HB 4016 — Relating to tax compliance; and prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session A-EngrossedEnrolled House Bill 4016 Ordered by the House February 13 Including House Amendments dated February 13 Introduced and printed pursuant to House Rule 12.00.

Presession filed (at the request of House InterimIn- terim Committee on Revenue for Representative Nancy Nathanson) SUMMARYCHAPTER 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.

ItAN isACT anRelating editor’sto brieftax statementcompliance; of the essential features of the measure.

The statement includes a measure digest written in compliance with applicable readability standards.

Digest:

Says that people who get public contracts must obey tax laws and must show proof of compliance with tax laws.

(Flesch Readability Score:

76.8).

Requires public contractors to demonstrate and maintain tax compliance, through a certification process, as a condition of the execution of a public contract.

Becomes operative January 1, 2027.

Directs the Secretary of State to study methods for collecting information through business registry function to ensure tax compliance by persons doing business in this state.

Takes effect on the 91st day following adjournment sine die.

A BILL FOR AN ACT Relating to tax compliance;

(2) Upon request of the department, an agency shall annually, on or before March 1, supply the NOTE:department with a list of specified persons contracting with the agency to provide goods, services or real estate space to the agency during the preceding calendar year.

Matter in boldfaced type in an amended section is new;

matter [italic and bracketed] is existing law to be omitted.

New sections are in boldfaced type.

LC 186 A-Eng.

HB 4016 department with a list of specified persons contracting with the agency to provide goods, services or real estate space to the agency during the preceding calendar year.

(4)(a) If the department determines that any licensee or provider has neglected or refused to file any return or to pay any tax and that such person has not filed in good faith a petition before the department contesting the tax, and the department has been unable to obtain payment of the tax through other methods of collection, the Director of the Department of Revenue may, Enrolled House Bill 4016 (HB 4016-B) Page 1 notwithstanding ORS 118.525, 314.835 or 314.840 or any similar provision of law, notify the agency and the person in writing.

[(6) No contract or other agreement for the purpose of providing goods, services or real estate space to any agency shall be entered into, renewed or extended with any person, unless the person certifies in writing, under penalty of perjury, that the person is, to the best of the person’s knowledge, not in violation of any tax laws described in ORS 305.380 (4).] (6) A contract or other agreement for the purpose of providing goods, services or real estate space to any agency, other than a political subdivision of this state, may not be en- tered into, renewed or extended with any provider or owner, unless at the time of contract- [2]ing A-Eng.with an agency:

HB 4016 ing with an agency:

Enrolled House Bill 4016 (HB 4016-B) Page 2 (9) Upon request of a provider, if the provider and each owner are not in violation of any tax laws described in ORS 305.380, the department shall, within 14 days after the request, issue to the provider and each owner a certificate as described in subsection (6) of this sec- tion.

(1) As part of a contracting agency’s evaluation of a bid or proposal, the contracting agency shall determine whether the bidder or proposer is responsible in accordance with the stan-standards dards of responsibility set forth in subsection (2) of this section.

If the contracting agency deter-de- minestermines that a bidder or proposer is not responsible, the contracting agency shall provide the bidderbid- der or proposer with written notice of the contracting agency’s determination.

The contracting agency in evaluating the bidder’s or proposer’s record of integrity may consider, among other things, whether the bidder or proposer has previous criminal convictions for offenses related to obtaining or attempting to obtain a contract or subcontract or in connection with the bidder’s or proposer’s performance of a contract or sub- [3]contract. A-Eng.

HB 4016 contract.

The bidder or proposer shall demonstrate compliance by attesting to the bidder’s or proposer’s compliance in any way the contracting agency deems credible and convenient.] (e) Is not in violation of any tax laws described in ORS 305.380305.380. and, if the anticipated price of the public contract or a renewal of the public contract is more than $250,000, pro- vides a certificate in the manner prescribed in ORS 305.385.

If the anticipated price of thea public contract orthat a renewalcontracting ofagency theawards publicor contractrenews is $250,000 or less, the bidderbid- der or proposer shall demonstrate compliance by attesting to the bidder’s or proposer’s compliance in any manner the contracting agency deems credible and convenient.

If the an- ticipated price of a public contract that a state contracting agency awards or renews is more than $250,000, the bidder or proposer shall submit to the state contracting agency a certif- icate from the Department of Revenue, as provided in ORS 305.385 (6).

Enrolled House Bill 4016 (HB 4016-B) Page 3 (h) Was not debarred by the contracting agency under ORS 279B.130.

(3) In the study required under this section, the secretary shall assess whether the cur- [4]rent A-Eng.statutes and rules applicable to the secretary’s business registry functions and current division capacity are sufficient to ensure a business registry that is reliable and current and has sufficient information to be useful for purposes of state agencies or consumers seeking to verify information about businesses operating in this state.

HB 4016 rent statutes and rules applicable to the secretary’s business registry functions and current division capacity are sufficient to ensure a business registry that is reliable and current and has sufficient information to be useful for purposes of state agencies or consumers seeking to verify information about businesses operating in this state.

Notwithstanding any other provision of law, the General Fund appropriation made to the Department of Revenue by section 1 (3), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, for the Personal Tax and Compliance Division, is increased by $262,503, for the purpose of carrying out section 2 of this 2026 Act.

SECTION 8.

Notwithstanding any other law limiting expenditures, the limitation on ex- penditures established by section 2 (3), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts and reimbursements from federal service agreements, but excluding lottery funds and federal funds not described in section 2, chapter 553, Oregon Laws 2025, collected or received by the Department of Revenue, for the Personal Tax and Compliance Division, is increased by $6,358, for the purpose of carrying out section of this 2026 Act.

SECTION 9.

Notwithstanding any other provision of law, the General Fund appropriation made to the Department of Revenue by section 1 (4), chapter 553, Oregon Laws 2025, for the Enrolled House Bill 4016 (HB 4016-B) Page 4 biennium ending June 30, 2027, for the Business Division, is increased by $41,928, for the purpose of carrying out section 2 of this 2026 Act.

SECTION 10.

Notwithstanding any other law limiting expenditures, the limitation on ex- penditures established by section 2 (4), chapter 553, Oregon Laws 2025, for the biennium ending June 30, 2027, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts and reimbursements from federal service agreements, but excluding lottery funds and federal funds not described in section 2, chapter 553, Oregon Laws 2025, collected or received by the Department of Revenue, for the Business Division, is increased by $42,626, for the purpose of carrying out section 2 of this 2026 Act.