68th OREGON LEGISLATIVE ASSEMBLY--1995 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 3943
House Bill 3465
Sponsored by Representative BAUM
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.
Transfers administration of Industrial Accident Fund and
responsibility for certain workers' compensation claims to Oregon
Department of Administrative Services. Transfers certain moneys
from Industrial Accident Fund to State Accident Insurance Fund
Corporation Fund. Establishes stabilization fund for workers'
compensation rates for small businesses.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the financial administration of the workers'
compensation system; creating new provisions; amending ORS
656.632, 656.634, 656.635, 656.636 and 656.640; appropriating
money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
**************************** SECTION 1. { + Sections 1 to 4 of
this Act are added to and made a part of ORS chapter 656. + }
**************************** SECTION 2. { + (1) The
administration of the Industrial Accident Fund is transferred
from the State Accident Insurance Fund Corporation to the Oregon
Department of Administrative Services.
(2) The Oregon Department of Administrative Services succeeds
to all the duties, obligations, functions and powers of the State
Accident Insurance Fund Corporation for the administration of
workers' compensation claims that were the responsibility of the
State Accident Insurance Fund Corporation prior to the effective
date of this 1995 Act. The State Accident Insurance Fund
Corporation shall transfer to the Oregon Department of
Administrative Services all books, records and other materials
necessary to enable the Oregon Department of Administrative
Services on the effective date of this 1995 Act to assume
administrative responsibility for the claims transferred by this
section.
(3) In carrying out the claims administration duties
transferred by this section, the Oregon Department of
Administrative Services may contract for claims administration
services with any person authorized by law to perform workers'
compensation insurance claim administration functions. + }
**************************** SECTION 3. { + The State Accident
Insurance Fund Corporation Fund is established in the State
Treasury, separate and apart from the General Fund. The fund
shall consist of all moneys received by the State Accident
Insurance Fund Corporation in the transaction of workers'
compensation and other authorized insurance. All moneys in the
fund are appropriated continuously to the State Accident
Insurance Fund Corporation to carry out the duties, functions and
powers imposed by law upon the corporation. + }
**************************** SECTION 4. { + The Director of
the Department of Consumer and Business Services shall contract
with a qualified private audit firm to conduct an actuarial
analysis regarding the adequacy and surplus of the Industrial
Accident Fund and to conduct a performance audit of the State
Accident Insurance Fund Corporation and shall make a report
thereof in February of each year to the Legislative Assembly or
to the Emergency Board if the Legislative Assembly is not then in
session. + }
**************************** SECTION 5. { + Pursuant to the
authority provided in ORS 656.634 (2), on the effective date of
this Act, there is transferred and appropriated to the State
Accident Insurance Fund Corporation Fund, out of the Industrial
Accident Fund, an amount equal to 120 percent of the premium
earned by the State Accident Insurance Fund Corporation during
calendar year 1994. + }
**************************** SECTION 6. ORS 656.632 is amended
to read:
656.632. (1) The Industrial Accident Fund is continued. This
fund shall be held by the State Treasurer and by the State
Treasurer deposited in such banks as are authorized to receive
deposits of general funds of the state.
(2) All moneys { - received - } { + earned + } by the State
Accident Insurance Fund Corporation under this chapter { + prior
to the effective date of this 1995 Act + }, shall be paid
{ - forthwith - } { + upon receipt + } to the State Treasurer
and shall become a part of the Industrial Accident Fund. However,
any assessments collected for the director under this chapter and
deposited in the Industrial Accident Fund may thereafter be
transferred to the director and deposited in the Consumer and
Business Services Fund. { + Subsequent to the effective date of
this 1995 Act, all moneys earned by the State Accident Insurance
Fund Corporation under this chapter shall be paid upon receipt to
the State Treasurer and shall be deposited in the State Accident
Insurance Fund Corporation Fund. However, any assessments
collected for the Director of the Department of Consumer and
Business Services and deposited in the State Accident Insurance
Corporation Fund shall thereafter be transferred to and deposited
in the Consumer and Business Services Fund. + }
(3) All payments authorized to be made by the State Accident
Insurance Fund Corporation by this chapter { + prior to the
effective date of this 1995 Act + }, including all salaries,
clerk hire and all other expenses, shall be made from the
Industrial Accident Fund. { + Subsequent to the effective date
of this 1995 Act, all such payments shall be made from the State
Accident Insurance Fund Corporation Fund. + }
**************************** SECTION 7. ORS 656.634 is amended
to read:
656.634. (1) The Industrial Accident Fund is a trust fund
exclusively for the uses and purposes declared in this chapter,
except that this provision shall not be deemed to amend or impair
the force or effect of any law of this state specifically
authorizing the investment of moneys from the fund.
(2) Subject to the right of the State of Oregon to direct
legislatively the disposition of any surplus in excess of
reserves
{ - and surplus - } deemed actuarially necessary according to
recognized insurance principles { + to satisfy the obligations
of the Industrial Accident Fund + }, { - and necessary in
addition thereto to assure continued fiscal soundness of the
State Accident Insurance Fund Corporation both for current
operations and for future capital needs, - } the State of Oregon
declares that it has no proprietary interest in the Industrial
Accident Fund or in the contributions made to the fund by the
state prior to June 4, 1929. The state disclaims any right to
reclaim those contributions and waives any right of reclamation
it may have had in that fund.
**************************** SECTION 8. ORS 656.635 is amended
to read:
656.635. (1) { - The State Accident Insurance Fund
Corporation - } { + There + } may { + be + } set aside, out of
interest and other income received through investment of the
Industrial Accident Fund, such part of the income as the
{ - State Accident Insurance Fund Corporation - } { + Oregon
Department of Administrative Services + } considers necessary,
which moneys so segregated shall remain in the fund and
constitute one or more reserve accounts. Such reserve accounts
shall be maintained and used { - by the State Accident
Insurance Fund Corporation - } to offset gains and losses of
invested capital.
(2) The { - State Accident Insurance Fund Corporation - }
{ + Oregon Department of Administrative Services + } may provide
for amortizing gains and losses of invested capital in such
instances as the
{ - State Accident Insurance Fund Corporation - } { + Oregon
Department of Administrative Services + } determines that
amortization is preferable to a reserve account provided for in
subsection (1) of this section.
**************************** SECTION 9. ORS 656.636 is amended
to read:
656.636. { - For every case where the State Accident
Insurance Fund Corporation must pay an award or benefits for
death or permanent total disability or permanent partial
disability, - } The
{ - State Accident Insurance Fund Corporation - } { + Oregon
Department of Administrative Services + } { - forthwith - }
shall set aside in the Industrial Accident Fund { - in - } a
reserve { - account the - } amount required to equal, together
with the anticipated interest increment, the present worth of the
{ - installments - } { + benefits + } payable { + from the
Industrial Accident Fund. + } { - on account of that injury.
The number of installments shall be computed in case of permanent
total disability or death according to the ages of the
beneficiaries, and according to the actuarial practices in the
insurance field as recommended by the Director of the Department
of Consumer and Business Services and, in the case of permanent
partial disability, according to the schedule in ORS 656.214 and
656.216. - }
**************************** SECTION 10. ORS 656.640 is amended
to read:
656.640. The { - State Accident Insurance Fund
Corporation - } { + Oregon Department of Administrative
Services + } may set aside such other reserves within the
Industrial Accident Fund as are deemed necessary.
**************************** SECTION 11. { + Section 12 of
this Act is added to and made a part of ORS chapter 656. + }
**************************** SECTION 12. { + (1) The Rate
Stabilization Fund is established in the State Treasury, separate
and apart from the General Fund. All moneys in the fund are
appropriated continuously to the Director of the Department of
Consumer and Business Services and shall be used to stabilize and
reduce workers' compensation insurance premiums for Oregon small
businesses.
(2) The fund shall be deposited by the State Treasurer in such
banks as may be authorized to receive deposits of general funds
of the State of Oregon.
(3) The Legislative Assembly may appropriate and transfer from
the Industrial Accident Fund to the Rate Stabilization Fund in
amounts not to exceed the surplus available in the Industrial
Accident Fund, as determined by the audit conducted pursuant to
section 4 of this 1995 Act. + }
**************************** SECTION 13. { + This Act being
necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this
Act takes effect on its passage. + }
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