Attorney General and the Governor.
Enrolled House Bill 2456 (HB 2456-B) Page 8
(4) Proceedings for review under this section shall be given
priority over all other matters before the Supreme Court.
(5) The Supreme Court shall allow public employers
participating in the Public Employees Retirement System to
intervene in any proceeding under this section.
(6) In the event the Supreme Court determines that there are
factual issues in the petition, the Supreme Court may appoint a
special master to hear evidence and to prepare recommended
findings of fact. + }
SECTION 13. { + Notwithstanding any other law limiting
expenditures, the limitation on expenditures established by
section 1 (1), chapter 495, Oregon Laws 2011 (Enrolled House Bill
5039), for the biennium beginning July 1, 2011, as the maximum
limit for payment of expenses from fees, moneys or other
revenues, including Miscellaneous Receipts, but excluding lottery
funds and federal funds, collected or received by the Public
Employees Retirement System, is increased by $570,412. + }
SECTION 14. { + The section captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }
SECTION 15. { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
----------
Passed by House June 27, 2011
.............................................................
Ramona Kenady Line, Chief Clerk of House
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Passed by Senate June 29, 2011
.............................................................
Peter Courtney, President of Senate
Enrolled House Bill 2456 (HB 2456-B) Page 9
Received by Governor:
......M.,............., 2011
Approved:
......M.,............., 2011
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2011
.............................................................
Kate Brown, Secretary of State
Enrolled House Bill 2456 (HB 2456-B) Page 10
