Oregon Administrative Rules
Chapter 150 - DEPARTMENT OF REVENUE
Division 475 - CONTROLLED SUBSTANCES
Section 150-475-4050 - Psilocybin Tax: Model Recordkeeping
Universal Citation: OR Admin Rules 150-475-4050
Current through Register Vol. 63, No. 9, September 1, 2024
(1) Definitions. For purposes of this rule, these terms shall be defined as follows:
(a)
"Database Management System" means a software system that controls, relates,
retrieves, and provides accessibility to data stored in a database.
(b) "Electronic Data Interchange" or "EDI
technology" means the computer-to-computer exchange of business transactions in
a standardized structured electronic format determined by the
department.
(c) "Hard copy" means
any documents, records, reports, or other data printed on paper.
(d) "Machine-sensible record" means a
collection of related information in an electronic format. Machine-sensible
records do not include hard-copy records that are created or recorded on paper
or stored in or by an imaging system such as microfilm, microfiche, or
storage-only imaging systems.
(e)
"Storage-only imaging system" means a system of computer hardware and software
that provides for the storage, retention and retrieval of documents originally
created on paper. It does not include any system, or part of a system, that
manipulates or processes any information or data contained on the document in
any manner other than to reproduce the document in hard copy or as an optical
image.
(f) "Psilocybin service
center operator" has the meanings given under ORS
475A.220 and OAR
150-475-4010.
(g) "Psilocybin
tracking system" is the system developed and maintained by the Oregon Health
Authority under ORS 475A.400.
(2) Recordkeeping Requirement - General:
(a) A psilocybin service center operator must
maintain all records and any information and data required to be entered into
the psilocybin tracking system that are necessary to a determination of the
correct tax liability under ORS
475A.658 to
475A.714. All required records
shall be made available on request by the Department of Revenue, or its
authorized representatives, as provided for in ORS
475A.678 and
475A.682.
(b) If a psilocybin service center operator
retains records required to be retained under this rule in both
machine-sensible and hard-copy formats, the psilocybin service center operator
shall make the records available to the department in machine-sensible format
upon request.
(c) Nothing in this
rule shall be construed to prohibit a psilocybin service center operator from
demonstrating tax compliance with traditional hard-copy documents or
reproductions thereof, in whole or in part, whether or not such psilocybin
service center operator also has retained or has the capability to retain
records on electronic or other storage media in accordance with this rule.
However, this section shall not relieve the psilocybin service center operator
of the obligation to comply with section (2)(b) of this rule.
(3) Recordkeeping Requirements - Machine-Sensible Records:
(a) General
Requirements:
(A) Machine-sensible records
used to establish tax compliance shall contain sufficient transaction-level
detail information so that the details underlying the machine-sensible records
can be identified and made available to the department upon request. A
psilocybin service center operator has discretion to discard duplicated records
and redundant information provided its responsibilities under this rule are
met.
(B) The retained records shall
be capable of being retrieved and converted to a standard record
format.
(C) Psilocybin service
center operators are not required to construct machine-sensible records other
than those created in the ordinary course of business. A psilocybin service
center operator who does not create the electronic equivalent of a traditional
paper document in the ordinary course of business is not required to construct
such a record for tax purposes.
(b) Electronic Data Interchange Requirements:
(A) Where a psilocybin service center
operator uses electronic data interchange processes and technology, the level
of record detail, in combination with other records related to the
transactions, shall be equivalent to that contained in an acceptable paper
record. The retained records should contain such information as vendor name,
invoice date, product description, quantity purchased, price, amount of tax,
indication of tax status, shipping detail, and any other pertinent information
required by the department. Codes may be used to identify some or all of the
data elements, provided that the psilocybin service center operator provides a
method which allows department to interpret the coded information.
(B) The psilocybin service center operator
may capture the information necessary to satisfy section (3)(b)(A) of this rule
at any level within the accounting system and need not retain the original EDI
transaction records provided the audit trail, authenticity, and integrity of
the retained records can be established. For example, a psilocybin service
center operator using electronic data interchange technology receives
electronic invoices from its suppliers. The psilocybin service center operator
decides to retain the invoice data from completed and verified EDI transactions
in its accounts payable system rather than to retain the EDI transactions
themselves. Because neither the EDI transaction nor the accounts payable system
captures information from the invoice pertaining to product description and
vendor name (i.e., they contain only codes for that information), the
psilocybin service center operator also retains other records, such as its
vendor master file and product code description lists and makes them available
to the department. In this example, the psilocybin service center operator need
not retain its EDI transaction for tax purposes.
(c) Electronic Data Processing Systems
Requirements: The requirements for an electronic data processing accounting
system should be similar to that of a manual accounting system, in that an
adequately designed accounting system should incorporate methods and records
that will satisfy the requirements of this rule.
(d) Business Process Information:
(A) Upon the request of the department, the
psilocybin service center operator shall provide a description of the business
process that created the retained records. Such description shall include the
relationship between the records and the tax documents prepared by the
psilocybin service center operator and the measures employed to ensure the
integrity of the records.
(B) The
psilocybin service center operator shall be capable of demonstrating to the
department:
(i) The functions being performed
as they relate to the flow of data through the system;
(ii) The internal controls used to ensure
accurate and reliable processing; and
(iii) The internal controls used to prevent
unauthorized addition, alteration, or deletion of retained records.
(C) The following specific
documentation is required for machine-sensible records retained pursuant to
this rule:
(i) Record formats or
layouts;
(ii) Field definitions
(including the meaning of all codes used to represent information);
(iii) File descriptions (e.g., data set
name); and
(iv) Detailed charts of
accounts and account descriptions.
(4) Records Maintenance Requirements:
(a) The department recommends but does not
require that psilocybin service center operators refer to the National Archives
and Record Administration's (NARA) standards for guidance on the maintenance
and storage of electronic records, such as the labeling of records, the
location and security of the storage environment, the creation of back-up
copies, and the use of periodic testing to confirm the continued integrity of
the records.
(b) The psilocybin
service center operator's computer hardware or software shall accommodate the
extraction and conversion of retained machine-sensible records.
(5) Access To Machine-Sensible Records:
(a) The manner in which department
is provided access to machine-sensible records as required in section (2)(b) of
this rule may be satisfied through a variety of means that shall take into
account a psilocybin service center operator's facts and circumstances through
consultation with the psilocybin service center operator.
(b) Such access will be provided in one or
more of the following ways:
(A) The psilocybin
service center operator may arrange to provide the department with the
hardware, software and personnel resources to access the machine-sensible
records.
(B) The psilocybin service
center operator may arrange for a third party to provide the hardware, software
and personnel resources necessary to access the machine-sensible
records.
(C) The psilocybin service
center operator may convert the machine-sensible records to a standard record
format specified by the department, including copies of files, on a magnetic
medium that is agreed to by the department.
(D) The psilocybin service center operator
and the department may agree on other means of providing access to the
machine-sensible records.
(6) Psilocybin service center operator Responsibility and Discretionary Authority:
(a) In conjunction with meeting the
requirements of section (3) of this rule, a psilocybin service center operator
may create files solely for the use of the department. For example, if a data
base management system is used, it is consistent with this rule for the
psilocybin service center operator to create and retain a file that contains
the transaction-level detail from the data base management system and that
meets the requirements of section (3) of this rule. The psilocybin service
center operator should document the process that created the separate file to
show the relationship between that file and the original records.
(b) A psilocybin service center operator may
contract with a third party to provide custodial or management services for the
records. Such a contract shall not relieve the psilocybin service center
operator of its responsibilities under this rule.
(7) Alternative Storage Media:
(a) For purposes of storage and retention,
psilocybin service center operators may convert hard-copy documents received or
produced in the normal course of business and required to be retained under
this rule to microfilm, microfiche or other storage-only imaging systems and
may discard the original hard-copy documents, provided the conditions of this
section are met. Documents that may be stored on these media include, but are
not limited to general books of account, journals, voucher registers, general
and subsidiary ledgers, and supporting records of details, such as sales
invoices, purchase invoices, exemption certificates, and credit
memoranda.
(b) Microfilm,
microfiche and other storage-only imaging systems shall meet the following
requirements:
(A) Documentation establishing
the procedures for converting the hard-copy documents to microfilm, microfiche
or other storage-only imaging system shall be maintained and made available on
request. Such documentation shall, at a minimum, contain a sufficient
description to allow an original document to be followed through the conversion
system as well as internal procedures established for inspection and quality
assurance.
(B) Procedures shall be
established for the effective identification, processing, storage, and
preservation of the stored documents and for making them available for the
period they are required to be retained under section (9) of this
rule.
(C) Upon request by the
department, a psilocybin service center operator shall provide facilities and
equipment for reading, locating, and reproducing any documents maintained on
microfilm, microfiche or other storage-only imaging system.
(D) When displayed on such equipment or
reproduced on paper, the documents shall exhibit a high degree of legibility
and readability. For this purpose, legibility is defined as the quality of a
letter or numeral that enables the observer to identify it positively and
quickly to the exclusion of all other letters or numerals. Readability is
defined as the quality of a group of letters or numerals being recognizable as
words or complete numbers.
(E) All
data stored on microfilm, microfiche or other storage-only imaging systems
shall be maintained and arranged in a manner that permits the location of any
particular record.
(F) There is no
substantial evidence that the microfilm, microfiche or other storage-only
imaging system lacks authenticity or integrity.
(8) Hard-Copy Recordkeeping Requirements:
(a) Except as otherwise provided in this
section, the provisions of this rule do not relieve psilocybin service center
operators of the responsibility to retain hard-copy records that are created or
received in the ordinary course of business as required by existing law and
rules. Hard-copy records may be retained on a recordkeeping medium as provided
in section (7) of this rule.
(b) If
hard-copy records are not produced or received in the ordinary course of
transacting business (e.g., when the psilocybin service center operator uses
electronic data interchange technology), such hard-copy records need not be
created.
(c) Hard-copy records
generated at the time of a transaction using a credit or debit card shall be
retained unless all the details necessary to determine correct tax liability
relating to the transaction are subsequently received and retained by the
psilocybin service center operator in accordance with this rule. Such details
include those listed in section (3)(b)(A) of this rule.
(d) Computer printouts that are created for
validation, control, or other temporary purposes need not be
retained.
(e) Nothing in this
section shall prevent the department from requesting hard-copy printouts in
lieu of retained machine-sensible records at the time of examination.
(9) Records Retention - Time Period - All records required to be retained under this rule shall be preserved pursuant to ORS 475A.658 to 475A.714 unless the department has provided in writing that the records are no longer required.
Statutory/Other Authority: ORS 305.100 & 475A.702
Statutes/Other Implemented: ORS 475A.678
Disclaimer: These regulations may not be the most recent version. Oregon may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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