Extracted source text, not Atlas analysis. Native PDF text, pypdf; NFKC normalization. Charts and image-only text may be absent; verify against the linked original. Extraction does not imply page-by-page substantive review. PDF page numbers count from the first page of the file and may differ from printed page numbers.
by the employer under any provision of ORS 316.162 to 316.221 or section 122a of this 2017 Act .
The department may, in its discretion, at any time apply such bond or letter of credit or part thereof
to the delinquencies or indebtedness of the employer arising under any provision of ORS 316.162 to
316.221 and section 122a of this 2017 Act and accruing after the date the bond or letter of credit
was posted. Appeal of an action of the department under this section shall not relieve an employer
of the requirement during the pendency of the appeal.
(2) Before requiring an employer to post a bond or irrevocable letter of credit under subsection
(1) of this section, the department shall determine that the employer has failed to make payment to
the department of amounts required to be withheld and paid over under any provision of ORS
316.162 to 316.221 or section 122a of this 2017 Act for at least three calendar quarters, and the
total amount of delinquent payments exceeds $2,500, exclusive of interest or penalties. For purposes
of this subsection, a payment shall not be considered delinquent if the employer’s liability to with-
hold is subject to appeal to the tax court.
(3) The department shall not require a bond or irrevocable letter of credit to be posted under
this section if the employer elects to notify the department of the times of payment of wages to the
employees of the employer, and, notwithstanding ORS 316.197, to pay over amounts withheld within
three banking days after the dates the wages were paid.
(4) Before requiring an employer to post a bond or irrevocable letter of credit or make payment
of amounts required to be withheld in the manner prescribed in subsection (3) of this section, the
department shall attempt to obtain payment of delinquent amounts through other methods of col-
lection, however, the department is not required to seize or sell real or personal property in order
to comply with the requirements of this subsection.
(5) Any bond or irrevocable letter of credit required under subsection (1) of this section shall
become the sole property of the department and shall be held by the department to guarantee pay-
ment of withholding taxes by the employer. The bond or letter of credit shall be held for the benefit
of the State of Oregon, subject only to the provisions of subsection (6) of this section. The bond
or letter of credit shall be prior to all other liens, claims or encumbrances and shall be exempt from
any process, attachment, garnishment or execution.
(6) If an employer ceases to be an employer subject to ORS 316.162 to 316.221 or section 122a
of this 2017 Act , the department shall, upon receipt of all payments due from the employer for
withheld amounts, cancel any bond or irrevocable letter of credit given under this section. Such
bonds or letters of credit held for the benefit of the State of Oregon shall first be applied to any
indebtedness or deficiencies due from the employer under ORS 316.162 to 316.221 and section 122a
of this 2017 Act and accruing after the date the bond or letter of credit was posted before any re-
turn is made to the employer. The employer shall have no interest in such bond or letter of credit
prior to full compliance with this section and all provisions of ORS 316.162 to 316.221 and section
122a of this 2017 Act .
(7) If an employer required to post a bond or irrevocable letter of credit or make payment of
amounts withheld in the manner prescribed under this section makes full payment of all delinquent
amounts due and owing at the time the bond, letter of credit or accelerated payment schedule was
required and makes payment of amounts due under ORS 316.162 to 316.221 and section 122a of this
2017 Act and files returns required in connection with those payments in a timely manner for the
succeeding four calendar quarters, the department shall release the employer from the requirement
to post the bond or letter of credit or make accelerated payments of amounts withheld.
(8) If any employer fails to comply with subsections (1) to (7) of this section, the Oregon Tax
Court, upon commencement of an action by the department for that purpose, may order the employer
to post the required bond or irrevocable letter of credit or make accelerated payments of amounts
withheld. The employer’s failure to obey an order of the court is punishable by contempt. If the
Oregon Tax Court determines that an order of compliance enforceable by contempt proceedings will
not assure the payment of withheld taxes by the employer, the court may enjoin the employer from
further employing individuals in this state or continuing in business therein until the employer has
complied with subsections (1) to (7) of this section.
Enrolled House Bill 2017 (HB 2017-A) Page 110
Cite this record
Oregon Legislative Assembly. HB 2017 (2017), enrolled text, PDF p. 110. Retrieved 2026-09-04. https://olis.oregonlegislature.gov/liz/2017R1/Downloads/MeasureDocument/HB2017/Enrolled#page=110. Preserved SHA-256: 5ab76901b63ba88f2742eab37f5e9ddd922a3ffd53e76165eec6dd08f4f9282a. Atlas edition: institutional-studies-2026-09-27-stif-v2.