74th OREGON LEGISLATIVE ASSEMBLY--2007 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 2413
B-Engrossed
Senate Bill 426
Ordered by the Senate March 2
Including Senate Amendments dated February 2 and March 2
Sponsored by Senators DECKERT, DEVLIN, WALKER; Senator BROWN (at
the request of Governor Theodore R. Kulongoski)
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.
Establishes Oregon Educators Benefit Board. Requires Governor
to appoint members of board for four-year terms. Authorizes board
to contract for health and dental benefit plans and other
benefits for employees of certain school districts, education
service districts and community college districts. Requires board
to adopt rules. Permits payroll officers to deduct amounts for
benefit plans from employee wages.
Creates Oregon Educators Benefit Account and Oregon Educators
Revolving Fund. Requires amount not to exceed two percent of
monthly employer and employee contributions for benefit plans to
be deposited in account. Appropriates to board moneys to cover
administrative expenses.
Prohibits districts, on or after October 1, 2008, from offering
benefit plans other than benefit plans provided by board.
Provides exceptions.
Requires board, before October 1, 2008, to enter into contracts
for health and dental benefit plans. Requires board to offer
range of benefit plan designs sufficient to ensure that, when
benefit plans are first provided to district, district and
district employees can choose benefit plans that are comparable
in design to, and are not more expensive than comparable costs
of, benefit plans provided by district immediately before
purchase of benefit plans provided by board.
Creates Task Force on { - Teacher - } { + Educator + }
Health Benefits. Requires task force to report to legislative
interim committee no later than October 1, 2012. Appropriates
contributed moneys to task force for purposes of carrying out
duties of task force.
{ + Adjusts appropriations and expenditure limitations of
Department of Education and Oregon Department of Administrative
Services for biennium ending June 30, 2007, for purposes of
Oregon Educators Benefit Board.
Appropriates moneys from General Fund to Department of
Education for biennium beginning July 1, 2007, for purposes of
board.
Limits expenditures from fees, moneys or other revenues,
including Miscellaneous Receipts, but excluding lottery funds and
federal funds, collected or received by Oregon Department of
Administrative Services for biennium beginning July 1, 2007, for
purposes of board. + }
Declares emergency, effective { - July 1, 2007 - } { + on
passage + }.
A BILL FOR AN ACT
Relating to benefit plans for education district employees;
creating new provisions; amending ORS 279A.025; appropriating
money; limiting expenditures; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. { + As used in sections 1 to 14 of this 2007 Act,
unless the context requires otherwise:
(1) 'Benefit plan' includes but is not limited to:
(a) Contracts for insurance or other benefits, including
medical, dental, vision, life, disability and other health care
recognized by state law, and related services and supplies;
(b) Self-insurance programs managed by the Oregon Educators
Benefit Board; and
(c) Comparable benefits for employees who rely on spiritual
means of healing.
(2) 'Carrier' means an insurance company or health care service
contractor holding a valid certificate of authority from the
Director of the Department of Consumer and Business Services, or
two or more companies or contractors acting together pursuant to
a joint venture, partnership or other joint means of operation,
or a board-approved provider or guarantor of benefit plan
coverage and compensation.
(3) 'District' means a common school district, a union high
school district, an education service district, as defined in ORS
334.003, or a community college district, as defined in ORS
341.005.
(4)(a) 'Eligible employee' includes:
(A) An officer or employee of a district who elects to
participate in one of the benefit plans described in sections 3
to 8 of this 2007 Act; and
(B) An officer or employee of a district, whether or not
retired, who:
(i) Is receiving a service retirement allowance, a disability
retirement allowance or a pension under the Public Employees
Retirement System or is receiving a service retirement allowance,
a disability retirement allowance or a pension under any other
retirement or disability benefit plan or system offered by the
district for its officers and employees;
(ii) Is eligible to receive a service retirement allowance
under the Public Employees Retirement System and has reached
earliest service retirement age under ORS chapter 238;
(iii) Is eligible to receive a pension under ORS 238A.100 to
238A.245 and has reached earliest retirement age as described in
ORS 238A.165; or
(iv) Is eligible to receive a service retirement allowance or
pension under any other retirement benefit plan or system offered
by the district and has attained earliest retirement age under
the plan or system.
(b) Except as provided in paragraph (a)(B) of this subsection,
'eligible employee' does not include an individual:
(A) Engaged as an independent contractor;
(B) Whose periods of employment in emergency work are on an
intermittent or irregular basis; or
(C) Who is employed on less than a half-time basis unless the
individual is employed in a position classified as a job-sharing
position or unless the individual is defined as eligible under
rules of the Oregon Educators Benefit Board or under a collective
bargaining agreement.
(5) 'Family member' means an eligible employee's spouse or
domestic partner and any unmarried child or stepchild of an
eligible employee within age limits and other conditions imposed
by the Oregon Educators Benefit Board with regard to unmarried
children or stepchildren.
(6) 'Payroll disbursing officer' means the officer or official
authorized to disburse moneys in payment of salaries and wages of
officers and employees of a district.
(7) 'Premium' means the monthly or other periodic charge,
including administrative fees of the Oregon Educators Benefit
Board, for a benefit plan. + }
SECTION 2. { + (1) There is established in the Oregon
Department of Administrative Services an Oregon Educators Benefit
Board consisting of 10 members appointed by the Governor,
including:
(a) Two members representing district boards;
(b) Two members representing district management;
(c) Two members representing nonmanagement district employees
from the largest labor organization representing district
employees;
(d) One member representing nonmanagement district employees
from the second largest labor organization representing district
employees;
(e) One member representing nonmanagement district employees
who are not represented by labor organizations described in
paragraphs (c) and (d) of this subsection; and
(f) Two members with expertise in health policy or risk
management.
(2) The term of office of each member is four years, but a
member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a
successor to take office upon the date of that expiration. A
member is eligible for reappointment. If there is a vacancy for
any cause, the Governor shall make an appointment to become
immediately effective for the unexpired term.
(3) A member of the board is not entitled to compensation, but
may be reimbursed from funds available to the board for actual
and necessary travel and other expenses incurred by the member in
the performance of the member's official duties in the manner and
amount provided in ORS 292.495.
(4) The board shall select one of its members as chairperson
and another as vice chairperson, for such terms and with duties
and powers necessary for the performance of the functions of such
offices as the board determines.
(5) A majority of the members of the board constitutes a quorum
for the transaction of business.
(6) The board shall meet at times and places specified by the
call of the chairperson or of a majority of the members of the
board.
(7) Appointments of members to the board by the Governor are
subject to confirmation by the Senate in the manner prescribed in
ORS 171.562 and 171.565. + }
SECTION 3. { + (1) The Oregon Educators Benefit Board:
(a) Shall adopt rules for the conduct of its business; and
(b) May adopt rules not inconsistent with sections 1 to 14 of
this 2007 Act to determine the terms and conditions of eligible
employee participation in and coverage under benefit plans.
(2) The board shall study all matters connected with the
provision of adequate benefit plan coverage for eligible
employees on the best basis possible with regard to the welfare
of the employees and affordability for the districts. The board
shall design benefits, prepare specifications, analyze carrier
responses to advertisements for bids and award contracts.
Contracts shall be signed by the chairperson on behalf of the
board.
(3) In carrying out its duties under subsections (1) and (2) of
this section, the goal of the board is to provide high-quality
health, dental and other benefit plans for eligible employees at
a cost affordable to the districts, the employees and the
taxpayers of Oregon.
(4) The board shall prepare specifications, invite bids and
take actions necessary to award contracts for health and dental
benefit plan coverage of eligible employees in accordance with
the criteria set forth in section 4 (1) of this 2007 Act. The
Public Contracting Code does not apply to contracts for benefit
plans provided under sections 1 to 14 of this 2007 Act. The board
may not exclude from competition to contract for a benefit plan
an Oregon carrier solely because the carrier does not serve all
counties in Oregon.
(5) The board may retain consultants, brokers or other advisory
personnel when necessary and shall employ such personnel as are
required to perform the functions of the board. + }
SECTION 4. { + (1) The Oregon Educators Benefit Board shall
contract for benefit plans best designed to meet the needs and
provide for the welfare of eligible employees and the districts.
In considering whether to enter into a contract for a benefit
plan, the board shall place emphasis on:
(a) Employee choice among high-quality plans;
(b) Encouragement of a competitive marketplace;
(c) Plan performance and information;
(d) District flexibility in plan design and contracting;
(e) Quality customer service;
(f) Creativity and innovation;
(g) Plan benefits as part of total employee compensation; and
(h) Improvement of employee health.
(2) The board may approve more than one carrier for each type
of benefit plan offered, but the board shall limit the number of
carriers to a number consistent with adequate service to eligible
employees and family members.
(3) When appropriate, the board shall provide options under
which an eligible employee may arrange coverage for family
members under a benefit plan.
(4) A district shall provide that payroll deductions for
benefit plan costs that are not payable by the district may be
made upon receipt of a signed authorization from the employee
indicating an election to participate in the benefit plan or
plans selected and allowing the deduction of those costs from the
employee's pay.
(5) In developing any benefit plan, the board may provide an
option of additional coverage for eligible employees and family
members at an additional premium.
(6) The board shall adopt rules providing that transfer of
enrollment from one benefit plan to another is open to all
eligible employees and family members. Because of the special
problems that may arise involving acceptable physician-patient
relations between a particular panel of physicians and a
particular eligible employee or family member under a
comprehensive group practice benefit plan, the board shall
provide a procedure under which any eligible employee may apply
at any time to substitute another benefit plan for participation
in a comprehensive group practice benefit plan.
(7) An eligible employee who is retired is not required to
participate in a health benefit plan offered under this section
in order to obtain dental benefit plan coverage. The board shall
establish by rule standards of eligibility for retired employees
to participate in a dental benefit plan. + }
SECTION 5. { + (1) In addition to contracting for health and
dental benefit plans, the Oregon Educators Benefit Board may
contract with carriers to provide other benefit plans including,
but not limited to, insurance or other benefits based on life,
supplemental medical, supplemental dental, supplemental vision,
accidental death or disability insurance plans.
(2) The premium for each eligible employee for coverage under a
benefit plan other than a health or dental benefit plan described
in subsection (1) of this section shall be the total cost per
month of the coverage afforded the employee under the plan for
which the employee exercises an option, including the cost of
enrollment of the eligible employee and administrative expenses
for the plan.
(3) The board may withdraw approval of any additional benefit
plan in the same manner as it withdraws approval of a health or
dental benefit plan as described and authorized by section 10 of
this 2007 Act.
(4) If the board does not contract for a benefit plan described
in subsection (1) of this section, a district may contract for
the benefit plan on behalf of any district employees. The
administrative expenses of the plan shall be paid in accordance
with the district's negotiated agreement with the employees.
Benefit plans entered into by a district are subject to approval
by the board before they become operative. The board may withdraw
approval of any such benefit plan in the same manner as it
withdraws approval of a benefit plan under section 10 of this
2007 Act. + }
SECTION 6. { + (1) The Oregon Educators Benefit Board shall
make available to eligible employees and family members one or
more fully insured long term care benefit plans. Notwithstanding
section 1 of this 2007 Act, for purposes of this subsection, '
family member' includes family members, as defined by the board,
the parents of the eligible employee and the parents of the
spouse or domestic partner of the eligible employee.
(2) Participation of eligible employees in any long term care
benefit plan made available by the board is voluntary and is
subject to reasonable underwriting guidelines and eligibility
rules established by the board.
(3) Unless otherwise agreed to by the employer, the eligible
employee is responsible for the payment of the long term care
benefit plan premium developed by the board. + }
SECTION 7. { + (1) The Oregon Educators Benefit Board shall
develop effective and cost-effective ways to make available the
long term care benefit plans described in section 6 of this 2007
Act.
(2) The board, in consultation with the Public Employees
Retirement System, shall develop long term care benefit plan
specifications, eligibility rules, underwriting guidelines and
consumer educational materials.
(3) The board's educational materials for eligible employees
shall provide information on the potential need for long term
care, methods of financing long term care and the availability of
long term care benefit plans offered by the board. + }
SECTION 8. { + (1) In addition to the powers and duties
otherwise provided by law to provide benefit plans for eligible
employees, the Oregon Educators Benefit Board may provide and
administer flexible benefit plans under which eligible employees
may choose among taxable and nontaxable benefits as provided in
the federal Internal Revenue Code.
(2) In providing flexible benefit plans, the board may offer:
(a) Health or dental benefits as described in sections 3 and 4
of this 2007 Act.
(b) Other insurance benefits as described in section 5 of this
2007 Act.
(c) Any other benefit that may be excluded from an employee's
gross income under the federal Internal Revenue Code.
(d) Any part or all of the district contribution for employee
benefits in cash to the employee.
(3) In developing flexible benefit plans, the board shall
design the plans on the best basis possible with regard to the
welfare of the employees and affordability for the districts.
(4) The board may pay some or all of the cost of administering
flexible benefit plans from funds authorized to pay general
administrative expenses incurred by the board.
(5) The board shall adopt rules as the board considers
necessary for the establishment and administration of flexible
benefit plans.
(6) The board may contract with private organizations for
administration of flexible benefit plans in accordance with rules
adopted under subsection (5) of this section. + }
SECTION 9. { + (1) Upon receipt of a request in writing from
an eligible employee, the payroll disbursing officer may deduct
from the salary or wages of the employee an amount of money
indicated in the request for payment of the amount set forth in
benefit plans selected by the employee for the employee and
family members.
(2) Amounts deducted under subsection (1) of this section shall
be paid over promptly:
(a) To the Oregon Educators Benefit Board, the carriers or the
persons responsible for payment of premiums to carriers in
accordance with the terms of contracts for benefit plans; or
(b) With respect to self-insurance benefits, in accordance with
rules and procedures adopted by the board.
(3) The payroll disbursing officer shall submit reports to the
board regarding claims experience and benefit plan coverage for
eligible employees as the board considers desirable. + }
SECTION 10. { + (1) The Oregon Educators Benefit Board may
employ whatever means are reasonably necessary to carry out the
purposes of sections 1 to 14 of this 2007 Act. This authority
includes, but is not limited to, authority to self-insure and to
seek clarification, amendment, modification, suspension or
termination of any agreement or contract.
(2) Upon providing specific notice in writing to the carrier,
the affected labor organization or organizations, the districts,
the Oregon Department of Administrative Services and the affected
eligible employees, and after affording opportunity for a public
hearing on the issues that may be involved, the board may enter
an order withdrawing approval of a benefit plan. Thirty days
after entry of the order, the board shall terminate all
withholding authorizations of eligible employees and terminate
all board-approved participation in the plan.
(3) The board by order may terminate the participation of a
district in a benefit plan if, within three months, the district
fails to perform an action required by sections 1 to 14 of this
2007 Act or by board rule. + }
SECTION 11. { + (1) There is created the Oregon Educators
Benefit Account, separate and distinct from the General Fund.
Moneys in the account are continuously appropriated to the Oregon
Educators Benefit Board to cover the board's expenses incurred in
connection with the administration of sections 1 to 14 of this
2007 Act.
(2) Subject to section 12 of this 2007 Act, an amount not to
exceed two percent of the monthly employer and employee
contributions for benefit plans available under sections 1 to 14
of this 2007 Act shall be deposited in the account. + }
SECTION 12. { + Subject to legislative budgetary authorization
for operation of the Oregon Educators Benefit Board and the
board's administration of benefit plans and other duties under
sections 1 to 14 of this 2007 Act, an amount not to exceed two
percent of the monthly employer and employee contributions for
benefit plans shall be forwarded by each participating district
to the board and deposited by the board in the State Treasury to
the credit of the Oregon Educators Benefit Account to meet the
board's administrative and other costs authorized by sections 1
to 14 of this 2007 Act. The board shall ensure that the balance
in the account does not exceed five percent of the monthly total
of employer and employee contributions for more than 120
days. + }
SECTION 13. { + (1) There is created the Oregon Educators
Revolving Fund, separate and distinct from the General Fund.
Moneys in the Oregon Educators Revolving Fund are continuously
appropriated to the Oregon Educators Benefit Board to cover the
board's expenses incurred in connection with the administration
of sections 1 to 14 of this 2007 Act. Moneys in the Oregon
Educators Revolving Fund may be retained for limited periods of
time as established by the board by rule. Among other purposes,
the board may retain the funds to pay premiums, control
expenditures, stabilize premiums and self-insure. The board may
establish subaccounts within the Oregon Educators Revolving Fund.
(2) The following moneys shall be paid into the Oregon
Educators Revolving Fund:
(a) All unused employer contributions for benefit plans;
(b) All refunds, dividends, unused premiums and other payments
attributable to an employee contribution or employer contribution
made from a carrier that has provided benefit plans administered
by the board; and
(c) All interest earned on the moneys in the fund. + }
SECTION 14. { + (1) Except as provided in subsection (2) of
this section:
(a) A district may not provide or contract for a benefit plan
unless the benefit plan is provided and administered by the
Oregon Educators Benefit Board under sections 1 to 14 of this
2007 Act; and
(b) Eligible employees of a district may participate only in
benefit plans provided and administered by the board.
(2)(a) Except for community college districts, a district that
was self-insured before January 1, 2007, or a district that had
an independent health insurance trust established and functioning
before January 1, 2007, may provide or contract for benefit plans
other than benefit plans provided and administered by the board
if the premiums for the benefit plans provided or contracted for
by the district are equal to or less than the premiums for
comparable benefit plans provided and administered by the board.
(b) A community college district may provide or contract for
benefit plans other than benefit plans provided and administered
by the board.
(c) In accordance with procedures adopted by the board to
extend benefit plan coverage under sections 3 to 8 of this 2007
Act to eligible employees of a self-insured district, a district
with an independent health insurance trust or a community college
district, these districts may choose to offer benefit plans that
are provided and administered by the board. Once employees of a
district participate in benefit plans provided and administered
by the board, the district may not thereafter provide or contract
for benefit plans other than those provided and administered by
the board.
(3) Nothing in sections 1 to 14 of this 2007 Act may be
construed to expand or contract collective bargaining rights or
collective bargaining obligations. + }
SECTION 15. { + As used in sections 16 and 17 of this 2007
Act, ' benefit plan,' 'carrier,' 'district,' 'eligible employee '
and 'premium' have the meanings given those terms in section 1 of
this 2007 Act. + }
SECTION 16. { + Notwithstanding section 14 of this 2007 Act:
(1) Before October 1, 2008, a district is not required to offer
benefit plans that are provided and administered by the Oregon
Educators Benefit Board under sections 1 to 14 of this 2007 Act.
(2) Except as provided in subsections (3) to (6) of this
section, on and after October 1, 2008:
(a) A district may not offer a benefit plan unless the benefit
plan is provided and administered by the board; and
(b) Eligible employees of a district may participate in benefit
plans provided and administered by the board.
(3)(a) If a collective bargaining agreement exists between a
district and employees of the district and the agreement expires
after July 1, 2008, subsection (2) of this section does not apply
to the district or employees of the district. However:
(A) If the collective bargaining agreement expires before
October 1, 2010, section 14 of this 2007 Act first applies to the
district and employees of the district upon the expiration of the
agreement, except as provided in subsection (4) of this section;
and
(B) In any case, on and after October 1, 2010, section 14 of
this 2007 Act applies to the district and employees of the
district.
(b) If no collective bargaining agreement exists between a
district and employees of the district, and if a contract exists
between the district and a carrier and the contract expires after
October 1, 2008, subsection (2) of this section does not apply to
the district or employees of the district. However:
(A) If the contract expires before October 1, 2010, section 14
of this 2007 Act first applies to the district and employees of
the district upon the expiration of the contract, except as
provided in subsection (4) of this section; and
(B) In any case, on and after October 1, 2010, section 14 of
this 2007 Act applies to the district and employees of the
district.
(4) A district that was self-insured before January 1, 2007, or
a district that had an independent health insurance trust
established and functioning before January 1, 2007, may provide
or contract for benefit plans other than benefit plans provided
and administered by the board. However:
(a) Until October 1, 2010, the benefit plans provided or
contracted for by the self-insured district or the district with
an independent health insurance trust are not required to meet
the condition provided in section 14 (2)(a) of this 2007 Act.
(b) On and after October 1, 2010, the benefit plans provided or
contracted for by the self-insured district or the district with
an independent health insurance trust must meet the condition
provided in section 14 (2)(a) of this 2007 Act.
(c) This subsection does not apply to a community college
district.
(5) A community college district may provide or contract for
benefit plans other than benefit plans provided and administered
by the board.
(6) In accordance with procedures adopted by the board to
extend benefit plan coverage under sections 3 to 8 of this 2007
Act to eligible employees of a self-insured district, a district
with an independent health insurance trust or a community college
district, these districts may choose to offer benefit plans that
are provided and administered by the board. Once employees of a
district participate in benefit plans provided and administered
by the board, the district may not thereafter provide or contract
for benefit plans other than those provided and administered by
the board. + }
SECTION 17. { + (1) Before October 1, 2008, the Oregon
Educators Benefit Board shall enter into contracts for health
benefit plan and dental benefit plan coverage of eligible
employees in accordance with section 3 (4) of this 2007 Act and
the criteria set forth in section 4 (1) of this 2007 Act.
(2) The board shall offer a range of benefit plan designs
sufficient to ensure that, when benefit plans are first provided
by the board to a district, the district and district employees
can choose benefit plans that are comparable in design to, and
are not more expensive than the comparable costs of, the benefit
plans the district provided immediately before the purchase of
the benefit plans provided by the board. The board shall
determine premiums for benefit plans based on the benefit plan
designs and the aggregated experience of all districts
participating in the benefit plans. + }
SECTION 18. { + Notwithstanding the term of office specified
in section 2 of this 2007 Act, of the members first appointed to
the Oregon Educators Benefit Board:
(1) Two shall serve for terms ending July 1, 2008.
(2) Three shall serve for terms ending July 1, 2009.
(3) Two shall serve for terms ending July 1, 2010.
(4) Three shall serve for terms ending July 1, 2011. + }
SECTION 19. ORS 279A.025 is amended to read:
279A.025. (1) Except as provided in subsections (2) to (4) of
this section, the Public Contracting Code applies to all public
contracting.
(2) The Public Contracting Code does not apply to:
(a) Contracts between contracting agencies or between
contracting agencies and the federal government;
(b) Insurance and service contracts as provided for under ORS
414.115, 414.125, 414.135 and 414.145 for purposes of source
selection;
(c) Grants;
(d) Contracts for professional or expert witnesses or
consultants to provide services or testimony relating to existing
or potential litigation or legal matters in which a public body
is or may become interested;
(e) Acquisitions or disposals of real property or interest in
real property;
(f) Sole-source expenditures when rates are set by law or
ordinance for purposes of source selection;
(g) Contracts for the procurement or distribution of textbooks;
(h) Procurements by a contracting agency from an Oregon
Corrections Enterprises program;
(i) The procurement, transportation or distribution of
distilled liquor, as defined in ORS 471.001, or the appointment
of agents under ORS 471.750 by the Oregon Liquor Control
Commission;
(j) Contracts entered into under ORS chapter 180 between the
Attorney General and private counsel or special legal assistants;
(k) Contracts for the sale of timber from lands owned or
managed by the State Board of Forestry and the State Forestry
Department;
(L) Contracts for forest protection or forest related
activities, as described in ORS 477.406, by the State Forester or
the State Board of Forestry;
(m) Sponsorship agreements entered into by the State Parks and
Recreation Director in accordance with ORS 565.080 (4);
(n) Contracts entered into by the Housing and Community
Services Department in exercising the department's duties
prescribed in ORS chapters 456 and 458, except that the
department's public contracting for goods and services, as
defined in ORS 279B.005, is subject to ORS chapter 279B;
(o) Contracts entered into by the State Treasurer in exercising
the powers of that office prescribed in ORS chapters 178, 286,
287, 288, 289, 293, 294 and 295, including but not limited to
investment contracts and agreements, banking services, clearing
house services and collateralization agreements, bond documents,
certificates of participation and other debt repayment
agreements, and any associated contracts, agreements and
documents, regardless of whether the obligations that the
contracts, agreements or documents establish are general, special
or limited, except that the State Treasurer's public contracting
for goods and services, as defined in ORS 279B.005, is subject to
ORS chapter 279B;
(p) Contracts, agreements or other documents entered into,
issued or established in connection with:
(A) The incurring of debt by a public body, including but not
limited to the issuance of bonds, certificates of participation
and other debt repayment obligations, and any associated
contracts, agreements or other documents, regardless of whether
the obligations that the contracts, agreements or other documents
establish are general, special or limited;
(B) The making of program loans and similar extensions or
advances of funds, aid or assistance by a public body to a public
or private body for the purpose of carrying out, promoting or
sustaining activities or programs authorized by law; or
(C) The investment of funds by a public body as authorized by
law, and other financial transactions of a public body that by
their character cannot practically be established under the
competitive contractor selection procedures of ORS 279B.050 to
279B.085;
(q) Contracts for employee benefit plans as provided in ORS
243.105 (1), 243.125 (4), 243.221, 243.275, 243.291, 243.303 and
243.565; { - or - }
{ + (r) Contracts for employee benefit plans as provided in
sections 1 to 14 of this 2007 Act; or + }
{ - (r) - } { + (s) + } Any other public contracting of a
public body specifically exempted from the code by another
provision of law.
(3) The Public Contracting Code does not apply to the public
contracting activities of:
(a) The Oregon State Lottery Commission;
(b) The Oregon University System and member institutions,
except as provided in ORS 351.086;
(c) The legislative department;
(d) The judicial department;
(e) Semi-independent state agencies listed in ORS 182.451 and
182.454, except as provided in ORS 279.835 to 279.855 and
279A.250 to 279A.290;
(f) Oregon Corrections Enterprises;
(g) The Oregon Film and Video Office, except as provided in ORS
279A.100 and 279A.250 to 279A.290;
(h) The Travel Information Council, except as provided in ORS
279A.250 to 279A.290;
(i) The Oregon 529 College Savings Network and the Oregon 529
College Savings Board;
(j) The Oregon Innovation Council; or
(k) Any other public body specifically exempted from the code
by another provision of law.
(4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not
apply to contracts made with qualified nonprofit agencies
providing employment opportunities for disabled individuals under
ORS 279.835 to 279.855.
SECTION 20. { + (1) There is created the Task Force on
Educator Health Benefits consisting of six members appointed as
follows:
(a) The President of the Senate shall appoint one member from
among members of the Senate.
(b) The Speaker of the House of Representatives shall appoint
one member from among members of the House of Representatives.
(c) The Governor shall appoint four members as follows:
(A) One member who is a nonmanagement district employee and who
is in a labor organization representing district employees;
(B) Two members who are not eligible to participate in a
benefit plan provided under sections 1 to 14 of this 2007 Act and
who have expertise in health insurance or in employee benefit
plan design or administration; and
(C) One member who is a district management employee.
(2) The task force shall review the benefit plans provided
through the Oregon Educators Benefit Board, analyze the benefits
provided by and the administration of the benefit plans and
determine whether the enactment of sections 1 to 14 of this 2007
Act has resulted in cost savings to the state.
(3) A majority of the members of the task force constitutes a
quorum for the transaction of business.
(4) Official action by the task force requires the approval of
a majority of the members of the task force.
(5) The task force shall elect one of its members to serve as
chairperson.
(6) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
(7) The task force shall meet at times and places specified by
the call of the chairperson or of a majority of the members of
the task force.
(8) The task force may adopt rules necessary for the operation
of the task force.
(9) The task force shall submit a report, and may include
recommendations for legislation, to an interim committee related
to education or public employment, as appropriate, no later than
October 1, 2012.
(10) The task force shall use the services of permanent
legislative staff to the greatest extent practicable.
(11) Members of the task force who are not members of the
Legislative Assembly are not entitled to compensation, but may be
reimbursed for actual and necessary travel and other expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
expenses incurred in performing functions of the task force shall
be paid out of funds appropriated to the Legislative Assembly for
that purpose.
(12) All agencies of state government, as defined in ORS
174.111, are directed to assist the task force in the performance
of its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the task force consider necessary to perform their
duties.
(13) The Legislative Administrator may accept, on behalf of the
task force, contributions of moneys and assistance from the
United States Government or its agencies or from any other
source, public or private, and agree to conditions placed on the
moneys not inconsistent with the duties of the task force.
(14) All moneys received by the Legislative Administrator under
subsection (13) of this section shall be paid into the State
Treasury and deposited in the General Fund to the credit of the
task force. The moneys are continuously appropriated to the task
force for the purposes of carrying out the duties of the task
force.
(15) As used in this section, 'district' has the meaning given
that term in section 1 of this 2007 Act. + }
SECTION 21. { + Section 20 of this 2007 Act becomes operative
on July 1, 2011. + }
SECTION 22. { + Section 20 of this 2007 Act is repealed on the
date of the convening of the regular legislative session of the
Seventy-seventh Legislative Assembly. + }
SECTION 23. { + Notwithstanding any other provisions of law,
in addition to the amounts appropriated by section 1 (1), chapter
789, Oregon Laws 2005, to the Department of Education,
Operations, for the biennium ending June 30, 2007, as modified by
Emergency Board action, there is appropriated out of the General
Fund the amount of $136,847 for the purposes of establishing the
Oregon Educators Benefit Board. + }
SECTION 24. { + Notwithstanding any other law limiting
expenditures of the Oregon Department of Administrative Services
for the payment of expenses from fees, moneys or other revenues,
including Miscellaneous Receipts, but excluding lottery funds and
federal funds, for the biennium ending June 30, 2007, the
limitation on expenditures for the Oregon Department of
Administrative Services established by section 2 (3), chapter
601, Oregon Laws 2005, as modified by Emergency Board action, is
increased by $184,524 for purposes of establishing the Oregon
Educators Benefit Board. + }
SECTION 25. { + (1) In addition to and not in lieu of any
other appropriation, there is appropriated to the Department of
Education, for the biennium beginning July 1, 2007, out of the
General Fund, the amount of $4,996,081, which may be expended for
the costs of the Oregon Educators Benefit Board.
(2) When the board determines that moneys in sufficient amount
are available from revenues received pursuant to sections 11 and
12 of this 2007 Act, but in no event later than June 30, 2011,
the board shall reimburse the General Fund, without interest, in
an amount equal to the amount appropriated from the General Fund
under subsection (1) of this section. The moneys used to
reimburse the General Fund under this subsection may not be
considered as a budget item on which a limitation is otherwise
fixed by law, but shall be in addition to any specific biennial
appropriation or amount authorized to be expended from
continually appropriated moneys for any biennial period. + }
SECTION 26. { + (1) Notwithstanding any other law limiting
expenditures, the amount of $5,496,280 is established for the
biennium beginning July 1, 2007, as the maximum limit for payment
of expenses from fees, moneys or other revenues, including
Miscellaneous Receipts, but excluding lottery funds and federal
funds, collected or received by the Oregon Department of
Administrative Services for the purposes of the Oregon Educators
Benefit Board.
(2) When the Oregon Educators Benefit Board determines that
moneys in sufficient amount are available from revenues received
pursuant to sections 11 and 12 of this 2007 Act, but in no event
later than June 30, 2011, the board shall reimburse the Oregon
Department of Administrative Services, Public Employees' Benefit
Board, without interest, in an amount equal to the amount
expended by the Public Employees' Benefit Board to oversee the
implementation of sections 1 to 14, 16 and 17 of this 2007
Act. + }
SECTION 27. { + Between the effective date of this 2007 Act
and October 1, 2010, the Public Employees' Benefit Board
administrator shall, in cooperation with the Oregon Educators
Benefit Board, oversee the implementation of sections 1 to 14, 16
and 17 of this 2007 Act. + }
SECTION 28. { + This 2007 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2007 Act takes effect on
its passage. + }
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