Bill Text: OR HB2355 | 2011 | Regular Session | Introduced

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Bill Title: Relating to short-term disability benefits; appropriating money; declaring an emergency.

Sponsorship: Unknown

Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB2355 Detail]

Download: Oregon-2011-HB2355-Introduced.html

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     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 1827

                         House Bill 2355

Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of House Interim Committee on
  Business and Labor for former Representative Nick Kahl)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes Short-Term Disability Insurance Program. Requires
Bureau of Labor and Industries to administer program and adopt
rules. Authorizes participation in voluntary plan if approved by
bureau. Requires employers to withhold from employees' wages
amounts necessary to pay premiums. Sets amount to be withheld for
payment of premiums and authorizes Commissioner of Bureau of
Labor and Industries to adjust rates. Sets benefit rates.
Requires employers to file reports of hours worked by employees
and amounts payable to bureau. Imposes penalties for certain
violations.
  Establishes Short-Term Disability Benefit Fund. Appropriates
moneys in fund to bureau for purposes of Short-Term Disability
Insurance Program.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to short-term disability benefits; creating new
  provisions; amending ORS 316.168 and 316.171; appropriating
  money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + Sections 1 to 14 of this 2011 Act may be cited
as the Short-Term Disability Insurance Act. + }
  SECTION 2.  { + (1) The Legislative Assembly finds that:
  (a) Many employees become unable to work for a period of time
due to illness, nonindustrial injury, pregnancy or childbirth.
  (b) Employer-paid benefits meet only a small part of this need.
Many employees do not have access to or cannot afford private
short-term disability insurance.
  (c) Employees often find themselves ineligible for existing
programs and unable to support themselves or their families.
  (d) The establishment of short-term disability benefits will
provide greater economic stability and reduce the long-term
impact on state income support programs by increasing the ability
of workers to take short-term disability leave to recover from a
disabling illness, nonindustrial injury or other condition while
maintaining their employment.
  (2) Sections 1 to 14 of this 2011 Act are enacted to provide
partial wage replacement to employees when illness, nonindustrial

injury, pregnancy, childbirth or another disabling condition
temporarily prohibits the employee from being able to work. + }
  SECTION 3.  { + As used in this 2011 Act:
  (1) 'Application year' means the 12-month period beginning on
the first day of the calendar week in which an employee files an
application for short-term disability benefits and the 12-month
period beginning with the first day of the calendar week in which
the employee files a subsequent application for short-term
disability benefits after the expiration of the employee's last
preceding application year.
  (2) 'Base year' has the meaning given that term in ORS 657.010
(1).
  (3) 'Disability' means an illness, an injury or a physical or
mental condition, that renders an employee unable to perform the
employee's regular or customary work. 'Disability' includes, but
is not limited to, any condition resulting from pregnancy,
childbirth or related medical conditions that cause the employee
to be unable to perform the employee's regular or customary work.
  (4) 'Employee' has the meaning given that term in ORS 657.015.
  (5) 'Employer' has the meaning given that term in ORS 657.025.
  (6) 'Health care provider' has the meaning given that term in
ORS 659A.150.
  (7) 'Other benefits' means:
  (a) Temporary disability benefits provided under the workers'
compensation law of any state or of the federal government.
  (b) Temporary disability benefits provided under the employer's
liability law of any state or of the federal government.
  (c) Permanent disability benefits provided under the workers'
compensation law of any state or the federal government for the
same injury or illness that is the basis for a claim for
short-term disability benefits under sections 1 to 14 of this
2011 Act.
  (8) 'Premium' means the payments required by section 6 of this
2011 Act.
  (9) 'Qualifying period' means the 180 days immediately
preceding the first day of the employee's application year.
  (10) 'Wages' has the meaning given that term in ORS
657.105. + }
  SECTION 4.  { + (1) The Bureau of Labor and Industries shall
establish and administer a Short-Term Disability Insurance
Program.
  (2) The bureau may adopt rules as necessary to implement and
administer sections 1 to 14 of this 2011 Act. + }
  SECTION 5.  { + (1) Short-term disability benefits are payable
under the Short-Term Disability Insurance Program to an employee
during a period in which the employee:
  (a) Has a disability that has prevented the employee from being
able to perform the employee's regular or customary work for a
waiting period of at least seven days.
  (b) Files a claim for benefits as required by rules adopted by
the Bureau of Labor and Industries, including a statement signed
by the employee's treating health care provider that documents
the sickness, injury or pregnancy of the employee and the health
care provider's opinion as to the expected duration of the
disability. For subsequent periods of disability after the period
covered by the initial statement or any preceding claim, an
employee must file a continued claim for those benefits supported
by a statement of the treating health care provider.
  (c) Establishes that the employee has had amounts retained
through payroll deduction for the payment of premiums throughout
the employee's qualifying period as provided under section 6 of
this 2011 Act.
  (d) Establishes that the employee earned at least $300 in wages
from an employer during the base year.
  (e) Establishes an application year. An application year is not
established if the qualifying period includes assessments
withheld for quarters before establishment of a previous
application year.
  (f) Is not covered by a voluntary plan approved by the bureau
as provided by section 14 of this 2011 Act.
  (g) If required by the bureau, submits to a reasonable
examination for the purpose of determining the employee's
disability.
  (2) An employee is not eligible for benefits under this section
for any week for which the employee receives or is entitled to
receive unemployment compensation or other benefits in the form
of cash payments. If the amounts of other benefits are less than
the amount the employee would otherwise receive as weekly
short-term disability benefits under this 2011 Act, the employee
shall be entitled to receive for that week short-term disability
benefits reduced by the amounts received for the other benefits.
Nothing in this subsection shall be construed to authorize the
delay of payment of short-term disability benefits except when
the employee is receiving other benefits or when the bureau has
received notice that the employer or insurer has agreed to
commence the payment of other benefits.
  (3)(a) An employee is disqualified from receiving short-term
disability benefits under this section if the employee:
  (A) Willfully makes a false statement or misrepresentation
regarding a material fact or willfully fails to disclose a
material fact to obtain short-term disability benefits;
  (B) Seeks short-term disability benefits based on an
intentionally self-inflicted disability; or
  (C) Seeks short-term disability benefits based on a disability
that resulted from the employee's commission of a felony.
  (b) A disqualification for short-term disability benefits under
this subsection is for two years, commencing on the first day of
the calendar week in which the employee filed a claim for
short-term disability benefits under this section. Any employee
who is disqualified from receiving short-term disability benefits
under this subsection is liable to the bureau for a penalty in an
amount equal to 15 percent of the amount of short-term disability
benefits received by the employee during the period of
disqualification.
  (4)(a) This section does not limit an employee's right to take
leave from employment under other laws or employer policy.
  (b) The eligibility of an employee for short-term disability
benefits is not affected by a strike or lockout at the factory,
establishment or other premises at which the employee is or was
last employed.
  (c) An employee who has received short-term disability benefits
under this section may not lose any other employment benefits,
including seniority or pension rights, accrued before the date
that the employee commenced short-term disability leave.
However, this section does not entitle an employee to accrue
employment benefits during a period of short-term disability
leave or to a right, benefit or position of employment other than
a right, benefit or position to which the employee would have
been entitled had the employee not taken short-term disability
leave.
  (d) This section does not diminish an employer's obligation to
comply with a collective bargaining agreement, an employment
benefits program or an approved voluntary plan that provides
greater benefits to employees than the short-term disability
benefits provided under this section.
  (e) An agreement by an employee to waive the employee's rights
under this section is void as contrary to public policy.
  (f) Short-term disability benefits payable under this section
may not be diminished by a collective bargaining agreement or
another employment benefits program or plan entered into or
renewed after the effective date of this 2011 Act. + }

  SECTION 6.  { + (1) Unless an employer provides an approved
voluntary plan, every employer shall retain from the wages earned
by all employees an amount for payment of premiums of _____ and
pay the moneys retained in the manner and at such intervals as
the Commissioner of the Bureau of Labor and Industries
establishes by rule.
  (2) Moneys collected pursuant to subsection (1) of this
section, and any accrued cash balances, shall be deposited in the
Short-Term Disability Benefit Fund established under section 12
of this 2011 Act exclusively for the expenditures of the Bureau
of Labor and Industries in carrying out the functions and duties
of the bureau under sections 1 to 14 of this 2011 Act.
  (3)(a) The commissioner may adjust rates for amounts retained
for the payment of premiums, not to exceed the amount established
in subsection (1) of this section. The commissioner shall set
rates of amounts retained for the payment of premiums in a manner
that minimizes the volatility of the rates retained and that
ensures that at the end of the period for which the rates are
effective the cash balance in the fund shall be an amount
approximating 12 months of projected expenditures from the fund
based on the functions and duties of the bureau under sections 1
to 14 of this 2011 Act.
  (b) Factors to be considered in making adjustments under
paragraph (a) of this subsection to rates of amounts withheld for
the payment of premiums include, but are not limited to, the cash
balance in the fund as determined by the commissioner and the
estimated expenditures and revenues of the fund.
  (4) Every employer required to pay premiums under this section
shall make and file a report of employee hours worked and amounts
due under this section upon a combined report form adopted by the
Department of Revenue by rule. The report shall be filed with the
department:
  (a) At the times and in the manner prescribed for reports filed
pursuant to ORS 316.168 and 316.171; or
  (b) Annually as required or allowed for reports filed pursuant
to ORS 316.197 or 657.571.
  (5) If the employer is a temporary employment agency that
provides employees on a temporary basis to its customers, the
temporary employment agency shall be considered to be the
employer for purposes of this section.
  (6)(a) Within 10 days of the date an employer quits business,
merges, sells out or exchanges or otherwise disposes of the
business or stock of goods of the business, any amounts payable
for premiums under this section become immediately due and
payable. Any person who becomes a successor to the business is
liable for the full amount of the premiums due and shall withhold
from the purchase price a sum sufficient to pay any premiums due
from the employer until the employer produces documentation from
the bureau showing payment has been made in full of any premium
due or that no premium is due. If the premium is not paid by the
employer within 10 days after the date of the sale, exchange or
disposal, the successor is liable for the payment of the full
amount of premiums due. The successor's payment of the premiums
due is, to the extent of the payment, a payment upon the purchase
price, and if the payment made is greater than the purchase
price, the amount of the difference is a debt due the successor
from the employer.
  (b) A successor is not liable for any premiums due from the
person from whom the successor has acquired a business or stock
of goods if the successor gives written notice to the bureau of
the acquisition and no assessment is issued by the bureau within
one year after receipt of the notice against the former operator
of the business.
  (7)(a) Information contained in the files and records
pertaining to an employee under this section is confidential, is
not a public record as defined in ORS 192.410 and is not open to
public inspection, other than to public employees in the
performance of their official duties. However, the employee to
whom the records pertain or an authorized representative of the
employee may review the records or receive specific information
from the records on the presentation of signed authorization from
the employee. At the bureau's discretion, other persons may
review records when those persons are rendering assistance to the
bureau at any stage of proceedings on any matter pertaining to
the administration of this section.
  (b) An employer must keep at its place of business records of
employment that contain the information needed by the bureau for
purposes of this section. The records shall at all times be open
to the inspection of the bureau pursuant to rules adopted by the
bureau. + }
  SECTION 7.  { + (1) The Bureau of Labor and Industries shall
notify the employer of an employee filing a claim for short-term
disability benefits under section 5 of this 2011 Act within five
business days of the date the claim was filed.
  (2) Short-term disability benefits are payable for a maximum of
52 weeks.
  (3) The first payment of short-term disability benefits shall
be made to an employee by the later of no more than two weeks
after the claim is filed or the date the short-term disability
leave began following a seven-day waiting period for which no
benefits may be paid. Subsequent payments shall be made
bimonthly.
  (4) Disability benefits shall be paid during the benefit year
as follows:
  (a) An eligible employee's weekly benefit amount shall be equal
to 55 percent of the employee's average weekly wages during the
highest paid quarter of the base year, up to a maximum of 64
percent of the state average covered weekly wage as determined by
the Employment Department for the preceding calendar year for an
employee who worked at least 2,000 hours in the base year, or a
prorated amount for an employee who worked fewer than 2,000 hours
in the base year.
  (b) An eligible employee who receives earnings from the
employee's employer during the period of the employee's
short-term disability shall be paid short-term disability
benefits for any week or partial week in an amount not to exceed
the employee's maximum weekly short-term disability amount which
together with the earnings does not exceed the weekly wage of the
employee, exclusive of wages paid for overtime work, immediately
prior to the commencement of the short-term disability.
  (c) Payment which has been, is or will be paid to an employee
for sick leave or holiday or vacation leave shall be considered
as earnings in the determination of the amount of benefits
payable with respect to the week in which the sick leave is taken
or the holiday or vacation leave falls. However, if payment for
the sick leave or holiday or vacation leave is paid more than 45
days prior to the holiday or vacation leave or is delayed more
than 45 days following the end of the week in which the holiday
or vacation leave falls, the provisions of this subsection do not
apply and previously reduced benefits shall be adjusted
accordingly.
  (d) Payment which has been, is or will be paid to an individual
as a member of a reserve component of the Armed Forces of the
United States, including the organized militia of the State of
Oregon, for the performance of inactive duty training shall not
be considered as earnings in the determination of the amount of
short-term disability benefits payable.
  (e) The minimum period of short-term disability leave for which
benefits may be paid is one week. The bureau may not pay a claim
for benefits for a period of short-term disability leave of less
than one week.

  (f) If an employee dies before receiving payment of short-term
disability benefits, the payment shall be made by the bureau to
the surviving spouse or to the surviving child or children of the
employee if there is no surviving spouse. If there is no
surviving spouse and no surviving child or children, the payment
shall be made and distributed consistent with the terms of the
decedent's will or, if the decedent dies intestate, consistent
with the provisions of ORS chapter 112.
  (5) An authorized representative of the bureau shall promptly
examine each new claim for short-term disability benefits and
determine:
  (a) If the employee has had amounts retained for the payment of
premiums that are sufficient to qualify the claimant for payment
of short-term disability benefits;
  (b) The amount payable each week for short-term disability
benefits;
  (c) The maximum amount of short-term disability benefits
payable for the application year; and
  (d) The period for which short-term disability benefits are
payable.
  (6) The initial determination under this section shall be
applicable to all weeks of the application year for which the
claim was filed. However, the determination may be amended with
respect to any week or weeks of the application year.
  (7) The bureau shall promptly give notice of an initial
determination and any amended determination made under this
section to the employee. Unless the employee files a request for
hearing on the initial or amended determination with the bureau
in accordance with rules adopted by the bureau, the determination
shall become final and the bureau shall pay or deny short-term
disability benefits in accordance with the determination, unless
otherwise provided by law.
  (8)(a) The bureau shall also make an initial determination of
an employee's entitlement to other benefits and shall notify the
employer and employee if the bureau determines that the employee
is entitled to other benefits.
  (b) Notice under this subsection from the bureau to the
employer shall constitute notice under ORS 656.265 for purposes
of filing a workers' compensation claim. If the employer or the
insurance carrier disputes liability for the payment of other
benefits, or the extent of the benefits payable, the bureau's
right to reimbursement shall be subject to the jurisdiction of
the Workers' Compensation Board.
  (9) An employer or insurance carrier that subsequently assumes
liability or is determined to be liable for reimbursement to the
bureau for short-term disability benefits which the bureau has
paid in lieu of other benefits shall be assessed for this
liability by the bureau. Interest on an amount recoverable under
this section accrues at the rate specified in ORS 82.010,
beginning on the first day of the month following 60 days after
entry of the order establishing the amount recoverable. The
employer shall also pay a penalty of 10 percent of the amount
reimbursed to the bureau, payable in addition to and not from the
amount reimbursed, if the board finds that the failure of the
employer to pay benefits upon notice by the bureau under this
section was unreasonable. All funds received by the bureau
pursuant to this section shall be deposited in the Short-Term
Disability Benefit Fund.
  (10) Short-term disability benefits are payable under this
section only to the extent that moneys are available in the fund
for that purpose. Neither the state nor the bureau is liable for
any amount in excess of this limitation.
  (11) The bureau shall provide a tax form to each employee who
has received short-term disability benefits for the employee's
use in paying federal income tax on the benefits and shall advise

an employee filing a new claim for short-term disability
benefits, at the time of filing the claim, that:
  (a) Short-term disability benefits are subject to federal
income tax; and
  (b) Requirements exist pertaining to estimated tax
payments. + }
  SECTION 8.  { + If an employee or employer is adversely
impacted by a decision of the Bureau of Labor and Industries with
regard to the employee's claim for short-term disability benefits
and makes a timely request, the employee or employer is entitled
to a hearing before the Commissioner of the Bureau of Labor and
Industries or the commissioner's designee in accordance with the
applicable provisions of ORS 183.415 to 183.500. The commissioner
shall adopt rules for conducting hearings under this section. The
commissioner or commissioner's designee shall issue a final order
in the case. Final orders issued are subject to review by the
Court of Appeals as provided in ORS 183.480 and 183.482. + }
  SECTION 9.  { + (1) If an employee receives any short-term
disability benefits under section 7 of this 2011 Act to which the
employee is not entitled:
  (a) The employee is liable to the Bureau of Labor and
Industries for the amount of short-term disability benefits
received; and
  (b) The amount of the short-term disability benefits received
may be deducted by the bureau from any future short-term
disability benefits otherwise payable to the employee under
section 7 of this 2011 Act.
  (2) If the bureau decides that an employee has been paid
short-term disability benefits to which the employee is not
entitled because of an error, and that the employee is not
subject to disqualification under section 5 (3) of this 2011 Act,
the amounts received in error may be recovered by the bureau only
by deductions from short-term disability benefits otherwise
payable to the employee under section 7 of this 2011 Act during
the 52 weeks following the date on which the order establishing
the amount of the erroneous payment becomes final. If amounts
determined to be recoverable have not been recovered within that
time, the liability shall be canceled by the bureau and charged
against the Short-Term Disability Benefit Fund.
  (3) Except as provided in subsection (4) of this section, if
short-term disability benefits determined to be recoverable under
this section have not been recovered within three years after the
date that the order of the bureau establishing the liability of
the employee becomes final, and no amounts have been recovered
and applied towards payment of the liability for at least three
months, the liability shall be canceled by the bureau and charged
against the fund.
  (4) Any amount due under this section may be collected by the
bureau in a civil action against the employee brought in the name
of the bureau.
  (5) Interest on any short-term disability benefits recoverable
under this section shall be paid and collected at the same time
repayment of short-term disability benefits is made by the
employee. Interest on an amount recoverable under this section
accrues at the rate specified in ORS 82.010, beginning on the
first day of the month following 60 days after entry of the order
establishing the amount recoverable.
  (6) Any amount collected under this section by the bureau shall
be paid into the fund. + }
  SECTION 10.  { + (1) It is an unlawful employment practice for
an employer, temporary employment agency, employment agency,
employee organization or other person to discharge, expel or
otherwise discriminate against a person because:
  (a) The person has filed, or communicated to the employer an
intent to file, a claim for short-term disability benefits;

  (b) The person has filed, or communicated to the employer an
intent to file, a complaint or an appeal about short-term
disability benefits; or
  (c) Has testified or assisted, or is about to testify or
assist, in any proceeding under sections 1 to 14 of this 2011
Act.
  (2) The Bureau of Labor and Industries may assess a civil
penalty not to exceed $20,000 against an employer that:
  (a) Fails to withhold amounts necessary to pay premiums or
fails to pay when due the moneys withheld as provided in section
6 of this 2011 Act; or
  (b) Fails to comply with the provisions of sections 1 to 14 of
this 2011 Act or rules adopted under sections 1 to 14 of this
2011 Act relating to reports or other requirements necessary to
carry out the purposes of sections 1 to 14 of this 2011 Act.
  (3) All civil penalties collected under this section shall be
applied first toward reimbursement of the costs incurred in
investigating violations, conducting hearings and assessing and
collecting penalties. All remaining amounts shall be paid into
the Short-Term Disability Benefit Fund. + }
  SECTION 11.  { + (1) If an employer defaults with respect to
any premium payment required to be made by the employer to the
Short-Term Disability Benefit Fund under section 6 of this 2011
Act, a person described in subsection (2) of this section who, as
an officer, member, partner or employee, is under a duty to
perform the actions required by employers under sections 1 to 14
of this 2011 Act shall be personally liable for amounts due under
section 6 of this 2011 Act. More than one person may be jointly
and severally liable under this section.
  (2) This section applies only to a person who is:
  (a) An officer or employee of a corporation;
  (b) A member or an employee of a limited liability corporation;
or
  (c) A partner in or an employee of a limited liability
partnership.
  (3) If the Commissioner of the Bureau of Labor and Industries
determines that an amount is due under this section, the
commissioner shall issue a notice of assessment to the person
liable under this section which shall be mailed to the person's
last-known address of record with the commissioner. + }
  SECTION 12.  { + The Short-Term Disability Benefit Fund is
established in the State Treasury, separate and distinct from the
General Fund. Interest earned by the fund shall be credited to
the fund. All moneys from premiums received under section 6 of
this 2011 Act shall be credited to the fund. Moneys in the fund
are continuously appropriated to the Bureau of Labor and
Industries for the purposes authorized by sections 1 to 14 of
this 2011 Act. + }
  SECTION 13.  { + (1) An employer that is not subject to section
6 of this 2011 Act or a self-employed person may elect to provide
short-term disability benefits to the employees of the employer
or to the self-employed person under section 5 of this 2011 Act
for an initial coverage period of not less than three years and
subsequent coverage periods of not less than one year. The
employer or self-employed person must file a written notice of
election of coverage under section 5 of this 2011 Act with the
Bureau of Labor and Industries. The election becomes effective on
the date the notice is filed.
  (2) An employer or self-employed person that makes an election
under this section may withdraw the election not more than 30
days after the end of the initial three-year coverage period, or
at other times as the bureau may prescribe by rule. A withdrawal
may take effect no sooner than 30 days after the filing of the
notice.
  (3) The bureau may cancel an election made under this section
if the employer or self-employed person fails to remit required
premiums or reports. The bureau may collect unpaid premiums and
may levy an additional premium for the remainder of the coverage
period. A cancellation under this subsection becomes effective 30
days after the issuance of a written notice of cancellation to
the employer or self-employed person or before 30 days after the
issuance of the notice of cancellation if so specified in the
notice. + }
  SECTION 14.  { + (1) By mutual agreement, an employer and a
majority of the employees employed in this state by the employer,
or both an employer and a union covered under a collective
bargaining agreement, may apply to the Bureau of Labor and
Industries for approval of a voluntary plan for the payment of
short-term disability benefits to employees.
  (2) The bureau shall approve any voluntary plan if:
  (a) The rights afforded to the covered employees are greater
than those provided for in sections 5 and 7 of this 2011 Act;
  (b) The plan has been made available to all of the employees of
the employer employed in this state or to all employees at any
one distinct and separate establishment maintained by the
employer in this state. 'Employees' as used in this paragraph
includes individuals in partial or other forms of short-time
employment and employees not in employment as the bureau shall
prescribe by rule;
  (c) A majority of the employees of the employer employed in
this state, a majority of the employees employed at any one
distinct and separate establishment maintained by the employer in
this state or a union and employer through collective bargaining
have consented to the plan;
  (d) The employer has consented to the plan and has agreed to
make the payroll deductions required, if any, and transmit the
amounts deducted to the plan insurer, if any;
  (e) The plan provides for the inclusion of future employees;
  (f) The plan will be in effect for a period of not less than
one year and, thereafter, continuously unless the bureau finds
that by mutual consent the employer and a majority of the
employees employed in this state, or a union and employer through
collective bargaining covered by the plan have given written
notice of withdrawal from the plan;
  (g) The amount of deductions from the wages of an employee in
effect for any plan shall not be increased on other than the
anniversary of the effective date of the plan; and
  (h) The approval of the plan or plans will not result in a
substantial selection of risks adverse to the Short-Term
Disability Benefit Fund.
  (3) Except as provided in subsection (4) of this section,
neither an employee nor the employer of the employee shall be
liable for the employee contributions required under section 6 of
this 2011 Act with respect to wages paid by the employer while
the employee is covered by an approved voluntary plan.
  (4) Each voluntary plan shall pay the bureau for the fund _____
percent of the product obtained by multiplying the rate of worker
contributions by the amount of the taxable wages paid to
employees covered by the voluntary plan for short-term disability
benefit coverage for each calendar year. The payments shall not
constitute a part of the voluntary plan premium for purposes of
any tax under any provision of law. Payments under this
subsection shall be made according to the procedures established
by rule by the bureau and deposited in the fund to cover
administrative costs related to voluntary plans.
  (5) Whenever an individual is entitled to short-term disability
benefits but there is a dispute over whether such benefits are
payable from the fund or from a voluntary plan, benefits shall be
paid to the individual, pursuant to rules adopted by the bureau
from the source against which the claim was first filed, in an
amount that is not less than the benefit amount established under
section 7 of this 2011 Act, pending the determination of the
dispute. If it is finally determined that the short-term
disability benefits should have been paid from a source other
than the source that paid the short-term disability benefits,
reimbursement shall be promptly made from the fund or the
voluntary plan, as the case may be, and the employee shall be
promptly paid the accumulated excess, if any, to which the
employee is entitled. Reimbursement shall also be made to the
extent of actual liability for short-term disability benefits
from the source determined to liable if it is determined that
benefits have been paid in error from one source which should
have been paid from another source. + }
  SECTION 15.  { + Section 12 of this 2011 Act becomes operative
on July 1, 2012. + }
  SECTION 16.  { + (1) Employers shall first withhold quarterly
premiums from employees' earnings for quarters worked beginning
on or after January 1, 2012.
  (2) Employees may first file claims for benefits under section
7 of this 2011 Act on or after July 1, 2012, for disability leave
taken on or after July 1, 2012. + }
  SECTION 17. ORS 316.168 is amended to read:
  316.168. (1) Except as otherwise provided by law, every
employer subject to the provisions of ORS 316.162 to 316.221
 { - , - }  { +  or + } 656.506   { - and - }   { + or + } ORS
chapter 657 { +  or sections 1 to 14 of this 2011 Act + }, or a
payroll-based tax imposed by a mass transit district and
administered by the Department of Revenue under ORS 305.620,
shall make and file a combined quarterly tax and assessment
report upon a form prescribed by the department.
  (2) The report shall be filed with the Department of Revenue on
or before the last day of the month following the quarter to
which the report relates and shall be deemed received on the date
of mailing, as provided in ORS 305.820.
  (3) The report shall be accompanied by payment of any tax or
assessment due and a combined tax and assessment payment coupon
prescribed by the department. The employer shall indicate on the
coupon the amount of the total payment and the portions of the
payment to be paid to each of the tax or assessment programs.
  (4) The Department of Revenue shall credit the payment to the
tax or assessment programs in the amounts indicated by the
employer on the coupon and shall promptly remit the payments to
the appropriate taxing or assessing body.
  (5) If the employer fails to allocate the payment on the
coupon, the department shall allocate the payment to the proper
tax or assessment programs on the basis of the percentage the
payment bears to the total amount due.
  (6) The Department of Revenue shall distribute copies of the
combined quarterly tax and assessment report and the necessary
tax or assessment payment information to each of the agencies
charged with the administration of a tax or assessment covered by
the report.
  (7) The Department of Revenue, the Employment Department and
the Department of Consumer and Business Services shall develop a
system of account numbers and assign to each employer a single
account number representing all of the tax and assessment
programs included in the combined quarterly tax and assessment
report.
  SECTION 18. ORS 316.171 is amended to read:
  316.171. Except as provided in   { - this section and - }  ORS
314.840, 316.168, 316.197, 316.202 and 657.571 { +  and sections
1 to 14 of this 2011 Act + }, the statutes and regulations
applicable to each agency, requiring a report and imposing a tax,
shall govern the audit and examination of reports and returns,
determination of deficiencies, assessments, claims for refund,
penalties, interest, administrative and judicial appeals and the
procedures relating thereto.

  SECTION 19.  { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
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