USA Statutes : oregon
Title : TITLE 28 PUBLIC FINANCIAL ADMINISTRATION
Chapter : Chapter 291 State Financial Administration
(1) As used in
the statute laws of this state, unless the context or specially
applicable definition requires otherwise, the words “subaccounts,”
“accounts” or “funds” are used interchangeably, where such use is
consistent with state accounting principles and is accepted for use by
the State Treasurer.

(2) Unless the context or a specific provision of law provides
otherwise, when a law of this state requires that a payment or transfer
of moneys be made by warrant, check or electronic funds transfer the
payment or transfer may be made by warrant, check, electronic funds
transfer or an accounting entry in the appropriate records of any
affected state agency. The Oregon Department of Administrative Services
shall determine which method of payment or transfer is most appropriate,
taking into consideration the established state banking, funds transfer
and accounting practices at the time of the payment or transfer.

(3) The State Treasurer, in consultation with the Oregon Department
of Administrative Services, may establish or designate, whenever
necessary or convenient to the carrying out or administration of the
accounting, budget preparation, cash management, financial management,
financial reporting or similar laws of this state, subaccounts, accounts
and funds in addition to or within the subaccounts, accounts and funds
created by the Oregon Constitution and statutes. Subaccounts, accounts
and funds established or designated under this subsection shall be
administered as prescribed by written directive or policy issued or
approved by the State Treasurer. The authority granted by this subsection
is in addition to, and not in limitation of, the authority granted by ORS
293.445 and 293.447. [1993 c.73 §5; 1997 c.122 §4; 2003 c.17 §1]Except as otherwise provided in ORS 291.201
and 291.230, as used in ORS 291.001 to 291.034, 291.201 to 291.222,
291.230 to 291.260, 291.261, 291.307 and 291.990, unless the context
requires otherwise:

(1) “Classification of expenditures” means the major groups or
categories of expenditures for the purpose of budget-making and
accounting that are established as provided in ORS 291.206.

(2) “Department” means the Oregon Department of Administrative
Services.

(3) “Director” means the Director of the Oregon Department of
Administrative Services.

(4) “Dedicated fund” means a fund in the State Treasury, or a
separate account or fund in the General Fund in the State Treasury, that
by law is dedicated, appropriated or set aside for a limited object or
purpose; but “dedicated fund” does not include a revolving fund or a
trust fund.

(5) “Legislatively adopted budget” means the budget enacted by the
Legislative Assembly during a regular session.

(6) “Legislatively approved budget” means the legislatively adopted
budget as modified by the Emergency Board or by the Legislative Assembly
meeting in special session.

(7) “Revolving fund” means a fund in the State Treasury,
established by law, from which is paid the cost of goods or services
furnished to or by a state agency, and which is replenished through
charges made for such goods or services or through transfers from other
accounts or funds; and specifically includes funds derived from receipts
by the State Board of Higher Education of tuition, fees, dormitory
earnings, student activity receipts and sales of products and services
incident to education functions.

(8) “Trust fund” means a fund in the State Treasury in which
designated persons or classes of persons have a vested beneficial
interest or equitable ownership, or which was created or established by a
gift, grant, contribution, devise or bequest that limits the use of the
fund to designated objects or purposes.

(9) “State agency” or “agency” means every state officer, board,
commission, department, institution, branch or agency of the state
government, whose costs are paid wholly or in part from funds held in the
State Treasury, except:

(a) The Legislative Assembly, the courts and their officers and
committees;

(b) The Public Defense Services Commission; and

(c) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices.

(10) “State officer” means any elected or appointed state officer,
including members of boards and commissions, except the members and
officers of the Legislative Assembly, the courts, the Secretary of State
and the State Treasurer in the performance of the duties of their
constitutional offices and the members of the Public Defense Services
Commission. [Amended by 1967 c.419 §2; 2003 c.449 §21; 2003 c.734 §13;
2005 c.837 §8]In all cases where federal granted funds are involved, the
federal laws, rules and regulations applicable thereto shall govern
notwithstanding any provision to the contrary in ORS 291.001 to 291.034,
291.201 to 291.222, 291.230 to 291.260, 291.261, 291.307 and 291.990.
[Amended by 1967 c.419 §3; 2003 c.734 §14]

(1) The Director of the Oregon Department of Administrative Services may
require a fidelity bond of any officer, employee or agent of the
department or of any other state officer, employee or agent who has
charge of, handles or has access to any money or property belonging to
the state or in which the state may have an interest and who is not
otherwise required by law to give a fidelity bond. The amounts of the
bonds shall be fixed by the director, except as otherwise provided by
law, and the sureties shall be approved by the director. The premium on
the bond of any officer, employee or agent shall be paid by the state
agency that employs the officer, employee or agent.

(2) The Oregon Department of Administrative Services may procure or
provide and may administer a blanket bond covering any or all officers
and employees of the state. The bond shall contain such coverages and
shall be in such amounts as the Oregon Department of Administrative
Services deems adequate to protect the interest of the state. Procurement
of the bond to cover any officer or employee of the state shall
constitute compliance with any statute requiring that officer or employee
to be bonded up to the monetary limit of the blanket bond which the
Oregon Department of Administrative Services purchases or provides. The
coverage and insuring amount applicable in such bond to any officer or
employee of the state shall be at least equal to that required by
statute. The cost of the premium on the bond shall be charged to the
various state agencies employing the state officers and employees covered
by the bond.

(3) The provisions of this section are considered to satisfy any
provision of law requiring individual fidelity bonds for elected officers
if the level of coverage of the blanket fidelity bond is at least equal
to the individual statutory requirements.

(4) As used in this section:

(a) “Officers and employees of the state” includes all elected and
appointed officers and employees of the State of Oregon and all persons
appointed by a state agency on a temporary or intermittent basis to act
for the state in particular matters where such persons have charge of,
handle or have access to any money or property belonging to the state or
in which the state may have an interest.

(b) “State agency” means every state officer, board, commission,
department, institution, branch or agency of the state government and
includes the Legislative Assembly and any of its statutory standing,
special or interim committees, the courts and their officers and
committees, all constitutional state officers and the Public Defense
Services Commission. [1967 c.419 §8; 1969 c.80 §5; 1971 c.54 §1; 1975
c.194 §1; 1981 c.129 §1; 1991 c.219 §1; 2003 c.449 §37](1) The Oregon Department of Administrative Services, under
the direction of the Governor and as provided by law, is responsible
generally for the administration and coordination of internal accounting
and other affairs, controls, procedures and services of a fiscal nature
of the state government and agencies thereof.

(2) Except as otherwise provided by law, the department may
authorize subject to its control the decentralized performance by state
agencies of fiscal functions of the department. [1967 c.419 §10] The
Oregon Department of Administrative Services may make or cause to be made
administrative and organizational surveys of the state agencies for the
purpose of determining the feasibility of improving the administration of
the state government by the elimination of unnecessary positions and
activities, the improvement of internal operating forms, the avoidance of
duplication, and increasing efficiency and economical operation.The Oregon Department of Administrative Services shall conduct
research for use in administrative planning, policy review and
organization and methods improvement. Periodic administrative reports to
the department and the Governor, designed to outline factually the
quantitative and qualitative aspects of work performance by operating
units, may be required of state agencies. The department may require
submission of such information in reports as will permit sound analysis
and will provide the basis for detecting administrative weaknesses,
correcting performance difficulties and permitting better planning and
management of state services. For the
purposes of carrying out its duties, powers and functions, the Oregon
Department of Administrative Services may examine the records, files,
documents, accounts and financial affairs of any state agency, and shall
have the right of access for that purpose. During business hours the
department may examine the accounts of any state agency in any depository
which has state funds in its custody. [Formerly 291.562]The Oregon Department of Administrative
Services, upon the basis of its research and reports received, shall
submit, from time to time, for the Governor’s consideration and
appropriate action thereupon, suggestions for the development of
interagency policies consistent with the executive policies of the
Governor and for the improvement of operating methods and procedures and
better personnel utilization and for the improvement of work performance
and reduction of costs in state government activities. [Formerly 291.020] As used in
ORS 291.032 and 291.034, “state agency” or “agency” includes the
Legislative Assembly, at its option, or any of its statutory, standing,
special or interim committees, at the option of such committee, the
courts and their officers and committees and the constitutional state
officers, at their option, and the Public Defense Services Commission, at
the option of the commission. [1965 c.365 §1; 2003 c.449 §38]The Oregon Department of Administrative Services may
provide technical services to state agencies for management improvement
development and the development of economies in the organization and
administration of state agencies. The technical services may include
consulting studies in work simplification, work measurement, equipment
utilization and other management improvement concepts. The cost of the
technical services, or portions thereof, as determined by the department,
shall be charged to the agency served and paid to the department in the
same manner as other claims against the agency are paid. [1965 c.365 §3] The
Oregon Department of Administrative Services may provide technical
services to state agencies for data processing systems development and
the development of data processing methods and applications. The
technical services may include consulting and programming services and
assistance in locating electronic data processing installations. The cost
of the technical services, or portions thereof, as determined by the
department, shall be charged to the agency served and paid to the
department in the same manner as other claims against the agency are
paid. [1965 c.365 §4] The
Legislative Assembly finds and declares that:

(1) Information is a strategic asset of the state which must be
managed as a valuable state resource.

(2) The expanding need, use and importance of information resources
in this state require strong and effective management by both individual
agencies and the state as a whole.

(3) The state must establish management procedures to assure a
framework for the review, improvement, integration, development, security
and use of information resources. Principal objectives for information
resources management are improved productivity of state workers, better
public access to public information, increased effectiveness in the
delivery of services provided by the various agencies and enhancing
development of the telecommunication infrastructure available to the
public.

(4) Effective information resources management requires:

(a) A specific statewide strategic plan, including management and
technical policy;

(b) Comprehensive planning of the design, acquisition, security and
use of information resources;

(c) The operation of communications systems and information
resources that respond to the management information needs of agencies
and programs; and

(d) Consideration of the impact of information resources management
activities on the development and vitality of telecommunications
infrastructure available to the public.

(5) Although each agency is responsible for its information
resources, centralized information resource management must also exist to:

(a) Provide statewide rules and standards;

(b) Monitor and insure compliance with those rules and standards;

(c) Provide management and technical assistance; and

(d) Insure that the information resources management needs of state
government and its programs are addressed along with the needs of the
individual agencies. [1991 c.531 §1]Note: 291.037 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) The planning, acquisition, installation and use of
all information and telecommunications technology by state government and
its agencies shall be coordinated so that statewide plans and activities,
as well as those of individual agencies, are addressed in the most
integrated, economic and efficient manner. To provide policy direction
for and coordination of information technology for state government, the
Director of the Oregon Department of Administrative Services shall chair
and appoint not fewer than five agency executives to an Information
Resources Management Council. The council membership shall include at
least two members representing the private sector and political
subdivisions of the state.

(2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of Administrative
Services shall adopt by rule policies, procedures, standards and
guidelines to plan for, acquire, implement and manage the state’s
information resources. In developing rules, the department shall consult
with state agencies having needs that may be satisfied by use of
information resources. State agencies shall cooperate with the department
in preparing and complying with rules. The rules must be formulated to
promote electronic communication and information sharing among state
agencies and programs and between state and local governments, and with
the public where appropriate.

(3) Rules, plans and specifications shall be formulated to ensure
that information resources fit together in a statewide system capable of
providing ready access to information, computing or telecommunication
resources. Rules, plans and specifications shall be based on industry
standards for open systems to the greatest extent possible. Prior to
adoption of rules referred to in subsection (2) of this section, the
Oregon Department of Administrative Services shall present the proposed
rules to the appropriate legislative committee. The Oregon Department of
Administrative Services shall have the review and oversight
responsibility for insuring that agencies’ planning, acquisition and
implementation activities support the statewide information resources
management plan. The department shall be responsible for the fair and
competitive procurement of information technology consistent with the
rules of the department.

(4)(a) It is the policy of the State of Oregon that state
government telecommunications networks should be designed to provide
state-of-the-art services where economically and technically feasible,
using shared, rather than dedicated, lines and facilities.

(b) The Oregon Department of Administrative Services shall, when
procuring telecommunications network services, consider the achievement
of the economic development and quality of life outcomes contained in the
Oregon benchmarks.

(5)(a) The Oregon Department of Administrative Services, upon
request, may furnish and deliver statewide integrated videoconferencing
and statewide online access service to any public or private entity that
primarily conducts its activities for the direct good or benefit of the
public or community-at-large in providing educational, economic
development, health care, human services, public safety, library or other
public services. The department shall adopt rules with respect to
furnishing the service.

(b) The department shall establish the statewide integrated
videoconferencing and statewide online access user fees, services,
delivery, rates and long range plans in consultation with the
Stakeholders Advisory Committee created pursuant to this section. The
rates shall reflect the department’s cost in providing the service.

(c) The department by rule shall restrict its furnishing or
delivery of Internet access service to private entities when the service
would directly compete with two or more local established providers of
such services within the local exchange telecommunications service area.

(d) The rates and services established and provided under this
section shall not be subject to the regulation or authority of the Public
Utility Commission.

(6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director of the
Oregon Department of Administrative Services. In making appointments, the
director shall give consideration to geographic balance and adequate
representation of the department’s users and providers and the general
public.

(b) The Stakeholders Advisory Committee shall consist of members
who represent elementary or secondary education, higher education,
community colleges, economic development, health care, human services and
public safety. At least four members shall reside in areas east of the
Cascade Mountains.

(c) The term of office of each member is three years, but a member
serves at the sole discretion of the director. The director shall appoint
a successor to a member before the expiration of the term of the member.
A member is eligible for reappointment. If a position on the Stakeholders
Advisory Committee is vacant for any cause, the director shall make an
appointment to the position, immediately effective for the unexpired term.

(d) A member of the Stakeholders Advisory Committee is entitled to
travel expenses pursuant to ORS 292.495. Members of the Stakeholders
Advisory Committee are not entitled to compensation.

(e) The director may establish additional advisory and technical
committees as the director considers necessary to aid and advise the
Stakeholders Advisory Committee in the performance of its functions.

(f) The director may delegate to the State Chief Information
Officer any of the duties, functions or powers imposed upon the director
by this subsection.

(7) Any organization or organizations recognized as tax exempt
under section 501(c)(3) of the Internal Revenue Code of 1986 that
primarily conduct activities for the direct good or benefit of the public
or community at large in providing educational, economic development,
health care, human services, public safety, library or other public
services and have formed an affiliation with one or more federal, state
or local governmental units within this state may make application to the
department for designation as a community of interest. The application
shall be in such form and shall contain such information regarding the
governmental affiliation relationship, the tax exempt status of each
organization and the public benefit services to be provided as the
department may prescribe. The department shall establish an application
review and appeal process to ensure that designation of those
organizations as a community of interest for the purposes of including
the organization in telecommunications contracts under ORS 283.520 will
result in providing educational, medical, library or other services for
public benefit.

(8) This section does not apply to the State Board of Higher
Education or any state institution of higher education within the Oregon
University System.

(9) As used in this section:

(a) “Advanced digital communications” means equipment, facilities
and capability to distribute digital communications signals for the
transmission of voice, data, image and video over distance.

(b) “Information resources” means media, instruments and methods
for planning, collecting, processing, transmitting and storing data and
information, including telecommunications.

(c) “Information resources management” means the state’s program
for managing data and information in its various forms in furtherance of
program and agency objectives, and in such a way that agency employees
are able to obtain and use information easily, efficiently, effectively
and economically.

(d) “Information technology” includes, but is not limited to, all
present and future forms of hardware, software and services for data
processing, office automation and telecommunications.

(e) “Data” and “information” represent facts and representations
about the state’s human, natural and commercial resources.

(f) “Internet access service” means electronic connectivity to the
Internet and its services.

(g) “Open systems” means systems that allow state agencies freedom
of choice by providing a vendor-neutral operating environment where
different computers, applications, system software and networks operate
together easily and reliably.

(h) “State-of-the-art services” includes advanced digital
communications.

(i) “Telecommunications” means the hardware, software and services
for transmitting voice, data, video and images over a distance.

(j) “Statewide integrated video-conferencing” means a statewide
electronic system capable of transmitting video, voice and data
communications.

(k) “Statewide online access” means electronic connectivity to
information resources such as computer conferencing, electronic mail,
databases and Internet access. [1967 c.419 §11; 1985 c.594 §1; 1991 c.531
§2; 1993 c.724 §§14,14a; 1995 c.612 §19; 1997 c.484 §2; 1997 c.684 §2;
2003 c.674 §27] (1) Within 180 days of the close of
each fiscal year, the Oregon Department of Administrative Services shall
prepare a financial report for the State of Oregon. The report shall
contain financial statements which fairly present the financial condition
and results of operation of the State of Oregon in accordance with
current, generally accepted accounting principles and such other
financial and statistical information as may be necessary to completely
and accurately disclose the financial condition and financial operations
of the state and its various agencies.

(2) As used in subsection (1) of this section, “generally accepted
accounting principles” means those accounting principles sanctioned by
recognized authoritative bodies such as the Governmental Accounting
Standards Board, the American Institute of Certified Public Accountants
or their successors. [1977 c.897 §1; 1989 c.152 §1; 1991 c.220 §6]Note: 291.040 and 291.042 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(1) Subject to the approval of the Joint
Legislative Committee on Information Management and Technology, the
Oregon Department of Administrative Services:

(a) May obtain copyrights and patents on copyrightable or
patentable data processing programs, information or materials developed,
published or produced by state agency staff.

(b) May cause to have sold, leased, or otherwise made available
such data processing programs, information or materials to any agency or
legislative body of any state or the federal government under such terms
and conditions as may be agreed to by the committee and the agencies.

(2) Moneys collected under this section shall be credited to the
General Fund and, less agency expenses accrued in developing, producing
and distributing software and in training software users, shall be
available for general governmental purposes. However, if resources
expended for such development, production, distribution and training
activities were from fees or assessments charged and collected by the
agency, the net proceeds of moneys collected under this section shall be
credited to the same accounts to which the fees or assessments are
credited and shall be used to reduce the fees or assessments charged by
the agency to the extent permitted by law. [1979 c.740 §3; 1993 c.18 §56;
1995 c.452 §22]Note: See note under 291.040.PUBLIC CONTRACT APPROVAL As used in this
section and ORS 291.047:

(1) “Information technology” includes, but is not limited to, all
present and future forms of hardware, software and services for data
processing, office automation and telecommunications.

(2) “State agency” includes every state officer, board, commission,
department, institution, branch or agency of the state government, whose
costs are paid wholly or in part from funds held in the State Treasury,
except:

(a) The Legislative Assembly, the courts and their officers and
committees; and

(b) The Public Defense Services Commission.

(3) “Public contract” means any acquisition, disposition, purchase,
lease, sale or transfer of rights by a state agency of real or personal
property, public improvements or services.

(4) “Public improvement” means projects for construction,
reconstruction or renovation on real property by or for a state agency.
[1997 c.869 §4; 2003 c.449 §22]
(1) The Attorney General shall approve for legal sufficiency all personal
services contracts, all architectural and engineering services contracts
and all information technology contracts calling for payment in excess of
$75,000 entered into by a state agency before any such contract becomes
binding on the State of Oregon and before any service may be performed or
payment may be made under the contract.

(2) The Attorney General shall approve for legal sufficiency all
public contracts not subject to subsection (1) of this section that are
entered into by a state agency and that provide for payment in excess of
$100,000 before any such contract becomes binding on the State of Oregon
and before any service may be performed or payment may be made under the
contract.

(3) The Attorney General shall impose by rule requirements
necessary to carry out the provisions of this section. Such rules shall
include, but are not limited to, a requirement that state agencies submit
to the Attorney General procurement and other contract documents for
review of the anticipated contract before a procurement of goods or
services is publicly advertised if the anticipated contract is reasonably
expected to require review for legal sufficiency. A state agency may
request that the Attorney General assist the agency in developing
requests for proposals, invitations to bid and requests for
qualifications or information that are suitable to the needs of the
agency.

(4) The Attorney General may exempt by rule classes of contracts
from the requirements of this section if the Attorney General determines
that the degree of risk assumed by state agencies under such contracts is
not materially reduced by legal review of individual contracts within the
class.

(5) The Attorney General may, by rule, set forth a process to
exempt contracts or classes of contracts from the requirements of this
section when:

(a) The contract is substantially composed of forms, terms or
conditions that have been preapproved by the Attorney General; or

(b) Circumstances exist that create a substantial risk of loss,
damage, interruption of services or threat to public health or safety and
that require prompt execution of a contract to deal with the risk.

(6) Notwithstanding subsections (1) and (2) of this section, the
Attorney General may authorize services to be performed under a contract
described in subsection (1) or (2) of this section before approval for
legal sufficiency if the Attorney General determines that the
authorization will not result in undue risk to this state. An
authorization under this subsection shall be limited to specific classes
of contracts or to contracts for specific agency programs. The Attorney
General may condition an authorization on a finding by the Director of
the Oregon Department of Administrative Services, or a designee of the
director, and by any other agency with a role in approving such contracts
that the contract administration practices of the requesting agency are
adequate to manage the proposed contract and that the mission of the
agency will be significantly impaired without such authorization. [1997
c.869 §2; 1999 c.264 §1](1) If the
parties to a public contract perform under the contract before the
contract is approved for legal sufficiency by the Attorney General as
required under ORS 291.047 and section 3, chapter 869, Oregon Laws 1997,
the agency may ratify the public contract if the Attorney General
determines that the contract is legally sufficient prior to ratification.
As a condition for approval, the Attorney General may require that the
contract be amended as necessary to make the contract legally sufficient.

(2) Upon approval of the public contract for legal sufficiency and
ratification of the public contract by a state agency under this section,
the public contract is effective and the state agency may make payments
on the ratified public contract even if the payments are for services
rendered prior to ratification.

(3) The Attorney General may adopt rules to implement this section.
[1999 c.264 §2]Note: 291.049 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.AGENCY FEE RESTRICTIONS As used in ORS
291.050 to 291.060:

(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 or any court judgments.

(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) Charges levied by one state agency on another state agency.

(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 291.201 to 291.222 and 291.230 to
291.260. “State agency” includes the Legislative Assembly, including
legislative committees and service agencies, the Secretary of State, the
State Treasurer and the Judicial Department. “State agency” does not
include a commodity commission established under ORS 576.051 to 576.455
or the Oregon Beef Council created under ORS 577.210. [1995 c.576 §1;
2003 c.604 §99]Note: 291.050 to 291.060 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(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 Office of Private Health Partnerships
under section 12, chapter 727, Oregon Laws 2005.

(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 assessed is 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.

(3)(a) Fees temporarily decreased for competitive or promotional
reasons or because of unexpected and temporary revenue surpluses may be
restored to their normal level 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 restored to its
normal 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. [1995 c.576 §2;
1997 c.37 §1; 1997 c.684 §3; 2003 c.605 §3; 2005 c.727 §14; 2005 c.744
§24d; 2005 c.777 §16]Note: The amendments to 291.055 by section 15, chapter 727, Oregon
Laws 2005, and section 24e, chapter 744, Oregon Laws 2005, become
operative January 2, 2008. See section 17, chapter 727, Oregon Laws 2005,
and section 24f, chapter 744, Oregon Laws 2005. The text that is
operative on and after January 2, 2008, is set forth for the user’s
convenience.

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) 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 assessed is 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.

(3)(a) Fees temporarily decreased for competitive or promotional
reasons or because of unexpected and temporary revenue surpluses may be
restored to their normal level 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 restored to its
normal 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.Note: See note under 291.050. 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 charged by each state agency, the
purpose for the fee or charge, the persons affected by the fee or charge,
the statutory 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. The department shall report to the
Emergency Board and the appropriate interim committee when requested to
provide information concerning the development of the report. [1995 c.576
§3]Note: See note under 291.050.FINANCIAL MANAGEMENT DUTIES(1) It is the intent
of the Legislative Assembly, in funding the development and
implementation of a new statewide financial management system, that
statewide financial management systems and policies support
program-driven budget planning and execution, based on timely and
accurate statewide managerial cost accounting information and that such
systems support legislative program evaluation and performance auditing
of statewide programs and services.

(2) The Oregon Department of Administrative Services shall devise
and supervise statewide financial management systems for all state
agencies by preparing policies and procedures for implementing and
operating financial management systems for all agencies in state
government and measuring implementation. In order to assure that the
state’s investment in a modern and complete statewide financial
management system is fully implemented, every agency and unit of state
government shall:

(a) Cooperate and comply fully with policies and procedures and
deadlines prepared by the Oregon Department of Administrative Services
for establishing a database for the financial management system.

(b) Comply fully with policies and procedures prepared by the
Oregon Department of Administrative Services for operation of the
financial management system.

(3) The Oregon Department of Administrative Services shall report
to the Legislative Assembly no later than December 1 of even-numbered
years:

(a) Progress in implementing the financial management system as to
preparation of financial statements, nonfinancial management information
and the ability of the system to support legislative program evaluation
and performance auditing.

(b) Compliance by each agency and unit of state government with
policies and procedures of the Oregon Department of Administrative
Services for implementation of the financial management system.

(4) After a review of the Oregon Department of Administrative
Services report by the Legislative Fiscal Officer, the Joint Legislative
Audit Committee may schedule a hearing for any agency or unit of state
government to review compliance with this section and policies and
procedures of the Oregon Department of Administrative Services, prior to
any appropriation approval by the Legislative Assembly, as provided in
ORS 171.585 (1). [1993 c.724 §22; 1995 c.452 §23]Note: 291.100 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.
(1) The Oregon Department of Administrative Services shall ensure that
state agency activities and programs are directed toward achieving the
Oregon benchmarks. The department shall:

(a) Monitor progress, identify barriers and generate alternative
approaches for attaining the benchmarks.

(b) Ensure the development of a statewide system of performance
measures designed to increase the efficiency and effectiveness of state
programs and services.

(c) Provide agencies with direction on the appropriate format for
reporting performance measures to ensure consistency across agencies.

(d) Consult with the Legislative Assembly to assist in devising a
system of performance measures.

(e) Facilitate the development of performance measures in those
instances where benchmarks involve more than one state agency.

(f) Prior to budget development, consult with the legislative
review agency, as defined in ORS 291.371, or other appropriate
legislative committee, as determined by the President of the Senate and
the Speaker of the House of Representatives, prior to the formal adoption
of a performance measurement system.

(g) No later than October 1 of each year, submit a report to the
Legislative Fiscal Officer on the progress state agencies have made in
meeting performance measures.

(2) State agencies shall develop measurable performance measures
consistent with and aimed at achieving Oregon benchmarks. To that end,
each state agency shall:

(a) Identify the mission, goals and objectives of the agency and
any applicable benchmarks to which the goals are directed.

(b) Develop written defined performance measures that quantify
desired organization intermediate outcomes, outputs, responsibilities,
results, products and services, and, where possible, develop unit cost
measures for evaluating the program efficiency.

(c) Involve agency managers, supervisors and employees in the
development of statements of mission, goals, objectives and performance
measures as provided in paragraphs (a) and (b) of this subsection and
establish teams composed of agency managers, supervisors and employees to
implement agency goals, objectives and performance measures. Where
bargaining unit employees are affected, they shall have the right to
select those employees of the agency, through their labor organization,
to serve on any joint committees established to develop performance
measures.

(d) Use performance measures to work toward achievement of
identified missions, goals, objectives and any applicable benchmarks.

(e) Review agency performance measures with the appropriate
legislative committee, as determined by the President of the Senate and
the Speaker of the House of Representatives, during the regular
legislative session. [1993 c.724 §7; 2001 c.582 §9; 2005 c.837 §18] (1) Pursuant to
ORS 291.252, if the Oregon Department of Administrative Services
certifies agency savings due to agency actions rather than changes in
service demands and such actions do not materially reduce legislatively
authorized programs, 50 percent of the savings shall be credited to the
General Fund or, if the agency’s funds originated as dedicated funds or
federal funds, to the fund or account of the agency to be used for
purposes of the fund or account.

(2) The remaining 50 percent shall be continuously appropriated to
the agency for enhancing professional development, including employee
training projects related to productivity, technology enhancement and
related expenditures that have a long term benefit. A productivity
improvement project may be for research and development intended to lead
to improved productivity. [1993 c.724 §2]STATE BUDGET; BUDGET AND TAX EXPENDITURE REPORTSORS 291.195, 291.201 and 291.203 may be cited
as the Budget Accountability Act. [1995 c.746 §61]Note: 291.190 and 291.195 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1) The
Legislative Assembly hereby declares that the ability to make fiscally
sound and effective spending decisions has been enhanced by requiring
agencies and programs to develop performance measures and to evaluate all
General Fund, State Lottery Fund and other expenditures in accordance
with these performance measures. Fiscal pressure on this state requires
even greater accountability and necessitates a review of the fairness and
efficiency of all tax deductions, tax exclusions, tax subtractions, tax
exemptions, tax deferrals, preferential tax rates and tax credits. These
types of tax expenditures are similar to direct government expenditures
because they provide special benefits to favored individuals or
businesses, and thus result in higher tax rates for all individuals.

(2) The Legislative Assembly further finds that 76 percent of
property in this state is exempt from property taxation and that income
tax expenditures total billions of dollars per biennium. An accurate and
accountable state budget should reflect the true costs of tax
expenditures and should fund only those tax expenditures that are
effective and efficient uses of limited tax dollars.

(3) The Legislative Assembly declares that it is in the best
interest of this state to have prepared a biennial report of tax
expenditures that will allow the public and policy makers to identify and
analyze tax expenditures and to periodically make criteria-based
decisions on whether the expenditures should be continued. The tax
expenditure report will allow tax expenditures to be debated in
conjunction with online budgets and will result in the elimination of
inefficient and inappropriate tax expenditures, resulting in greater
accountability by state government and a lowering of the tax burden on
all taxpayers. [1995 c.746 §62]Note: See note under 291.190. (1) It is the intent of the Legislative
Assembly to require the Governor, in the preparation of the biennial
budget, to state as precisely as possible what programs the Governor
recommends be approved for funding under estimated revenues under ORS
291.342. If estimated revenues are inadequate, the Legislative Assembly
intends that it be advised by the Governor as precisely as possible how
the Legislative Assembly might proceed to raise the additional funds. It
is also the intent of the Legislative Assembly, in the event that the
additional funding is not possible, to be informed by the Governor
precisely what programs or portions thereof the Governor recommends be
reduced accordingly. Finally, if the Governor chooses to recommend
additional new programs or program enhancements, the Legislative Assembly
intends that the Governor specify how the additional funding might be
achieved. The Legislative Assembly believes that the state government
must allocate its resources for effective and efficient delivery of
public services by:

(a) Clearly identifying desired results;

(b) Setting priorities;

(c) Assigning accountability; and

(d) Measuring, reporting and evaluating outcomes to determine
future allocation.

(2) To achieve the intentions of subsection (1) of this section, it
is the budget policy of this state to create and administer programs and
services designed to attain societal outcomes such as the Oregon
benchmarks and to promote the efficient and measured use of resources.

(3) To effect the policy stated in subsection (2) of this section,
state government shall:

(a) Allocate resources to achieve desired outcomes;

(b) Express program outcomes in measurable terms;

(c) Measure progress toward desired outcomes;

(d) Encourage savings;

(e) Promote investments that reduce or avoid future costs;

(f) Plan for the short term and long term using consistent
assumptions for major demographic and other trends; and

(g) Require accountability at all levels for meeting program
outcomes. [1985 c.270 §1; 1993 c.724 §8]Note: 291.200 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.
Notwithstanding ORS 291.002 (9) and (10), as used in ORS 291.201 to
291.222:

(1) “State agency” or “agency” means every state officer, board,
commission, department, institution, branch or agency of the state
government, whose costs are paid wholly or in part from funds held in the
State Treasury, except:

(a) The Legislative Assembly, the courts and their officers and
committees; and

(b) The Public Defense Services Commission.

(2) “State officer” means any elected or appointed state officer,
including members of boards and commissions, except the members and
officers of the Legislative Assembly, the courts and the members of the
Public Defense Services Commission.

(3) “Tax expenditure” means any law of the federal government or
this state that exempts, in whole or in part, certain persons, income,
goods, services or property from the impact of established taxes,
including but not limited to tax deductions, tax exclusions, tax
subtractions, tax exemptions, tax deferrals, preferential tax rates and
tax credits. [1995 c.746 §63; 2005 c.837 §9](1) Except as otherwise provided in ORS
291.222, the Governor shall prepare in each even-numbered year for the
biennium beginning July 1 of the following year:

(a) A budget report; and

(b) A tax expenditure report.

(2) The Oregon Department of Administrative Services shall advise
and assist the Governor in the preparation of the budget report and tax
expenditure report and shall perform such duties in connection therewith
as the Governor requires.

(3) The Department of Revenue shall advise and assist the Governor
in the preparation of the tax expenditure report. [Amended by 1969 c.464
§2; 1995 c.746 §64] (1) Not later than
November 10 of each even-numbered year, the Governor shall cause the tax
expenditure report to be compiled and prepared for printing.

(2) In the tax expenditure report, the Governor shall:

(a) List each tax expenditure;

(b) Identify the statutory authority for each tax expenditure;

(c) Describe the purpose of each tax expenditure;

(d) Estimate the amount of revenue loss caused by each tax
expenditure for the coming biennium;

(e) List the actual amount of revenue loss in the preceding
biennium for each tax expenditure or an estimate if the actual amount
cannot be determined;

(f) Determine whether each tax expenditure is the most fiscally
effective means of achieving each purpose of the tax expenditure;

(g) Determine whether each tax expenditure has successfully
achieved the purpose for which the tax expenditure was enacted and
currently serves, including an analysis of the persons that are benefited
by the expenditure; and

(h) Categorize each tax expenditure according to the programs or
functions each tax expenditure supports. [1995 c.746 §65]The
Oregon Department of Administrative Services, by July 1 of each
even-numbered year, shall furnish every state agency with a sufficient
number of forms for its use in preparing for submission to the Governor
the information required by the Governor in the preparation of the budget
report of the Governor. The Governor shall prescribe the forms to be used
by the agencies in submitting their budget estimates and requests for
appropriations as required by ORS 291.208. (1) The
Governor shall prescribe such rules and regulations as the Governor deems
necessary for the guidance of agencies in the preparation of the budget
estimates and requests. The Governor, with the approval of the Secretary
of State, shall prepare and prescribe classifications of expenditures and
revenue for the purpose of budget-making and accounting.

(2) In so far as practicable, agency budget estimates and requests
and appropriation measures shall be prepared in a manner that reflects
state governmental organization and state agency duties, functions and
powers under the law in effect on January 1 of the following year. The
Oregon Department of Administrative Services shall maintain agency budget
estimates and requests in the form in which they are submitted. [Amended
by 1969 c.173 §1]Each state agency shall file with the Oregon
Department of Administrative Services, before September 1 in each
even-numbered year, on the form and in the manner required, its budget
forms containing the information required. The department shall prepare
budget estimates and requests for appropriations for all agencies that
fail to file requests.
(1) The Oregon Department of Administrative Services, in connection with
its direct studies of the operations, plans and needs of state agencies
and of the existing and prospective sources of income, shall prepare a
tentative budget plan and tentative tax expenditure report for the two
fiscal years for which a budget report and tax expenditure report are
required to be prepared.

(2) The Department of Revenue shall advise and assist in the
preparation of the tentative tax expenditure report. [Amended by 1995
c.746 §66]Upon receipt of the budget forms,
the Oregon Department of Administrative Services shall check the
agencies’ estimates in the light of the tentative budget plan and shall
make such further inquiries and investigations as the Governor requires
and revise its tentative budget plan accordingly. The department then
shall transmit to the Governor the budget forms filed with it by the
state agencies and the revised tentative budget report.The Governor, during the preparation of
the budget report and before its submission to the Legislative Assembly,
shall:

(1)(a) Examine the budget forms filed by the various agencies and
may make or cause to be made such further investigations by the Oregon
Department of Administrative Services, with such hearings before the
Governor or any state agency, as the Governor deems advisable, and may
make such changes or revisions in policy and program and in specific
details of the tentative budget report or tentative tax expenditure
report as the Governor finds warranted; and

(b) Identify each tax expenditure that has a full or partial sunset
that, if allowed to take effect, will have a fiscal impact on the state
or on school districts for the next biennium, and shall prepare a
recommendation as to each tax expenditure identified under this paragraph
that indicates the Governor’s opinion on whether the full or partial
sunset of the tax expenditure should be allowed to take effect as
scheduled or should be revised to a different date.

(2) As used in this section:

(a) “Full sunset” means any provision that completely eliminates an
existing tax expenditure on a specified date.

(b) “Partial sunset” means any provision that reduces the amount of
an existing tax expenditure or that alters the eligibility requirements
for the expenditure as of a specified date. [Amended by 1995 c.746 §67](1) Not later than November 10 of each even-numbered year
the Governor shall cause the budget report to be compiled and prepared
for printing.

(2) The budget report shall include a budget message prepared by
the Governor, including recommendations of the Governor with reference to
the fiscal policy of the state government for the coming biennium,
describing the important features of the budget plan, embracing a general
budget summary setting forth the aggregate figures of the budget report
so as to show a balanced relation between the total proposed expenditures
and the total anticipated income, with the basis and factors on which the
estimates are made, the amount to be borrowed, and other means of
financing the estimated expenditures for the ensuing biennium, compared
with the corresponding figures for at least the last completed biennium
and the current biennium.

(3) The budget plan shall be supported by explanatory schedules or
statements, classifying the expenditures reported therein, both past and
proposed, by organization units, objects and funds, and the income by
organization units, sources and funds, and the proposed amount of new
borrowing as well as proposed new tax or revenue sources, including a
single comprehensive list of all proposed increases in fees, licenses and
assessments assumed in the budget plan.

(4) The budget plan shall be submitted for all dedicated funds, as
well as the state General Fund, and shall include the estimated amounts
of federal and other aids or grants to state agencies or activities
provided for any purpose whatever, together with estimated expenditures
therefrom.

(5) The budget report shall embrace the detailed estimates of
expenditures and revenues. It shall include statements of the bonded
indebtedness of the state government, showing the actual amount of the
debt service for at least the past biennium, and the estimated amount for
the current biennium and the ensuing biennium, the debt authorized and
unissued, the condition of the sinking funds and the borrowing capacity.
It shall contain the Governor’s recommendations concerning tax
expenditures identified under ORS 291.214. It shall also contain any
statements relative to the financial plan which the Governor may deem
desirable or which may be required by the legislature.

(6) The budget plan shall use the estimated revenues under ORS
291.342 for the fiscal year in which the plan is submitted as the basis
for total anticipated income under subsection (2) of this section,
subject to such adjustment as may be necessary to reflect accurately
projections for the next biennium.

(7) As supplemental information to the budget report, the Governor
shall publish an existing level tentative budget plan for the two fiscal
years for which the budget report is required. This summary budget shall
reflect only existing revenues estimated under subsection (6) of this
section; subject to such adjustment as may be necessary to reflect
accurately projections for the next biennium. The supplemental
information to the budget report shall be submitted at the same time as
the budget report.

(8)(a) The budget report shall present information regarding the
expenses of the state in the following categories:

(A) Personnel expenses, including compensation and benefits for
state employees, but excluding costs of services contracted out and
temporary service costs.

(B) Supplies, equipment and the costs of services contracted out.

(C) Capital construction.

(D) Capital outlay.

(E) Debt service.

(b) For each category described in paragraph (a) of this
subsection, the report shall show actual expenditures to date.

(c) For each category described in paragraph (a) of this
subsection, the report shall show:

(A) The amount of merit increases for the existing workforce.

(B) Increases for the cost of replacement and repair of supplies
and equipment.

(C) Increases for the costs of new construction or major remodeling.

(D) Increases for the cost of inflation.

(d) The report shall show the total increase in the cost of
salaries and benefits for all state positions.

(9) The budget report shall include:

(a) The total number of positions included in the budget.

(b) The average vacancy rate in the present biennium.

(c) The number of permanent, full-time equivalent vacancies,
excluding academics, as of July 1 of even-numbered years.

(10) The budget report shall include computations showing budget
figures as a percentage of the total General Fund, federal fund, fee or
other source category, as may be appropriate.

(11) The budget report shall include, in a format that provides
side-by-side comparison with the State Debt Policy Advisory Commission
report of net debt capacity, a six-year forecast, by debt type and
repayment source, of:

(a) That portion of the capital construction program required to be
reported by ORS 291.224 that will be financed by debt issuance.

(b) The acquisition of equipment or technology in excess of
$500,000 that will be financed by debt issuance.

(c) Other state agency debt issuance for grant or loan purposes.

(12) As supplemental information to the budget report, the Governor
shall prepare an alternative budget plan for the two fiscal years for
which the budget report is required and shall provide the alternative
budget plan to the President of the Senate, the Speaker of the House of
Representatives and the majority and minority leaders in the Senate and
the House of Representatives. The alternative budget plan shall establish
funding for each state agency’s programs and activities at 90 percent of
the appropriations requested for the state agency in the budget report,
excluding appropriations that are not made to fund recurring activities.
For each state agency, the Governor shall describe the 10 percent
reduction in appropriated moneys in terms of the activities or programs
that the agency will not undertake. The activities or programs that are
not undertaken as a result of the reductions in appropriated moneys made
in the alternative budget plan shall be ranked in order of importance and
priority on the basis of lowest cost for benefit obtained. [Amended by
1985 c.270 §2; 1993 c.724 §9; 1995 c.746 §68; 1995 c.787 §1; 1997 c.49
§3; 1997 c.249 §88; 1999 c.1091 §1]Except when the Governor under
whose supervision the budget report and the tax expenditure report have
been prepared will be succeeded in office in January next following:

(1) The Oregon Department of Administrative Services shall have as
many copies of the approved budget report and the tax expenditure report
printed as the Governor directs.

(2) Not later than December 1 of each even-numbered year, the
Governor shall transmit a copy of each report to each member of the
legislature who is to serve during the next session.

(3) Upon request, the Governor shall distribute copies free of
charge, under such regulations as the Governor may establish, to public
libraries, schools and state officials. The Governor shall make copies
available to the general public at a reasonable charge for each copy.
[Amended by 1959 c.140 §1; 1967 c.302 §1; 1995 c.746 §69] The
Governor, upon request, shall furnish the Legislative Assembly any
further information required concerning the budget report and the tax
expenditure report. The Oregon Department of Administrative Services,
upon request, shall furnish a representative to assist the Legislative
Assembly, its Joint Committee on Ways and Means, appointed under ORS
171.555, and the Legislative Revenue Officer in the consideration of the
budget report, the tax expenditure report and any accompanying measures.
[Amended by 1969 c.173 §2; 1975 c.789 §8; 1995 c.746 §70]If the Governor under
whose supervision the budget report and tax expenditure report have been
prepared will be succeeded in office in January next following:

(1) The Oregon Department of Administrative Services shall make
available to the Governor-elect so much as the Governor-elect requests of
the information upon which the tentative budget report and tentative tax
expenditure report are based, and upon completion of each report shall
supply the Governor-elect with a copy of each report but shall not cause
the tentative budget report or tentative tax expenditure report to be
printed and distributed. The department shall also make available to the
Governor-elect all facilities of the department reasonably necessary to
permit the Governor-elect to review and become familiar with the
tentative budget report or tentative tax expenditure report.

(2) After a review of the tentative budget report or tentative tax
expenditure report the Governor-elect may prepare revisions and additions
thereto. The Oregon Department of Administrative Services and the
Department of Revenue shall assist, upon request, in the preparation of
such revisions or additions.

(3) The Oregon Department of Administrative Services shall have
printed as many copies of the revised budget report and revised tax
expenditure report as the Governor-elect requests.

(4)(a) Not later than the convening of the next Legislative
Assembly the Oregon Department of Administrative Services shall transmit
a copy of a summary of the revised budget report containing the revenue
and expenditure recommendations of the Governor-elect and a summary of
the revised tax expenditure report estimating the amount of revenue loss
caused by each tax expenditure.

(b) Not later than February 1, the Oregon Department of
Administrative Services shall transmit a copy of the revised budget
report and revised tax expenditure report to each member of the
Legislative Assembly.

(5) Upon request, the department shall distribute copies of the
revised budget report and revised tax expenditure report free of charge,
under such regulations as it may establish, to public libraries, schools
and state officials. It shall make copies of the revised budget report
and revised tax expenditure report available to the general public at a
reasonable charge for each copy. [Amended by 1967 c.302 §2; 1969 c.464
§3; 1995 c.746 §71](1) Not later than November 10 of each even-numbered year the Governor
shall cause the agency budget estimates and requests as described in ORS
291.206 to be made available to the Legislative Fiscal Officer and to the
Legislative Revenue Officer.

(2) Before December 1 of the year in which they were made available
under subsection (1) of this section, the Legislative Fiscal Officer or
staff and the Legislative Revenue Officer or staff shall not reveal to
any other person the contents or nature of the budget reports and other
materials, except with the written consent of the Governor. [1969 c.173
§4; 1975 c.789 §9](1) A capital construction program containing estimated capital
construction needs, irrespective of how financed, must be included with
the budget report required by ORS 291.216. The capital construction
program must contain the estimated physical construction requirements for
each biennium of a period to be determined by the Governor, which period
may not be less than six years. The Oregon Department of Administrative
Services shall assist the Governor in the preparation of the capital
construction program.

(2) In accordance with regulations prescribed by the department,
state agencies shall submit to the department their anticipated capital
construction requirements for the period specified by the Governor. The
department shall prescribe the basic assumptions relating to population
changes, economic trends and other factors which might generally affect
capital construction requirements and these basic assumptions must be
used by the state agencies in preparing their anticipated capital
construction requirements. Each state agency is responsible for the basic
assumptions that affect only its own program. The department shall
prepare estimated capital construction requirements for necessary capital
construction not covered by the capital construction requirements
submitted by the state agencies under this section.

(3) In accordance with regulations prescribed by the department,
each state agency shall separately submit its estimated office space
requirements for the period specified by the Governor, and the department
shall consolidate those needs and make an estimate for all state office
buildings to be included in the capital construction program.

(4) The Governor shall consolidate the estimates, review the
estimates and make revisions the Governor finds warranted.

(5) The budget report must include the proposed expenditures for
the capital construction program for the ensuing biennium and the
proposed expenditures for preliminary planning of the construction
projects included in the capital construction program for the biennium
following the ensuing biennium. The budget report also must include
dollar estimates of the cost of the capital construction projects
included in the capital construction program for the succeeding years of
the period determined by the Governor under subsection (1) of this
section.

(6) As used in this section, “capital construction program” does
not include:

(a) The acquisition, repair, improvement, enlargement, construction
or maintenance of highways and highway bridges by the Department of
Transportation;

(b) Park improvements by the State Parks and Recreation Department;
or

(c) Road infrastructure work performed under timber sale contracts
entered into by the State Forester. [1959 c.500 §1; 1973 c.129 §5; 1989
c.904 §30; 1997 c.285 §4; 2003 c.796 §§15,16; 2005 c.217 §24]When there has been a failure to recover a loss of public funds
or property pursuant to ORS 297.120, the state agency sustaining the loss
shall include the amount of the loss in its budget estimate and request
for the following biennium clearly marked as to purpose, and the Governor
shall include such item in the budget report of the Governor for the
consideration of the Legislative Assembly. [1963 c.617 §3] (1) The
Governor shall publish a report that:

(a) Demonstrates that the amount in the Governor’s budget
recommended for the state’s system of kindergarten through grade 12
public education is the amount of moneys as determined by the Quality
Education Commission established by ORS 327.500 that is sufficient to
meet the quality goals; or

(b) Identifies the reasons that the amount recommended for the
state’s system of kindergarten through grade 12 public education is not
sufficient, the extent of the insufficiency and the impact of the
insufficiency on the ability of the state’s system of kindergarten
through grade 12 public education to meet the quality goals. In
identifying the impact of the insufficiency, the Governor shall include
in the report how the amount recommended in the Governor’s budget may
affect both the current practices and student performance identified by
the commission under ORS 327.506 (4)(a) and the best practices and
student performance identified by the commission under ORS 327.506 (4)(b).

(2) The Governor shall determine whether the state’s system of
post-secondary public education has quality goals established by law. If
there are quality goals, the Governor shall include in the report a
determination that the amount recommended in the Governor’s budget is
sufficient to meet those goals or an identification of the reasons the
amount recommended is not sufficient, the extent of the insufficiency and
the impact of the insufficiency on the ability of the state’s system of
post-secondary public education to meet the quality goals.

(3) The report shall be issued at the same time as the Governor’s
budget report required under ORS 291.202.

(4) The Governor shall provide public notice of the report’s
issuance, including posting the report on the Internet and providing a
print version of the report upon request. [2001 c.895 §6; 2003 c.14 §144;
2005 c.209 §2]Note: 291.228 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.ALLOTMENTS

(1) “State agency” or “agency” means every state officer, board,
commission, department, institution, branch or agency of the state
government, whose costs are paid wholly or in part from funds held in the
State Treasury, except:

(a) The Legislative Assembly, the courts and their officers and
committees; and

(b) The Public Defense Services Commission.

(2) “State officer” means any elected or appointed state officer,
including members of boards and commissions, except the members and
officers of the Legislative Assembly, the courts and the members of the
Public Defense Services Commission. [2005 c.837 §11] (1) It is declared to be the policy
and intent of the Legislative Assembly that:

(a) The legislatively adopted or approved budget for a state agency
constitutes a determination by the Legislative Assembly of the amount
needed by the agency for the biennium to meet the responsibilities
imposed on the agency through the budget and through statutes governing
the agency; and

(b) Except as provided in subsections (2) and (3) of this section,
appropriations from the General Fund to a state agency constitute a
direction to the agency to spend the amount of moneys appropriated in
order to meet the responsibilities imposed on the agency through the
budget and through statutes governing the agency.

(2) If a state agency does not need all of the moneys that are made
available to it by the legislatively adopted or approved budget to meet
its responsibilities, the agency need not spend all moneys appropriated
or otherwise made available to it.

(3) The Governor and the Oregon Department of Administrative
Services are given the powers granted by ORS 291.201 to 291.222 and
291.230 to 291.260 in order that the Governor and the department might
effect savings, without reducing the responsibilities imposed on state
agencies, by:

(a) Careful supervision throughout each biennium, with due regard
to changing conditions; and

(b) Promotion of more economic and efficient management of state
agencies. [Amended by 2003 c.734 §11](1)
The Oregon Department of Administrative Services shall make allotments to
state officers and agencies of appropriations and funds pursuant to the
allotment system provided for in ORS 291.234 to 291.260.

(2) For the purposes of the allotment system, each fiscal year
shall be divided into four quarterly allotment periods, beginning,
respectively, on the first days of July, October, January and April. The
department may prescribe a different period suited to the circumstances
or may exempt agencies that have demonstrated to the department’s
satisfaction that the appropriate fiscal controls are in place. [Amended
by 1993 c.724 §4](1)
The provisions of ORS 291.234 to 291.260 relating to the allotment system
shall apply to all appropriations for state officers and agencies. For
this purpose “appropriation” includes standing, continuing and annual
appropriations, and dedicated funds. In those cases where periodical
allotments are impracticable, the Oregon Department of Administrative
Services may dispense therewith and prescribe such regulations as will
insure proper application and encumbering of funds.

(2) Subject to ORS 291.238, emergency or contingent funds,
revolving funds and trust funds shall be subject to such regulations as
the department may prescribe for controlling the expenditures and
encumbering of such funds.(1) Except as expressly
authorized in this section or ORS 291.236, no person shall incur, or
order or vote to incur, any obligation against the state in excess of, or
make or order or vote to make any expenditure not authorized by, an
allotment. Any such obligation so incurred shall not be binding against
the state, but where the obligation violates this section only for having
been made in excess of an allotment, the Oregon Department of
Administrative Services may authorize payment thereof from unallotted
funds.

(2) Excepting as to administrative expenditures from dedicated,
revolving and trust funds and to revolving funds established to provide
services rendered by any state agency to other state agencies or to any
body politic of the State of Oregon, expenditures from dedicated funds,
revolving funds and trust funds may be made by any state agency without
appropriation or allotment.

(3) No person shall make or order or vote to make any expenditure
from or chargeable to a revolving fund or trust fund in excess of the
amount standing to the credit of such fund or for any purpose for which
such fund may not lawfully be expended.No appropriation to which the allotment system is
applicable shall become available to any state agency for expenditure
thereby during any allotment period until:

(1) The agency submits to the Oregon Department of Administrative
Services an estimate, in such form as the department prescribes, for such
allotment period, of the amount required for each activity to be carried
on during that period; and

(2) The estimate is approved, increased or decreased by the
department and funds allotted therefor. The Oregon Department of
Administrative Services shall act promptly upon all estimates required by
ORS 291.242. If the estimate is within the terms of the appropriation as
to amount and purposes, having due regard for the probable further needs
of the agency for the remainder of the term for which the appropriation
was made, and if the department determines that there is a need for the
estimated amount for the allotment period, the department shall approve
the estimate and allot the estimated amount for expenditures. Otherwise
the department shall modify the estimate so as to conform with the terms
of the appropriation and the prospective needs of the agency, and shall
reduce the amount allotted accordingly.Allotments shall be made
according to purpose and classification of expenditures prescribed in the
appropriation measure as enacted by the Legislative Assembly; provided,
however, that the Oregon Department of Administrative Services may make
allotments for agencies by purposes or by other classification of
expenditures of amounts appropriated or authorized to be expended in
appropriation measures enacted by the Legislative Assembly, whether or
not such measures establish classification of expenditures. In making
allotments, the department shall not authorize the expenditure of moneys
for any purpose not authorized by the Act appropriating the money or
authorizing it to be expended, and the funds allotted for each purpose or
classification of expenditure shall be used for no other purpose or
classification of expenditure. [Amended by 1963 c.182 §7] Upon the granting of any allotment,
the Oregon Department of Administrative Services shall transmit a notice
of the allotment to the agency concerned.The agency shall not create any claim or encumbrance for the
future disbursement of appropriated moneys unless the proposed
expenditure as estimated, together with expenses theretofore paid from or
encumbered against such allotment, is within the total amount and for the
purposes specified in the notice of allotment transmitted to such agency. The Oregon Department
of Administrative Services may at any time modify or amend any allotment
previously made by it, upon application of, or upon notice to, the agency
concerned, but no such modification or amendment shall reduce an
allotment below the amount required to meet valid obligations or
commitments previously incurred against the allotted funds.A new personnel position or
classification, not provided in the budget of an agency upon which
appropriations have been based, shall not be established without prior
approval of the Oregon Department of Administrative Services.Every state agency, when
making requests or preparing budgets to be submitted to the federal
government for funds, equipment, materials or services, other than for
highway purposes, and purposes for which the state was legally committed
on August 2, 1951, shall, upon completion of such request or budget,
first submit it to the Oregon Department of Administrative Services. The
department shall have authority to approve, disapprove, modify or amend
any such request or budget before it is submitted to the proper federal
authority. (1) Notwithstanding
the legislative policy and intent declared in ORS 291.232, if the Oregon
Department of Administrative Services declares at any time during a
biennium that there is a projected deficit in that biennium, the
department may, with the approval of the Governor and in order to prevent
the deficit, reduce the amount allotted to state agencies under ORS
291.234 to 291.260 from the General Fund in the manner provided in
subsection (2) of this section.

(2)(a) In reducing allotments under this section, the department
and the Governor shall follow legislative funding priorities as expressed
in statutes and in the legislatively adopted or approved budget for the
biennium. Unless statutes or the legislatively adopted or approved budget
indicate otherwise, the department and the Governor shall assume that all
General Fund appropriations have the same priority and shall reduce
allotments of General Fund moneys for each state agency receiving General
Fund moneys by the same percentage.

(b) The department and the Governor may not reduce allotments under
this section by a total amount that exceeds the amount necessary to bring
the total estimated General Fund ending balance to zero.

(3) For purposes of this section, the department may declare that
there is a projected deficit if a quarterly estimate made as provided in
ORS 291.342 indicates that the projected balance in the General Fund at
the end of the biennium will be less than zero. [2003 c.734 §12]Note: 291.261 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.(1) As used in this section, “state agency”
includes any state officer, department, board, commission or court, the
Legislative Assembly, its committees, officers and employees.

(2) A state agency shall inform the Oregon Department of
Administrative Services of any position that has remained vacant for a
continuous period of six months by including a report on the position in
the estimate submitted to the department under ORS 291.242. The
department may consider the vacancy in its determinations under ORS
291.244 and may reduce the amount allotted to the state agency. [2001
c.858 §1; 2003 c.803 §11]Note: 291.263 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.ALLOCATION OF GOVERNMENTAL SERVICE EXPENSES As used in ORS
291.272 to 291.280, unless the context requires otherwise:

(1) “Administrative expenses” has the meaning defined by ORS
291.305.

(2) “Department” means the Oregon Department of Administrative
Services.

(3) “Governmental service expenses” means the expenses of state
government that are attributable to the operation, maintenance,
administration and support of state government generally, and includes
the following:

(a) Administrative expenses of the Oregon Department of
Administrative Services supported out of the General Fund.

(b) Sixty percent of the expenditures of the Legislative Assembly
out of moneys appropriated from the General Fund, and all of the
expenditures incurred in the administration of the duties of the
Emergency Board.

(c) Sixty percent of the expenditures incurred in the
administration of the duties of the Joint Committee on Ways and Means and
the Emergency Board.

(d) Sixty percent of the expenditures incurred out of moneys
appropriated from the General Fund in the administration of the duties of
the Legislative Counsel Committee.

(e) Expenditures of the Secretary of State in the administration of
the office of the State Archivist, of historic properties programs, and
of the administrative rules publication program.

(f) Seventy-five percent of the administrative expenses of the
Office of the Governor incurred out of moneys appropriated from the
General Fund.

(4) “State agency” means every state officer, board, commission,
department, institution, branch or agency of the state government, whose
costs are paid wholly or in part from funds held in the State Treasury,
and includes the Legislative Assembly, the courts and their officers and
committees. [1967 c.637 §2; 1973 c.439 §9; 1983 c.385 §1; 1985 c.565 §45;
1991 c.112 §1]
The Oregon Department of Administrative Services shall determine and may
at any time redetermine which state funds or appropriations shall be
assessed a reasonable share of governmental service expenses. In
determining or redetermining the funds that shall be so assessed:

(1) A fund consisting of moneys the use of which is restricted by
the Oregon Constitution shall be assessed only those governmental service
expenses ascertained as being necessarily incurred in connection with the
purposes set forth in the Oregon Constitution.

(2) Trust funds shall be assessed only those governmental service
expenses ascertained as being necessarily incurred in connection with the
purposes for which the trust fund was established. [1967 c.637 §3](1) With respect to each biennium beginning on July
1 of an odd-numbered year, the Oregon Department of Administrative
Services shall allocate among all state agencies the governmental service
expenses, as determined by the department in accordance with ORS 291.272,
for the biennium ending two years prior to the beginning of the biennium
for which the allocation is made.

(2) The department, in accordance with the procedures and methods
prescribed under subsection (3) of this section, shall determine and may
at any time redetermine the reasonable share of governmental service
expenses to be assessed against any fund or appropriation. Such expenses
shall be a charge against any fund so designated and be considered an
administrative expense of the agency administering the fund or
appropriation.

(3) The department, with the approval of the Governor, shall
prepare and prescribe the procedures and methods used in determining and
redetermining the reasonable share of governmental service expenses
assessed against any fund or appropriation.

(4) The department, with the approval of the Governor, may make
rules necessary or proper to carry out the duties imposed upon it by ORS
291.272 to 291.280.

(5) The computation required by subsection (1) of this section
shall be made by the department in advance of the biennium with respect
to which the allocation is to be made. [1967 c.637 §4; 1969 c.105 §1;
2005 c.22 §213] (1) Upon
completion of the determination by the Oregon Department of
Administrative Services under ORS 291.274 and 291.276, the department
shall transfer to the General Fund, with appropriate notice to the State
Treasurer, out of moneys appropriated to each state agency, the amount of
governmental service expenses so certified for the agency.

(2) In the case of a state agency that collects or receives moneys
for fees, fines, licenses or taxes not by law made a part of the General
Fund available for general governmental purposes, if moneys available to
such state agency are not sufficient to permit the transfer under
subsection (1) of this section, the department shall notify the state
agency of the amount certified with respect to the state agency under ORS
291.274 and 291.276, less any amount transferred out of moneys
appropriated to such state agency under subsection (1) of this section.
Thereafter, until such balance has been paid into the General Fund, 10
percent of all moneys collected or received by the state agency for fees,
fines, licenses or taxes not by law made a part of the General Fund
available for general governmental purposes shall be:

(a) Transferred by the department to and made a part of the General
Fund available for general governmental purposes if such moneys are paid
to the State Treasurer by the state agency; or

(b) Paid to the State Treasurer by the state agency receiving such
moneys at the time when they are received by the state agency if such
moneys are authorized by law to be kept and disbursed other than by and
through the State Treasurer, and be credited by the State Treasurer to
and made a part of the General Fund available for general governmental
purposes.

(3) The transfer and payment to the General Fund required by this
section shall be made notwithstanding any law that appropriates such
moneys or any of them to any other purposes, and such portion so paid and
transferred is not subject to any special uses thereby provided. [1967
c.637 §5] In
receipting for moneys paid and transferred under ORS 291.278 (2), the
State Treasurer shall make the receipt in duplicate, showing the amount
credited to the General Fund available for general governmental purposes
as well as the amount credited to any special fund or account. The State
Treasurer shall file one of the duplicate receipts with the Oregon
Department of Administrative Services. [1967 c.637 §6]Moneys in the Administrative Services Economic Development Fund are
continuously appropriated for the payment of accounting charges of the
Oregon Department of Administrative Services in order to maintain
accountability of the fund. [1985 c.828 §16]Note: 291.285 and 291.290 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.If a state agency is authorized to receive moneys from
the Administrative Services Economic Development Fund based on approved
legislative limitations, such moneys shall be deposited in a general fund
cash account in the State Treasury unless funds are directed to be
deposited elsewhere. If the receiving agency is not authorized by statute
to have such a cash account, the Oregon Department of Administrative
Services in cooperation with the State Treasurer may create a cash
account in the General Fund for the receipt of these moneys. [1985 c.828
§17]Note: See note under 291.285.ACTS APPROPRIATING MONEY OR LIMITING EXPENDITURES(1) As used in the laws enacted by the
Legislative Assembly appropriating money or limiting expenditures, the
term “administrative expenses” means, unless the context requires
otherwise, those expenditures that are included under the classifications
of expenditures, except debt service and special payments expenditure
categories, which are prepared and prescribed, pursuant to ORS 291.206,
for the purpose of budget-making and accounting during the biennium for
which such laws appropriating money or limiting expenditures are enacted.

(2) In the laws enacted by the Legislative Assembly, the
establishment of maximum limits for expenditures from, or for the payment
of administrative expenses from, fees, moneys or other revenues collected
or received by any agency is not intended as an appropriation of moneys
not otherwise available to such agency. [1963 c.182 §§1,3]An appropriation of any sum of money from the General Fund by any
law shall not be considered as segregating or setting aside the amount of
such appropriation from the moneys constituting the General Fund, but
shall be considered and construed as constituting a credit in favor of
the appropriation for the amount stated in the law making the
appropriation, subject to allotment as provided in ORS 291.230 to
291.260. [Formerly 291.376]EMERGENCY EXPENDITURES; EMERGENCY BOARD As used in ORS
291.322 to 291.334:

(1) “Emergency” means any catastrophe, disaster or unforeseen or
unanticipated condition or circumstance, or abnormal change of conditions
or circumstances, affecting the functions of a state agency and the
expenditure requirements for the performance of these functions.

(2) “State agency” means any elected or appointed officer, board,
commission, department, institution, branch or other agency of the state
government. [1953 c.386 §1] There hereby is created a joint
committee composed of members of both houses of the Legislative Assembly,
to be known as the Emergency Board. [1953 c.386 §2]
(1) The Emergency Board, during the interim between sessions of the
Legislative Assembly, may exercise the following powers:

(a) Where an emergency exists, to allocate to any state agency, out
of any emergency fund that may be appropriated to the Emergency Board for
that purpose, additional funds beyond the amount appropriated to the
agency by the Legislative Assembly, or funds to carry on an activity
required by law for which an appropriation was not made.

(b) Where an emergency exists, to authorize any state agency to
expend, from funds dedicated or continuously appropriated for the uses
and purposes of the agency, sums in excess of the amount of the budget of
the agency as approved in accordance with law.

(c) In the case of a new activity coming into existence at such a
time as to preclude the possibility of submitting a budget to the
Legislative Assembly for approval, to approve, or revise and approve, a
budget of the money appropriated for such new activity.

(d) Where an emergency exists, to revise or amend the budgets of
state agencies to the extent of authorizing transfers between expenditure
classifications within the budget of an agency.

(2) No allocation, authorization or approval under subsection
(1)(a), (b) or (c) of this section shall be effective unless made at a
meeting at which 10 members of the board were present.

(3) The laws enacted by the Legislative Assembly making
appropriations and limiting expenditures, or either, are not intended to
limit the powers of the Emergency Board. [1953 c.386 §3; subsection (3)
enacted as 1963 c.182 §2; 1973 c.201 §2]Before the Emergency Board makes any allocation, grants any authorization
or approves any budget under ORS 291.326, it may require the state agency
in question to submit written evidence to justify the allocation,
authorization or approval and may require the head of the agency to
appear before it in support thereof. The Emergency Board may also require
the Director of the Oregon Department of Administrative Services to
submit a written report as to the need and justification for the
allocation, authorization or approval. Upon making an allocation,
granting an authorization or approving a budget, the Emergency Board
shall file with the department, the Secretary of State and the state
agency in question a copy of the order of allocation, grant of
authorization or approved budget. [1953 c.386 §4] The Emergency Board shall
be composed of the President of the Senate, the Speaker of the House of
Representatives, the chairpersons of the Senate and House Ways and Means
Committees, six members of the Senate, at least three of whom shall have
had some previous experience on the Ways and Means Committee, to be
appointed by the President of the Senate and confirmed by a majority of
all the members elected to the Senate, and seven members of the House, at
least four of whom shall have had some previous experience on the Ways
and Means Committee, to be appointed by the Speaker and confirmed by a
majority of all the members elected to the House. [1953 c.386 §5; 1973
c.201 §1; 1979 c.324 §1](1) The Emergency Board shall meet immediately upon adjournment of
each Legislative Assembly and elect a chairperson from their number. The
board shall meet thereafter at such times as it may determine.

(2) The term of members of the board shall run from the adjournment
of one regular session to the organization of the next regular session.

(3) If a vacancy occurs in the board, either the Speaker, if the
legislator previously filling the position was a member of the House, or
the President, if the legislator previously filling the position was a
member of the Senate, shall fill such vacancy by an appointment for the
unexpired term. However, such appointment, before becoming effective,
shall be confirmed by the remaining members of the board, sitting as such
board. [1953 c.386 §6](1) The Director of the Oregon Department of Administrative
Services, upon request of the board, shall furnish necessary assistance
to the board, or the board may employ such assistance as they may deem
necessary.

(2) The expenses of the board, the cost of employed assistance, and
other necessary expenses of the board shall be paid out of funds
appropriated to the board specially for such purpose or, if no such
appropriation is made, out of any emergency fund that may be appropriated
to the board. All claims for those expenses and cost shall be approved by
the chairperson or other person authorized to approve claims, and
warrants shall be drawn on the State Treasurer for the payment thereof in
the same manner as other expenses are paid. [1953 c.386 §7; 1967 c.454
§96; 1975 c.530 §7](1) As used in
this section, “appropriation bill” means a legislative Act which
appropriates money or authorizes the expenditure of dedicated or
continuously appropriated moneys or otherwise makes moneys available for
expenditure.

(2) In all cases where an appropriation bill heretofore or
hereafter passed provides that a state agency shall not commence any
project or allow any contract to be let for any project without having
the approval of the Emergency Board, such requirement may be met:

(a) During any period when the Legislative Assembly is in session,
by the adoption of a resolution by each house approving the proposed
action; or

(b) During any period when the Legislative Assembly is not in
session, either by approval of the Emergency Board as provided in the
appropriation bill, or by the elapse of 45 days without adverse action of
the Emergency Board after notice of the proposed action has been given to
each member of the Emergency Board at the last-known address of the
member. [1957 c.382 §1]ESTIMATES OF STATE REVENUES(1) By August 15 of each year, but not earlier than
90 days from the end of the regular session, if any, of the Legislative
Assembly held in that calendar year, the Oregon Department of
Administrative Services, with the assistance of the Department of
Revenue, shall:

(a) Ascertain by computation and estimate the total amount of
revenue available for state purposes for the current fiscal year; and

(b) Apportion the state tax levy on property, if any, among the
several counties in the manner provided in ORS 291.445.

(2) In addition to the requirement in subsection (1) of this
section, the Oregon Department of Administrative Services with the
assistance of the Department of Revenue shall for each calendar quarter
of the year ascertain by computation and estimate the total amount of
revenue available for state purposes for the current fiscal year, as well
as the amount of revenue received quarterly, cumulated throughout the
biennium, and report its estimate to the Legislative Revenue Officer and
to the Emergency Board, or if the Legislative Assembly is in session, to
the Joint Committee on Ways and Means.

(3) In carrying out its duties under subsection (2) of this
section, the Oregon Department of Administrative Services shall issue
quarterly a statement setting forth the methodology and assumptions used
in making the revenue estimate. Nothing in this subsection requires the
statement to set forth procedures used or methods used to determine
either the methodology or the assumptions. [Formerly 309.510; 1971 s.s.
c.5 §3; 1975 c.789 §10; 1980 c.11 §1](1) The Oregon Department
of Administrative Services, with the assistance of the Secretary of
State, as soon as possible after June 30, 1966, and each even-numbered
year thereafter, shall ascertain the total of General Fund revenues
obtained from all sources during the preceding fiscal year, so far as is
practicable.

(2) The Director of the Oregon Department of Administrative
Services shall certify to the total of General Fund and State Lottery
Fund revenues during the preceding fiscal year as determined under
subsection (1) of this section.

(3) As used in this section:

(a) “General Fund revenues” means all payments of money credited to
the State Treasury that are placed or to be placed by the State Treasurer
to the credit of the General Fund of the State of Oregon for general
governmental purposes.

(b) “State Lottery Fund revenues” means the net proceeds of the
state lottery authorized by section 4, Article XV of the Oregon
Constitution. [1965 c.615 §12; 1967 c.454 §98; 1985 c.828 §18](1) As soon as practicable after adjournment sine die of the
regular session of the Legislative Assembly, the Oregon Department of
Administrative Services shall report to the Emergency Board the estimate
as of July 1 of the first year of the biennium of General Fund and State
Lottery Fund revenues that will be received by the state during that
biennium. The Oregon Department of Administrative Services shall base its
estimate on the last forecast given to the Legislative Assembly before
adjournment sine die of the regular session on which the printed, adopted
budget prepared in the Oregon Department of Administrative Services is
based, adjusted only insofar as necessary to reflect changes in laws
adopted at that session. The report shall contain the estimated revenues
from corporate income and excise taxes separately from the estimated
revenues from other General Fund sources. The Oregon Department of
Administrative Services may revise the estimate if necessary following
adjournment sine die of any special or emergency session of the
Legislative Assembly but any revision does not affect the basis of the
computation described in subsection (3) or (4) of this section.

(2) As soon as practicable after the end of the biennium, the
Oregon Department of Administrative Services shall report to the
Emergency Board, or the Legislative Assembly if it is in session, the
amount of General Fund revenues collected as of the last June 30 of the
preceding biennium. The report shall contain the collections from
corporate income and excise taxes separately from collections from other
sources.

(3) If the revenues received from the corporate income and excise
taxes during the biennium exceed the amounts estimated to be received
from such taxes for the biennium, as estimated after adjournment sine die
of the regular session, by two percent or more, the total amount of that
excess shall be credited to corporate income and excise taxpayers in a
percentage amount of corporate excise and income tax liability as
determined under subsection (5) of this section. However, no credit shall
be allowed against tax liability imposed by ORS 317.090.

(4) If the revenues received from General Fund revenue sources,
exclusive of those described in subsection (3) of this section, during
the biennium exceed the amounts estimated to be received from such
sources for the biennium, as estimated after adjournment sine die of the
regular session, by two percent or more, there shall be refunded from
personal income tax revenues an amount equal to the total amount of that
excess, reduced by the cost certified by the Department of Revenue under
ORS 291.351 as being allocable to payments described under this
subsection. The excess amount to be refunded shall be paid to personal
income taxpayers in a percentage amount of prior year personal income tax
liability as determined under subsection (6) of this section.

(5) If there is an excess to be credited under subsection (3) of
this section, on or before October 1, following the end of each biennium,
the Oregon Department of Administrative Services shall determine and
certify to the Department of Revenue the percentage amount of credit for
purposes of subsection (3) of this section. The percentage amount
determined shall be a percentage amount to the nearest one-tenth of a
percent that will distribute the excess to be credited to corporate
excise and income taxpayers for taxable years beginning in the calendar
year during which the excess is determined. The credit shall be computed
after the allowance of any other credit or offset against tax liability
allowed or allowable under any provision of law of this state, and before
the application of estimated tax payments, withholding or other advance
tax payments.

(6)(a) If there is an excess to be refunded under subsection (4) of
this section, on or before September 15, following the end of each
biennium, the Oregon Department of Administrative Services shall
determine and certify to the Department of Revenue the percentage amount
of refund payment for purposes of subsection (4) of this section. The
percentage amount so determined shall be a percentage amount to the
nearest one-hundredth of a percent that will distribute the excess to be
refunded to personal income taxpayers under subsection (4) of this
section. The percentage amount shall equal the amount distributed under
subsection (4) of this section divided by the estimated total personal
income tax liability for all personal income taxpayers for tax years
beginning in the calendar year immediately preceding the calendar year in
which the excess is determined.

(b) The Department of Revenue shall multiply the percentage amount
determined under paragraph (a) of this subsection by the total amount of
a personal income taxpayer’s tax liability for the tax year beginning in
the calendar year immediately preceding the calendar year in which the
excess is determined in order to calculate the amount of the refund to be
made to the taxpayer.

(c) The refund described under this subsection shall be subject to
the rules allowing setoff of refunds or sums due debtors of this state
under ORS 293.250.

(d) The refund described under this subsection shall be mailed by
the Department of Revenue to personal income taxpayers eligible for the
payment on or before December 1 following the end of the biennium for
which the payment described under this subsection is being made.

(e) Notwithstanding paragraph (d) of this subsection, the
Department of Revenue shall mail the refund at the earliest date of
practicable convenience in the case of a return:

(A) For a tax year beginning in the calendar year immediately
preceding the calendar year in which the excess is determined for which
refund is being made; and

(B) That is first filed on or after August 15 after the end of the
biennium.

(7) No refund shall be made to a taxpayer if, after making the
calculation described under subsection (6) of this section, the amount
calculated is less than $1. [1979 c.241 §30; 1981 c.885 §1; 1985 c.828
§19; 1995 c.815 §2; 1997 c.99 §1; 1997 c.654 §4; 1999 c.23 §1; 1999 c.73
§5]Note: 291.349 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation. If, based on the report made
under ORS 291.349 (2), refund will be made under ORS 291.349 (4), the
Department of Revenue shall certify the costs that are incurred in
calculating and making the refunds under ORS 291.349 (4). Costs shall be
certified by the department within 15 days of the date the report under
ORS 291.349 (2) is made. As used in this section, “costs” means and is
limited to those costs that, absent the requirement of making a refund
under ORS 291.349 (4), would not be incurred by the department. [1995
c.815 §4; 1999 c.23 §2]Note: 291.351 and 291.353 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation. (1) The Surplus Kicker Cost
Account is established in the General Fund of the State Treasury.

(2) Upon cost certification by the Department of Revenue under ORS
291.351, an amount equal to the total amount certified shall be credited
from the General Fund to the Surplus Kicker Cost Account. All moneys in
the account are appropriated continuously to the Department of Revenue
for the purpose of carrying out the provisions of ORS 291.349. [1995
c.815 §5]Note: See note under 291.351.RATE OF GROWTH OF APPROPRIATIONS(1) As used in this section,
“general governmental purposes” means:

(a) Those activities defined as governmental activities under the
accounting standards promulgated by the Governmental Accounting Standards
Board of the Financial Accounting Foundation that are in effect on August
10, 2001; and

(b) Post-secondary educational activities that are partially funded
by student tuition and fees.

(2) Each biennium, state governmental appropriations for general
governmental purposes shall be no greater than eight percent of projected
personal income in Oregon for the same biennium. Projected personal
income shall be based on the United States Department of Commerce
projections used by the Oregon Department of Administrative Services in
the last forecast given to the Legislative Assembly before adjournment
sine die of the regular session on which the printed, adopted budget is
based.

(3) For purposes of this section, the following are considered to
be appropriations:

(a) An authorization, given by law, to expend moneys in a biennium;

(b) A limitation, imposed by law, on the expenditure in a biennium
of moneys that are continuously appropriated; and

(c) An estimate of amounts of moneys that are continuously
appropriated that will be spent in a biennium without limitation.

(4) The following appropriations are not subject to the limitation
on appropriations contained in this section:

(a) Appropriations for the construction or acquisition of assets
that are financed by state bonds, certificates of participation or other
forms of borrowing.

(b) Appropriations of moneys received directly or indirectly from
the federal government.

(c) Appropriations for fee remission programs of the Department of
Higher Education.

(d) Appropriations of moneys voluntarily donated to a state agency.

(e) Appropriations of moneys from revenue increases or new revenue
sources if the increases or sources result from approval of a measure by
the people at an election held on or after August 10, 2001.

(f) Appropriations to fund new programs or to increase funding for
existing programs if the need for new or increased funding results from
approval of a measure by the people at an election held on or after
August 10, 2001.

(5) The limitation on appropriations established by this section
may be exceeded for a biennium if the Governor declares an emergency and
three-fifths of the members serving in each house of the Legislative
Assembly affirmatively vote to exceed the limitation for the biennium.
[2001 c.956 §1]Note: 291.357 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.LEGISLATIVE REVIEW(1) As
used in this section, “legislative review agency” means the Joint
Committee on Ways and Means during the period when the Legislative
Assembly is in session and the Emergency Board during the interim period
between sessions.

(2) Prior to making any changes in a salary plan, the Oregon
Department of Administrative Services shall submit the proposed changes
to the legislative review agency.

(3)(a) The Oregon Department of Administrative Services may approve
the reallocation of positions or the establishment of new positions not
specifically provided for in the budget of the affected agency if it
finds that the proposed change:

(A) Can be financed by the agency within the limits of its biennial
budget and legislatively approved program;

(B) Will not produce future budgetary increases; and

(C) Conforms to legislatively approved salary policies.

(b) Proposed changes not meeting the requirements of paragraph (a)
of this subsection shall be presented to the legislative review agency.

(4) Agencies within the Department of Human Services and the
Department of Corrections shall report on a biennial basis to the
legislative review agency. Each report shall include the number of vacant
budgeted positions, including all job categories and classifications,
within the agency. The legislative review agency shall order the
reporting agency to show cause why the budgeted positions have not been
filled and shall assess fully the impact the vacancies have on:

(a) The agency’s delivery of services, accounting for any seasonal
fluctuation in the need for those services;

(b) The agency’s budget due to increased use of overtime;

(c) The agency’s use of temporary employees; and

(d) Employee workload.

(5) It is declared to be the policy of this state that the total
personal services, budget and full-time equivalent positions approved for
any state agency shall be the maximum amount necessary to meet the
requirements of the agency for the biennium. Notwithstanding ORS 291.230
to 291.260, the Governor and the Oregon Department of Administrative
Services may transfer vacant position authority among and within state
agencies to achieve maximum utilization of authorized positions within
agencies. [1973 c.49 §1; 1985 c.713 §1; 1989 c.960 §1; 1993 c.724 §13;
1995 c.452 §16](1) As used in this section, “state agency” has
the meaning given that term in ORS 291.002.

(2) A state agency shall report, as provided in this section, to
the appropriate committee of the Legislative Assembly if the agency makes
substantive changes in programs after the agency’s budget is approved by
the Legislative Assembly.

(3) The Oregon Department of Administrative Services shall adopt
rules defining what constitutes a substantive program change for purposes
of this section. When an agency has made a substantive program change as
defined by the department, the agency shall notify the department of the
change. The department shall notify the Speaker of the House of
Representatives and the President of the Senate of substantive program
changes made by state agencies.

(4) Based upon information submitted by the Oregon Department of
Administrative Services under subsection (3) of this section, the Speaker
of the House of Representatives and the President of the Senate shall
determine which committee is appropriate for each report that is to be
made under subsection (2) of this section.

(5) A committee to which a report is to be made under subsection
(2) of this section may request that the report be made orally or in
writing.

(6) An agency need not report to a committee under subsection (2)
of this section on any matter that the agency is required by ORS 291.371,
291.375 and 291.385 to report or present to the Emergency Board or to the
Joint Committee on Ways and Means. [2001 c.425 §2](1) Prior to the
submission of any application for financial assistance or grants from the
United States or any agency thereof by or on behalf of any agency of this
state, the application must be submitted for legislative review in the
following manner:

(a) If the application is to be submitted to the federal government
when the Legislative Assembly is in session, the application shall be
submitted to the Joint Committee on Ways and Means for review.

(b) If the application is to be submitted to the federal government
when the Legislative Assembly is not in session, the application shall be
submitted to the Emergency Board for review.

(2) If the legislative agency authorized under subsection (1) of
this section to review applications described therein approves the
application, it may be submitted to the appropriate federal agency. If
the legislative agency disapproves of the application, it shall not be
submitted to any federal agency unless it is or can be modified to meet
the objections of the legislative agency.

(3) Notwithstanding subsection (1) of this section, the Joint
Committee on Ways and Means and the Emergency Board may exempt any state
agency from the requirements of this section. Project grants for
departmental research, organized activities related to instruction,
sponsored research or other sponsored programs carried on within the
Department of Higher Education, for which no biennial expenditure
limitations have been established, are exempt from the requirements of
this section.

(4) The review required by this section is in addition to and not
in lieu of the requirements of ORS 293.550. [1973 c.44 §1]Expenditures of moneys available to this state or any agency
thereof under the Emergency Job and Unemployment Assistance Act of 1974
(Public Law 93-567), and the Emergency Jobs Program Extension Act of 1976
(Public Law 94-444), as amended, are not limited by fixed sum
appropriations or expenditure limitations imposed for the biennium
beginning July 1, 1977, if authorized by the Joint Committee on Ways and
Means after March 1, 1979. However, positions added under the provisions
of the federal enabling legislation are subject to approval of the
Emergency Board during the interim between sessions of the Legislative
Assembly and by the Joint Committee on Ways and Means during a session of
the Legislative Assembly. [1977 c.85 §1; 1979 c.93 §1; 1985 c.565 §46]Note: 291.385 was enacted into law by the Legislative Assembly but
was not added to or made a part of ORS chapter 291 or any series therein
by legislative action. See Preface to Oregon Revised Statutes for further
explanation.MASS TRANSIT ASSESSMENT(1) This section and ORS 291.407 allow the Oregon Department of
Administrative Services to assess state agencies and to provide moneys
from the assessments to mass transit districts, established under ORS
267.010 to 267.390, transportation districts, established under ORS
267.510 to 267.650, and service districts, established under ORS 451.410
to 451.610 to provide public transportation services, as reimbursement
for the benefit that state government receives from the districts.

(2) State agencies subject to assessment under this section include
every state officer, board, commission, department, institution, branch
or agency of the state whose costs are paid wholly or in part from funds
held in the State Treasury, and include the Legislative Assembly, the
state courts and their officers and committees.

(3) If the Oregon Department of Administrative Services elects to
pay moneys to districts under this section and ORS 291.407, the
department shall do the following:

(a) Determine what services performed for subject state agencies
will be subject to assessment under this section;

(b) Determine which subject agencies have employees within each
district who are performing the subject services;

(c) Determine the amount of wages paid to the agency employees for
performing the subject services within each district; and

(d) Establish a rate of assessment of not more than six-tenths of
one percent of the total amount of the wages determined under this
subsection.

(4) When determining under subsection (3)(c) of this section the
total amount of wages paid to agency employees for performing subject
services within each district, the Oregon Department of Administrative
Services shall include wages that are paid from federal funds only to the
extent the assessment on those wages is authorized to be paid under
federal regulations.

(5) Notwithstanding any other provision of this section, the Oregon
Department of Administrative Services shall not establish rates or impose
assessments under this section that exceed the following:

(a) The Oregon Department of Administrative Services shall not
assess more from an agency than the Legislative Assembly provides the
agency for purposes of this section, either directly or indirectly
through its approval of budgets or through the Emergency Board, if the
agency budget is approved by the Legislative Assembly from General Fund
moneys.

(b) If an agency is an agency other than one described in paragraph
(a) of this subsection, the Oregon Department of Administrative Services
shall not assess moneys from the agency at a greater rate than the rate
applicable to an agency described in paragraph (a) of this subsection.

(6) At any time it determines appropriate, the Oregon Department of
Administrative Services may:

(a) Redetermine any factors necessary to perform its duties under
this section; or

(b) Vary the rate under this section within the limits established
under this section.

(7) After making determinations and establishing a rate under this
section, the Oregon Department of Administrative Services may direct the
assessment against the payrolls of subject agencies at the rate
established by the department. All moneys assessed under this section
shall be promptly forwarded to the Oregon Department of Administrative
Services. Assessments under this section are administrative expenses of
an agency, as defined in ORS 291.305.

(8) The Oregon Department of Administrative Services shall pay any
moneys it receives under this section to the State Treasurer for deposit
in the account established under ORS 291.407 for use as provided in that
section. [1981 c.788 §1; 1997 c.60 §1; 2003 c.51 §1]Note: 291.405 and 291.407 were enacted into law by the Legislative
Assembly but were not added to or made a part of ORS chapter 291 or any
series therein by legislative action. See Preface to Oregon Revised
Statutes for further explanation.(1) The Mass Transit Assistance Account is established in
the General Fund of the State Treasury. The account shall consist of
moneys deposited in the account under ORS 291.405 and as otherwise
provided by law. The moneys in the account are continuously appropriated
to the Oregon Department of Administrative Services to be used as
provided in this section.

(2) The Oregon Department of Administrative Services shall
distribute moneys from the account established under this section to
districts described in ORS 291.405 on the last day of each calendar
quarter. Subject to the limitations in this section, the amount
distributed to each district shall be equal to the total assessments
received by the department during the immediate preceding three months
under ORS 291.405 from agencies with employees performing subject
services within that district.

(3) Distributions under this section are subject to the following
limitations:

(a) Except for newly formed districts, the Oregon Department of
Administrative Services shall not distribute to a district during a
calendar year an amount that exceeds the amount received by the district
under the district’s own taxes during the immediate preceding fiscal year
of the district.

(b) The Oregon Department of Administrative Services shall not
distribute to a newly formed district during a calendar year an amount
that exceeds the amount the budget approved by the district board
proposes as revenue for the district from the district’s own taxes during
the current fiscal year of the district. If the district does not collect
the proposed amount, the department shall make adjustments in the
distributions during subsequent years to recover any amount paid under
this section that is over the amount the district actually received under
the district’s own taxes.

(4) The limitations imposed under this section that are based on
amounts received by a district under its own taxes do not include amounts
received by the district from farebox revenues, federal moneys, state
moneys, gifts, investments, bonds or similar moneys received by the
district.

(5) The Department of Transportation shall provide the Oregon
Department of Administrative Services with any information concerning a
mass transit district or transportation district that the Oregon
Department of Administrative Services determines necessary for the
performance of its duties under this section and ORS 291.405. The
Department of Transportation shall provide the information in the form
and at times determined by the Oregon Department of Administrative
Services.

(6) In exchange for payments authorized under this section to
transit districts, the State of Oregon and its agencies shall be exempt
from any parking code requirements for existing state-owned buildings,
construction of new state buildings or the renovation of existing state
buildings, which have been or may be established by any political
subdivision within the boundaries of a transit district receiving such
payments. [1981 c.788 §2]Note: See note under 291.405.PROCEDURE FOR DETERMINING WHETHER STATE PROPERTY TAX LEVY NECESSARY(1) Before
July 1 of each fiscal year, the Oregon Department of Administrative
Services shall request from the appropriate state agency a certificate as
prescribed in this section. The request shall be made by letter to the
agency.

(2) Each state agency authorized to issue general obligation bonds
that are ordinarily to be repaid from other than General Fund
appropriations shall, on or before August 15 of each fiscal year:

(a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will become
available during the current year to the bond program debt service fund
to pay bond principal and interest that has accrued or will accrue during
the current year are sufficient and will be sufficient to pay bond
program principal and interest scheduled for payment during the current
year; or

(b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will become
available during the current year to the bond program debt service fund
will not be sufficient to pay bond program principal and interest
scheduled for payment during the current year. A certificate issued under
this paragraph shall specify the amount of the anticipated current year
deficit. The Director of the Oregon Department of Administrative Services
shall review and confirm the correctness of each certification made under
this paragraph.

(3) On or before August 15 of each fiscal year, the administrative
division of the Oregon Department of Administrative Services that has
primary responsibility for accounting for each general obligation bond
program in which the bond principal and interest is ordinarily to be
repaid from General Fund appropriations shall:

(a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will become
available during the current year from General Fund appropriations to
defray program bond principal and interest that has accrued or will
accrue during the current year are sufficient and will be sufficient to
pay program bond principal and interest scheduled for payment during the
current year; or

(b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will become
available during the current year from General Fund appropriations will
not be sufficient to pay program bond principal and interest scheduled
for payment during the current year. A certificate issued under this
paragraph shall specify the amount of the anticipated current year
deficit.

(4)(a) If a deficit in funds available to pay principal and
interest in any general obligation bond program is certified and
confirmed under subsection (2) or certified under subsection (3) of this
section, the amount of the deficit, together with any deficit that is
certified for any other general obligation bond program shall upon
certification constitute a state tax levy on property that shall be
apportioned among and charged to the several counties in that proportion
which the total assessed value of all the taxable property in each county
bears to the total assessed value of all the taxable property of the
state as equalized.

(b) If any agency fails to make the certification under subsection
(2) or (3) of this section with respect to any general obligation bond
fund program, the Oregon Department of Administrative Services shall
determine the amount of revenue and other funds that are available and
the amount of taxes, if any, that should be levied in addition to the
revenues and funds, to pay bond principal and interest under the program
for the fiscal year in question. The additional amount so determined
shall thereupon constitute a state tax levy on property that shall be
apportioned, certified, collected and distributed as if determined and
certified as a deficit by the agency. The Oregon Department of
Administrative Services shall charge the agency for cost recovery for
time spent on that agency’s behalf.

(5) Immediately after the department has determined the amount of a
state tax levy on property in accordance with subsection (4) of this
section, a certificate of levy, signed by the director of the department,
shall be filed in the office of the department. If no state levy is
required for the fiscal or tax year, a certificate so stating and signed
by the director shall be filed in the office of the department.

(6) If, for any reason, after the close of any regular biennial
session of the Legislative Assembly, it becomes necessary to reduce
General Fund appropriations, General Fund appropriations for a debt
service fund of a general obligation bond program described under
subsection (3) of this section may not be reduced.

(7) For purposes of this section:

(a) State agencies that are authorized to issue general obligation
bonds ordinarily to be repaid from other than General Fund appropriations
include but are not limited to:

(A) The Director of Veterans’ Affairs, as authorized by Article
XI-A of the Oregon Constitution and ORS chapter 407 (veterans loans).

(B) The State Board of Higher Education, as authorized by Article
XI-F(1) of the Oregon Constitution and ORS 351.350 (building projects).

(C) The Department of Environmental Quality, as authorized by
Article XI-H of the Oregon Constitution and ORS 468.195 to 468.260
(pollution control).

(D) The Water Resources Commission and the Water Resources
Director, as authorized by Article XI-I(1) of the Oregon Constitution and
ORS 541.700 to 541.855 (water development).

(E) The Housing Agency, as authorized by Article XI-I(2) of the
Oregon Constitution and ORS 456.515 to 456.725 and 458.505 to 458.515
(housing).

(F) The Director of the State Department of Energy, as authorized
by Article XI-J of the Oregon Constitution and ORS 470.220 to 470.290
(small scale energy projects).

(G) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of this
subsection.

(b) Each agency authorized to issue general obligation bonds that
are ordinarily to be repaid from other than General Fund appropriations
shall determine the amount of revenues or other funds that are available
and the amount of taxes, if any, that should be levied for the ensuing
year in the manner required under rules adopted by the Oregon Department
of Administrative Services and make the certification required under
subsection (2) of this section.

(8)(a) State agencies that are authorized to issue general
obligation bonds that are ordinarily to be repaid from General Fund
appropriations include but are not limited to:

(A) The State Board of Forestry and the State Forester, as
authorized by Article XI-E of the Oregon Constitution and ORS 530.210 to
530.280 (state reforestation).

(B) The State Board of Higher Education, as authorized by Article
XI-G of the Oregon Constitution and ORS 351.345 (higher education and
community colleges).

(C) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of this
subsection.

(b) Each agency authorized to issue general obligation bonds
ordinarily to be repaid from General Fund appropriations shall furnish
any data required by the Oregon Department of Administrative Services to
determine the amount of revenues or other funds that are available and
the amount of taxes, if any, that should be levied for the ensuing year
and the administrative division of the Oregon Department of
Administrative Services that has primary responsibility for accounting
shall make the determination for purposes of the making of the
certification required under subsection (3) of this section. [Formerly
291.344; 1999 c.59 §75; 2005 c.22 §214; 2005 c.625 §73]PENALTIES (1) Any person who makes or orders or votes to
make any expenditure in violation of any of the provisions of the
statutes listed in subsection (5) of this section, or who makes or
authorizes or causes to be made any disbursement of funds from the State
Treasury in violation of any of the provisions of the statutes listed in
subsection (5) of this section, commits a violation and shall, upon
conviction, be punished by a fine of not less than $500 nor more than
$3,000.

(2) If any person incurs or orders or votes to incur an obligation
in violation of any of the provisions of the statutes listed in
subsection (5) of this section, the person and the sureties on the bond
of the person shall be jointly and severally liable therefor to the
person in whose favor the obligation was incurred.

(3) Upon certification by the Oregon Department of Administrative
Services that any state officer or employee of a state agency has failed
or refused to comply with any order, rule or regulation made by the
department in accordance with any of the provisions of the statutes
listed in subsection (5) of this section, the salary of the officer or
employee may not be paid until the order, rule or regulation is complied
with.

(4) Any violation of a provision of a statute listed in subsection
(5) of this section for which no other penalty is provided in this
section is a Class A violation.

(5) Subsections (1) to (4) of this section apply to ORS 279A.140,
279A.280, 279B.270, 283.020, 283.110, 283.140 to 283.160, 283.305 to
283.390, 291.001 to 291.034, 291.201 to 291.222, 291.230 to 291.260,


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