Chapter 657 Oregon Laws 2001

AN ACT

SB 874

Relating to the JOBS Plus Program; creating new provisions; amending ORS 411.889, 411.892, 657.190 and 657.925; limiting expenditures; and declaring an emergency.

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

SECTION 1. ORS 657.925 is amended to read:

657.925. (1) There is established in the State Treasury, separate and distinct from the General Fund, the Oregon JOBS Plus Unemployment Wage Fund. The Oregon JOBS Plus Unemployment Wage Fund shall consist of moneys collected or received by the Employment Department pursuant to subsection (3) of this section.

(2) All income earned on moneys in the Oregon JOBS Plus Unemployment Wage Fund invested by the State Treasurer shall accrue to the fund. Any balance in the fund shall not lapse at any time. All moneys in the fund are appropriated continuously to the Employment Department for the payment of wages and wage-related and administrative expenses of participants in the JOBS Plus Program who are otherwise eligible to receive unemployment insurance benefits. Such payments shall [be made in the form of a reimbursement to the Department of Human Services, which shall be the central disbursement point for all employer-related financial transactions under the provisions of chapters 561 and 816, Oregon Laws 1995.] be made in accordance with ORS 411.892 (12).

(3)(a) Notwithstanding the tax schedules in Table A of ORS 657.462, for wages paid during calendar year 1996, the tax rate assigned each employer subject to ORS 657.459 and 657.462 shall be determined in accordance with schedule I-H, II-H, III-H, IV-H, V-H, VI-H, VII-H or VIII-H, whichever schedule is applicable pursuant to provisions of law in effect for calendar year 1996. The schedules are adopted as follows:

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Fund Adequacy Percentage Ratio I-H

200% and Over

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

0.25% 0.00% but less than 10.00%

0.35% 10.00% but less than 15.00%

0.45% 15.00% but less than 20.00%

0.55% 20.00% but less than 25.00%

0.65% 25.00% but less than 30.00%

0.75% 30.00% but less than 35.00%

0.85% 35.00% but less than 40.00%

0.95% 40.00% but less than 45.00%

1.05% 45.00% but less than 50.00%

1.15% 50.00% but less than 55.00%

1.25% 55.00% but less than 60.00%

1.35% 60.00% but less than 65.00%

1.45% 65.00% but less than 69.00%

1.55% 69.00% but less than 73.00%

1.65% 73.00% but less than 77.00%

1.75% 77.00% but less than 80.00%

1.85% 80.00% but less than 83.00%

1.95% 83.00% but less than 86.00%

2.05% 86.00% but less than 89.00%

2.15% 89.00% but less than 91.00%

2.25% 91.00% but less than 93.00%

2.35% 93.00% but less than 95.00%

2.45% 95.00% but less than 96.00%

2.55% 96.00% but less than 96.90%

2.65% 96.90% but less than 97.70%

2.75% 97.70% but less than 98.40%

2.85% 98.40% but less than 98.90%

2.95% 98.90% but less than 99.30%

3.15% 99.30% but less than 99.54%

3.35% 99.54% but less than 99.63%

3.55% 99.63% but less than 99.71%

3.75% 99.71% but less than 99.78%

3.95% 99.78% but less than 99.84%

4.15% 99.84% but less than 99.89%

4.35% 99.89% but less than 99.93%

4.55% 99.93% but less than 99.96%

4.75% 99.96% but less than 99.98%

4.95% 99.98% but less than 99.99%

5.40% 99.99% to 100.00%

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Fund Adequacy Percentage Ratio II-H

190.00% but less than 200%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

0.45% 0.00% but less than 10.00%

0.55% 10.00% but less than 15.00%

0.65% 15.00% but less than 20.00%

0.75% 20.00% but less than 25.00%

0.85% 25.00% but less than 30.00%

0.95% 30.00% but less than 35.00%

1.05% 35.00% but less than 40.00%

1.15% 40.00% but less than 44.00%

1.25% 44.00% but less than 48.00%

1.35% 48.00% but less than 52.00%

1.45% 52.00% but less than 56.00%

1.55% 56.00% but less than 60.00%

1.65% 60.00% but less than 64.00%

1.75% 64.00% but less than 68.00%

1.85% 68.00% but less than 72.00%

1.95% 72.00% but less than 76.00%

2.05% 76.00% but less than 79.00%

2.15% 79.00% but less than 82.00%

2.25% 82.00% but less than 85.00%

2.35% 85.00% but less than 88.00%

2.45% 88.00% but less than 90.00%

2.55% 90.00% but less than 92.00%

2.65% 92.00% but less than 93.50%

2.75% 93.50% but less than 94.90%

2.85% 94.90% but less than 96.20%

2.95% 96.20% but less than 97.40%

3.15% 97.40% but less than 98.54%

3.35% 98.54% but less than 99.54%

3.55% 99.54% but less than 99.63%

3.75% 99.63% but less than 99.71%

3.95% 99.71% but less than 99.78%

4.15% 99.78% but less than 99.84%

4.35% 99.84% but less than 99.89%

4.55% 99.89% but less than 99.93%

4.75% 99.93% but less than 99.96%

4.95% 99.96% but less than 99.98%

5.40% 99.98% to 100.00%

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Fund Adequacy Percentage Ratio III-H

170.00% but less than 190%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

0.75% 0.00% but less than 10.00%

0.85% 10.00% but less than 15.00%

0.95% 15.00% but less than 20.00%

1.05% 20.00% but less than 24.00%

1.15% 24.00% but less than 28.00%

1.25% 28.00% but less than 32.00%

1.35% 32.00% but less than 36.00%

1.45% 36.00% but less than 40.00%

1.55% 40.00% but less than 44.00%

1.65% 44.00% but less than 48.00%

1.75% 48.00% but less than 52.00%

1.85% 52.00% but less than 56.00%

1.95% 56.00% but less than 60.00%

2.05% 60.00% but less than 64.00%

2.15% 64.00% but less than 68.00%

2.25% 68.00% but less than 72.00%

2.35% 72.00% but less than 76.00%

2.45% 76.00% but less than 80.00%

2.55% 80.00% but less than 84.00%

2.65% 84.00% but less than 87.00%

2.75% 87.00% but less than 90.00%

2.85% 90.00% but less than 93.00%

2.95% 93.00% but less than 95.00%

3.05% 95.00% but less than 97.00%

3.15% 97.00% but less than 98.20%

3.35% 98.20% but less than 99.00%

3.55% 99.00% but less than 99.43%

3.75% 99.43% but less than 99.63%

3.95% 99.63% but less than 99.72%

4.15% 99.72% but less than 99.79%

4.35% 99.79% but less than 99.85%

4.55% 99.85% but less than 99.90%

4.75% 99.90% but less than 99.94%

4.95% 99.94% but less than 99.97%

5.40% 99.97% to 100.00%

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Fund Adequacy Percentage Ratio IV-H

145.00% but less than 170%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

1.25% 0.00% but less than 10.00%

1.35% 10.00% but less than 15.00%

1.45% 15.00% but less than 20.00%

1.55% 20.00% but less than 24.00%

1.65% 24.00% but less than 28.00%

1.75% 28.00% but less than 32.00%

1.85% 32.00% but less than 36.00%

1.95% 36.00% but less than 40.00%

2.05% 40.00% but less than 44.00%

2.15% 44.00% but less than 48.00%

2.25% 48.00% but less than 52.00%

2.35% 52.00% but less than 56.00%

2.45% 56.00% but less than 60.00%

2.55% 60.00% but less than 64.00%

2.65% 64.00% but less than 68.00%

2.75% 68.00% but less than 72.00%

2.85% 72.00% but less than 76.00%

2.95% 76.00% but less than 80.00%

3.05% 80.00% but less than 84.00%

3.15% 84.00% but less than 88.00%

3.25% 88.00% but less than 92.00%

3.35% 92.00% but less than 95.00%

3.45% 95.00% but less than 97.00%

3.55% 97.00% but less than 98.20%

3.65% 98.20% but less than 99.00%

3.75% 99.00% but less than 99.40%

3.95% 99.40% but less than 99.60%

4.15% 99.60% but less than 99.70%

4.35% 99.70% but less than 99.78%

4.55% 99.78% but less than 99.85%

4.75% 99.85% but less than 99.91%

4.95% 99.91% but less than 99.96%

5.40% 99.96% to 100.00%

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Fund Adequacy Percentage Ratio V-H

125.00% but less than 145%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

1.35% 0.00% but less than 10.00%

1.45% 10.00% but less than 15.00%

1.55% 15.00% but less than 20.00%

1.65% 20.00% but less than 25.00%

1.75% 25.00% but less than 29.00%

1.85% 29.00% but less than 33.00%

1.95% 33.00% but less than 37.00%

2.05% 37.00% but less than 41.00%

2.15% 41.00% but less than 45.00%

2.25% 45.00% but less than 49.00%

2.35% 49.00% but less than 53.00%

2.45% 53.00% but less than 57.00%

2.55% 57.00% but less than 61.00%

2.65% 61.00% but less than 65.00%

2.75% 65.00% but less than 69.00%

2.85% 69.00% but less than 73.00%

2.95% 73.00% but less than 77.00%

3.05% 77.00% but less than 81.00%

3.15% 81.00% but less than 85.00%

3.25% 85.00% but less than 89.00%

3.35% 89.00% but less than 92.00%

3.45% 92.00% but less than 95.00%

3.55% 95.00% but less than 97.00%

3.65% 97.00% but less than 98.20%

3.75% 98.20% but less than 99.00%

3.95% 99.00% but less than 99.50%

4.15% 99.50% but less than 99.65%

4.35% 99.65% but less than 99.74%

4.55% 99.74% but less than 99.82%

4.75% 99.82% but less than 99.89%

4.95% 99.89% but less than 99.95%

5.40% 99.95% to 100.00%

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Fund Adequacy Percentage Ratio VI-H

110.00% but less than 125%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

1.55% 0.00% but less than 10.00%

1.65% 10.00% but less than 15.00%

1.75% 15.00% but less than 20.00%

1.85% 20.00% but less than 25.00%

1.95% 25.00% but less than 30.00%

2.05% 30.00% but less than 35.00%

2.15% 35.00% but less than 40.00%

2.25% 40.00% but less than 44.00%

2.35% 44.00% but less than 48.00%

2.45% 48.00% but less than 52.00%

2.55% 52.00% but less than 56.00%

2.65% 56.00% but less than 60.00%

2.75% 60.00% but less than 64.00%

2.85% 64.00% but less than 68.00%

2.95% 68.00% but less than 72.00%

3.05% 72.00% but less than 76.00%

3.15% 76.00% but less than 80.00%

3.25% 80.00% but less than 84.00%

3.35% 84.00% but less than 88.00%

3.45% 88.00% but less than 92.00%

3.55% 92.00% but less than 95.00%

3.65% 95.00% but less than 97.00%

3.75% 97.00% but less than 98.20%

3.95% 98.20% but less than 99.00%

4.15% 99.00% but less than 99.50%

4.35% 99.50% but less than 99.70%

4.55% 99.70% but less than 99.79%

4.75% 99.79% but less than 99.87%

4.95% 99.87% but less than 99.94%

5.40% 99.94% to 100.00%

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Fund Adequacy Percentage Ratio VII-H

100.00% but less than 110%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

1.75% 0.00% but less than 10.00%

1.85% 10.00% but less than 15.00%

1.95% 15.00% but less than 20.00%

2.05% 20.00% but less than 25.00%

2.15% 25.00% but less than 30.00%

2.25% 30.00% but less than 35.00%

2.35% 35.00% but less than 40.00%

2.45% 40.00% but less than 45.00%

2.55% 45.00% but less than 50.00%

2.65% 50.00% but less than 55.00%

2.75% 55.00% but less than 60.00%

2.85% 60.00% but less than 64.00%

2.95% 64.00% but less than 68.00%

3.05% 68.00% but less than 72.00%

3.15% 72.00% but less than 76.00%

3.25% 76.00% but less than 80.00%

3.35% 80.00% but less than 84.00%

3.45% 84.00% but less than 88.00%

3.55% 88.00% but less than 92.00%

3.65% 92.00% but less than 95.00%

3.75% 95.00% but less than 97.00%

3.95% 97.00% but less than 98.20%

4.15% 98.20% but less than 99.00%

4.35% 99.00% but less than 99.50%

4.55% 99.50% but less than 99.70%

4.75% 99.70% but less than 99.84%

4.95% 99.84% but less than 99.93%

5.40% 99.93% to 100.00%

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Fund Adequacy Percentage Ratio VIII-H

Under 100%

Tax Rate Cumulative Taxable Payroll Limits

(Percentage of Total Taxable Payroll)

1.95% 0.00% but less than 10.00%

2.05% 10.00% but less than 15.00%

2.15% 15.00% but less than 20.00%

2.25% 20.00% but less than 25.00%

2.35% 25.00% but less than 30.00%

2.45% 30.00% but less than 35.00%

2.55% 35.00% but less than 40.00%

2.65% 40.00% but less than 45.00%

2.75% 45.00% but less than 50.00%

2.85% 50.00% but less than 55.00%

2.95% 55.00% but less than 60.00%

3.05% 60.00% but less than 65.00%

3.15% 65.00% but less than 70.00%

3.25% 70.00% but less than 75.00%

3.35% 75.00% but less than 80.00%

3.45% 80.00% but less than 84.00%

3.55% 84.00% but less than 88.00%

3.65% 88.00% but less than 92.00%

3.75% 92.00% but less than 95.00%

3.95% 95.00% but less than 97.00%

4.15% 97.00% but less than 98.20%

4.35% 98.20% but less than 99.00%

4.55% 99.00% but less than 99.50%

4.75% 99.50% but less than 99.80%

4.95% 99.80% but less than 99.92%

5.40% 99.92% to 100.00%

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(b) Notwithstanding any other provision of law, each taxpaying employer subject to this chapter, other than employers whose assigned tax rate is 5.4 percent, shall pay to the Employment Department for each calendar quarter during 1996, an amount equal to one-quarter of one percent of wages subject to taxation under this chapter.

(c) All such moneys shall be paid and collected in the same manner and at the same time as unemployment compensation taxes under this chapter, unless the Director of the Employment Department prescribes otherwise. After deduction of the actual shared costs of the Employment Department in collecting the amounts under this subsection, all such moneys shall be paid into the JOBS Plus Unemployment Wage Fund.

(4) Any unexpended and unobligated moneys remaining in the JOBS Plus Unemployment Wage Fund following the end of the program are appropriated and transferred to the Unemployment Compensation Trust Fund on that date.

(5) Unemployment [compensation] insurance recipients shall be referred to available work through the JOBS Plus Program in accordance with the job referral process used to refer applicants to available work. In addition, job referral services shall be provided by the Employment Department or the Department of Human Services, as appropriate. When a program job is offered to an unemployment insurance recipient and the job is refused, the Employment Department shall investigate the refusal and identify and decide all issues arising therefrom, including suspension of benefits, in accordance with the provisions of this chapter.

(6)(a) An unemployment insurance recipient shall be referred to the JOBS Plus Program if the recipient is eligible for benefits under ORS 657.155.

(b) The Employment Department shall provide applicants for unemployment insurance benefits with a JOBS Plus Program brochure at the time of application. The brochure must clearly describe the JOBS Plus Program and explain how an applicant can effectively use the program.

(c) The Employment Department shall refer unemployment insurance recipients as follows:

(A) If the Employment Department determines that the recipient is likely to exhaust the recipient’s unemployment insurance claim without finding an unsubsidized job, the Employment Department shall begin reviewing the recipient for referral to available unsubsidized and subsidized jobs as soon as possible but in no case later than the fourth week after the week in which the recipient applied for unemployment insurance benefits.

(B) If the recipient is not referred to the JOBS Plus Program in accordance with subparagraph (A) of this paragraph and has not obtained unsubsidized employment within eight weeks of the week after the recipient applied for unemployment insurance benefits, the Employment Department shall reassess the recipient’s reemployability and refer the recipient to the JOBS Plus Program if appropriate.

(d) Notwithstanding ORS 411.892 (4)(d)(A) and (B), unemployment insurance recipients may participate in the JOBS Plus Program for no more than 13 weeks, unless the department determines that an additional period of participation in the program of up to 13 weeks is appropriate.

(e) Employers participating in the JOBS Plus Program by providing subsidized employment to JOBS Plus Program recipients through the Employment Department shall be reimbursed in accordance with ORS 411.892 (12).

(7) To the extent that additional moneys may be obtained for the program from sources other than state tax revenues, the additional moneys shall be appropriated to the fund.

SECTION 2. ORS 657.190 is amended to read:

657.190. (1) In determining whether [or not] any work is suitable for an individual, the Director of the Employment Department shall consider, among other factors, the degree of risk involved to the health, safety and morals of the individual, the physical fitness and prior training, experience and prior earnings of the individual, the length of unemployment and prospects for securing local work in the customary occupation of the individual and the distance of the available work from the residence of the individual.

(2) Notwithstanding subsection (1) of this section, the director may refer claimants to JOBS Plus Program jobs for which the claimant does not have adequate skills or experience when the JOBS Plus Program job is likely to result in an upgrade in the claimant’s skills and experience.

SECTION 3. ORS 411.892 is amended to read:

411.892. (1)(a) All employers, including public and private sector employers within the State of Oregon, are eligible to participate in the JOBS Plus Program. The [Adult and Family Services Division of the] Department of Human Services or Employment Department, as appropriate, shall adopt by rule a method to disqualify employers from participating in the program. No employer is required to participate in the JOBS Plus Program. In the event that there are unassigned participants whom no employer desires to utilize, the participants may be assigned to work for a public agency.

(b) The maximum number of program participants that any employer is authorized to receive at any one time [shall not] may not exceed 10 percent of the total number of the employer’s employees. However, each employer may receive one participant. The [Assistant Director for Adult and Family Services] Director of Human Services or Director of the Employment Department, as appropriate, may waive the limit in special circumstances.

(c) The Department of Human Services or Employment Department, as appropriate, by rule shall establish criteria for excluding employers from participation for failure to abide by program requirements, showing a pattern of terminating participants prior to the completion of training or other demonstrated unwillingness to comply with the stated intent of the program.

(2) The Department of Human Services or Employment Department, as appropriate, shall ensure that jobs made available to program participants [shall]:

(a) Do not require work in excess of 40 hours per week;

(b) [Be] Are in conformity with section 3304(a)(5) of the Federal Unemployment Tax Act;

(d) Do not pay a wage that is substantially less than the wage paid for similar jobs in the local economy with appropriate adjustments for experience and training.

(3)(a) Eligibility for the program shall be limited to residents who are:

(A) Adults and caretaker relatives who are receiving temporary assistance for needy families benefits;

(B) Adult food stamp program recipients except as described in subsection (5)(b) of this section;

(D) Unemployed noncaretaker parents of children who are receiving temporary assistance for needy families benefits.

(b) In addition to those residents eligible for the program under paragraph (a) of this subsection, additional residents who are seeking employment may be eligible for the program if there are legislatively allocated funds available from the savings attributable to the program in the Unemployment Compensation Trust Fund or in the temporary assistance for needy families budget of the [Adult and Family Services Division] Department of Human Services.

(4)(a) Individuals desiring work through the program shall contact the nearest [Adult and Family Services Division] Department of Human Services office serving the county in which they reside if they are temporary assistance for needy families program or food stamp program applicants or recipients or noncustodial parents of individuals receiving temporary assistance for needy families. Unemployment insurance applicants or recipients or others seeking employment may gain access to the program through their local Employment Department office.

(b) With the assistance of the local JOBS Plus Implementation Councils and the JOBS Plus Advisory Board, the Department of Human Services shall develop a job inventory of sufficient size to accommodate all of the participants who desire to work in the program. In consultation with the participant, the department [of Human Services] shall try to match the profile of each participant with the needs of an employer when assigning a participant to work with the employer.

(c) Either the employer or the participant may terminate the assignment by contacting the appropriate Department of Human Services or Employment Department office. In such event, the Department of Human Services or Employment Department shall reassess the needs of the participant and assign the participant to another JOBS Plus Program placement or another JOBS Program component and, at the employer’s request, provide the employer with another participant.

(d)(A) Subject to ORS 657.925 (6)(d), if after four months in a placement, a participant has not been hired for an unsubsidized position, the employer shall allow the worker to undertake eight hours of job search per week. Participating employers shall consider such time as hours worked for the purposes of paying wages.

(B) Subject to ORS 657.925 (6)(d), if after six months in a placement, a participant has not been hired for an unsubsidized position, the placement shall be terminated, and the caseworker shall reassess the participant’s employment development plan.

(e) The [Adult and Family Services Division] Department of Human Services may pay placement and barrier removal payments to temporary assistance for needy families and food stamp program participants as necessary to enable participation in the JOBS Plus Program.

(f) The Department of Human Services shall accept eligible volunteers into the program prior to mandating program participation by eligible persons.

(5)(a) Assignment of participants to available jobs shall be based on a preference schedule developed by the Department of Human Services and the Employment Department. Any temporary assistance for needy families recipient or food stamp recipient may volunteer for the program.

(b) The following individuals [shall not] may not be required to participate in the program:

(A) Temporary assistance for needy families and food stamp recipients who are eligible for Supplemental Security Income benefits or other ongoing state or federal maintenance benefits based on age or disability.

(B) Food stamp applicants or recipients who are employed full-time or are college students eligible for food stamps and enrolled full-time in a community college or an institution of higher education, or enrolled half-time in a community college or an institution of higher education and working at least 20 hours per week.

(C) Teenage parents who remain in high school if progressing toward a diploma. Teenage parents not in school are eligible for the JOBS Plus Program.

(c) The Department of Human Services shall provide life skills classes and opportunities to achieve General Educational Development (GED) certificates to appropriate participants in conjunction with working in the JOBS Plus Program.

(d) Temporary assistance for needy families and food stamp benefits shall be suspended at the end of the calendar month in which an employer makes the first wage payment to a participant who is a custodial parent in a family that receives temporary assistance for needy families or to any adult member of a household receiving food stamp benefits. Failure of the participant to cooperate with the requirements of the JOBS Plus Program may result in the participant’s removal, in accordance with rules adopted by the Department of Human Services, from the JOBS Plus Program and suspension of the participant’s temporary assistance for needy families grant and food stamp benefits. A temporary assistance for needy families and food stamp benefits recipient who has been removed from the program for failing to cooperate shall be eligible to reapply to participate in the program and shall have eligibility for program services determined without regard to the length of time the person was not participating following removal.

(6)(a) Employers shall pay all participating individuals at least the hourly rate of the Oregon minimum wage.

(b) Sick leave, holiday and vacation absences shall conform to the individual employer’s rules for temporary employees.

(c) Group health insurance benefits shall be provided by the employer to program participants if, and to the extent that, state or federal law requires the employer to provide such benefits.

(d) All persons participating in the JOBS Plus Program shall be considered to be temporary employees of the individual employer providing the work and shall be entitled only to benefits required by state or federal law.

(e) Employers shall provide workers’ compensation coverage for each JOBS Plus Program participant.

(7) In the event that the net monthly full-time wage paid to a participant would be less than the level of income from the temporary assistance for needy families program and the food stamp benefit amount equivalent that the participant would otherwise receive, the Department of Human Services shall determine and pay a supplemental payment as necessary to provide the participant with that level of net income. The department shall determine and pay in advance supplemental payments to participants on a monthly basis as necessary to ensure equivalent net program wages. Participants shall be compensated only for time worked.

(8) In addition to and not in lieu of the payments provided for under subsections (6) and (7) of this section, participants shall be entitled to retain the full child support payments collected by the Department of Justice.

(9) Program participants who are eligible for federally and state funded medical assistance at the time they enter the program shall remain eligible as long as they continue to participate in the program. In conformity with existing state day care program regulations, child day care shall be provided for all program participants who require it.

(10) JOBS Plus Program employers shall:

(a) Endeavor to make JOBS Plus Program placements positive learning and training experiences;

(b) Maintain health, safety and working conditions at or above levels generally acceptable in the industry and no less than that of comparable jobs of the employer;

(d) Recruit volunteer mentors from among their regular employees to assist the participants in becoming oriented to work and the workplace; and

(e) Sign an agreement to abide by all requirements of the program, including the requirement that the program not supplant existing jobs. All agreements shall include provisions noting the employer’s responsibility to repay reimbursements in the event the employer violates program rules. When a professional placement service, professional employment organization or temporary employment agency is acting as an employer pursuant to subsection [(13)] (14) of this section, agreements under this paragraph shall require a three-party agreement between the professional placement service, professional employment organization or temporary employment agency, the organization where the participant has been placed to perform services and the State of Oregon. The three-party agreement shall include provisions requiring that all JOBS Plus reimbursements received by the professional placement service, professional employment organization or temporary employment agency be credited to the organization where the participant has been placed to perform services.

(11) Program participant wages shall be subject to federal and state income taxes, social security taxes and unemployment insurance tax or reimbursement as applicable under ORS chapter 657, which shall be withheld and paid in accordance with state and federal law. Supplemental payments made pursuant to subsection (7) of this section shall not be subject to state income taxes under ORS chapter 316 and, to the extent allowed by federal law, shall not be subject to federal income taxes and social security taxes.

(12)(a)(A) The Department of Human Services shall reimburse employers for the employers’ share of social security, unemployment insurance and workers’ compensation premiums paid on behalf of program participants, other than those who are unemployment insurance claimants, referred to the employer by the Department of Human Services, as well as the minimum wage earnings paid by the employer to program participants [by the employer] referred to the employer by the Department of Human Services.

(B) The Employment Department shall reimburse employers $5 per hour paid by the employer as earnings to JOBS Plus Program participants, who are unemployment insurance claimants and are referred to the employer by the Employment Department.

(b) If the Department of Human Services or Employment Department finds that an employer has violated any of the rules of the JOBS Plus Program, the appropriate department:

(A) Shall withhold any amounts due to employers under paragraph (a) of this subsection.

(B) May seek repayment of any amounts paid to employers under paragraph (a) of this subsection.

(13) Subject to ORS 657.925 (6)(d), for unemployment insurance claimants participating in the JOBS Plus Program:

(a) If after nine weeks in a placement, a participant has not been hired for an unsubsidized position, the employer shall allow the worker to undertake up to five hours of job search per week. Participating employers shall consider this time as hours worked for the purposes of paying wages.

(b) If after 13 weeks in a placement, a participant has not been hired for an unsubsidized position, the employer shall terminate the placement and the Employment Department shall assess the participant’s employment development plan.

[(13)] (14) For purposes of this section, “employer” shall include professional placement services, professional employment organizations and temporary employment agencies.

SECTION 4. ORS 411.889 is amended to read:

411.889. The Employment Department and the Department of Human Services shall explore contracting for job procurement and placement services with private job placement institutions. [, and] If contracting is deemed beneficial, the Employment Department and the Department of Human Services are encouraged to and shall have the authority to contract with private placement firms.

SECTION 5. An amount up to $5.5 million shall be loaned from the Supplemental Employment Department Administration Fund to the Oregon JOBS Plus Unemployment Wage Fund as necessary for the payment of wages and wage-related and administrative expenses of participants in the JOBS Plus Program who are otherwise eligible to receive unemployment insurance benefits. The principal amount of moneys loaned under this section shall be repaid from the Oregon JOBS Plus Unemployment Wage Fund to the Supplemental Employment Department Administration Fund on or before July 1, 2002.

SECTION 6. Notwithstanding any other law, the limitation on expenditures established by law for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from fees, moneys or other revenues, including Miscellaneous Receipts, but excluding federal funds and lottery funds, collected or received by the Employment Department, is increased by $12,429,624 for the purposes of carrying out the provisions of section 5 of this 2001 Act and the amendments to ORS 411.889, 411.892, 657.190 and 657.925 by sections 1 to 4 of this 2001 Act.

SECTION 7. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect July 1, 2001.

Approved by the Governor June 28, 2001

Filed in the office of Secretary of State June 28, 2001

Effective date July 1, 2001

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