HB 4143 — Relating to payments to the federal government; prescribing an effective date.

83rd OREGON LEGISLATIVE ASSEMBLY--2026 Regular Session HOUSEA-Engrossed AMENDMENTSHouse TOBill HOUSE4143 BILLOrdered 4143by Bythe COMMITTEEHouse ONFebruary RULES16 Including House Amendments dated February 16 OnSponsored pageby 1Representative ofCHOTZEN, theSenator printedBROADMAN, bill,Representatives deleteGRAYBER, linesANDERSEN, 11CHAICHI, throughGAMBA, 13JAVADI, andRIEKE insert:SMITH, WALTERS, WISE, Senators CAMPOS, PHAM K;

“(c)Representatives ‘QualifiedBOWMAN, payment’EVANS, meansFRAGALA, moneysISADORE, thatKROPF, aMARSH, stateMCDONALD, agencyMUNOZ, NATHANSON, NELSON, NGUYEN D, PHAM H, Senators GELSER BLOUIN, JAMA, NERON MISSLIN, PROZANSKI, REYNOLDS (Presession filed.) SUMMARY The following summary is obligatednot toprepared transferby tothe sponsors of the federalmeasure governmentand pursuantis tonot contracta orpart federalof law,the butbody excluding:thereof subject to consideration by the Legislative Assembly.

“(A)It Payrollis taxesan foreditor’s officersbrief orstatement employeesof the essential features of statethe agencies;measure.

“(B)The Amountsstatement voluntarilyincludes withhelda frommeasure unemploymentdigest insurancewritten andin paidcompliance familywith andapplicable medicalreadability leavestandards. insurance benefits for federal income tax purposes;

andDigest: “(C) Any revenues collected or overpaid benefits recovered pursuant to the Federal Unemploy- ment Tax Act or ORS chapter 657.”.

OnThe pageAct 2,lets afterthe linestate 17,not insert:pay money to the U.S.

“SECTIONif 3.the U.S.

unlawfully keeps money away from the state.

(Flesch Readability Score:

76.7).

Authorizes the Governor to direct state agencies to withhold moneys owed to the federal gov- ernment if federal funds are being withheld from the state in contravention of a valid court order.

Requires the state to indemnify officers, employees or agents for civil claims arising from compliance with the Act.

Sunsets on January 2, 2037.

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

A BILL FOR AN ACT Relating to payments to the federal government;

and prescribing an effective date.

Be It Enacted by the People of the State of Oregon:

SECTION 1.

(1) As used in this section:

(a) “Executive agency” means all state officers, boards, commissions, departments, in- stitutions, branches, agencies, divisions and other entities, without regard to the designation given to those entities, that are within the executive branch of government as described in Article III, section 1, of the Oregon Constitution.

(b) “Federal government” means the United States or any agency or instrumentality of the United States.

(c) “Qualified payment” means moneys that a state agency is obligated to transfer to the federal government pursuant to contract or federal law, but excluding:

(A) Payroll taxes for officers or employees of state agencies;

(B) Amounts voluntarily withheld from unemployment insurance and paid family and medical leave insurance benefits for federal income tax purposes;

and (C) Any revenues collected or overpaid benefits recovered pursuant to the Federal Un- employment Tax Act or ORS chapter 657.

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

(e) “Unlawfully withheld federal moneys” means moneys that are subject to a valid order of a court of competent jurisdiction requiring the transfer of the moneys from the federal NOTE:

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 175 A-Eng.

HB 4143 government to a state agency and that have not been so transferred.

(2) The Governor, with the consent of the Attorney General and the State Treasurer, may direct an executive agency to withhold qualified payments from the federal government if unlawfully withheld federal moneys are owed to the state.

(3) An executive agency that is directed to withhold qualified payments under this section shall transfer the qualified payments to the Federal Moneys Holding Account established under section 2 of this 2026 Act.

(4) When the Governor determines that the amount of moneys in the Federal Moneys Holding Account exceeds the aggregate amount of unlawfully withheld federal moneys, the Governor shall:

(a) Direct one or more executive agencies to pay qualified payments to the federal gov- ernment to the extent of the excess;

and (b) Direct the Oregon Department of Administrative Services to transfer moneys to the executive agencies from the Federal Moneys Holding Account in amounts sufficient to make the qualified payments.

(5) The State of Oregon shall defend, save harmless and indemnify any of its officers, employees and agents, whether elective or appointive, against any civil claim arising out of an act or omission taken in compliance with the provisions of this section.

SECTION 2.

The Federal Moneys Holding Account is established in the State Treasury, separate and distinct from the General Fund.