71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
Enrolled
House Bill 3596
Sponsored by COMMITTEE ON RULES, REDISTRICTING, AND PUBLIC
AFFAIRS
CHAPTER ................
AN ACT
Relating to unemployment insurance coverage for Indian tribes;
creating new provisions; amending ORS 657.020, 657.043,
657.044, 657.047, 657.048, 657.050, 657.065, 657.167, 657.221,
657.333, 657.425, 657.505, 657.506 and 657.840; and prescribing
an effective date.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 657.020 is amended to read:
657.020. (1) As used in this chapter, unless the context
requires otherwise, 'employing unit' means:
(a) Any individual or type of organization, including any
partnership, association, limited liability company, limited
liability partnership, trust, estate, joint stock company,
insurance company or corporation, whether domestic or foreign, or
the receiver, trustee in bankruptcy, trustee, or successor
thereof, or the legal representative of a deceased person, who
has or had in its employ one or more individuals performing
services for it within this state.
(b) This state, including every state officer, board,
commission, department, institution, branch and agency of the
state government.
(c) Any people's utility district.
(d) Any political subdivision. { +
(e) Any Indian tribe or subdivision, subsidiary or business
enterprise wholly owned by an Indian tribe. + }
(2) All individuals performing services within this state for
any employing unit { - which - } { + that + } maintains two
or more separate establishments within this state are deemed to
be employed by a single employing unit for all the purposes of
this chapter, except that for the purposes of this chapter each
of the various agencies, boards, commissions, departments,
institutions and political subdivisions of this state shall be
deemed separate employing units.
SECTION 2. ORS 657.043 is amended to read:
657.043. 'Employment' does not include service performed by a
person as a caddy at a golf course in an established program for
the training and supervision of caddies under the direction of a
person who is an employee of the golf course. However, the
provisions of this section do not apply to services performed for
a nonprofit employing unit, as defined in ORS 657.072, for this
state { + , + } { - or - } for a political subdivision of this
state { + or for an Indian tribe + }.
Enrolled House Bill 3596 (HB 3596-A) Page 1
SECTION 3. ORS 657.044 is amended to read:
657.044. (1) As used in this chapter, 'employment' does not
include service performed for:
(a) A corporation by corporate officers who are directors of
the corporation, who have a substantial ownership interest in the
corporation and who are members of the same family as parents,
daughters, sons, daughters-in-law, sons-in-law or grandchildren
if the corporation elects not to provide coverage for those
individuals. The election shall be in writing and shall be
effective on the first day of the calendar quarter in which the
request was submitted.
(b) A limited liability company by a member, including members
who are managers, as defined in ORS 63.001.
(c) A limited liability partnership by a partner as described
in ORS chapter 67 or 68.
(2) The provisions of this section do not apply to service
performed for a nonprofit employing unit, as defined in ORS
657.072, for this state { + , + } { - or - } for a political
subdivision of this state { + or for an Indian tribe + }.
SECTION 4. ORS 657.047 is amended to read:
657.047. (1) As used in this chapter, 'employment' does not
include:
(a) Transportation by motor vehicle of logs, poles and piling
by any person who both furnishes and maintains the vehicle used
in such transportation; or
(b) Transportation performed by motor vehicle for a for-hire
carrier by any person that leases their equipment to a for-hire
carrier and that personally operates, furnishes and maintains the
equipment and provides service thereto.
(2) For the purposes of this chapter, services performed in the
operation of a motor vehicle specified in subsection (1) of this
section shall be deemed to be performed for the person furnishing
and maintaining the motor vehicle.
(3) As used in this section 'for-hire carrier' has the meaning
{ - for - } { + given + } that term { - provided - } in ORS
825.005.
(4) The provisions of subsections (1) and (2) of this section
do not apply to services performed for a nonprofit employing
unit, as defined in ORS 657.072, for this state { + , + }
{ - or - } for a political subdivision of this state { + or
for an Indian tribe + }.
SECTION 5. ORS 657.048 is amended to read:
657.048. (1) 'Employment' does not include services performed
by language translators or interpreters that are provided for
others through an agent or broker.
(2) The provisions of this section do not apply to services
performed for a nonprofit employing unit, as described in ORS
657.072, for this state { + , + } { - or - } for a political
subdivision of this state { + or for an Indian tribe + }.
SECTION 6. ORS 657.050 is amended to read:
657.050. (1) 'Employment' does not include:
(a) Domestic service performed in a private home, local college
club, or local chapter of a college fraternity or sorority unless
such service is performed for an employing unit who paid to
individuals employed in such domestic service cash remuneration
of $1,000 or more in a calendar quarter in the current calendar
year or the preceding calendar year.
(b) Child care service provided through the Adult and Family
Services Division to an individual who is the recipient of public
assistance.
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(c) Service not in the course of the employer's trade or
business or { - which - } { + that + } does not promote or
advance the trade or business of the employer unless such service
is performed in each of 18 weeks in a calendar year or total
payroll for such service is $225 or more during any calendar
quarter.
(d) Child care service provided in the home of the child care
provider by the provider.
(2) The provisions of subsection (1)(b) and (d) of this section
do not apply to services performed for a nonprofit employing
unit, as defined in ORS 657.072, for this state { + , + }
{ - or - } for a political subdivision of this state { + or for
an Indian tribe + }.
SECTION 7. ORS 657.065 is amended to read:
657.065. (1) 'Employment' does not include service performed in
the employ of the United States Government or any instrumentality
of the United States, except that if the Congress of the United
States permits states to require any instrumentalities of the
United States to make payments into an unemployment fund under a
state unemployment insurance law, then, to the extent permitted
by Congress, and after the date such permission becomes
effective, this chapter shall be effective as to such
instrumentalities and as to services performed for such
instrumentalities in the same manner, to the same extent and on
the same terms as to all other employers, employing units,
individuals and services. However, if this state is not certified
by the Secretary of Labor under section 3304(c) of title 26,
United States Code, for any year, then the payments required of
such instrumentalities with respect to such year shall be deemed
to have been erroneously collected within the meaning of ORS
657.510 and shall be refunded by the Director of the Employment
Department from the fund in accordance with ORS 657.510.
(2) 'Employment' does not include services { - which - }
{ + that + } are performed in the employ of the state { + , + }
{ - or of - } any political subdivision or instrumentality of
the state { + or an Indian tribe + }:
(a) As an elected public official.
(b) In a position { - which - } { + that + }, under or
pursuant to laws of this state { + or tribal laws + }, is
designated as a policymaking or advisory position the performance
of the duties of which ordinarily does not require more than
eight hours per week.
(c) As an employee serving on a temporary basis in case of
fire, storm, earthquake, flood or similar emergency.
(d) As a member of a legislative body or a member of the
judiciary.
(e) By an inmate of a custodial or penal institution when such
services are performed for the custodial or penal institution
{ - of - } { + in + } which { - he is an - } { + the + }
inmate { + is confined + }.
(f) As a member of the Oregon Army National Guard or Oregon Air
National Guard.
(3) The provisions of ORS 657.425 permitting election of
coverage for services that do not constitute 'employment' do not
apply to services performed as an elected public { + or
tribal + } official.
(4) Notwithstanding the provisions of ORS 657.025, ' employer'
means any state government { + , + } { - or - } political
subdivision { + or Indian tribe + } employing unit.
SECTION 8. ORS 657.167 is amended to read:
Enrolled House Bill 3596 (HB 3596-A) Page 3
657.167. (1) Benefits based on service in an instructional,
research or principal administrative capacity for an educational
institution or institution of higher education shall be payable
to an individual in the same amount, on the same terms and
subject to the same conditions as benefits payable on the basis
of other service subject to this chapter, except that benefits
shall not be paid based on such services for any week of
unemployment commencing during the period between two successive
academic years or, when an agreement provides instead for a
similar period between two regular terms whether or not
successive or during a period of paid sabbatical leave provided
for in the individual's contract and if such individual performs
such services in the first of such academic years or terms and if
there is a contract or a reasonable assurance that such
individual will perform services in any such capacity for any
institution in the second of such academic years or terms. All
services by an individual for an institution shall be deemed in
instructional, research or principal administrative capacity if
at least 50 percent of the individual's time is spent in such
activities.
(2) With respect to any services described in subsection (1) of
this section { + , + } compensation payable on the basis of such
services shall be denied to any individual for any week
{ - which - } { + that + } commences during an established and
customary vacation period or holiday recess if such individual
performs such services in the period immediately before such
vacation period or holiday recess, and there is reasonable
assurance that such individual will perform such services or any
services described in ORS 657.221 (1) in the period immediately
following such vacation period or holiday recess.
(3) With respect to any services described in subsection (1) of
this section, benefits based on such services shall be denied as
specified in subsections (1) and (2) of this section to any
individual who performed such service in an institution while in
the employ of an education service district established by ORS
chapter 334, providing 50 percent or more of the individual's
time is spent in instructional, research or principal
administrative capacity in such institution.
(4) The provisions of subsections (1), (2) and (3) of this
section apply only to service performed for an educational
institution or institution of higher education operated by a
nonprofit employing unit, as defined in ORS 657.072 (2),
{ - or - } by the state { + , + } { - or - } by a political
subdivision { + or by an Indian tribe + }.
SECTION 9. ORS 657.221 is amended to read:
657.221. (1) Benefits based on services performed in other than
an instructional, research or principal administrative capacity
for an educational institution or institution of higher education
shall be payable to an individual in the same amount, on the same
terms and subject to the same conditions as benefits payable on
the basis of other service subject to this chapter. However:
(a) Benefits shall not be paid on the basis of such services
for any week of unemployment { - which - } { + that + }
commences during a period between two successive academic years
or terms if the individual performs such services in the first
academic year or term and there is a reasonable assurance that
the individual will perform any such services in the second
academic year or term for any institution; except that
(b) If benefits are denied to an individual for any week under
paragraph (a) of this subsection and such individual was not
Enrolled House Bill 3596 (HB 3596-A) Page 4
offered an opportunity to perform such services for the
institution for the second of such academic years or terms, such
individual shall be entitled, if otherwise eligible, to payment
of benefits for each week for which the individual filed a timely
claim for benefits and for which benefits were denied solely by
reason of paragraph (a) of this subsection.
(2) With respect to the application of this section, the
following shall apply:
(a) An employee who terminates an employee-employer
relationship by electing not to accept an offer of work for a
subsequent academic year or term, other than by reason of labor
negotiations or a labor dispute in progress, shall be deemed to
have voluntarily left work. The effective date of such leaving
shall be the date the individual notifies the institution of the
election not to accept the offer of work for the subsequent
period { + , + } except that if such individual continues to work
under the terms of a previously existing contract or agreement,
the effective date of leaving shall be the last day worked for
the institution.
(b) In the event the institution does not extend to the
individual an offer of work or provide a reasonable assurance the
individual is expected to return to work for the institution
following the period between the academic years or terms, the
separation from work shall be considered an involuntary leaving
or layoff.
(3) With respect to any services described in subsection (1) of
this section { + , + } compensation payable on the basis of such
services shall be denied to any individual for any week
{ - which - } { + that + } commences during an established and
customary vacation period or holiday recess if such individual
performs such services in the period immediately before such
vacation period or holiday recess, and there is reasonable
assurance that such individual will perform such services or any
services described in ORS 657.167 (1) in the period immediately
following such vacation period or holiday recess.
(4) With respect to any services described in subsection (1) of
this section, benefits based on such services shall be denied as
specified in subsections (1) and (3) of this section to any
individual who performed such services in an institution while in
the employ of an education service district established by ORS
chapter 334, providing 50 percent or more of the individual's
time is in the performance of services in such institution.
(5) The provisions of subsections (1), (3) and (4) of this
section shall only apply to service performed for an educational
institution or institution of higher education operated by a
nonprofit employing unit { + , + } as defined in ORS 657.072 (2),
{ - or - } by the state, { - or - } { + by + } a political
subdivision { + or by an Indian tribe + }.
SECTION 10. ORS 657.333 is amended to read:
657.333. { - No - } { + An + } employer's account
{ - shall - } { + may not + } be charged for additional
benefits paid to an unemployed individual under ORS 657.331 to
657.334. However, nothing in this section shall be construed to
relieve the state, reimbursing political subdivisions { + , + }
{ - or - } reimbursing nonprofit employers { + or reimbursing
Indian tribes + } from paying into the unemployment insurance
trust fund an amount equal to the additional benefits paid to an
unemployed individual under ORS 657.331 to 657.334.
SECTION 11. ORS 657.425 is amended to read:
Enrolled House Bill 3596 (HB 3596-A) Page 5
657.425. (1) Any employing unit, for which individuals perform
services that are not employment subject to this chapter, may
file with the Director of the Employment Department a written
election that all such excluded services are employment for all
the purposes of this chapter.
(2) Notwithstanding subsection (1) of this section:
(a) A nonprofit employing unit { + , + } as defined in ORS
657.072, a state agency { + , + } { - or - } a political
subdivision { + or an Indian tribe + } may file a written
election that all otherwise excluded services performed by
individuals within the same grade, class or occupation or at a
specific establishment or geographic area are employment subject
to this chapter.
(b) An employing unit for which services are performed that are
subject to the Federal Unemployment Tax Act may file a written
election with the director that such services are employment for
all purposes of this chapter.
(3) Elections filed pursuant to subsections (1) and (2) of this
section are not effective unless approved by the director. Upon
approval of the election by the director, the services are
employment subject to this chapter effective the first day of the
calendar quarter in which the election was filed, or a later date
when so specified in the election. Such election shall continue
in effect until canceled but shall be for not less than two
completed calendar years.
(4) An employing unit may cancel its election as of January 1
of any calendar year that is subsequent to two calendar years,
only if such employing unit has filed, at least 30 days prior to
such January 1, a written notice with the director of its
intention to cancel such election. Upon timely notice of
intention to cancel the election, such services shall cease to be
employment subject to this chapter.
(5) The director may cancel the election of any employing unit
and such elected services shall cease to be employment subject to
this chapter at any time while such employing unit is in default
in payment of taxes or other amounts due under this chapter.
SECTION 12. ORS 657.505 is amended to read:
657.505. (1) On and after January 1, 1936, taxes shall be
payable by each employer then subject to this chapter. Taxes
shall become payable by any other employer on and after the date
on which the employer becomes subject to this chapter.
(2) An employer shall be liable for taxes on all wages paid for
services performed on or after the first day of a calendar
quarter.
(3) Taxes of an employer shall not become payable until this
chapter has been approved by the Secretary of Labor, and notice
of such approval has been given to the Governor as provided in
section 3304 of the Federal Unemployment Tax Act.
(4) All taxes shall be paid to and collected by the Director of
the Employment Department at such times and in such manner as the
director may prescribe and upon collection, shall be deposited in
the Unemployment Compensation Trust Fund.
(5) In lieu of taxes required of all other employers subject to
this chapter, the state shall pay into the fund an amount
equivalent to the amount of all regular benefits and all extended
benefits paid out to claimants who during the applicable base
year were paid wages by the state. Payments required under this
section shall be payable from the General Fund of the
state { + , + } except that if a claimant was paid wages by the
state during the base year from a special or administrative fund
Enrolled House Bill 3596 (HB 3596-A) Page 6
provided for by law, the payment into the fund shall be made from
such special or administrative fund with the approval of the
Oregon Department of Administrative Services.
(6) Any political subdivision subject to this chapter
shall { + , + } in lieu of taxes required of other employers
subject to this chapter, pay into the fund an amount equivalent
to the amount of all regular benefits and all extended benefits
paid out to claimants who during the applicable base year were
paid wages by the political subdivision.
(7)(a) Any nonprofit employing unit { + , + } as defined in ORS
657.072 (2), { + and any Indian tribe + } subject to or electing
coverage under this chapter shall pay taxes under the provisions
of ORS 657.475 and 657.480. However { - , - } { + :
(A) + } Such nonprofit employing unit may elect to make
reimbursement payments into the Unemployment Compensation Trust
Fund in an amount equivalent to the amount of regular benefits
and one-half of extended benefits paid out to claimants who
during the applicable base period were paid wages by such
nonprofit employing unit. Such reimbursement payments shall be
deemed to be taxes for all purposes of this chapter. { +
(B) Such Indian tribe may elect to make reimbursement payments
into the Unemployment Compensation Trust Fund in an amount
equivalent to the amount of regular benefits and all extended
benefits paid out to claimants who during the applicable base
period were paid wages by the Indian tribe. Such reimbursement
payments shall be deemed to be taxes for all purposes of this
chapter. + }
(b) A nonprofit employing unit { + or an Indian tribe + } may
elect to make reimbursement payments by filing with the Director
of the Employment Department a written notice to this effect
within the 30-day period following the close of the calendar
quarter in which the { + nonprofit + } employing unit { + or
Indian tribe + } became an employer, or may make a timely
election within 30 days after the director finds the nonprofit
employing unit { + or Indian tribe + } in default with respect
to payment of taxes if the director has not found the default to
be due to an intent to postpone or avoid either payment of taxes
due the Unemployment Compensation Trust Fund or the election to
make reimbursement payments pursuant to this paragraph. A
nonprofit employing unit { + or Indian tribe + } failing to
submit a timely notice of election of reimbursement shall be
liable for taxes on any wages paid for services performed for
such { + nonprofit + } employing unit { + or Indian tribe + }
for two calendar years. Such { + nonprofit + } employing unit
{ + or Indian tribe + } will remain liable for taxes for any
calendar year thereafter unless a written notice of election of
reimbursement is filed with the director by January 31 of such
calendar year. The director shall for good cause extend the
period within which a notice of election of reimbursement must be
filed for an additional 30 days.
(c) Elections of reimbursement shall continue until canceled
but shall be for a period of not less than two calendar years.
Any nonprofit employing unit { + or Indian tribe + } may cancel
such election, and pay taxes as any other employer, by filing
with the director a written notice of its intention to cancel
such election by January 31 of the year in which the cancellation
is to be effective. The director may for good cause extend the
period within which a notice of cancellation may be filed for an
additional 30 days. Once a cancellation is effective the
nonprofit employing unit { + or Indian tribe + } must pay taxes
Enrolled House Bill 3596 (HB 3596-A) Page 7
for two calendar years before it is again eligible for election
of reimbursement. An employer whose election of reimbursement has
been canceled shall thereafter be liable for taxes at the rate
assigned an employer in accordance with ORS 657.435 until such
employer is eligible for a rate based on the experience of the
employer in accordance with the provisions of ORS 657.475 and
657.480.
(d) Each nonprofit employing unit that elects to reimburse the
fund shall, within 30 days after the effective date of its
election, either execute and file with the director a surety bond
or deposit with the director money, an irrevocable letter of
credit issued by an insured institution as defined in ORS 706.008
or other security as approved by the director. The amount of the
bond or deposit shall be determined as a percentage of the { +
nonprofit + } employing unit's total wages paid for employment
covered by this chapter for the four calendar quarters
immediately preceding the effective date of the election. The
following schedule shall apply in determining the amount of bond
or deposit:
_________________________________________________________________
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Four Quarter PayrollPercent
____NOTE_TO_GOPHER_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Under $100,000 2.0
$100,000 $499,999 1.5
$500,000 $999,999 1.0
$1,000,000 and over 0.5
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
_________________________________________________________________
If the nonprofit employing unit did not pay wages in each of such
four calendar quarters, the amount of the bond or deposit shall
be as determined by the director. The amount of the bond or
deposit as determined by the schedule in this subsection shall
not exceed the amount of taxes the { + nonprofit + } employing
unit would have been assessed at the maximum tax rate for the
same period had not the { + nonprofit + } employing unit
elected to make reimbursement payments. However, no surety bond
or deposit shall be required of an institution of higher
education, unless in the discretion of the director the director
determines that a surety bond or deposit shall be required of
such an institution.
(A) Any bond or letter of credit deposited under this paragraph
shall be in force for a period of not less than two calendar
years and shall be renewed with the approval of the director, at
such times as the director may prescribe, but not less frequently
than at two year intervals as long as the { + nonprofit + }
employing unit continues to be liable for reimbursement payments.
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The director shall require adjustments to be made in a previously
filed bond or letter of credit as the director deems appropriate.
If the bond or letter of credit is to be increased, the bond or
letter of credit shall be filed by the { + nonprofit + }
employing unit within 30 days of the date notice of the required
adjustment was mailed or otherwise delivered to it. Failure by
any { + nonprofit + } employing unit covered by such bond or
letter of credit to pay the full amount of reimbursements when
due, together with any applicable interest and penalties, shall
render the surety liable on said bond or the issuer liable on the
letter of credit to the extent of the amount thereof including
interest and penalties assessed pursuant to this chapter.
(B) Any deposit of money or security in accordance with this
paragraph shall be retained by the director. Money shall be
deposited in the Employment Tax Guarantee Fund. When liability
under the election is terminated the deposit shall be returned to
the { + nonprofit + } employing unit, less any deductions as
hereinafter provided. The director may transfer moneys from the
Employment Tax Guarantee Fund or sell securities deposited as
necessary to satisfy any due and unpaid reimbursements and any
applicable interest and penalties. The director shall require
the { + nonprofit + } employing unit within 30 days following
transfer of a money deposit or sale of securities to deposit
sufficient additional money or securities to restore the original
deposit in full. The director may, at any time, review the
adequacy of the deposit made by any { + nonprofit + } employing
unit. If, as a result of such review, the director determines
that an adjustment is necessary, the director shall require the
{ + nonprofit + } employing unit to make an additional deposit
within 30 days of written notice of the determination or shall
return to it such portion of the deposit as the director no
longer considers necessary, whichever action is appropriate.
(C) If any nonprofit employing unit fails to file a bond or
make a deposit, or to file a bond in an increased amount or to
increase or make whole the amount of a previously made deposit,
as provided in this section, the director may terminate such
{ + nonprofit + } employing unit's election to make
reimbursement payments. The director may extend for good cause
the applicable filing, deposit or adjustment period by not more
than 30 days.
{ - An - } { + A nonprofit + } employing unit having its
election terminated under this section shall pay taxes for a
period of two calendar years before it is again eligible for
election to reimburse.
(8)(a) At the end of each calendar quarter, or at the end of
any other period as prescribed by the director, the director
shall determine the amount of payments in lieu of taxes or
reimbursement payments required, under subsections (5), (6) and
(7) of this section, and shall bill each employer for such
amount. If a claimant during a base year was employed by an
employer liable for payments in lieu of taxes or reimbursement
payments and other employers subject to the tax rate provisions
of this chapter, the amount to be paid into the fund by employers
liable for payments in lieu of taxes or reimbursement payments
shall be an amount
{ - which - } { + that + } is in the same proportion that the
wages paid by each employer to the individual during the base
year bear to the wages paid by all employers to that individual
during that year.
Enrolled House Bill 3596 (HB 3596-A) Page 9
(b) In determining the amount of payments in lieu of taxes or
reimbursement payments, benefits paid for any reason shall be
included if such benefits or any portion thereof were paid as a
result of wages earned in the employ of an employer required to
make reimbursing payments or payments in lieu of taxes. Such
benefits paid include but are not limited to payments made as a
result of a determination or payments erroneously or incorrectly
paid or paid as a result of a determination of eligibility
{ - which - } { + that + } is subsequently reversed. Any
benefit payments described in this paragraph that are
subsequently recovered by the Employment Department will be
credited on a pro rata basis to the account of the employer that
reimbursed the fund for such benefits.
(c) Payment of any bill rendered under paragraph (a) of this
subsection shall be made not later than the last day of the month
immediately following the month in which such bill was mailed to
the last-known address of the employer or was otherwise delivered
to it. The director may assess a nonprofit employing unit { + or
Indian tribe + } for past due taxes and such assessment shall be
subject to the same interest, penalties, enforcement, appeal and
any other provisions of this chapter that apply to taxes assessed
pursuant to ORS 657.681.
(d) If a nonprofit employing unit is delinquent in making
reimbursement payments as required under this section, the
director may terminate { - such - } { + the nonprofit + }
employing unit's election and { - such - } { + the
nonprofit + } employing unit must pay taxes for two calendar
years before it is again eligible for election of reimbursement.
Any employer whose election is terminated under provisions of
this { - section - } { + subsection + } shall remain liable
for reimbursement payments for any benefits paid based on wages
received prior to the effective date of termination of the
election. { +
(e)(A) If an Indian tribe fails to make reimbursement payments
as required under this section, including assessments of interest
and penalties, within 90 days of receipt of the delinquency or
bill, the director shall terminate the Indian tribe's election
and the Indian tribe must pay taxes for two calendar years before
it is again eligible for election of reimbursement. Any employer
whose election is terminated under the provisions of this
subsection remains liable for reimbursement payments for any
benefits paid based on wages received before the effective date
of termination of the election.
(B) Services performed for an Indian tribe may not be treated
as employment for purposes of this chapter if, after all
collection activities considered necessary by the director have
been exhausted, the Indian tribe or any unit of the Indian tribe
fails to make required payments, including contributions,
reimbursement payments and assessments of interest and penalties.
(C) Services performed for an Indian tribe that has lost
coverage under subparagraph (B) of this paragraph may be treated
as employment for purposes of this chapter if the Indian tribe
makes all required payments, including contributions,
reimbursement payments and assessments of interest and penalties.
(D) For purposes of this section, an Indian tribe and any units
of the Indian tribe that separately elect coverage are jointly
and severally liable for all required payments, including
contributions, reimbursement payments and assessments of interest
and penalties.
Enrolled House Bill 3596 (HB 3596-A) Page 10
(E) The director shall notify the United States Internal
Revenue Service and the United States Department of Labor if an
Indian tribe fails to make payments required under this section,
including assessments of interest and penalties, within 90 days
of receipt of a final notice of assessment. + }
(9) Notwithstanding the provisions of subsections (5), (6), (7)
and (8) of this section, each employing unit that is required to
make payments in lieu of taxes or has elected to make
reimbursement payments may request permission to make advance or
budget payments in accordance with rules adopted by the director.
(10) Two or more employers that have become liable for payments
in lieu of taxes or reimbursement payments, in accordance with
the provisions of subsections (5), (6) and (7) of this section,
may file a joint application to the director for the
establishment of a group account for the purpose of sharing the
cost of benefits paid that are attributable to service in the
employ of such employers. Each application shall identify and
authorize a group representative to act as the group's agent for
the purpose of this subsection. Upon the approval of the director
of the application, the director shall establish a group account
for such employers effective as of the beginning of the calendar
quarter in which the director receives the application and shall
notify the group's agent of the effective date of the account.
Such account shall remain in effect for not less than two years
and thereafter until terminated at the discretion of the director
or upon application by the group. Upon establishment of the
account, each member of the group shall be liable for payments
with respect to each calendar quarter in the amount that bears
the same ratio to the total benefits paid in such quarter that
are attributable to service performed in the employ of all
members of the group. The director shall prescribe such
regulations as the director deems necessary with respect to
application for establishment, maintenance and termination of
group accounts. This subsection shall not be construed to make
such agent the employer of such workers, or relieve any employer
of the obligations of the employer to comply with the terms of
this chapter, except to the extent that such obligations are
discharged by such agent as provided thereunder.
SECTION 13. ORS 657.506 is amended to read:
657.506. (1) The person or organization engaging the services
of a musician or musicians shall be considered the employer for
the purposes of this chapter, except when the services are
performed pursuant to a written contract { - which - }
{ + that + } expressly designates one or more musicians who sign
the contract as responsible for the filing of any reports and the
payment of any taxes based upon wages or earnings of a musician
or musicians performing services under the contract. A written
contract { - which - } { + that + } so designates a musician
or musicians as responsible shall be conclusive evidence that the
person or organization engaging the services is not the employer
of a musician or musicians performing services under the
contract. The musician or musicians who sign a written contract
designating them as responsible shall, for purposes of this
chapter, be considered the employer of any musician performing
services under the contract who did not sign the contract.
(2) The provisions of subsection (1) of this section do not
apply to services performed for a nonprofit organization, as
defined in ORS 657.072, for this state { + , + } { - or - }
for a political subdivision of this state { + or for an Indian
tribe + }.
Enrolled House Bill 3596 (HB 3596-A) Page 11
SECTION 14. ORS 657.840 is amended to read:
657.840. (1) On the first day of the third month of a calendar
quarter the Director of the Employment Department shall:
(a) Estimate the interest payable, accrued through the end of
the calendar quarter, on federal advances obtained under the
provisions of ORS 657.807;
(b) Estimate the amount of federal advance interest repayment
tax receipts expected to be collected during the quarter for any
preceding calendar quarter in which such tax was assessed;
(c) Add the amount in the Federal Advance Interest Repayment
Fund on the last day of the immediately preceding calendar
quarter to the estimate in paragraph (b) of this subsection; and
(d) Subtract the sum obtained in paragraph (c) of this
subsection from the estimate in paragraph (a) of this subsection.
(2) If the remainder obtained in subsection (1)(d) of this
section is more than zero, each employer subject to this chapter
shall be assessed a federal advance interest repayment tax. Such
tax shall be a percentage of the regular unemployment tax payable
under this chapter for the calendar quarter. The percentage shall
be determined by dividing the remainder in subsection (1)(d) of
this section by the estimated amount of unemployment tax due and
payable on wages paid during the quarter. The percentage shall be
rounded up to the next full percent.
(3) The tax assessed under this section shall be collected in
such manner as the director may prescribe. Interest and penalties
applicable to the regular unemployment insurance tax shall be
applicable to this tax.
(4) There is hereby created a Federal Advance Interest
Repayment Fund as a separate fund in the State Treasury. Such
fund shall consist of all moneys received pursuant to this
section and interest earnings accruing to the fund and shall be
used only for the payment of interest accruing and payable on
advances received under ORS 657.807, except that if at the end of
any calendar quarter, all advances and interest have been repaid,
any remaining balance in the fund may be transferred to the
Unemployment Compensation Trust Fund.
(5) This section does not apply to public and nonprofit
employers { + or Indian tribes + } making reimbursement payments
as provided in ORS 657.505 and 657.513.
SECTION 15. { + The amendments to ORS 657.020, 657.043,
657.044, 657.047, 657.048, 657.050, 657.167, 657.221, 657.333,
657.425, 657.505, 657.506 and 657.840 by sections 1 to 6 and 8 to
14 of this 2001 Act apply to wages paid on or after December 21,
2000. + }
SECTION 16. { + The amendments to ORS 657.065 by section 7 of
this 2001 Act apply to wages paid on or after October 1,
2001. + }
SECTION 17. { + If an Indian tribe is paying taxes under ORS
chapter 657 pursuant to an election made before the effective
date of this 2001 Act, the Indian tribe has 60 days after the
effective date of this 2001 Act to elect to make reimbursement
payments beginning January 1, 2001. + }
SECTION 18. { + This 2001 Act takes effect on the 91st day
after the date on which the regular session of the Seventy-first
Legislative Assembly adjourns sine die. + }
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Enrolled House Bill 3596 (HB 3596-A) Page 12
Passed by House April 24, 2001
...........................................................
Chief Clerk of House
...........................................................
Speaker of House
Passed by Senate May 30, 2001
...........................................................
President of Senate
Enrolled House Bill 3596 (HB 3596-A) Page 13
Received by Governor:
......M.,............., 2001
Approved:
......M.,............., 2001
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2001
...........................................................
Secretary of State
Enrolled House Bill 3596 (HB 3596-A) Page 14