OAR Chapter 122 — Department of Administrative Services, Chief Financial Office

Division 1 PROCEDURAL RULES

Or. Admin. R. 122-001-0000 Notice of Proposed Adoption, Amendment, or Repeal of Rules

Prior to the adoption, amendment, or repeal of any rule, other than a temporary rule which shall be adopted in accordance with ORS 183.335(5), the Department of Administrative Services, Budget and Management Division, shall give notice of the intended action:

(1) In the Secretary of State's Bulletin referred to in ORS 183.360 at least 21 days before the effective date of the intended action;

(2) By mailing a copy of the notice to persons on the Department of Administrative Service’s mailing list established pursuant to ORS 183.335(7) at least 28 days before the effective date of the rule. (ORS 183.335(1)(c);

(3) By mailing notice to certain legislators at least 49 days before the effective date of the rule. (ORS 183.335(1)(d); and

(4) By mailing or furnishing a copy of the notice to:

(a) The Associated Press;

(b) State Agency Administrators; and

(c) The Capitol Building Press Room.

History

• Statutory/Other Authority: ORS 183 & 184
• BMD 5-2003, f. & cert. ef. 10-24-03
• BMD 1-1982, f. & cert. ef. 3-1-82

Or. Admin. R. 122-001-0005 Model Rules of Procedure

The Department of Administration Services and the Chief Financial Office adopts the Attorney General’s Model Rules of Procedure under the Administrative Procedures Act, as amended and effective January 1, 2024.

[ED. NOTE: The full text of the Attorney General’s Model Rules of Procedure is available from the office of the Attorney General or the agency.]

History

• Statutory/Other Authority: ORS 183.341
• Statutes/Other Implemented: ORS 183.341
• DCFO 2-2025, minor correction filed 10/16/2025, effective 10/16/2025
• BMD 5-2003, f. & cert. ef. 10-24-03
• BMD 1-1986, f. & cert. ef. 2-20-86
• BMD 1-1983, f. & cert. ef. 10-11-83
• ED 1-1982, f. & cert. ef. 1-11-82

Division 40 REPORTING OF SUBSTANTIVE PROGRAM CHANGES

Or. Admin. R. 122-040-0040 Definitions

(1) For purposes of this rule, unless the context requires otherwise:

(a) "State agency" has the meaning given that term in ORS 291.002;

(b) "Director" means the Director of the Department of Administrative Services; and,

(c) "Program" means an activity or a series of related activities that a state agency performs to fulfill its constitutional or statutory duties and that is identified, by name or otherwise with particularity, in: the Oregon Constitution or an Oregon law, including but not limited to a statute making appropriations to the state agency; a budget report and measure summary issued by the Legislative Assembly relating to the budget for the state agency that the Legislative Assembly most recently enacted into law or the Emergency Board most recently amended; a state agency performance measure developed under ORS 291.110, or link to an Oregon Benchmark approved under 285A.168(2).

(2) For purposes of ORS 291.373, a state agency substantively changes a Program, i.e., makes a "substantive Program change," when the state agency:

(a) Establishes a new Program, unless the Legislative Assembly provided for establishment of the Program by statute or anticipated establishment of the Program in a budget report and measure summary;

(b) Eliminates an existing Program, unless the Legislative Assembly provided for elimination of the Program by statute or anticipated elimination of the Program in a budget report and measure summary;

(c) Delays by six months or longer the legislatively planned establishment or elimination of a Program;

(d) Makes changes to the operation or financing of a Program by: redesigning the Program so as to affect a class of client benefit levels or provider reimbursement levels, unless the redesign consists solely of adjustments of an ongoing nature or process that are described in written materials presented to the Legislative Assembly by the state agency during the most recent legislative session; implementing an executive order; redirecting more than 10 percent of the Program’s funding to another purpose as allowed by a relevant appropriation or expenditure limitation; or, otherwise makes changes to the operation or financing of a Program that the director determines affects one or more essential aspects of that Program.

History

• Statutory/Other Authority: ORS 291.373
• Statutes/Other Implemented: ORS 291.373(2)
• BMD 8-2003, f. & cert. ef. 12-30-03
• BMD 6-2003(Temp), f. & cert. ef. 11-10-03 thru 5-5-04

Or. Admin. R. 122-040-0050 Report Filing

(1) No later than fourteen days after the conclusion of each calendar quarter, a state agency shall report on and describe to the director any substantive program changes made during that calendar quarter.

(2) No later than thirty-five days after the conclusion of the calendar quarter, the director shall deliver a report on all substantive program changes made by state agencies during the calendar quarter, or deliver a report that no substantive program changes have been made during the calendar quarter, to the President of the Senate, Speaker of the House of Representatives, and the Legislative Fiscal Officer.

(3) The director may develop reporting forms for purposes of state agency reports required under subsection (1) of this section.

(4) A state agency need not submit a report to the director if it has not made any substantive program changes during the calendar quarter.

History

• Statutory/Other Authority: ORS 291.373
• Statutes/Other Implemented: ORS 291.373(2)
• BMD 8-2003, f. & cert. ef. 12-30-03
• BMD 6-2003(Temp), f. & cert. ef. 11-10-03 thru 5-5-04

Or. Admin. R. 122-040-0060 Failure to Report Substantive Program Changes

(1) A state agency that fails to report a substantive program change in a timely manner as required under subsection (1) of 122-040-0020 above shall immediately report to the director.

(2) The report to the director shall include: description of the substantive program change; information on the timing of the substantive program change and the date that the change should have been reported to the director; and, explanation of why the substantive program change was not reported as required.

(3) The director shall submit a list identifying any substantive program changes that state agencies failed to report with the report submitted to the President of the Senate, Speaker of the House of Representatives, and the Legislative Fiscal Officer required under subsection (2) of this section. The list shall include the information submitted to the department by the state agency under subsection (2) of this section, and shall indicate whether the failure to report was identified by the state agency or discovered by another party.

History

• Statutory/Other Authority: ORS 291.373
• Statutes/Other Implemented: ORS 291.373(2)
• BMD 8-2003, f. & cert. ef. 12-30-03
• BMD 6-2003(Temp), f. & cert. ef. 11-10-03 thru 5-5-04

Division 50 SCREENING AND SELECTION PROCEDURES FOR PERSONAL SERVICE CONTRACTS ENTERED INTO BY THE OREGON AGRICULTURAL COMMODITY COMMISSIONS

Or. Admin. R. 122-050-0000 Purpose

The Oregon Agricultural Commodity Commissions (OACC) occasionally require the services of an outside party to accomplish all or part of a project. The purpose of these rules is to specify the screening and selection procedures which will be used for personal service contracts.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Or. Admin. R. 122-050-0010 Basic Policy

(1) The OACC may contract for services when the specialized skills, knowledge, or resources are not available within the Commission; when the work cannot be done in a reasonable time with the Commission’s own work force; when it will be less expensive to contract for the work; when an independent and impartial evaluation of a situation by recognized professional is required; or when the Commission is directed by statute to contract for services. Contracts will be let only after approval of the Commission.

(2) Agreements for the services of a contractor who is a member of the Public Employes’ Retirement System and who is employed in another public agency usually will be by interagency agreement.

(3) In selecting between two or more equally qualified proposals when awarding contracts, preference may be given to individuals and businesses which have prior successful experience with commodity commissions.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Or. Admin. R. 122-050-0020 Definitions

(1) “Competitive Negotiation” (formal process) is a procurement method whereby proposals are requested from a number of sources and the Request for Proposal is publicized.

(2) “Non-Competitive Negotiation” (sole source) is procurement through solicitation of a proposal from only one source.

(3) “Small Purchase Procedures” (informal process) are those relatively simple and informal procurement methods whereby price or rate quotations are obtained from a number of sources and selection made on the basis of cost and other applicable criteria.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Or. Admin. R. 122-050-0030 Procurement Method

(1) Small purchase procedures may be used for the procurement of services costing not more than $10,000. Price or rate quotations shall be obtained from at least three qualified sources.

(2) Competitive negotiation shall be used for personal service contracts in excess of $10,000 per agreement per fiscal year and may be used for contracts of less than $10,000. Exceptions may be granted to accommodate one or more of the conditions described in section (3) of this rule with the approval of the Commission.

(3) Non-competitive negotiation may be used for contracts if:

(a) The item or service is available only from a single source, or the sole source has special skills that are only available based upon his/her expertise or situation;

(b) Public need or emergency advises against a delay incident to competitive solicitation;

(c) After solicitation of a number of sources, competition is determined inadequate;

(d) The contract is a renewal of an existing contract, subject to approval by all required parties.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Or. Admin. R. 122-050-0040 Maintenance of RFP Mailing List

The Commission Office shall maintain a Request for Proposals (RFP) Mailing List consisting of persons, businesses, organizations and other entities which have indicated the desire to be notified of contracting opportunities that are available. An OACC Business form will be used to place persons on the list.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Or. Admin. R. 122-050-0050 Competitive Negotiation Procedures

(1) A Request for Proposals (RFP) shall be prepared for contracts for which competitive negotiation procedures will be used. The RFP shall include, at a minimum, the following information:

(a) Date and hour by which proposals must be received;

(b) Description of work;

(c) Evaluation specific to contract criteria.

(2) Notification of the availability of the RFP shall be mailed to entities on the OACC RFP Mailing List that have indicated expertise in the subject area.

(3) Notification of the availability of the RFP shall be advertised in appropriate periodicals.

(4) Proposals shall be evaluated in a manner consistent with the evaluation criteria included in the RFP by the Commission or committee thereof. A written document stating why the selection was made will be on file at the Commission office. These are public records and may be reviewed upon request.

(5) Exceptions to procedures in sections (2) and (3) of this rule may be granted by the Commission if warranted by time or cost considerations.

History

• Statutory/Other Authority: ORS 183.335(5)
• BMD 2-1992, f. & cert. ef. 4-8-92
• BMD 1-1991(Temp), f. & cert. ef. 9-30-91

Division 60 BUDGET AND MANAGEMENT

Or. Admin. R. 122-060-0000 Process for Reducing Allotments

OAR 122-060-0010 describes the procedure for reducing allotments according to amounts unscheduled under this rule, as it effects reductions in allotments. To reflect savings accomplished by management planning and actions through December 31, 1992, the following amounts are unscheduled effective January 4, 1993, resulting in reduced allotments for the remaining two quarters of the 1991–93 biennium:

General Fund Other Funds Federal Funds

(1) Consumer and Business

Services $127,011 $955,112

(a) Building Codes Agency 393,958

(b) Construction Contractors

Board 67,090

(c) Employment Relations

Board 47,011 9,792

(d) Barbers and Hairdressers,

Board of 13,008

(e) Insurance and Finance,

Department of 295,148

(f) Labor and Industries,

Bureau of 80,000

(g) Medical Examiners,

Board of 20,502

(h) Nursing, Board of 106,186

(i) Real Estate Agency 49,428

(2) Economic and Community

Development: 113,434 333,539 $1,094,242

(a) Economic Development

Department 47,226 35,043

(b) Employment Division 1,045,517

(c) Housing and Community

Services Department 48,275 21,450 48,725

(d) Veteran’s Affairs,

Department of 17,933 277,046

(3) Education: 4,052,152 7,603,694 248,975

(a) Education, Department of 438,468 103,895 200,712

(b) Office of Educational Policy

and Planning 56,826

(c) Higher Education,

Department of 3,305,000 7,399,000

(d) Office of Community

College Services 88,459 48,263

(e) Commission on Public

Broadcasting 157,296 34,423

(f) Scholarship Commission 6,103 11,437

(g) Teacher Standards and

Practices Commission 54,939

(4) Human Resources: $3,013,568 $1,203,552 $2,305,611

(a) Adult and Family Services 737,090 874,382

(b) Children’s Services Division 538,155 173,784

(c) Health Division 326,087

(d) Commission for the Blind 20,483 97,455

(e) Community Children and

Youth Services Commission 24,921

(f) Mental Health and Develop-

mental Disability Services

Division 744,764 558,763

(g) Office of the Director 21,319 127,808 63,956

(h) Senior and Disabled

Services Division 587,429 537,271

(i) Vocational Rehabilitation

Division 13,320 1,069,010

(j) Long Term Care Ombudsman 6,734

(5) Natural Resources: 972,288 1,351,238 947,829

(a) Agriculture, Department of 113,764 104,037

(b) Energy, Department of 73,413 62,313

(c) Environmental Quality,

Department of 186,034 178,851 14,246

(d) Fish and Wildlife,

Department of 148,263 208,863 802,450

(e) Forestry, Department of 192,678 494,510 30,845

(f) Geology and Mineral

Industries, Department of 27,475 15,000

(g) Land Conservation and

Development, Department of 62,201

(h) State Lands, Division of 8,100

(i) Parks and Recreation,

Department of 92,849 291,564 22,975

(j) Water Resources Department 140,924

(6) Public Safety: 4,468,177 647,812 139,056

(a) Corrections, Department of 2,943,559 374,850

(b) Criminal Justice Services

Division 75,000

(c) Justice, Department of 17,430

(d) Military Department 175,646 6,532 64,056

(e) Parole and Post Prison

Supervision, Board of 3,487

(f) Police, Department of 1,709,600 139,000

(g) Public Safety Standards

and Training, Board on 110,000

(7) Revenue and Collections: 791,000 279,138

(a) Liquor Control Commission 225,675

(b) Public Employes’ Retirement

System 46,859

(c) Racing Commission 6,604

(d) Revenue, Department of 791,000

(8) Transportation: 28,781 2,340,595

(a) Public Utility Commission 995,954

(b) Transportation, Department of:

(A) Central Services (Director’s

Office) 160,152

(B) Highway Division 944,597

(C) Motor Vehicles Division 201,390

(D) Public Transit Division 28,781

(E) Traffic Safety Division 38,502

(9) Executive: 297,771 2,339,318 112,000

(a) Executive Department 79,056 1,401,573

(b) Fire Marshal 352,212

(c) Emergency Management

Division 26,000 112,000

(d) General Services, Department of 559,533

(e) Office of the Governor 100,000

(f) Oregon Government Ethics

Commission 500

(g) State Library 118,215

(10) Totals $14,228,297 $17,053,998 $4,847,713

History

• Statutory/Other Authority: ORS 291.232 - 291.260
• BMD 1-1993, f. & cert. ef. 1-11-93

Or. Admin. R. 122-060-0010 Approval Process

The allotment reductions shall be determined and approved as follows:

(1) The Executive Director, Budget and Management Division shall submit a listing of the proposed allotment reductions to the Governor by December 28, 1992 for review and approval.

(2) The Governor may approve, modify, or disapprove the proposed allotment reductions.

(3) The Budget and Management Division shall notify each agency by Advice of Budget Authorization of its approved allotment reductions by January 11, 1993.

(4) Each agency shall submit a revised plan for obligation for each remaining allotment period on a Biennial Allotment Plan by January 31, 1993. Other Funds and Federal Funds savings may be authorized for allotment (rescheduled and reinvested) in the current biennium as long as the savings are used for program expenditures and not for administration.

(5) The Budget and Management Division shall approve, modify, or disapprove the allotment plan for each agency.

(6) The Budget and Management Division shall notify each agency of the action taken under section (5) of this rule through an Advice of Budget Authorization and certify the allotment reduction to the Executive Department Accounting Division.

History

• Statutory/Other Authority: ORS 291.232 - 291.260
• BMD 1-1993, f. & cert. ef. 1-11-93

Division 70 STATE OF OREGON FINANCING AGREEMENTS

Or. Admin. R. 122-070-0100 Authority

Only the Director of the Department of Administrative Services is authorized by ORS 283.085 to 283.092 to enter into Financing Agreements to acquire real property or personal property for State Agencies. ORS 184.340 authorizes the Department of Administrative Services, with the approval of the Governor, to make reasonable rules and regulations that are necessary or proper for the administration of the law that the Department is charged with administering.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0110 Definitions

Unless the context indicates otherwise, capitalized terms used in this Chapter 122, Division 70 of the Oregon Administrative Rules shall have the following meanings:

(1) Benefiting Agency refers to a State Agency or a Division of Department of Administrative Services that has direct control of, or responsibility for, an asset that is paid for through a Financing Agreement.

(2) Capital Lease means a lease that:

(a) Meets the criteria for recording as a capital lease as set forth in generally accepted accounting principles or the State Accounting Manual; or

(b) Is for a real property asset being built on state owned land, unless the Director of the Department of Administrative Services exempts the transaction from such classification.

(3) Department means the Department of Administrative Services, Budget and Management Division.

(4) Director means the Director of the Department of Administrative Services.

(5) Finance Manager means the Capital Finance Manager of the Capital Investment Section of the Department of Administrative Services, Budget and Management Division.

(6) Financing Agreement means an agreement authorized under ORS 283.085 to 283.092 that includes:

(a) Certificates of Participation, (together with the related loan agreement), issued by the State Treasurer in a public or private sale;

(b) Promissory notes or other contract undertakings to pay moneys over time that are privately placed with a single or limited group of lenders; or

(c) Any other agreements for the acquisition of real or personal property through installment payments, including Capital Leases and Software Contracts but excluding Qualifying Service Agreements and Operating Leases.

(7) Operating Lease means a lease that meets the criteria for recording as an operating lease as set forth in generally accepted accounting principles or the State Accounting Manual.

(8) Qualifying Service Agreement means an agreement that in substance facilitates the provision of service by a vendor as its primary objective and may allow for use or licensing of proprietary software or hardware to achieve service objectives without transfer of such software or hardware at the end of the agreement.

(9) Software Contract means a lease of software and training and maintenance contracts related to the operation of computing equipment. A software contract does not include:

(a) A term license for the use of software that is terminable without any penalty or with a penalty amount that is deminimus compared to the value of the software at the time of termination; or

(b) “Software as a service” under a contract for vendor services which are provided through the use of a vendor’s software.

(10) State Agency or Agency has the meaning given in ORS 291.002.

(11) Tax-advantaged refers to a benefit provided by a governmental authority to the issuer or holder of a bond or other evidence of indebtedness in the form of exemption from taxation, a tax-deferral or a tax credit to the holder of the indebtedness, an interest rate subsidy payment to the issuer, or any other type of financial benefit. Qualification for such treatment generally requires ongoing compliance with various laws and regulations by the issuer.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0120 Budget Requests for Financing Agreements

(1) Any Benefiting Agency intending to acquire real property or personal property, including software, using a Financing Agreement that exceeds $100,000 and that will create a payment obligation that covers multiple biennia must notify the Finance Manager as a part of the budget preparation process in accordance with the Department’s Budget & Legislative Concepts Instructions.

(2) Benefiting Agencies that have identified the need for Financing Agreements during their budget preparation process may receive priority for the Director’s approval in the event demand exceeds the available biennial authority or limitation for Financing Agreements.

(3) Benefiting Agencies requesting approval for Financing Agreements will make such request in the form prescribed by the Department.

(4) For State Agencies subject to ORS 276.429, when requesting approval of Financing Agreements to acquire office quarters, such Agencies will provide:

(a) Evidence that the action has received approval from the Legislative Assembly; or

(b) Such information as is requested by the Director so that the planned action can be reported to the legislative review agency established in ORS 291.371 prior to the Director’s approval.

(5) For State Agencies not subject to ORS 276.429, requests for approval of Financing Agreements to acquire office quarters shall include evidence that such acquisitions are authorized under the Agency’s governing laws, rules or policies.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0130 Approval and Execution of Financing Agreements

(1) The acquisition of any capital asset by a State Agency that is paid through a Financing Agreement must be done in accordance with the procedures established in ORS 283.087 to 283.092 if the principal portion of the agreement exceeds $100,000.

(2) The acquisition of any software or capital asset may not be divided into parts with each part being less than $100,000, to avoid the Financing Agreement approval process. The Department will combine each component of a “single project” to determine if the principal amount of the financing for the project exceeds $100,000. If the principal amount exceeds $100,000 the financing is subject to ORS 283.087 to 283.092.

(3) A "single project" will be determined to exist if:

(a) A State Agency is acquiring two or more items using separate Financing Agreements when the total principal sum of the Financing Agreements exceeds $100,000;

(b) The items perform or contribute to the same general function at a particular location or as part of an interdependent system; and

(c) Are proposed to be acquired under a continuing appropriation or within the same biennium.

(4) If the principal amount of the Financing Agreement exceeds $100,000, it must be executed by the Director. The form of the proposed agreement must be submitted to and approved by the Director at least 14 business days before the expected closing of the financing.

(5) The Director is the only state officer authorized to enter into Financing Agreements under ORS 283.087 to 283.092. The Deputy Director may execute a Financing Agreement in lieu of the Director under ORS 184.335.

(6) In cases of Financing Agreements approved in writing by the State Treasurer, or the Treasurer’s designee, and the Director to acquire equipment through the Department of Administrative Services, State Services Division in accordance with the Public Contracting Code, the Director's approval of the terms of a proposed Financing Agreement, with such changes, if any, as are authorized by the Director, will serve as direction to the State Services Division Administrator to execute the Financing Agreement under the Director's authority.

(7) Requests for approval of Financing Agreements will be made in the manner, and on forms as directed by the Department.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0140 Records Creation and Maintenance, and Ongoing Use of Financed Assets

(1) In conjunction with the execution of a Financing Agreement, the Benefiting Agency must enter into a written agreement with the Director outlining the Benefiting Agency’s responsibilities related to asset maintenance, recordkeeping and debt repayment. The agreement must include, without limitation, the following terms:

(a) Identification of the source of funds the Benefiting Agency intends to use to repay the Financing Agreement;

(b) A commitment by the Benefiting Agency:

(A) To use its best efforts to seek funds and budget authority each biennium to repay the Financing Agreement so long as it is outstanding;

(B) To inform the Finance Manager in the event available funds expected to be used to repay any Financing Agreement are not appropriated;

(C) That the financed property will be used only by state government and only for authorized government purposes, unless the Benefiting Agency first obtains written consent from the Finance Manager; and

(D) To not to lease, sublease, sell or otherwise encumber any financed property without prior written consent from the Finance Manager.

(2) A Benefiting Agency may not permit the property to be used by anyone except state government for authorized government purposes, lease, sublease, sell or otherwise encumber any property, unless it first obtains written consent from the Finance Manager.

(3) Prior to software or property acquisition or development of capital assets, each Benefiting Agency will certify that all software, property or capital assets paid for through a Financing Agreement are essential to providing the governmental functions that the Benefiting Agency performs and that the property is free and clear of all liens and encumbrances.

(4) Benefiting Agencies must cooperate with the Department and the State Treasurer in their efforts to comply with provisions of the Internal Revenue Code and regulations related to Tax-advantaged Financing Agreements.

(5) Benefiting Agencies must:

(a) Record the appropriate accounting entries for all Financing Agreements related to their project(s) in accordance with generally accepted accounting principles and the State Accounting Manual;

(b) Maintain all records related to asset acquisition or development through a Financing Agreement, and ongoing use of the asset in compliance with state law and provisions of the Internal Revenue Code;

(c) Prepare and file Form 1099 and other tax documents required as a result of payment to vendors or contractors for asset acquisition or development; and

(d) File all forms and take any other required action related to tax matters, including those to ensure ongoing compliance with the Internal Revenue Code, as requested by the Finance Manager for Financing Agreements that are Tax-advantaged borrowings. Costs incurred by the Department related to tax compliance, including but not limited to the fees of bond counsel, financial advisors, Department of Justice counsel, or other experts, will be the responsibility of the Benefiting Agency.

(6) The Department and Benefiting Agency will retain records related to Financing Agreements and projects financed for three (3) years beyond the scheduled final maturity date. The Benefiting Agency must respond promptly to any requests for information from the Department related to a Financing Agreement.

(7) The Department will:

(a) Assist any Benefiting Agency in developing debt service budgets for its outstanding Financing Agreements;

(b) Bill and collect from all Benefiting Agencies their respective portion of debt service relative to each Benefiting Agency’s outstanding Certificates of Participation and, if not paid directly by the Benefiting Agency, other Financing Agreements;

(c) Send moneys that are collected from Benefiting Agencies to a trustee for payments due under the Certificates of Participation, or any moneys so collected for other applicable Financing Agreements related to such Benefiting Agencies;

(d) At the direction of the State Treasurer, manage the investments of all Certificates of Participation sale proceeds or debt service funds that are held by a trustee. At the end of each debt service cycle, the earnings from any investment of moneys by a trustee may be credited to the appropriate Benefiting Agency or may be credited against the interest due on outstanding certificates at the next payment date, at the discretion of the Department. When allocating such interest earnings, the Department may take any actions necessary to achieve cost-effective administration, provided such actions do not have a materially adverse impact on any outstanding certificates or the funds or accounts used to pay them; and

(e) After the Certificates of Participation, or other Financing Agreements, for which moneys held by a trustee are completely paid and no longer outstanding, provide to the appropriate Benefiting Agency any remaining moneys, together with interest earnings to be recorded under generally accepted accounting principles.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0150 Management of Proceeds

(1) All proceeds from Financing Agreements must be separately accounted for and held in separately designated accounts in the Oregon State Treasury or with an independent trustee. The Benefiting Agency and the Department shall exchange information to ensure that the proceeds are spent only on lawfully authorized expenditures and, if funded with a Tax-advantaged Financing Agreement, are in compliance with any provision of the Internal Revenue Code and applicable regulations. The Benefiting Agency shall consult with the Department and follow its directives with respect to appropriate accounting and record keeping for such expenditures.

(2) Any reserve account equal to the maximum allowable reserve authorized in the Internal Revenue Code at the time Certifications of Participation are issued will be held by an independent trustee. Interest earnings on the reserve will be used to pay debt service on the certificates, after the payment of any arbitrage earnings payable under the Internal Revenue Code, when due.

(3) The Department will not disburse to a local government or other public body the proceeds of any Financing Agreement(s) entered into for the purposes of infrastructure described in ORS 283.085(4)(a)(B) or (C) until the recipient of the proceeds has entered into an agreement with the State of Oregon that is in form and substance satisfactory to the Director regarding the deposit and expenditure of the proceeds, nature and use of the project(s) to be financed with the proceeds and, if applicable, compliance with provisions of the Internal Revenue Code and procedures necessary to maintain the Tax-advantaged status of the Financing Agreement from which the proceeds were derived.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-070-0160 Charges for Administering Financing Agreements

(1) Administrative Costs:

(a) All costs incurred by the Department and the State Treasurer to administer outstanding Financing Agreements will be charged to the appropriate Benefiting Agency.

(b) Actual charges for fiscal agent services and trustee services for any Financing Agreements will be passed through to the Benefiting Agency.

(c) All other costs incurred by the Department, including bond counsel or other legal fees, to administer outstanding Financing Agreements will be charged to the appropriate Benefiting Agency.

(d) The Capital Investment Section shall charge fees in connection with the services, duties and activities related to issuance and approval of Financing Agreements to the appropriate Benefiting Agency on behalf of the Department.

(2) New issues of Financing Agreements, excluding Certificates of Participation:

(a) Vendor financing or third party financing of equipment acquisitions will be charged a fee of $1,000.

(b) Owner Financing Agreements providing for the acquisition of real property will be charged a fee of $2,500.

(c) Third party Financing Agreements provided by private parties to finance real property purchases will be charged a fee of $5,000.

(d) Any other type of Financing Agreement not specifically addressed in this section will be charged based on a negotiated fee.

(3) Sale of Certificates of Participation:

(a) For a single series sale with a single project, Benefiting Agency will be charged $26,000.

(b) For a single series sale with more than one project, Benefiting Agency will be charged $35,000, plus $2,500 for each project beyond three to a maximum amount of $50,000. The charge will be prorated among the projects financed based upon the principal amount allocated to each project.

(c) For a multiple series sale with a single project, Benefiting Agency will be charged $26,000 for the initial series and a fee of $20,000 per additional series issued.

(d) For a multiple series sale with more than one project, Benefiting Agency will be charged $35,000 plus $2,500 for each project beyond three to a maximum amount of $50,000 for each series. Furthermore, the Benefiting Agency will be charged a fee of $20,000 per additional series issued. The charges will be prorated among the projects financed based upon the principal amount allocated to each project.

(4) Refunding Sales of Certificates of Participation:

(a) A fee of $25,000 will be charged for advance refundings of outstanding series per series refunded.

(b) A current refunding will be charged as an additional project under a Sale of Certificates of Participation in section (3) above.

(5) Defeasance of Certificates of Participation: For the economic or legal defeasance of outstanding Certificates of Participation or other Financing Agreements, the Department will charge a fee of $10,000.

(6) Arbitrage Calculations:

(a) The Benefiting Agency will be charged for the calculation of arbitrage liability for annual statewide financial reporting and for each five year required reporting period.

(b) Each series with a single Benefiting Agency that has unspent proceeds or a reserve funded with proceeds from a Financing Agreement will be charged $1,000 annually when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(c) Each series with multiple Benefiting Agencies that has unspent proceeds or a reserve funded with proceeds from a Financing Agreement will be charged $500 annually per Benefiting Agency when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(d) The Benefiting Agency will reimburse the Department for the actual costs of the services performed when the calculation and documentation is performed by a private contractor under a professional services contract with the Capital Investment Section.

(e) The Benefiting Agency will reimburse the Department for the direct cost of any work performed by bond counsel, Department of Justice counsel or other contractors hired by the Capital Investment Section to provide assistance related to Internal Revenue Code compliance requirements.

History

• Statutory/Other Authority: ORS 184.340
• Statutes/Other Implemented: ORS 283.085 - 283.092
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Division 75 STATE BORROWING ADMINISTERED BY THE DEPARTMENT

Or. Admin. R. 122-075-0100 Authority

The Department of Administrative Services is authorized to administer certain state borrowing programs for the benefit of State Agencies including but not limited to the programs described below:

(1) Lottery bond financings authorized by ORS 286A.560 to 286A.585 and 327.700 to 327.711, issued by the State Treasurer with the concurrence of the Director of the Department of Administrative Services.

(2) Credit agreements, notes, warrants, short-term promissory notes, commercial paper or other obligations in anticipation of taxes, grants or other revenues issued by the Oregon State Treasurer and authorized by ORS 286A.045 to 286A.050.

(3) General obligation bonds issued by the State Treasurer for the Oregon Opportunity Program under ORS 353.550 to 353.563 and chapter 921 of Oregon Laws 2001.

(4) Oregon Appropriation Bonds authorized under 2003 Oregon Laws Chapter 11 or subsequent legislation, issued by the State Treasurer with the concurrence of the Director of the Department of Administrative Services.

(5) General obligation bonds for water power, pension liabilities, and seismic rehabilitation projects authorized by ORS 286A.710 to 286A.792.

History

• Statutory/Other Authority: ORS 184.340.
• Statutes/Other Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921 & 2003 OL ch. 11
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-075-0110 Definitions

Unless the context indicates otherwise, capitalized terms used in this Chapter 122, Division 75 of the Oregon Administrative Rules shall have the following meanings:

(1) Benefiting Agency refers to a State Agency or Division of the Department of Administrative Services whose borrowing program is administered by the Department of Administrative Services.

(2) Bonds mean any contractual undertaking or instrument of the State of Oregon to repay borrowed moneys that are administered for another State Agency by the Department of Administrative Services or for which the Department of Administrative Services provides administrative assistance, including but not limited to the borrowings described in OAR 122-075-0100. A Bond does not include financing agreements entered into under ORS 283.085 to 283.092 and division 70 of this chapter.

(3) Department means the Department of Administrative Services, Budget and Management Division.

(4) Director means the Director of the Department of Administrative Services.

(5) Finance Manager means the Capital Finance Manager of the Capital Investment Section of the Department of Administrative Services, Budget and Management Division.

(6) State Agency or Agency means any statewide elected officer, board, commission, department, division, authority or other entity that is within state government as defined in ORS 174.111.

(7) Tax-advantaged refers to a benefit provided by a governmental authority to the issuer or a holder of a bond or other evidence of indebtedness in the form of exemption from taxation, a tax-deferral or a tax credit to the holder of the indebtedness, an interest rate subsidy payment to the issuer, or any other type of financial benefit. Qualification for such treatment generally requires ongoing compliance with various laws and regulations by the issuer.

History

• Statutory/Other Authority: ORS 184.340.
• Statutes/Other Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921 & 2003 OL ch. 11
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-075-0120 Budgeting for Department of Administrative Services Administered Bonds

(1) Any Benefiting Agency intending to issue Bonds in the upcoming biennium must notify the Finance Manager as a part of the State Agency budget preparation process in accordance with the Department’s Budget & Legislative Concepts Instructions.

(2) The Department will:

(a) Assist any Benefiting Agency in developing debt service budgets for its outstanding Bonds;

(b) As applicable, bill and collect from all Benefiting Agencies their respective portion of debt service relative to each agency’s outstanding Bonds;

(c) Send moneys that are collected from Benefiting Agencies to the trustee or the appropriate paying agent for all payments due under the Bonds related to such Benefiting Agency;

(d) At the direction of the State Treasurer, manage the investments of Bond sale proceeds or debt service funds, if any, that are held by a trustee. The interest earnings from any investment of moneys by a trustee may be credited to the appropriate Benefiting Agency, or against the next installment of principal and interest due on outstanding Bonds of the Benefiting Agency at the next payment date, at the discretion of the Department. When allocating such interest earnings, the department may take any actions necessary to achieve cost-effective administration, provided such actions do not have a materially adverse impact any Bonds or the funds or accounts used to pay them; and

(e) After any Bonds are completely paid and no longer outstanding, provide to the appropriate Benefiting Agency any remaining moneys, together with interest earnings to be recorded under generally accepted accounting principles.

History

• Statutory/Other Authority: ORS 184.340.
• Statutes/Other Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921 & 2003 OL ch. 11
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-075-0150 Management of Bond Proceeds

(1) All Bond sale proceeds intended for program purposes will be held in the appropriate funds or accounts designated by ORS chapter 286A at the Oregon State Treasury, or as may be otherwise designated by a trust indenture or other law. The Benefiting Agency and the Department shall exchange information to ensure that Bond sale proceeds are spent only for lawfully authorized purposes and, if derived from Tax-advantaged Bonds, are used in compliance with any provision of the Internal Revenue Code and applicable regulations. The Benefiting Agency shall consult with the Department and follow its directives with respect to appropriate accounting and record keeping for such expenditures.

(2) Any reserve account equal to the maximum allowable reserve authorized in the Internal Revenue Code at the time the Bonds are issued shall be held by an independent trustee or in the appropriate fund or account designated by ORS chapter 286A or other statutes in the Oregon State Treasury. Interest earnings on the reserve shall be used to pay debt service on the related Bonds after the payment of any arbitrage earnings payable under Internal Revenue Code, when due.

History

• Statutory/Other Authority: ORS 184.340.
• Statutes/Other Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921 & 2003 OL ch. 11
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Or. Admin. R. 122-075-0160 Charges for Bond Administration

(1) Administrative Costs:

(a) All costs incurred by the Department and the State Treasurer to administer outstanding Bonds will be charged to the appropriate Benefiting Agency.

(b) Actual charges for fiscal agent services and trustee services for any Bonds will be passed through to the Benefiting Agency.

(c) All other costs incurred by the Department, including bond counsel or other legal fees, to administer outstanding Bonds will be charged to the appropriate Benefiting Agency.

(d) The Capital Investment Section shall charge fees in connection with the services, duties and activities related to issuance and approval of Bonds to the appropriate Benefiting Agency on behalf of the Department.

(2) Tax anticipation notes will be charged a fee of $45,000 to the appropriate Benefiting Agency.

(3) Sale of Bonds:

(a) For a single series sale with a single project, Benefiting Agency will be charged $26,000.

(b) For a single series sale with more than one project, Benefiting Agency will be charged $35,000, plus $2,500 for each project beyond three to a maximum amount of $50,000. The charge will be prorated among the projects financed based upon the principal amount allocated to each project.

(c) For a multiple series sale with a single project, Benefiting Agency will be charged $26,000 for the initial series and a fee of $20,000 per additional series issued.

(d) For a multiple series sale with more than one project, Benefiting Agency will be charged $35,000 plus $2,500 for each project beyond three to a maximum amount of $50,000 for each series. Furthermore, the Benefiting Agency will be charged a fee of $20,000 per additional series issued. The charges will be prorated among the projects financed based upon the principal amount allocated to each project.

(4) Refunding Sales of Bonds:

(a) A fee of $25,000 will be charged for advance refundings of outstanding series per series refunded.

(b) A current refunding will be charged as an additional project under a Sale of Bonds in section (3) above.

(5) Defeasance of Bonds: For the economic or legal defeasance of outstanding Bonds, the Department will charge a fee of $10,000.

(6) Arbitrage Calculations:

(a) The Benefiting Agency will be charged for the calculation of arbitrage liability for annual statewide financial reporting and for each five year required reporting period.

(b) Each series with a single Benefiting Agency that has unspent proceeds or a Bond funded reserve will be charged $1,000 annually when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(c) Each series with multiple Benefiting Agencies that has unspent proceeds or a Bond funded reserve will be charged $500 annually per Benefiting Agency when the Capital Investment Section performs and provides the calculation to the Benefiting Agency of the estimated arbitrage liability.

(d) The Benefiting Agency will reimburse the Department for the actual costs of the services performed when the calculation and documentation is performed by a private contractor under a professional services contract with the Capital Investment Section.

(e) The Benefiting Agency will reimburse the Department for the direct cost of any work performed by bond counsel, Department of Justice counsel, or other contractors hired by the Capital Investment Section to provide assistance related to Internal Revenue Code compliance requirements.

History

• Statutory/Other Authority: ORS 184.340.
• Statutes/Other Implemented: ORS 286A.045 - 286A.050, 286A.560 - 286A.585, 286A.710 - 286A.792, 353.550 - 353.563; 2001 OL ch. 921 & 2003 OL ch. 11
• BMD 1-2012, f. 1-26-12, cert. ef. 2-1-12

Division 85 ACCOUNTS RECEIVABLE MANAGEMENT

Or. Admin. R. 122-085-0100 Statement of purpose

The purpose of these rules is to provide criteria to determine when Mandatory Collection Agency Transfer (MCAT) accounts are subject to assignment or exempt from assignment to DOR-OAA under Oregon Revised Statute (ORS) 293.231. This rule also provides information on how a state agency may request an exemption from the statutory assignment timeframe referenced in ORS 293.231.

History

• Statutory/Other Authority: ORS 293.231 & 293.233
• Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0110 Definitions

(1) “Account” means a debt relationship between a state agency and an individual or an entity, which may include multiple obligations and time periods.

(2) “Consensual Security Interest” means an enforceable interest in real or personal property voluntarily created by a debtor to secure an obligation to pay a debt (e.g. a mortgage, trust deed, security agreement, or pledged securities).

(3) “Delinquent (account)” means a receivable for which payment was not received by the initial due date. (The establishment of a payment agreement does not change the status of the delinquency.)

(4) “DOR-OAA” refers to the Department of Revenue Other Agency Account unit.

(5) “Hardship” refers to adverse circumstances, which significantly reduce a debtor’s ability to pay. Examples include, but are not limited to, interruptions of income due to family or medical emergencies, job layoff or job skill retraining, long-term/permanent disability, social security, or terminal illness.

(6) “Imprisoned” refers to an individual who is currently incarcerated.

(7) “Litigation” refers to a dispute when the account:

(a) Has been referred to the Department of Justice;

(b) Is in the administrative appeal or hearing process; or

(c) Is in arbitration, mediation, or in the state or federal court system, including bankruptcy.

(8) “Liquidated (account)” has the meaning given in the Oregon Accounting Manual (OAM). Generally speaking, a liquidated account is one in which:

(a) The amount of the debt is known,

(b) The debtor has been notified of the debt, and

(c) The debtor has been given an opportunity to dispute the debt.

(9) “Mandatory collection agency transfer (MCAT) account” refers to an account that is:

(a) Liquidated,

(b) Delinquent, and

(c) Not prohibited by state or federal law from being transferred to a collection firm.

(10) “MCAT eligibility date” refers to the latter of the following dates:

(a) The date the account receivable became both liquidated and delinquent; or

(b) The date the MCAT account exemption expires.

(11) “Non-consensual lien” means a lien established by operation of law; such as a judgment with a financial obligation or the recording of an administrative record (e.g. agency distraint warrant or civil penalty final order).

(12) “Payment” means a voluntary amount of money paid by a debtor to a state agency or an involuntary amount of money paid by a debtor through offset or garnishment.

(13) “PCF” refers to a private collection firm.

(14) “State agency” means any officer, board, commission, department, division or institution in the executive or administrative branch of state government subject to ORS 293.

History

• Statutory/Other Authority: ORS 291.015, 293.227
• Statutes/Other Implemented: ORS 291.015(1), 293.227(1), & 293.227(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0120 Mandatory Collection Agency Transfer Assignment Requirements

(1) If a state agency does not receive any payments on an MCAT account during any 90-day period following the MCAT eligibility date for that account, the state agency must review the account for assignment to DOR-OAA for full collections.

(2) The state agency must assign accounts to DOR-OAA unless the account is subject to an exemption under OAR 122-085-0130 or OAR 122-085-0150.

(3) MCAT accounts assigned to DOR-OAA will be transferred to a PCF if no payment is received on the account within six months from the date of assignment. DOR-OAA may transfer the assigned MCAT accounts to a PCF prior to six months.

(4) MCAT accounts returned to DOR-OAA by a PCF may be retained by DOR-OAA indefinitely or returned to the state agency upon request.

(5) OAR 122-085-0120 does not apply to accounts that originate in the Department of Revenue or the Oregon Employment Department; those accounts are required to be assigned one year from the MCAT eligibility date or the date of last payment, whichever is later.

(6) OAR 122-085-0120 does not apply to state agencies that the Department of Administrative Services Chief Financial Office (DAS CFO) has granted a time period exemption, as per 122-085-0140.

(7) Before a state agency may write-off an account, DOR-OAA must notify the state agency that the account is recommended for write-off, unless the law prohibits the account from assignment or the state agency has exempted the account from assignment as provided in 122-085-0130 or 122-085-0150.

(8) A state agency may not make an offer for assignment contrary to applicable state or federal laws or regulations governing offers for assignment.

History

• Statutory/Other Authority: ORS 293.231, 293.233, 293.240
• Statutes/Other Implemented: ORS 293.231(1), 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2), 293.240(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0130 Mandatory Collection Agency Transfer Accounts Exempt from Assignment

(1) A state agency may, at its discretion, choose not to offer for assignment to DOR-OAA any MCAT account that:

(a) Is secured by a consensual security interest in real or personal property;

(b) Is a court judgment that includes restitution or a payment to the Department of Justice Crime Victims Assistance Section;

(c) Is in litigation, including bankruptcy, arbitration or mediation;

(d) Is a student loan owed by a student who is attending school;

(e) Is owed to a state agency by a local or state government or by the federal government;

(f) Is owed by a debtor who is hospitalized in a state hospital as defined in ORS 162.135, or who is on public assistance as defined in ORS 411.010, or who receives medical assistance as defined in ORS 414.025;

(g) Is owed by a debtor who is imprisoned;

(h) Is less than $100 including penalties;

(i) Would, if assigned, result in a loss of federal funding or a loss of funding under a federal program;

(j) Is owed by an estate and the state agency has received notice that the estate has closed;

(k) Is eligible for suspension of collections as provided in ORS 305.155;

(l) Would constitute a hardship if assigned, and assignment would be inconsistent with a state agency goal;

(m) Is secured by a non-consensual lien against specific real or personal property identified by the state agency;

(n) Is secured by a bond;

(o) Is one of multiple accounts owed to the state agency by the same debtor, any one of which has received a payment within the preceding 90-day period, including accounts created and paid at the same time;

(p) Is within the scope of a state agency specific exemption approved as per OAR 122-085-0150;

(q) Would result in the referral of a monetary penalty, fee, or tax under ORS Chapters 825 or 826 related to a motor carrier operating authority unless the closing audit of the motor carrier operating authority is final;

(r) Is an account for which a wage garnishment has been served on the debtor’s employer and no funds are available to the state agency because a wage garnishment or order to withhold earnings of higher priority currently prevents any funds from being applied to the state agency debt;

(s) Arises from an administrative or judicial support order, judgment, or decree; or

(t) Is owed by a corporation that is not and, for the foreseeable future, will not be engaged in any income-producing activity, and there are no assets from which the debt could be collected.

(2) State agencies shall evaluate each account to determine the appropriate collection actions for accounts eligible to be exempted from collection assignment. While the exemptions listed in OAR 122-085-0130(1) allow a state agency to exempt an account from assignment, it doesn’t prohibit the state agency from assigning the account. State agencies must exercise reasonable effort and due diligence to collect debts owed to the state agency.

(3) When a state agency determines an MCAT account may be exempted from assignment, the state agency should document their conclusions using the applicable form provided in the OAM (or equivalent). A state agency is not required to file this form with the DAS CFO, but the form is useful to explain the reasoning for exempting accounts in the event of an inquiry or in response to an audit of the state agency’s liquidated and delinquent accounts.

(4) If a state agency exercises the option to exempt an account from assignment, the state agency is responsible to continue to pursue reasonable efforts to collect the account and monitor the account exemption status. If the state agency later determines that the exemption no longer applies, the state agency must proceed with assignment of the account as per OAR 122-085-0120.

History

• Statutory/Other Authority: ORS 293.231 & 293.233
• Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0140 Mandatory Collection Agency Transfer Account Request for Exemption

(1) To request an exemption from the 90-day assignment provision referenced in OAR 122-085-0120, a state agency must complete the applicable form provided in the OAM. If approved, the exemption request will permit either a 180-day turnover period or a 365-day turnover period.

(2) State agencies must submit requests for the exemption from the 90-day turnover timeframe to the DAS CFO no later than March 31. Each approved request will begin the following July 1 and will be valid until June 30 of the subsequent fiscal year. For example, an approved request submitted in March 2018 will become effective from July 1, 2018 through June 30, 2020.

(3) A state agency may not use such exemption until approved by the DAS CFO and may only apply the exemption to accounts with an MCAT eligibility date within the approved exemption period.

(4) The state agency’s right to use the exemption terminates upon expiration of the approved period. If the exemption expires and the state agency has not received approval from DAS CFO for another exemption for the subsequent two year period, all accounts must be assigned as required in OAR 122-085-0120.

History

• Statutory/Other Authority: ORS 293.231 & 293.233
• Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0150 State Agency Specific Exemptions

(1) A state agency may request that the DAS CFO approve one or more state agency specific exemptions under ORS 293.233 for classifications of accounts that are not exempt as per OAR 122-085-0130. A state agency must submit a request for a state agency specific exemption from assignment using the applicable form provided in the OAM.

(2) A state agency may not use such exemption until approved by the DAS CFO and the exemption only applies to accounts with an MCAT eligibility date within the approved exemption period. In its written approval of the request, the DAS CFO may specify that the exemption is for a limited duration (not to exceed two fiscal years).

(3) The state agency’s right to use the exemption terminates upon expiration of the limited duration period.

History

• Statutory/Other Authority: ORS 293.231 & 293.233
• Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0160 State Agency MCAT Assignments to PCFs

(1) State agency MCAT accounts assigned to a PCF prior to July 1, 2018 are not subject to OAR 122-085-0120. These accounts may continue through the collection cycle as per the purchase order agreement between the state agency and the PCF. Once the account is returned to the assigning state agency from the PCF, the state agency may evaluate the account for write-off or assign the account to DOR-OAA for additional collection services.

(2) State agency MCAT accounts subject to assignment after July 1, 2018 are subject to OAR 122-085-0120.

History

• Statutory/Other Authority: ORS 293.231 & 293.233
• Statutes/Other Implemented: ORS 293.231(5), 293.231(6)(c), 293.233(1) & 293.233(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018

Or. Admin. R. 122-085-0200 Voluntary collection of Social Security numbers for use in collecting debts owed to the state

(1) For purposes of this rule “state agency” is defined as any state officer, board, commission corporation, institution, department or other state organization except for state courts and commissions, departments and divisions of the Judicial branch of state government, the Secretary of State or the State Treasurer.

(2) The purpose of this rule is to provide standards for state agencies when requesting a person to voluntarily provide the person’s Social Security number on any document relating to a monetary obligation or transaction for use in collecting debts owed to the state of Oregon. This rule does not apply to a Social Security number that is required to be provided under state or federal law.

(3) Where reasonable and unless otherwise prohibited by state or federal law, a state agency may request a person to voluntarily provide their Social Security number when there is a real or potential monetary obligation or transaction,

(a) When requesting a Social Security number, the state agency must notify the person clearly in writing:

(A) that providing their Social Security number is voluntary,

(B) the state agency is requesting the Social Security number for use in collecting debts owed to the state of Oregon,

(C) that the Social Security number will be properly secured as required by the Oregon Consumer Identity Theft Protection Act (ORS 646A.600-646A.628).

(b) State agencies must follow federal and Oregon state guidelines for the protection of Social Security numbers collected under sections of this rule. If for any reason a state agency is unable to properly secure and protect Social Security numbers it may not ask a person to voluntarily provide their Social Security number.

(c) Except as otherwise prohibited by federal or state law, any state agency may share Social Security numbers collected under section 3 of this rule as necessary for use in collecting debts owed to the state of Oregon.

(A) State agencies that share Social Security numbers shall do so in a manner that is in compliance with all Oregon Identity Theft Protection Act requirements contained in ORS 646A.600.

(B) State agencies may not share a Social Security number with another entity that is not able to properly secure and protect the Social Security number in accordance with federal and Oregon state guidelines.

History

• Statutory/Other Authority: ORS 293.226
• Statutes/Other Implemented: ORS 293.226(2)
• DCFO 2-2018, adopt filed 11/29/2018, effective 12/01/2018
• DCFO 1-2018, temporary adopt filed 06/05/2018, effective 07/01/2018 through 12/01/2018