68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session


LC 1817-1

                      SENATE AMENDMENTS TO
                         SENATE BILL 333

        By COMMITTEE ON GOVERNMENT FINANCE AND TAX POLICY

                           February 6




  On page 1 of the printed bill, delete lines 4 through 31 and
delete page 2 and insert:
  '  { +  SECTION 1. + }  { + As used in sections 1 to 4 of this
Act:
  ' (1) 'Fee' means an amount imposed and collected by a state
agency to defray or recover the costs of administering the law
involved in providing a service to the public and used by the
state agency to carry out or enforce a law under its
jurisdiction.  ' Fee' does not include:
  ' (a) Fines and civil penalties.
  ' (b) The sale of products or charges for rents, leases or
other real estate transaction costs.
  ' (c) Interest and other charges for bonding and loan
transactions.
  ' (d) 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.
  ' (e) 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.
  ' (2) 'Products' means goods and publications purchased
voluntarily that have a commercial value. 'Products' includes
copying charges for public records as defined in ORS 192.410 and
the conducting of informational seminars. 'Products' does not
include services or licenses or permits issued by state agencies.
  ' (3) 'State agency' means every state officer, board,
commission, department, institution, branch or agency of the
state government, that is subject to the provisions of ORS
291.202 to 291.222 and 291.232 to 291.260. 'State agency'
includes the Legislative Assembly, including legislative
committees and service agencies, the Secretary of State and the
State Treasurer. + }
  '  { +  SECTION 2. + }  { + (1)(a) Notwithstanding any other
law that grants the authority to establish fees to a state
agency, a state agency shall not, without the enactment of
enabling legislation setting forth the approved fee:
  ' (A) Adopt new or additional fees other than those in effect
on January 1, 1995.
  ' (B) Increase the rate or other manner in which the amount of
a fee is determined or calculated above that in effect on January
1, 1995.
  ' (b) Subject to paragraphs (c) and (d) of this subsection, any
fee increases effective on or after January 1, 1994, and before
the effective date of this Act are rescinded as of adjournment




sine die of the Sixty-eighth Legislative Assembly until reviewed
and enacted into law by the Sixty-eighth Legislative Assembly.
  ' (c) The provisions of paragraph (b) of this subsection do not
apply to fees levied for the purpose of servicing bonded debt.
  ' (d) Any fee increases rescinded under paragraph (b) of this
subsection are legal and in effect prior to adjournment sine die
of the Sixty-eighth Legislative Assembly and do not require
refunds.
  ' (2)(a) After determining that termination of a function or
activity of a state agency in the executive branch of state
government is imminent because revenues necessary for the
continued operation of the function or activity are not
available, the Governor, no more than once during any 12-month
period, may authorize the state agency to increase the rate or
manner of fee calculation or the determination of a fee that is
used to support the function or activity. However, no such
increase shall be more than 10 percent.
  ' (b) The Governor may also grant an increase in fees charged
by occupational licensing agencies to meet unforeseen legal costs
or unanticipated costs associated with administering examinations
required by national examining authorities when the agency has
received an increase in its expenditure limitation from the
legislative review agency as defined by ORS 291.371.
  ' (c) An increase in a fee under this section may only be
imposed by a rule adopted by a state agency in the executive
branch of state government in the manner provided by ORS 183.310
to 183.550. Any fee increase authorized by the Governor shall be
approved by enactment of enabling legislation setting forth the
approved fee at the next session of the Legislative Assembly or
the fee shall return to the amount effective prior to the
Governor's authorization. No refund shall be paid to persons who
paid the higher fee authorized by the Governor.
  ' (d) Any state agency in the executive branch of state
government seeking or receiving authorization for a fee increase
shall notify the Oregon Department of Administrative Services and
the presiding officers of the Legislative Assembly of the request
and whether authorization was received.
  ' (3) 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, 656.532 and
656.538.
  ' (c) Fees or payments required for:
  ' (A) Health care services provided by the Oregon Health
Sciences University 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) Laboratory fees charged by the Health Division.
  ' (D) Copayments and premiums paid to the Oregon medical
assistance program.
  ' (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 the fee is assessed based on
actual cost of services provided.
  ' (e) Any intergovernmental charges.


SA to SB 333                                               Page 2



  ' (f) State agency charges on employees for benefits and
services.
  ' (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.
  ' (4) Nothing in this Act shall be construed to prohibit a
state agency from decreasing fees. + }
  '  { +  SECTION 3. + }  { + (1) A fee described under section 2
(3)(d) of this Act and a fee increased under the provisions of
section 2 (2) of this Act must be used exclusively to support the
function or activity for which the fee is charged.
  ' (2) If a state agency in the executive branch of state
government imposes or increases a fee described under section 2
(3)(d) of this Act, a person charged with paying the fee may
contest the amount of the fee in the manner provided by ORS
183.310 to 183.550 for contested cases. + }
  '  { +  SECTION 4. + }  { + The Oregon Department of
Administrative Services shall, no later than January 15 of each
odd-numbered year, provide the Legislative Assembly with a report
setting forth in detail all fees and the charges described in
section 1 (1)(d) and (e) of this Act charged by each state
agency, the purpose for the fee or charge, the persons affected
by the fee or charge, the authority for the fee or charge, the
amounts collected in the past biennium, the amounts expected to
be paid during the present biennium and estimated for the next
biennium in the Governor's recommended budget, and any changes in
the fee or charge authorized during the present biennium or
proposed for the next biennium in the Governor's recommended
budget. + }
  '  { +  SECTION 5. + }  { + Section 6 of this Act is added to
and made a part of ORS chapter 294. + }
  '  { +  SECTION 6. + }  { + (1) After the effective date of
this 1995 Act, the governing body of a city, county or other unit
of local government shall provide an opportunity for interested
persons to comment on the enactment of any ordinance or
resolution prescribing a new fee or a fee increase or an increase
in the rate or other manner in which the amount of a fee is
determined or calculated.
  ' (2) Where a local government exercises authority to assume
the responsibility for a program delivered by the state, the
local government shall provide an opportunity to comment on the
difference between the fee amount charged by the state for such
service and the proposed local fee for the service. + } ' .
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SA to SB 333                                               Page 3