Answer: Vendor payments garnished by DOR are not eligible for reimbursement with bond proceeds. This is because Oregon Bonds are issued with language that prohibits payments to state agencies. As such, even though a garnished payment is issued for the benefit of the debtor, because the payment is issued to DOR, this payment is not reimbursable with bond proceeds.
When a state agency, who needs to pay a vendor providing goods or services for a bond financed project, learns that the vendor's profile is not active because the vendor owes debt to the state, the agency should first determine if the agency has another source (other than the bond proceeds) for paying the vendor.
a. If the agency has another source, they should notify DOR that they have a payment subject to garnishment.
b. If the agency does not have another source, they should notify SFMS to request temporary activation of the vendor and make the payment on the same day.
Note: If the agency notifies DOR, they may receive a garnishment order that is less than the agency's payment. In this situation, the agency may pay the garnishment from the non-proceeds and pay the remaining portion from the bond proceeds source and submit this portion for reimbursement. Please review OAM 35.30.90 for more information on Vendor Coordination.
Regardless of which route the agency uses when encountering this situation, we request agencies email SWARM at SWARM@oregon.gov and inform us of the amount of the payment and which solution was chosen.