71st OREGON LEGISLATIVE ASSEMBLY--2001 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 3105
 
                         Senate Bill 666
 
Sponsored by COMMITTEE ON BUSINESS, LABOR, AND ECONOMIC
  DEVELOPMENT
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Provides that Internet website used for business purposes is
indicative of person's status as independent contractor.
  Permits Employment Department to charge fee for handling
dishonored check. Permits department to bring action for
nonpayment of fee and dishonored check amount. Permits department
to adopt rules.
 
                        A BILL FOR AN ACT
Relating to state agencies; creating new provisions; and amending
  ORS 670.600.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 670.600 is amended to read:
  670.600. As used in various provisions of ORS chapters 316,
448, 656, 657, 671 and 701, an individual or business entity that
performs labor or services for remuneration shall be considered
to perform the labor or services as an 'independent contractor'
if the standards of this section are met:
  (1) The individual or business entity providing the labor or
services is free from direction and control over the means and
manner of providing the labor or services, subject only to the
right of the person for whom the labor or services are provided
to specify the desired results;
  (2) The individual or business entity providing labor or
services is responsible for obtaining all assumed business
registrations or professional occupation licenses required by
state law or local government ordinances for the individual or
business entity to conduct the business;
  (3) The individual or business entity providing labor or
services furnishes the tools or equipment necessary for
performance of the contracted labor or services;
  (4) The individual or business entity providing labor or
services has the authority to hire and fire employees to perform
the labor or services;
  (5) Payment for the labor or services is made upon completion
of the performance of specific portions of the project or is made
on the basis of an annual or periodic retainer;
  (6) The individual or business entity providing labor or
services is licensed under ORS chapter 701, if the individual or
business entity provides labor or services for which licensure is
required;
  (7) Federal and state income tax returns in the name of the
business or a business Schedule C or farm Schedule F as part of
the personal income tax return were filed for the previous year
if the individual or business entity performed labor or services
as an independent contractor in the previous year; and
  (8) The individual or business entity represents to the public
that the labor or services are to be provided by an independently
established business. Except when an individual or business
entity files a Schedule F as part of the personal income tax
returns and the individual or business entity performs farm labor
or services that are reportable on Schedule C, an individual or
business entity is considered to be engaged in an independently
established business when four or more of the following
circumstances exist:
  (a) The labor or services are primarily carried out at a
location that is separate from the residence of an individual who
performs the labor or services, or are primarily carried out in a
specific portion of the residence, which portion is set aside as
the location of the business;
  (b)  { + An Internet website, + } commercial advertising or
business cards   { - as is customary in operating similar
businesses - }  are
  { - purchased - }  { +  used + } for the business { +  in a way
that is customary in operating similar businesses + }, or the
individual or business entity has a trade association membership;
  (c) Telephone listing and service are used for the business
that is separate from the personal residence listing and service
used by an individual who performs the labor or services;
  (d) Labor or services are performed only pursuant to written
contracts;
  (e) Labor or services are performed for two or more different
persons within a period of one year; or
  (f) The individual or business entity assumes financial
responsibility for defective workmanship or for service not
provided as evidenced by the ownership of performance bonds,
warranties, errors and omission insurance or liability insurance
relating to the labor or services to be provided.
  SECTION 2.  { + Section 3 of this 2001 Act is added to and made
a part of ORS chapter 657. + }
  SECTION 3.  { + (1) If a person pays the Employment Department
with a check and the check is returned to the department
dishonored, the department may charge the person the fee for
dishonored checks under ORS 30.701 (5).
  (2) If the person does not pay the dishonored check amount and
the fee charged under subsection (1) of this section, the
department may bring an action against the person under ORS
30.701.
  (3) The department may adopt rules to implement this
section. + }
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