SB 1507 — Relating to revenue; and prescribing an effective date.

(11) “Qualified higher education expenses” means tuition and other permitted expenses as set forth in section 529(e) of the Internal Revenue Code for the enrollment or attendance of a designated beneficiary at a higher education institution, expenses associated with registered apprenticeship programs described in section 529(c)(8) of the Internal Revenue Code and amounts paid as principal or interest on a qualified education loan to the extent allowed under section 529(c)(9) of the Internal [5]Revenue A-Eng.Code.

SB 1507 Revenue Code.

Enrolled Senate Bill 1507 (SB 1507-A) Page 5 (d) Persons categorized by a participating public employer as student employees;

(g) An employee actively participating in an alternative retirement program established under [6]ORS A-Eng.353.250 or an optional retirement plan established under ORS 341.551;

SB 1507 ORS 353.250 or an optional retirement plan established under ORS 341.551;

[7](12) A-Eng.“Participating public employer” means a public employer as defined in ORS 238.005 that provides retirement benefits for employees of the public employer under the system.

SBEnrolled Senate Bill 1507 (12)(SB “Participating1507-A) publicPage employer”6 means(13) a“Pension publicprogram” employermeans asthe defined inbenefit ORSpension 238.005program thatof providesthe retirementOregon benefitsPublic forService employeesRetirement ofPlan theestablished public employer under theORS system.238A.025.

(13) “Pension program” means the defined benefit pension program of the Oregon Public Service Retirement Plan established under ORS 238A.025.

[8](D) A-Eng.Any severance payment, accelerated payment of an employment contract for a future period or advance against future wages.

SB 1507 (D) Any severance payment, accelerated payment of an employment contract for a future period or advance against future wages.

Enrolled Senate Bill 1507 (SB 1507-A) Page 7 (H) The amount of an employee contribution to the individual account program that is paid by the employer and is not deducted from the compensation of the employee, as provided under ORS 238A.335 (1) and (2)(b).

[9]3121(d)(2), A-Eng.as in effect on January 1, [2024] 2026, and elected officials other than judges.

SB 1507 3121(d)(2), as in effect on January 1, [2024] 2026, and elected officials other than judges.

Enrolled Senate Bill 1507 (SB 1507-A) Page 8 (j) Any employee who belongs to a class of employees that was not eligible on August 28, 2003, for membership in the system under the provisions of ORS chapter 238 or other law;

and [10](B) A-Eng.An hour of vacation, holiday, illness, incapacity, jury duty, military duty or authorized leave during which an employee does not perform duties but for which the employee is directly or indi- rectly paid or entitled to payment by a participating public employer for services in a qualifying position, as long as the hour is within the number of hours regularly scheduled for the performance of duties during the period of vacation, holiday, illness, incapacity, jury duty, military duty or au- thorized leave.

SB 1507 (B) An hour of vacation, holiday, illness, incapacity, jury duty, military duty or authorized leave during which an employee does not perform duties but for which the employee is directly or indi- rectly paid or entitled to payment by a participating public employer for services in a qualifying position, as long as the hour is within the number of hours regularly scheduled for the performance of duties during the period of vacation, holiday, illness, incapacity, jury duty, military duty or au- thorized leave.

Enrolled Senate Bill 1507 (SB 1507-A) Page 9 (15) “Police officer” means a police officer as described in ORS 238.005.

125 or 132(f)(4), as in effect on December 31, [2023] [11]2025. A-Eng.

SB 1507 2025.

Enrolled Senate Bill 1507 (SB 1507-A) Page 10 (H) The amount of an employee contribution to the individual account program that is paid by the employer and is not deducted from the compensation of the employee, as provided under ORS 238A.335 (1) and (2)(b).

On January 1 of each [12]year, A-Eng.the board shall adjust the dollar limit provided by this subparagraph to reflect any percentage changes in the Consumer Price Index for All Urban Consumers, West Region (All Items), as pub- lished by the Bureau of Labor Statistics of the United States Department of Labor.

SB 1507 year, the board shall adjust the dollar limit provided by this subparagraph to reflect any percentage changes in the Consumer Price Index for All Urban Consumers, West Region (All Items), as pub- lished by the Bureau of Labor Statistics of the United States Department of Labor.

(2) Notwithstanding any provision of ORS 238A.100 to 238A.250, the annual benefit payable to a member under the pension program and under any other tax-qualified defined benefit plan main- tained by the participating public employer may not exceed the applicable limitations set forth in 26 U.S.C.

Enrolled Senate Bill 1507 (SB 1507-A) Page 11 (2) Notwithstanding any provision of ORS 238A.100 to 238A.250, the annual benefit payable to a member under the pension program and under any other tax-qualified defined benefit plan main- tained by the participating public employer may not exceed the applicable limitations set forth in 26 U.S.C.

(1) Notwithstanding any other provision of ORS 238A.100 to 238A.250, an eligible em- ployee who leaves a qualifying position for the purpose of performing service in the uniformed ser- [13]vices, A-Eng.and who subsequently returns to employment with a participating public employer with reemployment rights under federal law, is entitled to accrue retirement credit, credit toward the probationary period required by ORS 238A.100 and credit toward the vesting requirements of ORS 238A.115 under rules adopted by the Public Employees Retirement Board pursuant to subsection (2) of this section.

SB 1507 vices, and who subsequently returns to employment with a participating public employer with reemployment rights under federal law, is entitled to accrue retirement credit, credit toward the probationary period required by ORS 238A.100 and credit toward the vesting requirements of ORS 238A.115 under rules adopted by the Public Employees Retirement Board pursuant to subsection (2) of this section.

Enrolled Senate Bill 1507 (SB 1507-A) Page 12 (b) If the member dies on or after the earliest retirement date for the member under ORS 238A.165 and before normal retirement age under ORS 238A.160, the actuarial equivalent of the pension that would otherwise have been paid to the deceased member, which shall be calculated as if the member retired under ORS 238A.185 and as if the member’s retirement date was the first of [14]the A-Eng.month following the date of death of the member;

SB 1507 the month following the date of death of the member;

(2) In lieu of a lump sum payment under subsection (1) of this section, a member of the individ-indi- ualvidual account program may elect to receive the amounts in the member’s employee account and em-employer ployer account, to the extent the member is vested in those accounts under ORS 238A.320, in substantially equal installments paid over a period of 5, 10, 15 or 20 years, or over a period that is equal to the anticipated life span of the member as actuarially determined by the Public Employees Retirement Board.

In no event may the period selected by the member exceed the time allowed by the minimum distribution re- [15]quirements A-Eng.described in subsection (5) of this section.

SB 1507 quirements described in subsection (5) of this section.

The board by rule may es- Enrolled Senate Bill 1507 (SB 1507-A) Page 13 tablish minimum monthly amounts payable under this subsection.

If the member’s spouse is designated as the member’s beneficiary and the marriage of the member and spouse is subsequently dissolved, the former spouse shall be treated as predeceasing the member for purposes of this section, unless the member expressly designates the [16]former A-Eng.spouse as beneficiary after the effective date of the dissolution or the former spouse is re- quired to be designated as a beneficiary under the provisions of ORS 238.465.

SB 1507 former spouse as beneficiary after the effective date of the dissolution or the former spouse is re- quired to be designated as a beneficiary under the provisions of ORS 238.465.

Enrolled Senate Bill 1507 (SB 1507-A) Page 14 (4) If a small estate affidavit has been filed under ORS 114.505 to 114.560, and the death benefit does not exceed the maximum amount of personal property for which a small estate affidavit may be filed under ORS 114.505 to 114.560, the board shall pay the death benefit to the person who filed the affidavit, if the member’s estate is the designated beneficiary or is receiving the payment under subsection (3) of this section.

(5) The entire amount of a deceased member’s vested accounts must be distributed by December 31 of the fifth calendar year after the year in which the member died.

[17](b) A-Eng.A distribution that is one of a series of substantially equal periodic payments made at least annually for a specified period of 10 years or more;

SB 1507 (b) A distribution that is one of a series of substantially equal periodic payments made at least annually for a specified period of 10 years or more;

401(a)(31) and the regulations implementing that section, and may adopt administrative exceptions Enrolled Senate Bill 1507 (SB 1507-A) Page 15 to the direct rollover requirements to the extent permitted by 26 U.S.C.

(1) If a benefit is payable under this chapter to a beneficiary by reason of the death of a member of the system, the beneficiary may elect to have all or part of the distribution of the death benefit paid in an eligible rollover distribution to an individual retirement plan described in 26 U.S.C.

To the extent provided by rules of the Public Employees Retire- [18]ment A-Eng.Board, a trust maintained for the benefit of one or more beneficiaries must be treated by the board in the same manner as a trust that is designated as a beneficiary for the purposes of the minimum required distribution requirements of 26 U.S.C.

SB 1507 ment Board, a trust maintained for the benefit of one or more beneficiaries must be treated by the board in the same manner as a trust that is designated as a beneficiary for the purposes of the minimum required distribution requirements of 26 U.S.C.

(3) As used in this section, “eligible rollover distribution” has the meaning given that term in 26 U.S.C.

Enrolled Senate Bill 1507 (SB 1507-A) Page 16 (d) An individual who is licensed as a real estate broker or principal real estate broker under ORS 696.022 or is a state certified appraiser or state licensed appraiser under ORS 674.310 or is a registered appraiser under ORS 308.010 may represent a taxpayer before a tax court magistrate or the department in any conference or proceeding with respect to the administration of any ad valorem property tax.

(3) A taxpayer represented by someone other than an attorney is bound by all things done by the authorized representative, and may not thereafter claim any proceeding was legally defective [19]because A-Eng.the taxpayer was not represented by an attorney.

SB 1507 because the taxpayer was not represented by an attorney.

Notwithstanding ORS 9.320, any shareholder of an S corporation as defined in section 1361 of the Internal Revenue Code, as amended and in effect on December 31, [2023] 2025, may represent the corporation in any proceeding before the Oregon Tax Court in the same manner as if the shareholder were a partner and the S corporation were a partnership.

Enrolled Senate Bill 1507 (SB 1507-A) Page 17 (A) On December 31, [2023] 2025;

(c) With respect to ORS 314.105, 314.256 (relating to proxy tax on lobbying expenditures), 314.260 (1)(b), 314.302, 314.306, 314.330, 314.360, 314.362, 314.385, 314.402, 314.410, 314.412, 314.525, 314.767 (7), 314.771 and 314.772 and other provisions of this chapter, except those described in paragraphpar- agraph (b) of this subsection, any reference to the laws of the United States or to the Internal RevenueRe- venue Code means the laws of the United States relating to income taxes or the Internal Revenue Code as they are amended on or before December 31, [2023] 2025, even when the amendments take effect or be-become come operative after that date, except where the Legislative Assembly has specifically provided otherwise.

Nothing contained in this section limits the right or duty of the department to audit the return of any taxpayer or to determine any fact relating to the tax li- [20]ability A-Eng.of any taxpayer.

SB 1507 ability of any taxpayer.

Enrolled Senate Bill 1507 (SB 1507-A) Page 18 (B) Capital loss carryover.

(B) Any net capital loss for the taxable year of the discharge, and any capital loss carryover to the taxable year, shall be reduced by the amount of discharged indebtedness minus the total amount [21]taken A-Eng.into account under subparagraph (A) of this paragraph.

SB 1507 taken into account under subparagraph (A) of this paragraph.

Enrolled Senate Bill 1507 (SB 1507-A) Page 19 SECTION 38.

Any term used in this chapter has the same meaning as when used in a comparable [22]context A-Eng.in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required or the term is specifically defined in this chapter.

SB 1507 context in the laws of the United States relating to federal income taxes, unless a different meaning is clearly required or the term is specifically defined in this chapter.

[23](ii) A-Eng.In-home services authorized and approved by the Department of Human Services;

SB 1507 (ii) In-home services authorized and approved by the Department of Human Services;

Enrolled Senate Bill 1507 (SB 1507-A) Page 20 (R) Rental allowance paid to a minister that is excluded from federal gross income.

(b) “Household income” means the aggregate income of the taxpayer and the spouse of the tax-taxpayer payer who reside in the household, that was received during the taxable year for which a credit is claimed, except that “household income” does not include Social Security benefits received by the taxpayer or the spouse of the taxpayer.

(c) “Income” means “adjusted gross income” as defined in the federal Internal Revenue Code, [24]as A-Eng.amended and in effect on December 31, [2023] 2025, even when the amendments take effect or become operative after that date, relating to the measurement of taxable income of individuals, es- tates and trusts, with the following modifications:

SB 1507 as amended and in effect on December 31, [2023] 2025, even when the amendments take effect or become operative after that date, relating to the measurement of taxable income of individuals, es- tates and trusts, with the following modifications:

Enrolled Senate Bill 1507 (SB 1507-A) Page 21 (vii) Accident and health insurance proceeds, except reimbursement of incurred medical ex- penses.

[25](vii) A-Eng.The amount added or subtracted, as required within the context of this section, for adjust- ments made under ORS 316.680 (2)(d) and 316.707 to 316.737.

SB 1507 (vii) The amount added or subtracted, as required within the context of this section, for adjust- ments made under ORS 316.680 (2)(d) and 316.707 to 316.737.

Enrolled Senate Bill 1507 (SB 1507-A) Page 22 (A) Distributions from or pursuant to an employee pension benefit plan, as defined in section 3(2) of the Employee Retirement Income Security Act of 1974, which satisfies the requirements of section 401 of the Internal Revenue Code;

(E) Distributions or withdrawals from or pursuant to an individual retirement account, annuity or trust or simplified employee pension which satisfies the requirements of section 408 of the Inter-Internal nal Revenue Code;

[26]SECTION A-Eng.41.

SB 1507 SECTION 41.

Enrolled Senate Bill 1507 (SB 1507-A) Page 23 (8) “Oregon taxable income” means taxable income, less the deduction allowed under ORS 317.476, except as otherwise provided with respect to insurers in subsection (11) of this section and ORS 317.650 to 317.665.

The [27]resulting A-Eng.product shall be Oregon apportioned income or loss.

SB 1507 resulting product shall be Oregon apportioned income or loss.

Enrolled Senate Bill 1507 (SB 1507-A) Page 24 (iii) Any special assessments the member paid to the limited equity cooperative during the member’s ownership that were expended to make permanent improvements to the building in which the member’s housing unit is located;

[28](h) A-Eng.“Preservation project” means housing that was previously developed as affordable housing with a contract for rent assistance from the United States Department of Housing and Urban De- velopment or the United States Department of Agriculture and that is being acquired by a spon- soring entity.

SB 1507 (h) “Preservation project” means housing that was previously developed as affordable housing with a contract for rent assistance from the United States Department of Housing and Urban De- velopment or the United States Department of Agriculture and that is being acquired by a spon- soring entity.

Enrolled Senate Bill 1507 (SB 1507-A) Page 25 (3) The maximum amount of credit for the difference between the amounts described in sub- section (2)(a) and (b) of this section may not exceed four percent of the average unpaid balance of the qualified loan during the tax year for which the credit is claimed.

Any credit remaining unused in the next succeeding tax year may be carried forward and used in the second succeeding tax year, and likewise, any credit not used in that second succeeding [29]tax A-Eng.year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

SB 1507 tax year may be carried forward and used in the third succeeding tax year, and any credit not used in that third succeeding tax year may be carried forward and used in the fourth succeeding tax year, and any credit not used in that fourth succeeding tax year may be carried forward and used in the fifth succeeding tax year, but may not be carried forward for any tax year thereafter.

and Enrolled Senate Bill 1507 (SB 1507-A) Page 26 (ii) Is the subject of a rent assistance contract with the federal government or with a state or [30]local A-Eng.government that will be maintained by the qualified borrower and that limits a tenant’s rent to no more than 30 percent of their income;

SB 1507 local government that will be maintained by the qualified borrower and that limits a tenant’s rent to no more than 30 percent of their income;

(11) A lending institution may sell a qualified loan for which a certification has been executed to a qualified assignee whether or not the lending institution retains servicing of the qualified loan [31]so A-Eng.long as a designated lending institution maintains records, annually verified by a loan servicer, that establish the amount of tax credit earned by the taxpayer throughout each year of eligibility.

SB(12) 1507Notwithstanding soany longother asprovision aof designatedlaw, a lending institution maintainsthat records,is annuallya verifiedcommunity byde- avelopment loancorporation servicer,organized thatunder establish the amountOregon Nonprofit Corporation Law may transfer all or part of a tax credit earnedallowed byunder this section to one or more other lending institutions that are stockholders or members of the taxpayercommunity throughoutdevelopment eachcorporation yearor that otherwise participate Enrolled Senate Bill 1507 (SB 1507-A) Page 27 through the community development corporation in the making of eligibility.one or more qualified loans for which the tax credit under this section is allowed.

(12) Notwithstanding any other provision of law, a lending institution that is a community de- velopment corporation organized under the Oregon Nonprofit Corporation Law may transfer all or part of a tax credit allowed under this section to one or more other lending institutions that are stockholders or members of the community development corporation or that otherwise participate through the community development corporation in the making of one or more qualified loans for which the tax credit under this section is allowed.

and (ii) The gross amount of surplus lines premiums received on Oregon home state risks as shown [32]in A-Eng.the report required by ORS 735.465.

SB 1507 in the report required by ORS 735.465.

(D) Receipts from hedging transactions, to the extent that the transactions are entered into primarily to protect a financial position, including transactions intended to manage the risk of ex- posure to foreign currency fluctuations that affect assets, liabilities, profits, losses, equity or in- Enrolled Senate Bill 1507 (SB 1507-A) Page 28 vestments in foreign operations, risk of exposure to interest rate fluctuations or risk of commodity price fluctuations;

(N) Tax refunds from any tax program, other tax benefit recoveries and reimbursements for the tax imposed under ORS 317A.100 to 317A.158 made by entities that are part of the same unitary group as provided under ORS 317A.106, and reimbursements made by entities that are not members of a unitary group that are required to be made for economic parity among multiple owners of an [33]entity A-Eng.whose tax obligation under ORS 317A.100 to 317A.158 is required to be reported and paid entirely by one owner, as provided in ORS 317A.106;

SB 1507 entity whose tax obligation under ORS 317A.100 to 317A.158 is required to be reported and paid entirely by one owner, as provided in ORS 317A.106;

(T) In the case of receipts from the sale of marijuana items, as defined in ORS 475C.009, by a person holding a license issued under ORS 475C.005 to 475C.525, an amount equal to the federal and state excise taxes paid by any person on or for such marijuana items under subtitle E of the Internal Enrolled Senate Bill 1507 (SB 1507-A) Page 29 Revenue Code or ORS 475C.670 to 475C.734 and any local retail taxes authorized under ORS 475C.453;

(AA) Receipts of residential care facilities as defined in ORS 443.400 or in-home care agencies as defined in ORS 443.305, to the extent that the receipts are derived from or received as compen- [34]sation A-Eng.for providing services to a medical assistance or Medicare recipient;

SB 1507 sation for providing services to a medical assistance or Medicare recipient;

153(24), for fees payable under ORS 756.310, right-of-right- wayof-way fees, franchise fees, privilege taxes, federal taxes and local taxes;

Enrolled Senate Bill 1507 (SB 1507-A) Page 30 (LL) Charges assessed under ORS 759.685 and paid into the Residential Service Protection Fund;

(UU) Revenue received by a business entity that is mandated by contract or subcontract to be distributed to another person or entity if the revenue constitutes sales commissions that are paid [35]to A-Eng.a person who is not an employee of the business entity, including, without limitation, a split-fee real estate commission;

SB 1507 to a person who is not an employee of the business entity, including, without limitation, a split-fee real estate commission;

Enrolled Senate Bill 1507 (SB 1507-A) Page 31 (j) Any person with commercial activity that does not exceed $750,000 for the tax year, other than a person that is part of a unitary group as provided in ORS 317A.106 with commercial activity in excess of $750,000.

[36](7) A-Eng.“Governmental entity” means:

SB 1507 (7) “Governmental entity” means:

Enrolled Senate Bill 1507 (SB 1507-A) Page 32 (a) Resale by the purchaser of the property as tangible personal property in the regular course of business;

(16) “Taxable commercial activity” means commercial activity sourced to this state under ORS [37]317A.128, A-Eng.less any subtraction pursuant to ORS 317A.119.

SB 1507 317A.128, less any subtraction pursuant to ORS 317A.119.

[38]Enrolled A-Eng.Senate Bill 1507 (SB 1507-A) Page 33 (i) Interest on credit sales;

SB 1507 (i) Interest on credit sales;

[39](P) A-Eng.Contributions to capital;

SB 1507 (P) Contributions to capital;

Enrolled Senate Bill 1507 (SB 1507-A) Page 34 (S) In the case of receipts from the sale of malt beverages or wine, as defined in ORS 471.001, cider, as defined in ORS 471.023 or distilled liquor, as defined in ORS 471.001, by a person holding a license issued under ORS chapter 471, an amount equal to the federal and state excise taxes paid by any person on or for such malt beverages, wine or distilled liquor under subtitle E of the Internal Revenue Code or ORS chapter 471 or 473, and any amount paid to the Oregon Liquor and Cannabis Commission for sales of distilled spirits by an agent appointed under ORS 471.750;

[40](DD) A-Eng.Receipts from sales to a wholesaler in this state, if the seller receives certification at the time of sale from the wholesaler that the wholesaler will sell the purchased property outside this state;

SB 1507 (DD) Receipts from sales to a wholesaler in this state, if the seller receives certification at the time of sale from the wholesaler that the wholesaler will sell the purchased property outside this state;

Enrolled Senate Bill 1507 (SB 1507-A) Page 35 (HH) Moneys collected by a utility from customers for the payment of loans through on-bill fi- nancing;

153(24), for fees payable under ORS 756.310, right-of-right- wayof-way fees, franchise fees, privilege taxes, federal taxes and local taxes;

(VV) Receipts from the sale of fluid milk by dairy farmers that are not members of an agricul- [41]tural A-Eng.cooperative;

SB 1507 tural cooperative;

Enrolled Senate Bill 1507 (SB 1507-A) Page 36 (d) Organizations described in section 501(f) of the Internal Revenue Code.

[42](d) A-Eng.Any county, city, district or other political subdivision of the state.

SB 1507 (d) Any county, city, district or other political subdivision of the state.

(14) “Person” includes individuals, combinations of individuals of any form, receivers, assignees, trustees in bankruptcy, firms, companies, joint-stock companies, business trusts, estates, partner- Enrolled Senate Bill 1507 (SB 1507-A) Page 37 ships, limited liability partnerships, limited liability companies, associations, joint ventures, clubs, societies, entities organized as for-profit corporations under ORS chapter 60, C corporations, S cor- porations, qualified subchapter S subsidiaries, qualified subchapter S trusts, trusts, entities that are disregarded for federal income tax purposes and any other entities.

[43](18) A-Eng.“Tax year” means, except as otherwise provided in ORS 317A.103, a taxpayer’s annual ac- counting period used for federal income tax purposes under section 441 of the Internal Revenue Code.

SB 1507 (18) “Tax year” means, except as otherwise provided in ORS 317A.103, a taxpayer’s annual ac- counting period used for federal income tax purposes under section 441 of the Internal Revenue Code.

or Enrolled Senate Bill 1507 (SB 1507-A) Page 38 (b) In the case of individual development accounts established for the purpose described in ORS 458.685 (1)(c), a financial institution as defined in ORS 178.300.

In making the determination, the department shall give consider- ation to any data on area household income published by the United States Department of Housing [44]and A-Eng.Urban Development.

SB 1507 and Urban Development.

(3) “Benefit year” means a period of 52 consecutive weeks commencing with the first week with respect to which an individual files an initial valid claim for benefits, and thereafter the 52 consec-con- utivesecutive weeks period beginning with the first week with respect to which the individual next files an initial valid claim after the termination of the individual’s last preceding benefit year except that the benefit year shall be 53 weeks if the filing of an initial valid claim would result in overlapping any quarter of the base year of a previously filed initial valid claim.

Enrolled Senate Bill 1507 (SB 1507-A) Page 39 (c) In which the course or courses of study or training that it offers may be academic, technical, trade or preparation for gainful employment in a recognized occupation;

[45](11) A-Eng.“Hospital” has the meaning given that term in ORS 442.015.

SB 1507 (11) “Hospital” has the meaning given that term in ORS 442.015.

(24) “Valid claim” means any claim for benefits made in accordance with ORS 657.260 if the [46]individual A-Eng.meets the wages-paid-for-employment requirements of ORS 657.150.

SBEnrolled Senate Bill 1507 individual(SB meets1507-A) thePage wages-paid-for-employment40 requirements(25) “Week” means any period of ORSseven 657.150.consecutive calendar days ending at midnight, as the director may prescribe by rule.

(25) “Week” means any period of seven consecutive calendar days ending at midnight, as the director may prescribe by rule.

(5)(a) “Benefit year” means, except as provided in paragraph (b) of this subsection, a period of 52 consecutive weeks beginning on the Sunday immediately preceding the date on which family leave, medical leave or safe leave commences.

or [47](B) A-Eng.If an employee has not earned at least $1,000 in wages during the base year, an employee who has earned at least $1,000 in wages during the alternate base year;

SB 1507 (B) If an employee has not earned at least $1,000 in wages during the base year, an employee who has earned at least $1,000 in wages during the alternate base year;

Enrolled Senate Bill 1507 (SB 1507-A) Page 41 (A) An individual performing services for an employer for remuneration or under any contract of hire, written or oral, express or implied.

(B) To effectuate the legal process required for placement of a foster child or the adoption of [48]a A-Eng.child;

SB 1507 a child;

Enrolled Senate Bill 1507 (SB 1507-A) Page 42 (g) The domestic partner of a covered individual;

or (d) Any period of absence for the donation of a body part, organ or tissue, including preoperativepreopera- tive or diagnostic services, surgery, post-operative treatment and recovery.

(25) “Third party administrator” means a third party that enters into an agreement with the Director of the Employment Department to implement and administer the paid family and medical [49]leave A-Eng.program established under this chapter.

SB 1507 leave program established under this chapter.

(3)(a) If a deficiency is assessed against any taxpayer for a tax year beginning before January 1, 2026, and the deficiency or any portion thereof is attributable to any retroactive treatment under the amendments to ORS 178.300, 178.375, 305.239, 305.494, 305.690, 305.842, 314.011, 314.306, 315.004, 316.012, 316.147, 316.157, 317.010, 317.097 and 317A.100 by sections 16, 17 and 31 to 44 of this 2026 Act, then any interest or penalty assessed under ORS chapter Enrolled Senate Bill 1507 (SB 1507-A) Page 43 305, 314, 315, 316, 317, 317A or 318 with respect to the deficiency or portion thereof shall be can-canceled. celed.

(b) If a refund is due any taxpayer for a tax year beginning before January 1, 2026, and the refund or any portion thereof is due the taxpayer on account of any retroactive treat- ment under the amendments to ORS 178.300, 178.375, 305.239, 305.494, 305.690, 305.842, 314.011, 314.306, 315.004, 316.012, 316.147, 316.157, 317.010, 317.097 and 317A.100 by sections 16, 17 and 31 to 44 of this 2026 Act for a tax year beginning before January 1, 2026, then notwithstanding ORS 305.270 or 314.415 or any other law, the refund or portion thereof shall be paid without interest.

[50]Passed by Senate February 16, 2026 Received by Governor:

........................M.,........................................................., 2026 ..................................................................................

Obadiah Rutledge, Secretary of Senate Approved:

........................M.,........................................................., 2026 ..................................................................................

Rob Wagner, President of Senate ..................................................................................

Tina Kotek, Governor Passed by House February 25, 2026 Filed in Office of Secretary of State:

....................................................................................................................................., 2026 Julie Fahey, Speaker of House ..................................................................................

Tobias Read, Secretary of State Enrolled Senate Bill 1507 (SB 1507-A) Page 44