Chapter 243 — Public Employee Rights and Benefits

 

2011 EDITION

 

PUBLIC EMPLOYEE RIGHTS AND BENEFITS

 

PUBLIC OFFICERS AND EMPLOYEES

 

LIFE INSURANCE FOR POLICE AND FIREFIGHTERS

 

243.005     Definitions for ORS 243.005 to 243.045

 

243.015     Life insurance for police and firefighters

 

243.025     Issuance of $10,000 life insurance certificate

 

243.035     Premiums and administrative costs to be budgeted and paid by public employers

 

243.045     Police and firefighters considered common group for certain purposes

 

243.055     Exemption from requirements of ORS 243.005 to 243.045 for certain public employers

 

PUBLIC EMPLOYEES’ BENEFIT BOARD

 

243.061     Public Employees’ Benefit Board; members; term; confirmation; expenses

 

243.066     Officers; quorum; meetings

 

BENEFIT PLANS

 

(Generally)

 

243.105     Definitions for ORS 243.105 to 243.285

 

243.107     Employees of public universities eligible to participate in benefit plan

 

243.125     Powers and duties of board; rules; compensation and expenses

 

243.135     Health benefit plans for public employees; terms and conditions

 

243.140     Health benefit and dental plans for persons operating foster homes

 

243.145     Board authority with respect to health benefit plans; termination of participation of state agency

 

243.160     Eligibility of retired state officer or employee to participate in dental benefit plan; rules

 

243.163     Eligibility of former member of Legislative Assembly to participate in group benefit plan

 

243.165     Public Employees’ Benefit Account; continuing appropriation to account

 

243.167     Public Employees’ Revolving Fund; continuing appropriation to fund

 

243.170     Contributions for job-share employees limited

 

243.185     Transfer of moneys from General Fund for payment of costs of health benefit plans

 

243.200     Participation of self-pay groups in benefit plans

 

243.205     Reports

 

243.215     Certain eligible employees permitted to receive state contributions for health benefit plans of their choice; rules

 

(Miscellaneous)

 

243.221     Options that may be offered under flexible benefit plan

 

243.223     Rules for flexible benefit plans; costs

 

243.252     Payment of cost for employees or retirees

 

243.256     Reimbursement methodology for payment to hospitals

 

243.275     Additional benefit plans authorized; assessment for expenses

 

243.285     Salary deductions; payment of moneys deducted

 

(Long Term Care Insurance)

 

243.291     Plan eligibility; costs to be paid by participants; fees

 

243.296     Board to develop method to make plan available; education program

 

(Retirees)

 

243.302     Grouping retired and nonretired employees for health insurance coverage

 

LOCAL GOVERNMENT HEALTH COVERAGE CONTRACTS

 

243.303     Local government authority to make health care insurance coverage available to retired officers and employees, spouses and children

 

AFFIRMATIVE ACTION

 

243.305     Policy of affirmative action and fair and equal employment opportunities and advancement

 

243.315     Director of Affirmative Action; duties; appointment; confirmation; legislative and judicial branches to monitor own programs

 

LEAVES OF ABSENCE FOR ATHLETIC COMPETITION

 

243.325     “Public employee” defined

 

243.330     Leaves of absence for athletic competition; requirements; maximum period; reinstatement

 

243.335     Reimbursement to public employer

 

SMOKING IN STATE OFFICES

 

243.345     Smoking in places of state employment; policy statement

 

243.350     Personnel Division rules restricting smoking in places of state employment

 

DEFERRED COMPENSATION PLANS

 

(Definitions)

 

243.401     Definitions for ORS 243.401 to 243.507

 

(Deferred Compensation Fund)

 

243.411     Deferred Compensation Fund

 

243.416     State Treasurer as fund custodian; administration

 

243.421     Investment program for fund; securities law not applicable

 

243.426     Accounts; use for administrative expenses

 

243.428     Forfeited payments; use of moneys

 

(State Deferred Compensation Plan)

 

243.435     Plan contents; assets held in trust; use of moneys; recovery of overpayments; assignment of benefits prohibited

 

243.440     Salary reduction for deferred compensation plan; amount; payment

 

243.445     Employee choice of plans; choice not binding; change in value of employee assets not to affect net worth of state

 

243.450     Disclosure statement; contents

 

243.460     Effect of deferred compensation on current taxable income and on retirement programs

 

243.462     Option to defer compensation on after-tax basis

 

243.465     Rollover distribution of deferred amounts to beneficiary

 

243.470     Administration of deferred compensation program; rules

 

243.472     Costs of plan administration assessed against participants; apportionment of expenses; expenses not board budgeted items

 

(Local Government Deferred Compensation Plans)

 

243.474     Investment of local government plan assets through investment program; agreement with Public Employees Retirement System; charges against participants

 

243.476     Compliance with federal requirements

 

243.478     Plan administration agreements; costs

 

(Immunities)

 

243.482     Immunity of governmental agencies from liability for plan administration or investment of funds

 

(Deferred Compensation Advisory Committee)

 

243.505     Deferred Compensation Advisory Committee

 

(Payment of Deferred Compensation to Alternate Payee)

 

243.507     Payment of deferred compensation to alternate payee under judgment or order; procedure; compliance with state and federal requirements; administrative expenses; limitations; rules

 

DEPENDENT CARE ASSISTANCE PLAN

 

243.550     Dependent care assistance plan

 

EXPENSE REIMBURSEMENT PLAN

 

243.555     Definitions for ORS 243.555 to 243.575

 

243.560     Rulemaking; charge for administration; records

 

243.565     Administration of plan

 

243.570     Compensation reduction agreement

 

243.575     Computation of retirement and pension benefits; taxable income

 

243.585     Accounting system allowances for dedication of salary

 

COLLECTIVE BARGAINING

 

(Generally)

 

243.650     Definitions for ORS 243.650 to 243.782

 

243.656     Policy statement

 

243.662     Rights of public employees to join labor organizations

 

243.666     Certified or recognized labor organization as exclusive employee group representative; protection of employee nonassociation rights

 

(Unfair Labor Practices)

 

243.672     Unfair labor practices; complaints; filing fees

 

243.676     Processing of unfair labor practice complaints; civil penalties

 

(Representation Matters)

 

243.682     Representation questions; investigation and hearings on petitions; certification without election; rules; elections

 

243.686     Representation elections; ballot form; determining organization to be certified; consent elections

 

243.692     Limitation on successive representation elections

 

(Bargaining; Mediation; Fact-Finding)

 

243.696     State agency representatives in bargaining; Chief Justice as representative of judicial branch

 

243.698     Expedited bargaining process; notice; implementation of proposed changes

 

243.702     Renegotiation of invalid provisions in agreements

 

243.706     Agreement may provide for grievance and other disputes to be resolved by binding arbitration or other resolution process; powers of arbitrator

 

243.712     Mediation upon failure to agree after 150-day period; impasse; final offer; fact-finding; effect of subsequent arbitration decision

 

243.716     Use of volunteers not contracting out for services

 

243.722     Fact-finding procedure; costs; basis for findings and opinions; effect of subsequent arbitration decision

 

(Strikes)

 

243.726     Public employee strikes; equitable relief against certain strikes; effect of unfair labor practice charge on prohibited strike

 

243.732     Refusal to cross picket line as prohibited strike

 

243.736     Strikes by deputy district attorneys and certain emergency and public safety personnel

 

243.738     Strikes by employees of mass transit districts, transportation districts and municipal bus systems

 

(Arbitration)

 

243.742     Binding arbitration when strike prohibited

 

243.746     Selection of arbitrator; arbitration procedure; last best offers; bases for findings and opinions; sharing arbitration costs

 

243.752     Arbitration decision final; enforcement; effective date of compensation increases; modifying award

 

243.756     Employment conditions during arbitration

 

243.762     Alternative arbitration procedure under collective bargaining agreement

 

(Miscellaneous)

 

243.766     Board duties in administration of collective bargaining laws; rules

 

243.772     Effect of collective bargaining laws on local charters and ordinances

 

243.776     Rights and responsibilities of public employees

 

243.778     Student representation when bargaining unit includes public university faculty; duties of student representatives; confidentiality requirements

 

243.782     Representation by counsel authorized

 

OPTIONAL RETIREMENT PLAN FOR HIGHER EDUCATION EMPLOYEES

 

243.800     Optional retirement plan for certain academic and administrative higher education employees

 

TAX-SHELTERED ANNUITIES FOR EDUCATIONAL EMPLOYEES

 

243.820     Agreement for payment of annuity premium or investment in stock of regulated investment company

 

243.830     Effect of agreement on retirement contributions and benefits

 

COACHES PLAN

 

243.850     Qualified football coaches plan; participation; salary deduction

 

OREGON EDUCATORS BENEFIT BOARD

 

243.860     Definitions for ORS 243.860 to 243.886

 

243.862     Oregon Educators Benefit Board; members; term; expenses; officers; quorum; meetings; confirmation

 

243.864     Duties; rules; contracts; personnel

 

243.866     Benefit plans; criteria; coverage options; payroll deductions; rules

 

243.868     Benefit plans for other than health and dental benefits; premiums; district plans

 

243.870     Long term care benefit plans

 

243.872     Board to develop methods to make long term care benefit plans available; educational materials

 

243.874     Flexible benefit plans; rules

 

243.876     Payroll deductions; reports

 

243.878     Board authority with respect to health benefit plans; termination of participation of district

 

243.879     Reimbursement methodology for payment to hospitals

 

243.880     Oregon Educators Benefit Account; continuing appropriation; monthly deposits

 

243.882     Monthly assessment of participating districts; purposes; maximum account balance

 

243.884     Oregon Educators Revolving Fund; continuous appropriation to board; purposes; rules; moneys paid into fund

 

243.886     Limitations on district participation in benefit plans; exceptions

 

(Temporary provisions relating to Task Force on Educator Health Benefits are compiled as notes following ORS 243.886)

 

HIGHER EDUCATION SUPPLEMENTAL RETIREMENT BENEFITS

 

243.910     Definitions for ORS 243.910 to 243.945

 

243.920     Assisting employees to obtain supplemental benefits; employee contribution

 

243.930     Board contributions; investment; purchase of benefits

 

243.935     Employer assumption of full amount of employee contributions

 

243.940     Employee election; cancellation of election

 

243.945     Employees not eligible for assistance

 

PUBLIC SAFETY MEMORIAL FUND

 

243.950     Public Safety Memorial Fund

 

243.952     Public Safety Memorial Fund Board; officers; quorum; meetings; staff

 

243.954     Definitions for ORS 243.954 to 243.974

 

243.956     Eligibility for benefits from fund; types of benefits

 

243.958     Initial application for benefits

 

243.959     Supplemental application for benefits

 

243.960     Application information public record

 

243.962     Determination of award amount

 

243.964     Order

 

243.966     Reconsideration; no review

 

243.968     Payment of awards

 

243.969     Payment of lump sum benefits

 

243.970     Authority of board; rules; report

 

243.972     Gifts; requirements for tax deductibility

 

243.974     Designation of beneficiary form; notice required when public safety officer suffers qualifying death or disability

 

LIFE INSURANCE FOR POLICE AND FIREFIGHTERS

 

      243.005 Definitions for ORS 243.005 to 243.045. As used in ORS 243.005 to 243.045:

      (1) “Firefighter” means persons employed by a city, county or district whose duties involve fire fighting and includes a volunteer firefighter whose position normally requires less than 600 hours of service per year.

      (2) “Police officer” includes police chiefs and police officers of a city who are classified as police officers by the council or other governing body of the city; police officers commissioned by a university under ORS 352.383 who are classified as police officers by the university; sheriffs and those deputy sheriffs whose duties, as classified by the county governing body are the regular duties of police officers; employees of districts, whose duties, as classified by the governing body of the district are the regular duties of police officers; employees of the Department of State Police who are classified as police officers by the Superintendent of State Police; employees of the Criminal Justice Division of the Department of Justice who are classified by the Attorney General as criminal investigators or criminal financial investigators; employees of the Oregon State Lottery Commission who are classified by the Director of the Oregon State Lottery as enforcement agents; and employees of Department of Corrections institutions as defined in ORS 421.005 whose duties, as assigned by the superintendent, include the custody of persons committed to the custody of or transferred to the Department of Corrections institution; but “police officer” does not include volunteer or reserve police officers or persons considered by the respective governing bodies to be civil deputies or clerical personnel.

      (3) “Public employer” means a city, a county or the state, or one of its agencies or political subdivisions that employs police officers or firefighters. [1971 c.692 §6; 1985 c.302 §11; 1987 c.320 §149; 1991 c.67 §61; 2001 c.33 §1; 2011 c.506 §35]

 

      243.010 [Amended by 1955 c.203 §1; 1959 c.162 §1; 1969 c.597 §141; repealed by 1971 c.692 §14]

 

      243.015 Life insurance for police and firefighters. The Oregon Department of Administrative Services shall enter into a contract with an insurance company licensed to do business in this state to purchase insurance as described in ORS 243.025 for all police officers and firefighters in the service of public employers. [1971 c.692 §7; 1973 c.409 §1; 1991 c.67 §62]

 

      243.020 [Amended by 1955 c.203 §2; 1955 c.503 §1; 1957 c.204 §1; 1959 c.162 §2; repealed by 1971 c.692 §14]

 

      243.025 Issuance of $10,000 life insurance certificate. When the Oregon Department of Administrative Services has awarded the contract under ORS 243.015, every police officer and firefighter in the service of a public employer shall be issued, pursuant to the contract provided for in ORS 243.015, a certificate of insurance in the face amount of $10,000, covering death caused by injury sustained during working hours as a police officer or firefighter or death resulting from such an injury within 365 days. The insurance certificate shall set forth the names of any beneficiaries whom the insured may designate. [1971 c.692 §8; 1973 c.409 §2; 1991 c.67 §63]

 

      243.030 [Amended by 1955 c.203 §3; repealed by 1955 c.503 §2]

 

      243.035 Premiums and administrative costs to be budgeted and paid by public employers. (1) The premiums and administrative costs incurred by the Oregon Department of Administrative Services for the insurance provided for in ORS 243.005 to 243.045 shall be paid by the affected public employers and shall not come from funds of the Public Employees Retirement System.

      (2) Every public employer shall include in its budget amounts sufficient to pay the annual premiums accruing on the policies of insurance issued pursuant to ORS 243.005 to 243.045, and amounts sufficient to reimburse the Oregon Department of Administrative Services for its administrative expenses incurred under ORS 243.005 to 243.045. [Subsection (1) enacted as 1971 c.692 §9; subsection (2) enacted as 1971 c.692 §10]

 

      243.040 [Amended by 1955 c.203 §4; 1959 c.162 §3; repealed by 1971 c.692 §14]

 

      243.045 Police and firefighters considered common group for certain purposes. For purposes of the Insurance Code, police officers and firefighters are considered to be associated in a common group formed for purposes other than the obtaining of insurance. [1971 c.692 §11; 1973 c.409 §3; 1991 c.67 §64]

 

      243.050 [Amended by 1955 c.203 §5; 1959 c.162 §4; 1969 c.502 §6; repealed by 1971 c.692 §14]

 

      243.055 Exemption from requirements of ORS 243.005 to 243.045 for certain public employers. (1) Notwithstanding ORS 243.005 to 243.045, if a public employer provides benefits equal to or better than the insurance required under ORS 243.025, as determined by the Director of the Department of Consumer and Business Services, the public employer is exempt from the requirements of ORS 243.005 to 243.045 for so long as such benefits continue to be equal or better than the insurance required, as determined by the Director of the Department of Consumer and Business Services.

      (2) Determinations pursuant to subsection (1) of this section shall be made after reasonable notice and opportunity for hearing as provided in ORS chapter 183. [1971 c.692 §12; 1973 c.612 §13]

 

      243.060 [Amended by 1955 c.203 §6; 1957 c.204 §2; 1959 c.162 §5; 1969 c.502 §7; repealed by 1971 c.692 §14]

 

PUBLIC EMPLOYEES’ BENEFIT BOARD

 

      243.061 Public Employees’ Benefit Board; members; term; confirmation; expenses. (1) There is created in the Oregon Health Authority the Public Employees’ Benefit Board consisting of eight voting members and two members of the Legislative Assembly as nonvoting advisory members. Two of the voting members are ex officio members and six are appointed by the Governor. The voting members shall be:

      (a) Four members representing the state as an employer and management employees, who shall be as follows:

      (A) The Director of the Oregon Health Authority or a designee of the director;

      (B) The Administrator of the Office for Oregon Health Policy and Research or a designee of the administrator; and

      (C) Two management employees appointed by the Governor from areas of state government other than the Oregon Health Authority or the Office for Oregon Health Policy and Research; and

      (b) Four members appointed by the Governor and representing nonmanagement representable employees, who shall be as follows:

      (A) Two persons from the largest employee representative unit;

      (B) One person from the second largest employee representative unit; and

      (C) One person from representable employees not represented by employee representative units described in subparagraphs (A) and (B) of this paragraph.

      (2) One member of the Senate shall be appointed by the President of the Senate and one member of the House of Representatives shall be appointed by the Speaker of the House to serve as nonvoting advisory members.

      (3) The term of office of each appointed voting member is four years, but an appointed voting member serves at the pleasure of the Governor. Before the expiration of the term of a voting member appointed by the Governor, 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.

      (4) The appointments by the Governor of voting members of the board are subject to confirmation by the Senate in the manner prescribed in ORS 171.562 and 171.565.

      (5) Members of the board who are not members of the Legislative Assembly shall receive no compensation for their services, but shall be paid for their necessary and actual expenses while on official business in accordance with ORS 292.495. Members of the board who are members of the Legislative Assembly shall be paid compensation and expense reimbursement as provided in ORS 171.072, payable from funds appropriated to the Legislative Assembly. [1997 c.222 §1; 2011 c.720 §70]

 

      Note: 243.061 and 243.066 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      243.066 Officers; quorum; meetings. (1) The Public Employees’ Benefit Board shall select one of its appointed voting members as chairperson and another appointed voting member as vice chairperson, for terms and with duties and powers necessary for the performance of the functions of those offices as the board determines.

      (2) A majority of the voting members of the board constitutes a quorum for the transaction of business.

      (3) The board shall meet at times and places specified by the call of the chairperson or of a majority of the voting members of the board. [1997 c.222 §3]

 

      Note: See note under 243.061.

 

      243.070 [Repealed by 1971 c.692 §14]

 

BENEFIT PLANS

 

(Generally)

 

      243.105 Definitions for ORS 243.105 to 243.285. As used in ORS 243.105 to 243.285, 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) Comparable benefits for employees who rely on spiritual means of healing; and

      (c) Self-insurance programs managed by the Public Employees’ Benefit Board.

      (2) “Board” means the Public Employees’ Benefit Board.

      (3) “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 guarantor of benefit plan coverage and compensation.

      (4)(a) “Eligible employee” means an officer or employee of a state agency who elects to participate in one of the group benefit plans described in ORS 243.135. The term includes state officers and employees in the exempt, unclassified and classified service, and state officers and employees, whether or not retired, who:

      (A) Are receiving a service retirement allowance, a disability retirement allowance or a pension under the Public Employees Retirement System or are 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 State of Oregon for its officers and employees;

      (B) Are eligible to receive a service retirement allowance under the Public Employees Retirement System and have reached earliest retirement age under ORS chapter 238;

      (C) Are eligible to receive a pension under ORS 238A.100 to 238A.245, and have reached earliest retirement age as described in ORS 238A.165; or

      (D) Are eligible to receive a service retirement allowance or pension under another retirement benefit plan or system offered by the State of Oregon and have attained earliest retirement age under the plan or system.

      (b) “Eligible employee” does not include individuals:

      (A) Engaged as independent contractors;

      (B) Whose periods of employment in emergency work are on an intermittent or irregular basis;

      (C) Who are employed on less than half-time basis unless the individuals are employed in positions classified as job-sharing positions, unless the individuals are defined as eligible under rules of the board;

      (D) Appointed under ORS 240.309;

      (E) Provided sheltered employment or make-work by the state in an employment or industries program maintained for the benefit of such individuals; or

      (F) Provided student health care services in conjunction with their enrollment as students at a public university listed in ORS 352.002.

      (5) “Family member” means an eligible employee’s spouse and any unmarried child or stepchild within age limits and other conditions imposed by the 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 employees of a state agency.

      (7) “Premium” means the monthly or other periodic charge for a benefit plan.

      (8) “State agency” means every state officer, board, commission, department or other activity of state government. [1971 c.527 §1; 1979 c.302 §3; 1979 c.468 §30a; 1981 c.773 §1; 1983 c.640 §1; 1985 c.224 §2; 1985 c.635 §4; 1991 c.89 §1; 1997 c.222 §27; 1999 c.971 §3; 2003 c.640 §1; 2003 c.733 §68; 2007 c.789 §3; 2009 c.186 §2; 2011 c.637 §76]

 

      243.107 Employees of public universities eligible to participate in benefit plan. A person employed by a public university listed in ORS 352.002 or the Oregon Health and Science University may be considered an eligible employee for participation in one of the group benefit plans described in ORS 243.135 if the State Board of Higher Education, or the Oregon Health and Science University Board of Directors for Oregon Health and Science University employees, determines that funds are available therefor and if:

      (1) Notwithstanding ORS 243.105 (4)(b)(F), the person is a student enrolled in an institution of higher education and is employed as a graduate teaching assistant, graduate research assistant or a fellow at the institution and elects to participate; or

      (2) Notwithstanding ORS 243.105 (4)(b)(B) or (C), the person is employed on a less than half-time basis in an unclassified instructional or research support capacity and elects to participate. [1983 c.266 §2; 1991 c.89 §2; 1995 c.162 §65; 1997 c.222 §28; 1999 c.971 §4; 2011 c.637 §77]

 

      243.110 [1955 c.313 §1; 1959 c.540 §1; 1963 c.313 §1; repealed by 1967 c.627 §12]

 

      243.115 [1971 c.527 §2; 1973 c.792 §7; 1989 c.563 §1; 1993 c.500 §9; repealed by 1997 c.222 §54]

 

      243.120 [1963 c.331 §8; 1967 c.267 §1; repealed by 1967 c.627 §12]

 

      243.125 Powers and duties of board; rules; compensation and expenses. (1) The Public Employees’ Benefit Board shall prescribe rules for the conduct of its business and for carrying out ORS 243.256. The board shall study all matters connected with the providing of adequate benefit plan coverage for eligible state employees on the best basis possible with relation both to the welfare of the employees and to the state. The board shall design benefits, devise specifications, analyze carrier responses to advertisements for bids and decide on the award of contracts. Contracts shall be signed by the chairperson on behalf of the board.

      (2) In carrying out its duties under subsection (1) of this section, the goal of the board shall be to provide a high quality plan of health and other benefits for state employees at a cost affordable to both the employer and the employees.

      (3) Subject to ORS chapter 183, the board may make rules not inconsistent with ORS 243.105 to 243.285 and 292.051 to determine the terms and conditions of eligible employee participation and coverage.

      (4) The board shall prepare specifications, invite bids and do acts necessary to award contracts for health benefit plan and dental benefit plan coverage of eligible employees in accordance with the criteria set forth in ORS 243.135 (1).

      (5) The board may retain consultants, brokers or other advisory personnel when necessary and, subject to the State Personnel Relations Law, shall employ such personnel as are required to perform the functions of the board. [1971 c.527 §3; 1975 c.560 §1; 1975 c.667 §1a; 1983 c.640 §2; 1987 c.879 §9; 1997 c.222 §29; 2001 c.655 §5; 2011 c.418 §10]

 

      243.130 [1981 c.93 §4; repealed by 1997 c.222 §54]

 

      243.135 Health benefit plans for public employees; terms and conditions. (1) Notwithstanding any other benefit plan contracted for and offered by the Public Employees’ Benefit Board, the board shall contract for a health benefit plan or plans best designed to meet the needs and provide for the welfare of eligible employees and the state. In considering whether to enter into a contract for a plan, the board shall place emphasis on:

      (a) Employee choice among high quality plans;

      (b) A competitive marketplace;

      (c) Plan performance and information;

      (d) Employer 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) The improvement of employee health.

      (2) The board may approve more than one carrier for each type of plan contracted for and offered but the number of carriers shall be held to a number consistent with adequate service to eligible employees and their family members.

      (3) Where appropriate for a contracted and offered health benefit plan, the board shall provide options under which an eligible employee may arrange coverage for family members.

      (4) Payroll deductions for such costs as are not payable by the state may be made upon receipt of a signed authorization from the employee indicating an election to participate in the plan or plans selected and the deduction of a certain sum from the employee’s pay.

      (5) In developing any health benefit plan, the board may provide an option of additional coverage for eligible employees and their family members at an additional cost or premium.

      (6) Transfer of enrollment from one plan to another shall be open to all eligible employees and their family members under rules adopted by the board. Because of the special problems that may arise in individual instances under comprehensive group practice plan coverage involving acceptable physician-patient relations between a particular panel of physicians and particular eligible employees and their family members, the board shall provide a procedure under which any eligible employee may apply at any time to substitute a health service benefit plan for participation in a comprehensive group practice benefit plan.

      (7) The board shall evaluate a benefit plan that serves a limited geographic region of this state according to the criteria described in subsection (1) of this section. [1971 c.527 §4; 1975 c.560 §2; 1977 c.313 §1; 1983 c.640 §3; 1997 c.222 §30; 2010 c.49 §1]

 

      243.140 Health benefit and dental plans for persons operating foster homes. (1) Persons whose homes are certified as a foster home by the Department of Human Services under ORS 418.630 and as defined in ORS 418.625 (3) may participate in a health benefit plan available to state employees pursuant to ORS 243.105 to 243.285 at the expense of the foster parent. For such purposes, foster parents shall be considered eligible employees.

      (2) A person who maintains a developmental disability child foster home that is certified by the department under ORS 443.830 and 443.835 may participate in a health benefit plan available to state employees pursuant to ORS 243.105 to 243.285 at the expense of the person. For such purposes, the person maintaining the home shall be considered an eligible employee.

      (3) Persons who participate in the health benefit plan pursuant to subsections (1) and (2) of this section may also participate in a dental plan available to state employees pursuant to ORS 243.105 to 243.285 at the expense of the foster parent or the person maintaining the developmental disability child foster home. [1989 c.550 §3; 1991 c.578 §1; 1997 c.222 §31; 1999 c.316 §8; 2001 c.900 §239]

 

      Note: 243.140 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      243.145 Board authority with respect to health benefit plans; termination of participation of state agency. (1) The Public Employees’ Benefit Board shall have authority to employ whatever means are reasonably necessary to carry out the purposes of ORS 243.105 to 243.285 and 292.051. Such authority shall include but is not limited to authority to self-insure and to seek clarification, amendment, modification, suspension or termination of any agreement or contract that in the board’s judgment requires such action.

      (2) Upon providing specific notice in writing to the carrier, the affected employee organization or organizations, the Oregon Health Authority and affected, eligible employees, and after affording opportunity for a public hearing upon the issues that may be involved, the board may enter an order withdrawing approval of any 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 any state agency if within three months the state agency fails to perform any action required by ORS 243.105 to 243.285 and 292.051 or by board rule. [1971 c.527 §5; 1997 c.222 §32; 2003 c.640 §2; 2011 c.720 §71]

 

      243.155 [1971 c.527 §6; 1975 c.667 §2; repealed by 1997 c.222 §54]

 

      243.157 [1985 c.224 §4; repealed by 1991 c.969 §7]

 

      243.160 Eligibility of retired state officer or employee to participate in dental benefit plan; rules. A retired state officer or employee is not required to participate in one of the group benefit plans described in ORS 243.135 in order to obtain dental benefit plan coverage. The Public Employees’ Benefit Board shall establish by rule standards of eligibility for retired officers or employees to participate in a dental benefit plan. [1981 c.773 §4; 1991 c.16 §1]

 

      243.163 Eligibility of former member of Legislative Assembly to participate in group benefit plan. A member of the Legislative Assembly who is receiving a pension or annuity under ORS 238.092 (1)(a) shall be eligible to participate as a retired state officer in one of the group benefit plans described in ORS 243.135 after the member ceases to be a member of the Legislative Assembly if the member applies to the Public Employees’ Benefit Board within 60 days after the member ceases to be a member of the Legislative Assembly. [1989 c.799 §16; 1997 c.222 §33]

 

      243.165 Public Employees’ Benefit Account; continuing appropriation to account. (1) There hereby is created in the General Fund an account to be known as the Public Employees’ Benefit Account, the balances of which are continuously appropriated to cover administrative expenses incurred in connection with the administration of ORS 243.105 to 243.285 and 292.051.

      (2) There hereby is appropriated to the Public Employees’ Benefit Account, subject to ORS 243.185, an amount not to exceed two percent of the monthly employer and employee contributions for any benefit available under ORS 243.105 to 243.285 and 292.051. [1971 c.527 §7; 1997 c.222 §34; 2001 c.655 §3]

 

      243.167 Public Employees’ Revolving Fund; continuing appropriation to fund. (1) There is created the Public Employees’ Revolving Fund, separate and distinct from the General Fund. The balances of the Public Employees’ Revolving Fund are continuously appropriated to cover expenses incurred in connection with the administration of ORS 243.105 to 243.285 and 292.051. Assets of the Public Employees’ Revolving Fund may be retained for limited periods of time as established by the Public Employees’ Benefit Board by rule. Among other purposes, the board may retain the funds to control expenditures, stabilize benefit premium rates and self-insure. The board may establish subaccounts within the Public Employees’ Revolving Fund.

      (2) There is appropriated to the Public Employees’ Revolving Fund all unused employer contributions for employee benefits and all refunds, dividends, unused premiums and other payments attributable to any employee contribution or employer contribution made from any carrier or contractor that has provided employee benefits administered by the board, and all interest earned on such moneys. [2001 c.655 §2; 2003 c.640 §3]

 

      Note: 243.167 was added to and made a part of 243.105 to 243.285 by legislative action but was not added to any other series. See Preface to Oregon Revised Statutes for further explanation.

 

      243.170 Contributions for job-share employees limited. When more than one individual shares a single position that is classified as a job-sharing position, the state shall contribute to obtain coverage for the individuals a total amount not greater than the amount that would be contributed to obtain coverage for one individual in the same position. The individuals shall receive credit for the state contribution in such proportions as they and the employer agree upon, and each individual who desires coverage shall make further contribution in such amounts as may be appropriate. [1997 c.222 §25]

 

      243.175 [1971 c.527 §8; 1973 c.225 §1; 1975 c.667 §3; 1977 c.570 §3; 1979 c.302 §1; repealed by 1997 c.222 §54]

 

      243.180 [1975 c.667 §5; 1977 c.570 §4; 1979 c.302 §2; 1979 c.538 §2; repealed by 1997 c.222 §54]

 

      243.182 [1981 c.93 §3; repealed by 1997 c.222 §54]

 

      243.185 Transfer of moneys from General Fund for payment of costs of health benefit plans. Subject to legislative or Emergency Board approval of budgetary authorization for operation of the Public Employees’ Benefit Board and its administration of the health benefit plans and other duties under ORS 243.105 to 243.285 and 292.051, an amount not to exceed two percent of the employer and employee contributions shall be forwarded by each payroll disbursing officer to the board and deposited by it in the State Treasury to the credit of the Public Employees’ Benefit Account to meet administrative and other costs authorized by ORS 243.105 to 243.285 and 292.051. The board shall take action to 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. [1971 c.527 §9; 1997 c.222 §35; 2001 c.655 §4]

 

      243.195 [1971 c.527 §10; repealed by 1997 c.222 §54]

 

      243.200 Participation of self-pay groups in benefit plans. (1)(a) The Public Employees’ Benefit Board may allow self-pay groups to participate in benefit plans available to eligible state employees, if the group meets a minimum participation level equal to 75 percent of the persons in the group.

      (b) Notwithstanding paragraph (a) of this subsection, the board may allow nurses or nurse educators who are employed less than half-time by a state agency or university and who are not otherwise eligible for a state contribution for benefits to participate in a self-pay group without any minimum participation level of persons in the group.

      (2) Nothing in subsection (1) of this section applies to:

      (a) Any person or group of persons similarly situated exempted by state or federal law from any minimum participation requirement; or

      (b) Any person or group of persons participating prior to January 1, 1992, in a benefit plan that was offered by the State Employes’ Benefit Board.

      (3) As used in subsection (1) of this section, “self-pay group” means a group of persons other than state employees for whom the state makes no contributions for benefit plans under ORS 243.105 to 243.285. [1991 c.577 §4; 1997 c.222 §36; 2009 c.186 §1]

 

      243.205 Reports. The payroll disbursing officer shall submit reports to the Public Employees’ Benefit Board regarding health care coverage for eligible or participating employees as the board considers desirable. [1971 c.527 §11; 1997 c.222 §37]

 

      243.215 Certain eligible employees permitted to receive state contributions for health benefit plans of their choice; rules. Any eligible employee unable to participate in one or more of the plans described in ORS 243.135 (1) solely because the employee is assigned to perform duties outside the state may be eligible to receive the monthly state contribution, less administrative expenses, as payment of all or part of the cost of a health benefit plan of choice, subject to the approval of the Public Employees’ Benefit Board and such rules as the board may adopt. [1971 c.527 §13]

 

      243.220 [1977 c.675 §1; renumbered 243.345]

 

(Miscellaneous)

 

      243.221 Options that may be offered under flexible benefit plan. (1) In addition to the powers and duties otherwise provided by law to provide employee benefits, the Public Employees’ Benefit Board may provide, administer and maintain flexible benefit plans under which eligible employees of this state 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 provided in ORS 243.125 and 243.135.

      (b) Other insurance benefits as provided in ORS 243.275.

      (c) Dependent care assistance as provided in ORS 243.550.

      (d) Expense reimbursement as provided in ORS 243.560.

      (e) Any other benefit that may be excluded from an employee’s gross income under the federal Internal Revenue Code.

      (f) Any part or all of the state contribution for employee benefits in cash to the employee.

      (3) In developing flexible benefit plans under this section, the board shall design the plan on the best basis possible with relation to the welfare of employees and to the state. [1989 c.804 §2; 1997 c.222 §38]

 

      243.223 Rules for flexible benefit plans; costs. (1) In providing flexible benefit plans under ORS 243.221, the Public Employees’ Benefit Board shall adopt rules as are considered necessary for the establishment and administration of the plans.

      (2) The board may assess a charge to participating employees to pay the cost of administering the plans and may pay some or all of such cost from funds authorized to pay general administrative expenses incurred by the board.

      (3) The board may contract with private organizations for administration of flexible benefit plans in accordance with rules adopted under subsection (1) of this section. [1989 c.804 §3; 1997 c.222 §39]

 

      243.225 [1977 c.675 §2; renumbered 243.350]

 

      243.230 [1979 c.469 §2; 1985 c.224 §5; 1987 c.158 §36; 1989 c.1006 §6; repealed by 1997 c.222 §54]

 

      243.232 [1983 c.266 §4; 1995 c.612 §16; repealed by 1997 c.222 §54]

 

      243.235 [1979 c.469 §3; 1989 c.1006 §1; repealed by 1997 c.222 §54]

 

      243.240 [1979 c.469 §5; repealed by 1997 c.222 §54]

 

      243.245 [1979 c.469 §6; repealed by 1997 c.222 §54]

 

      243.250 [1979 c.469 §7; repealed by 1997 c.222 §54]

 

      243.252 Payment of cost for employees or retirees. (1) The state may pay none of the cost of making health benefit plan coverage available to a retired state employee who is an eligible employee and to family members or may agree, by collective bargaining agreement or otherwise, to pay part or all of that cost.

      (2) Nothing in subsection (1) of this section or other law, except ORS 243.886, prohibits a collective bargaining unit from agreeing with an employer that is a public body, as defined in ORS 174.109, to establish a retiree medical trust, voluntary employees’ beneficiary association, health reimbursement arrangement or other agreement for health care expenses of employees or retirees if the provisions of the trust, association, arrangement or other agreement comply with the requirements of the Insurance Code. [1985 c.224 §7; 2009 c.467 §1]

 

      243.253 [1981 c.773 §2; repealed by 1997 c.222 §54]

 

      243.255 [1979 c.469 §8; repealed by 1997 c.222 §54]

 

      243.256 Reimbursement methodology for payment to hospitals. (1) A hospital that provides services or supplies under a benefit plan offered by the Public Employees’ Benefit Board shall be reimbursed using the methodology prescribed by the Oregon Health Authority under ORS 442.392 and may not be reimbursed for each service or supply provided.

      (2) This section applies to hospital payments made by a carrier under a contract with the board and to hospital payments made under a self-insurance program administered by a third party administrator on behalf of the board.

      (3) This section does not apply to reimbursements paid by a carrier or third party administrator to a hospital that is not subject to the methodology prescribed by the authority under ORS 442.392. [2011 c.418 §6]

 

      243.260 [1979 c.469 §9; repealed by 1997 c.222 §54]

 

      243.265 [1979 c.469 §10; repealed by 1997 c.222 §54]

 

      243.270 [1979 c.469 §11; repealed by 1997 c.222 §54]

 

      243.275 Additional benefit plans authorized; assessment for expenses. (1) In addition to contracting for health and dental benefit plans, the Public Employees’ Benefit Board may contract with carriers to provide at the expense of participating eligible employees and with or without state participation for coverage, including but not limited to, insurance or other benefit based on life, supplemental medical, supplemental dental, optical, accidental death or disability insurance plans.

      (2) The monthly contribution of each eligible employee for other benefit plan or plans coverage, as described in subsection (1) of this section, shall be the total cost per month of the benefit coverage afforded the employee under the plan or plans, for which the employee exercises an option, including the cost of enrollment of such eligible employees and administrative expenses therefor.

      (3) For any benefit plan or plans described in subsection (1) of this section in which the state participates, the monthly contribution of each eligible employee for the benefit plan, for which the employee exercises an option and there is state participation, shall be reduced by an amount equal to the portion thereof contributed by the state, including the cost of enrollment of the eligible employee and the administrative expenses therefor.

      (4) The board may withdraw approval of any such additional benefit plan coverage in the same manner as it withdraws approval of health benefit plans as described and authorized by ORS 243.145.

      (5) If any state agency contracts for any of the benefits described in subsection (1) of this section on behalf of any state employees, the administrative expenses thereof shall be paid by assessment of the participating employees. Such contracts are subject to approval of the board before they become operative. The board may withdraw approval for any such benefit in the same manner as it withdraws approval under ORS 243.145. [1979 c.469 §12; 1997 c.222 §40]

 

      243.280 [1979 c.469 §14; repealed by 1997 c.222 §54]

 

      243.285 Salary deductions; payment of moneys deducted. (1) Upon receipt of the request in writing of an eligible employee so to do, the payroll disbursing officer authorized to disburse funds in payment of the salary or wages of the eligible employee may deduct from the salary or wages of the employee an amount of money indicated in the request for payment of the applicable amount set forth in benefit plans selected by the employee or selected on the employee’s behalf for:

      (a) Group health and related services and supplies, including such insurance for family members of the eligible employee.

      (b) Group life insurance, including life insurance for family members of the eligible employee.

      (c) Group dental and related services and supplies, or any other remedial care recognized by state law and related services and supplies, recognized under state law, including such insurance for family members of the eligible employee.

      (d) Group indemnity insurance for accidental death and dismemberment and for loss of income due to accident, sickness or other disability, including such insurance for family members of the eligible employee.

      (e) Other benefits, including self-insurance programs, that are approved and provided by the Public Employees’ Benefit Board.

      (2) Moneys deducted under subsection (1) of this section shall be paid over promptly:

      (a) To the carriers or persons responsible for payment of premiums to carriers, in accordance with the terms of the contracts made by the eligible employees or on their behalf; or

      (b) With respect to self-insurance benefits, in accordance with rules, procedures and directions of the Public Employees’ Benefit Board. [1979 c.469 §13; 1997 c.222 §41; 2003 c.640 §4]

 

      243.290 [1979 c.469 §15; repealed by 1997 c.222 §54]

 

(Long Term Care Insurance)

 

      243.291 Plan eligibility; costs to be paid by participants; fees. (1) The Public Employees’ Benefit Board shall make available one or more fully insured long term care insurance plans. The plans shall be made available to eligible employees, retired employees and family members. Notwithstanding ORS 243.105, for purposes of this subsection, “family members” includes family members as defined by the board and also includes the parents of the employee or retiree and the parents of the spouse of the employee or retiree.

      (2) Employees of local governments and employees of political subdivisions may participate in the plans under terms and conditions established by the board, if it does not jeopardize the financial viability of the board’s long term care insurance plans. However, unless the local government or political subdivision provides otherwise, the employee’s participation is a personal action of the employee and does not obligate the local government or political subdivision to pay for the provision of benefits under this subsection.

      (3) Participation of eligible employees or retired employees in any long term care insurance plan made available by the board is voluntary and is subject to reasonable underwriting guidelines and eligibility rules established by the board.

      (4) The employee or retired employee is solely responsible for the payment of the long term care premium rates developed by the board. The board is authorized to charge a reasonable administrative fee, in addition to the premium charged by the long term care insurer, to cover the cost of administration and consumer education materials. [1997 c.757 §1; 1999 c.59 §60]

 

      Note: 243.291 and 243.296 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

      243.295 [1979 c.469 §16; repealed by 1997 c.222 §54]

 

      243.296 Board to develop method to make plan available; education program. (1) The Public Employees’ Benefit Board shall develop effective and cost-effective ways to make the long term care insurance plans described under ORS 243.291 available.

      (2) The board, in consultation with the Public Employees Retirement System, shall develop long term care insurance plan design, eligibility rules, underwriting principles and educational materials in order to:

      (a) Allow eligible employees to continue to participate in the plans after retirement; and

      (b) Allow former eligible employees to enroll in the plans after retirement.

      (3) The board’s education program for the eligible employees and retired 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 insurance plans offered by the board. [1997 c.757 §2]

 

      Note: See note under 243.291.

 

      243.300 [1979 c.469 §17; repealed by 1997 c.222 §54]

 

(Retirees)

 

      243.302 Grouping retired and nonretired employees for health insurance coverage. The Public Employees’ Benefit Board may group retired state employees and state employees who are not retired for the purpose of entering into contracts for health insurance coverage. [1991 c.969 §1; 1997 c.222 §42]

 

      Note: 243.302 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

LOCAL GOVERNMENT HEALTH COVERAGE CONTRACTS

 

      243.303 Local government authority to make health care insurance coverage available to retired officers and employees, spouses and children. (1) As used in this section:

      (a) “Health care” means medical, surgical, hospital or any other remedial care recognized by state law and related services and supplies and includes comparable benefits for persons who rely on spiritual means of healing.

      (b) “Local government” means any city, county, school district or other special district in this state.

      (c) “Retired employee” means a former officer or employee of a local government who is retired for service or disability, and who received or is receiving retirement benefits, under the Public Employees Retirement System or any other retirement system or plan applicable to officers and employees of the local government.

      (2) The governing body of any local government that contracts for or otherwise makes available health care insurance coverage for officers and employees of the local government shall, insofar as and to the extent possible, make that coverage available for any retired employee of the local government who elects within 60 days after the effective date of retirement to participate in that coverage and, at the option of the retired employee, for the spouse of the retired employee and any unmarried children under 18 years of age. The health care insurance coverage shall be made available for a retired employee until the retired employee becomes eligible for federal Medicare coverage, for the spouse of a retired employee until the spouse becomes eligible for federal Medicare coverage and for a child until the child arrives at majority, and may, but need not, be made available thereafter. The governing body may prescribe reasonable terms and conditions of eligibility and coverage, not inconsistent with this section, for making the health care insurance coverage available. The local government may pay none of the cost of making that coverage available or may agree, by collective bargaining agreement or otherwise, to pay part or all of that cost.

      (3) A local government and a health care insurer may not create a group solely for the purpose of rating or of establishing a premium for health care insurance coverage of retired employees and their dependents that is separate from the group for health care insurance coverage of officers and employees of the local government and their dependents. Nothing in this subsection prevents a local government from allocating rates or premiums differently among retired employees and their dependents and officers and employees of the local government and their dependents once the rating or premium is established. [1981 c.240 §1; 1985 c.224 §1; 2001 c.604 §1; 2003 c.62 §1; 2003 c.694 §1]

 

      Note: 243.303 was enacted into law by the Legislative Assembly but was not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

AFFIRMATIVE ACTION

 

      243.305 Policy of affirmative action and fair and equal employment opportunities and advancement. (1) It is declared to be the public policy of Oregon that all branches of state government shall be leaders among employing entities within the state in providing to its citizens and employees, through a program of affirmative action, fair and equal opportunities for employment and advancement in programs and services and in the awarding of contracts.

      (2) “Affirmative action” means a method of eliminating the effects of past and present discrimination, intended or unintended, on the basis of race, religion, national origin, age, sex, marital status or physical or mental disabilities. [1975 c.529 §1; 1981 c.436 §1; 1989 c.224 §35]

 

      243.315 Director of Affirmative Action; duties; appointment; confirmation; legislative and judicial branches to monitor own programs. (1) There is hereby created in the office of the Governor the position of Director of Affirmative Action. The primary duty of the occupant of this position shall be to direct and monitor affirmative action programs in all state agencies to implement the public policy stated in ORS 243.305. The director shall be appointed by the Governor, subject to confirmation by the Senate pursuant to section 4, Article III of the Oregon Constitution.

      (2) The legislative and judicial branches shall each select a person to monitor the effectiveness of the branches’ affirmative action programs. [1975 c.529 §2; 1981 c.436 §2]

 

LEAVES OF ABSENCE FOR ATHLETIC COMPETITION

 

      243.325 “Public employee” defined. For the purposes of this section and ORS 243.330 and 243.335, “public employee” means officers or employees, classified, unclassified, exempt and nonexempt, of:

      (1) State agencies.

      (2) Community colleges.

      (3) School districts and education service districts.

      (4) County governments.

      (5) City governments.

      (6) Districts as defined in ORS 255.012 and any other special district. [1979 c.830 §1; 1997 c.249 §73; 2001 c.104 §74]

 

      243.330 Leaves of absence for athletic competition; requirements; maximum period; reinstatement. (1) To encourage amateur athletic competition at the world level, state agencies and political subdivisions described in ORS 243.325 (2) to (6) may grant leaves of absence on request to any public employee who participates in world, Pan American or Olympic events as a group leader, coach, official or athlete of a United States amateur team for the purpose of preparing for and engaging in the competition and preliminary competitions.

      (2) The leave shall be with regular pay and benefits for periods of official training camps and competitions. Paid leave shall not exceed 90 days per calendar year.

      (3) Upon expiration of the leave, the public employee shall have the right to be reinstated to the position held before the leave was granted and at the salary rates prevailing for such positions on the date of resumption of duty without loss of seniority or other employment rights. Failure of the employee to report within 30 days after termination of official competition shall be cause for dismissal.

      (4) In order to be eligible for the benefits authorized by ORS 243.325 to 243.335, the public employee shall be a resident of this state for a period of not less than five years and shall have been a public employee of the particular employer for a period of not less than one year prior to being granted the leave. [1979 c.830 §2]

 

      243.335 Reimbursement to public employer. Public employees eligible for the benefits authorized by ORS 243.325 to 243.335 are obligated to reimburse the employer in full through monetary payment, with no interest charge, or through hours worked equivalent to the number of hours spent on athletic leave, or a combination of both. Full reimbursement shall be accomplished at a time not later than 10 years following the last day the employee received benefits under ORS 243.325 to 243.335. [1979 c.830 §3; 1997 c.249 §74]

 

SMOKING IN STATE OFFICES

 

      243.345 Smoking in places of state employment; policy statement. The Legislative Assembly finds that because the smoking of tobacco creates a health hazard, it is necessary to protect the public health by restricting smoking in places of employment operated by the State of Oregon. [Formerly 243.220]

 

      243.350 Personnel Division rules restricting smoking in places of state employment. (1) In accordance with the provisions of ORS chapter 183, the Personnel Division shall adopt rules restricting smoking in places of employment operated by departments or agencies of the State of Oregon. The rules of the division shall:

      (a) Set standards for the designation of areas in a place of employment where smoking is permitted, including standards for ventilation and physical barriers.

      (b) Require departments or agencies to designate areas in the place of employment where smoking is permitted pursuant to the standards of the division.

      (c) Require departments or agencies supplying employees with lounges to provide smoke-free lounge areas for nonsmoking employees.

      (d) Prohibit smoking in a place of employment in any area not designated as an area where smoking is permitted.

      (2) The rules adopted by the division pursuant to subsection (1) of this section shall not apply to enclosed offices occupied exclusively by smokers, even though the offices may be visited by nonsmokers.

      (3) Nothing in this section is intended to prevent departments or agencies from prohibiting smoking in the entire area of the place of employment. [Formerly 243.225]

 

DEFERRED COMPENSATION PLANS

 

(Definitions)

 

      243.400 [1977 c.721 §2; 1979 c.468 §31; 1991 c.618 §1; repealed by 1997 c.179 §1 (243.401 enacted in lieu of 243.400)]

 

      243.401 Definitions for ORS 243.401 to 243.507. As used in ORS 243.401 to 243.507:

      (1) “Board” means the Public Employees Retirement Board described in ORS 238.630.

      (2) “Council” means the Oregon Investment Council created by ORS 293.706.

      (3) “Deferred compensation contract” means a written agreement entered into by the state and an eligible state employee under the provisions of ORS 243.440.

      (4) “Deferred compensation investment program” means the program established by the Oregon Investment Council under ORS 243.421, for investment of assets of the Deferred Compensation Fund.

      (5) “Deferred compensation plan” means a plan established by the state or a local government for the deferral of compensation payable to employees of the state or local government and for the deferral of income taxation on that compensation.

      (6) “Eligible state employee” means an officer or employee of a state board, commission, department or other instrumentality of state government, including, but not limited to, all officers and employees of the executive, judicial and legislative branches of state government, but excluding:

      (a) Persons engaged as independent contractors, except as otherwise specifically allowed by statute;

      (b) Persons who are employed in emergency work and whose periods of employment are on an intermittent or irregular basis; and

      (c) Persons who are provided sheltered employment or make-work by the state in an employment or industries program maintained for the benefit of such individuals.

      (7) “Fund” means the Deferred Compensation Fund established under ORS 243.411.

      (8) “Local government” means a city, county, municipal or public corporation, any political subdivision of the state or any instrumentality thereof, or an agency created by two or more such political subdivisions to provide themselves governmental services.

      (9) “Local government deferred compensation plan” means a deferred compensation plan that is established and administered by a local government.

      (10) “Local plan participant” means a person participating in a local government deferred compensation plan.

      (11) “Participating local government” means a local government that invests all or part of the assets of the deferred compensation plan established by the local government through the deferred compensation investment program.

      (12) “State deferred compensation plan” means the deferred compensation plan described in ORS 243.435 for eligible state employees.

      (13) “State plan participant” means a person participating in the state deferred compensation plan, either through current or past deferrals of compensation.

      (14) “System” means the Public Employees Retirement System established in ORS 238.600. [1997 c.179 §2 (enacted in lieu of 243.400)]

 

      243.410 [1977 c.721 §3; 1983 c.789 §1; 1991 c.618 §2; repealed by 1997 c.179 §36]

 

(Deferred Compensation Fund)

 

      243.411 Deferred Compensation Fund. (1) The Deferred Compensation Fund is created, separate and distinct from the General Fund, for the purpose of holding and investing assets of the state deferred compensation plan and the assets of the deferred compensation plans of participating local governments. Interest and any other earnings of the Deferred Compensation Fund shall be credited to the fund. Moneys in the fund may be used only for the purposes of implementing and administering ORS 243.401 to 243.507.

      (2) Subject to rules adopted by the Public Employees Retirement Board under ORS 243.470, the assets of the Deferred Compensation Fund may be commingled with the assets of the Public Employees Retirement Fund for investment purposes in a group trust or by other means.

      (3) The limitations imposed on the use of the Deferred Compensation Fund by subsection (1) of this section do not affect any law of this state that authorizes the manner in which moneys in the fund may be invested. [1997 c.179 §3]

 

      243.416 State Treasurer as fund custodian; administration. The Deferred Compensation Fund shall be held by the State Treasurer, who shall be custodian of the fund. Another person may be appointed as custodian of the fund if the State Treasurer and the Public Employees Retirement Board agree to the appointment. On request from the Director of the Public Employees Retirement System or the director’s designee, the Oregon Department of Administrative Services shall draw warrants and issue payments on the Deferred Compensation Fund for the payment of benefits, the payment of expenses incurred by the system in the administration of ORS 243.401 to ORS 243.507, and the payment of refunds or other amounts that by reason of excessive contributions or other error are owed to state plan participants or local plan participants or the beneficiaries of those participants. [1997 c.179 §4]

 

      243.420 [1977 c.721 §10; 1983 c.789 §2; repealed by 1991 c.618 §20]

 

      243.421 Investment program for fund; securities law not applicable. (1) The Oregon Investment Council shall establish a program for investment of moneys in the Deferred Compensation Fund. The program shall include policies and procedures for the investment of moneys in the fund. The program and all investments of moneys under the program are subject to the provisions of ORS 293.701 to 293.820.

      (2) The council shall provide to the Public Employees Retirement Board a description of the investment options set forth in the council’s policies and procedures for the investment of moneys in the fund, the applicable benchmark for each option and a description of the characteristics of each benchmark.

      (3) The provisions of ORS chapter 59 that require registration of securities do not apply to any share, participation or other interest in the state deferred compensation plan or in the Deferred Compensation Fund. The provisions of ORS chapter 59 requiring licensing of certain persons as broker-dealers or as investment advisors do not apply to any of the following persons or entities for the purposes of implementing and administering the deferred compensation investment program established under this section:

      (a) The council.

      (b) The Public Employees Retirement Board.

      (c) The Public Employees Retirement System.

      (d) The State Treasurer.

      (e) Any officer or employee of the persons or entities described in paragraphs (a) to (d) of this subsection. [1997 c.179 §5; 2011 c.9 §29]

 

      243.426 Accounts; use for administrative expenses. On request from the Public Employees Retirement Board, the State Treasurer shall establish all accounts in the Deferred Compensation Fund that are necessary to administer the provisions of ORS 243.401 to 243.507. The accounts shall be established and maintained with the charges assessed under ORS 243.472 against the account balances of the state plan participants and the funds invested by participating local governments. The moneys held in the accounts established by the board may be used only for payment of the administrative expenses incurred by the system, the State Treasurer and the Oregon Investment Council in administering the provisions of ORS 243.401 to 243.507. [1997 c.179 §6]

 

      243.428 Forfeited payments; use of moneys. (1) If a warrant, check or order is issued for the payment of a deferred compensation benefit under the state deferred compensation plan, or for payment of a refund under the state deferred compensation plan, and the warrant, check or order is canceled, declared void or otherwise made unpayable, the payment shall be forfeited and the amount of the payment shall be returned or credited to the Deferred Compensation Fund. The amount forfeited may be used for the payment of administrative expenses of the state deferred compensation plan. Any amounts forfeited under this section shall be restored to the fund and paid to the payee, without interest, if the payee is located and files a claim for the benefit. The amount so paid shall be restored from other forfeited amounts or paid as an administrative expense of the state deferred compensation plan. The Public Employees Retirement Board may reissue the warrant, check or order for payment without bond if the payee is located after the warrant, check or order is canceled, declared void or otherwise made unpayable. Benefit payments forfeited under this subsection are not subject to ORS 98.302 to 98.436.

      (2) The amount of any warrant, check or order for the payment of employee benefit withdrawals or refunds under a local government deferred compensation plan that is canceled, declared void or otherwise made unpayable shall be credited to the account of the applicable local government deferred compensation plan held in the Deferred Compensation Fund. The state shall not be liable under this subsection to a payee, or to a payee’s beneficiaries, in the event a warrant, check or order for payment is not reissued to the payee or the payee’s beneficiaries. [1997 c.179 §7]

 

      243.430 [1977 c.721 §4; 1985 c.256 §1; 1985 c.690 §1; 1991 c.618 §3; repealed by 1997 c.179 §36]

 

(State Deferred Compensation Plan)

 

      243.435 Plan contents; assets held in trust; use of moneys; recovery of overpayments; assignment of benefits prohibited. (1) The Public Employees Retirement Board shall administer the state deferred compensation plan described in ORS 243.401 to 243.507 on behalf of the state for the benefit of eligible state employees.

      (2) All assets of the state deferred compensation plan are held in trust for the exclusive benefit of the state plan participants and their beneficiaries. Except as otherwise provided by law, the Public Employees Retirement Board is declared to be the trustee of the assets of the state deferred compensation plan.

      (3) The State of Oregon has no proprietary interest in the assets of the state deferred compensation plan or in payments of deferred compensation made to the plan by state plan participants. The state disclaims any right to reclaim payments made to the plan and waives any right of reclamation the state may have to the plan assets. This subsection does not limit the ability of the board to alter or refund an erroneously made employer payment.

      (4) All moneys paid into the plan shall be deposited into the Deferred Compensation Fund.

      (5) The assets of the state deferred compensation plan that are held in the Deferred Compensation Fund may be used only for the payment of benefits under the plan and for payment of expenses or refund liabilities incurred by the system in administration of the state deferred compensation plan.

      (6) If the board determines that a state plan participant or any other person has received any amount in excess of the amounts that the participant or other person is entitled to receive under ORS 243.401 to 243.507, the board may recover the overpayment or other improperly paid amount in the same manner as provided for the recovery of overpayments from the Public Employees Retirement Fund under ORS 238.715.

      (7) A state plan participant may not assign, anticipate, alienate, sell, transfer, pledge or in any way encumber any of the rights a participant may have under the state deferred compensation plan, and the state shall reject and refuse to honor any such purported action with respect to those rights. [1997 c.179 §8]

 

      243.440 Salary reduction for deferred compensation plan; amount; payment. (1) The state and an eligible state employee may enter into a written deferred compensation contract that provides that a specified portion of the compensation payable to the employee for services rendered by the employee will not be paid or otherwise made available at the time the services are rendered but instead will be paid or otherwise made available at some future date. The deferred compensation contract must specify the amount by which the employee’s compensation will be reduced each month for the purpose of funding the deferred compensation benefit for the employee. The amount of the reduction may not be less than $25 per month and may not exceed the maximum amount allowable under rules adopted by the Public Employees Retirement Board under ORS 243.470.

      (2) The state officer or official authorized to disburse moneys in payment of salaries and wages of employees is authorized, upon written request of an eligible state employee, to reduce each month the salary of the eligible state employee by an amount of money designated by that employee in the employee’s deferred compensation contract. The state officer or official may pay that amount to the Public Employees Retirement System for deposit in the Deferred Compensation Fund. [1977 c.721 §5; 1983 c.789 §3; 1991 c.618 §4; 1997 c.179 §9]

 

      243.445 Employee choice of plans; choice not binding; change in value of employee assets not to affect net worth of state. (1) When an eligible state employee agrees to participate in the state deferred compensation plan under ORS 243.401 to 243.507, the employee may indicate a preference with respect to the mode of investment or deposit to be used by the state in investing or depositing the deferred income under the plan. The preference indicated by the employee is not binding on the state.

      (2) Any change in the net value of the assets of an eligible state employee invested under the state deferred compensation plan shall result in a commensurate change in the total amount distributable to the employee or the beneficiary of the employee, and shall not result in any increase or decrease in the net worth of the state. [1977 c.721 §11; 1983 c.789 §4; 1991 c.618 §5; 1997 c.179 §10]

 

      243.450 Disclosure statement; contents. The Public Employees Retirement System shall give each eligible state employee who enters into a deferred compensation contract under the state deferred compensation plan, prior to the deferral of any part of that employee’s salary, a disclosure statement in writing that contains information regarding the options available under the plan for the investment of deferred compensation, including the probable income and probable safety of the moneys deferred, that persons of reasonable prudence and discretion require when determining the permanent disposition of their funds. [1977 c.721 §12; 1991 c.618 §6; 1997 c.179 §11]

 

      243.460 Effect of deferred compensation on current taxable income and on retirement programs. (1) The amount by which an eligible state employee’s salary is reduced under ORS 243.440 shall continue to be included as regular compensation for the purpose of computing the retirement, pension and Social Security benefits earned by the employee. If the amount is deferred on a pretax basis, the amount shall not be considered current taxable income for the purpose of computing federal and state income taxes withheld on behalf of the employee.

      (2) The state deferred compensation plan established by ORS 243.401 to 243.507 supplements all other retirement and pension systems established by the State of Oregon, and participation by an eligible state employee in the state deferred compensation plan shall not cause a reduction of any retirement or pension benefits provided to the employee by law. [1977 c.721 §6; 1997 c.179 §12; 2011 c.722 §18]

 

      243.462 Option to defer compensation on after-tax basis. (1) The Public Employees Retirement Board may allow an eligible state employee who is participating in the state deferred compensation plan to defer compensation on an after-tax basis. The board shall establish a separate account for each employee that defers compensation on an after-tax basis, and maintain separate records for those accounts.

      (2) The Public Employees Retirement Board may allow an eligible state employee who is participating in the state deferred compensation plan to convert compensation that was deferred on a pretax basis to compensation that is deferred on an after-tax basis to the extent allowed by federal law and subject to any requirements of federal law for the conversion. [2011 c.722 §17]

 

      243.465 Rollover distribution of deferred amounts to beneficiary. (1) If a benefit is payable under the state deferred compensation plan described in ORS 243.401 to 243.507 to a beneficiary by reason of the death of an eligible state employee participating in the plan, the beneficiary may elect to have all or part of the distribution of deferred amounts paid as an eligible rollover distribution to an individual retirement plan described in 26 U.S.C. 408(a), or an individual retirement annuity, other than an endowment contract, described in 26 U.S.C. 408(b), if the plan or annuity is established for the purpose of receiving the eligible rollover distribution on behalf of the designated beneficiary.

      (2) Subsection (1) of this section applies to an eligible rollover distribution of deferred amounts to a beneficiary who is not treated as the spouse of the decedent for federal tax purposes and who is the decedent’s designated beneficiary for the purposes of the minimum required distribution requirements of 26 U.S.C. 401(a)(9). To the extent provided by rules of the Public Employees Retirement Board, a trust maintained for the benefit of one or more beneficiaries must be treated by the board in the same manner as a trust that is designated as a beneficiary for the purposes of the minimum required distribution requirements of 26 U.S.C. 401(a)(9).

      (3) As used in this section, “eligible rollover distribution” has the meaning given that term in 26 U.S.C. 402(c)(4), as in effect on January 1, 2008. [2007 c.628 §8]

 

      243.470 Administration of deferred compensation program; rules. (1) Subject to ORS chapter 183, the Public Employees Retirement Board may adopt rules necessary to implement the provisions of ORS 243.401 to 243.507 and determine the terms and conditions of eligible state employee participation and coverage. Rules adopted by the board under this subsection shall establish the terms and conditions of deferred compensation contracts for eligible state employees.

      (2) The Public Employees Retirement System shall adopt forms and maintain accounts and records necessary and appropriate to the efficient administration of ORS 243.401 to 243.507 or which may be required by agencies of the State of Oregon or the United States.

      (3) The board shall adopt rules and take all actions necessary to maintain compliance of the state deferred compensation plan with requirements for governmental deferred compensation plans imposed by the Internal Revenue Code and by regulations adopted pursuant to the Internal Revenue Code.

      (4) The Public Employees Retirement System may contract with a private corporation or institution able and qualified to provide consolidated billing services, state plan participant enrollment services, educational services, state plan participant accounts, data processing, record keeping and other related services that are necessary or appropriate to the administration of the state deferred compensation plan under ORS 243.401 to 243.507. [1977 c.721 §8; 1983 c.789 §5; 1991 c.618 §7; 1997 c.179 §13]

 

      243.472 Costs of plan administration assessed against participants; apportionment of expenses; expenses not board budgeted items. (1) ORS 243.401 to 243.507 shall be implemented and administered by the Public Employees Retirement Board so that no expense is incurred by the State of Oregon or the Public Employees Retirement Fund and so that the State of Oregon and the Public Employees Retirement System incur no liabilities other than those liabilities that may be imposed under ORS 243.401 to 243.507 or other law. In addition to the amounts that may be deducted by the State Treasurer pursuant to ORS 293.718, the Public Employees Retirement System may assess a charge against the accounts of state plan participants in the Deferred Compensation Fund. The charge may not exceed two percent of the balances of those accounts. Funds collected pursuant to the charge are continuously appropriated for and shall be used only to cover the costs incurred by the system to administer the state deferred compensation plan, to issue refunds and to pay costs incurred in investing the plan assets.

      (2) For the purpose of implementing and administering the provisions of ORS 243.401 to 243.507, including implementation and administration of service agreements entered into with local governments under ORS 243.478, the Public Employees Retirement Board may designate fiscal periods. The board may apportion extraordinary expenses incurred during any fiscal period, including but not limited to expenses for equipment and actuarial studies, to subsequent fiscal periods for purposes of equitably distributing the burden of the expenses. The board may carry forward unexpended fees collected in one fiscal period to a later fiscal period for the payment of future expenses.

      (3) In the event the assessment provided for in subsection (1) of this section is inadequate to meet the administrative expenses incurred by the system for the state deferred compensation plan, and these expenses are not carried over to another fiscal period, the excess expenses may be paid by an additional one-time assessment against the account balances of state plan participants in the Deferred Compensation Fund. The additional assessment shall be in an amount determined by the Public Employees Retirement Board to be sufficient to pay the excess expenses in the fiscal period in which the assessment is made. The one-time assessment is in addition to the regular assessment provided for in subsection (1) of this section.

      (4) Deferred compensation benefit payments, and amounts payable as refunds, shall not for any purpose be deemed expenses of the board and shall not be included in its biennial departmental budget. [1997 c.179 §14; 2001 c.716 §23]

 

(Local Government Deferred Compensation Plans)

 

      243.474 Investment of local government plan assets through investment program; agreement with Public Employees Retirement System; charges against participants. (1) A local government that establishes a deferred compensation plan may invest all or part of the plan’s assets through the deferred compensation investment program established by the Oregon Investment Council under ORS 243.421. Plan assets of a local government deferred compensation plan invested through the deferred compensation investment program are not subject to the limitations on investment imposed by ORS 294.033 and 294.035. Local governments that invest through the deferred compensation investment program are subject to the policies and procedures established by the council for the administration of the program.

      (2) A local government that wishes to become a participating local government pursuant to this section must enter into a written agreement with the Public Employees Retirement System. The agreement must set forth the terms of the investment and the record keeping and related services to be performed by the system for the invested funds. The Public Employees Retirement Board may require that the local government enter into a service agreement under ORS 243.478 as a condition of an agreement under this subsection. If the local government and the system cannot reach an agreement under the provisions of this subsection, the local government may not become a participating local government.

      (3) All funds invested by the council for a participating local government must be accounted for separately. Investment of funds under this section must be implemented and administered so that the State of Oregon incurs no expense or liability other than those liabilities that may be imposed under ORS 243.401 to 243.507 or other law.

      (4) In addition to those amounts that may be deducted by the State Treasurer pursuant to ORS 293.718, the system may assess a charge against the total account balances of all participating local governments that is sufficient to reimburse the system for any additional costs of investing funds for participating local governments. The Public Employees Retirement Board shall not act as a trustee or be considered the trustee of any trust established by a local government deferred compensation plan.

      (5) The terms of the agreement provided for in subsection (2) of this section shall govern the nature and extent of the information that must be provided to local government officers and employees about the investment of deferred compensation through the deferred compensation investment program. [1997 c.179 §15]

 

      243.476 Compliance with federal requirements. (1) As a condition of allowing a local government to become a participating local government, and at any time thereafter, the Oregon Investment Council, the Public Employees Retirement Board or the Director of the Public Employees Retirement System may require that the local government provide proof that the local government deferred compensation plan complies with the provisions of section 457 of the Internal Revenue Code, as amended, that apply to governmental plans, including but not limited to any required declaration of trust related to plan assets and appointment of a trustee. The council, board or director may require an opinion of counsel or other assurance satisfactory to the council, board or director that participation of a local government deferred compensation plan in the deferred compensation investment program does not cause the State of Oregon, its agencies or employees to violate any federal or state laws or regulations related to investments and securities.

      (2) Participating local governments shall take all actions that the Oregon Investment Council, the Public Employees Retirement Board or the Director of the Public Employees Retirement System, in their discretion, deem necessary for compliance by the deferred compensation investment program with all applicable federal and state laws or for qualification of the program for any exemptions from regulation available under those laws, including but not limited to the federal Securities Act of 1933, as amended, the Investment Company Act of 1940, as amended, and ORS chapter 59. [1997 c.179 §16; 2011 c.9 §30]

 

      243.478 Plan administration agreements; costs. (1) A participating local government and the Public Employees Retirement System may enter into a written agreement for the system to provide consolidated billing services, participant enrollment services, participant accounts, data processing, record keeping and other related services that are necessary or appropriate to the administration of the local government deferred compensation plan. The agreement may provide that the services be provided directly by the system or through contracts with other providers.

      (2) Agreements under this section must require that the participating local government remain the responsible administrator for the local government deferred compensation plan. The agreement may provide any additional terms and conditions that the system determines necessary for the purposes of offering the services described in subsection (1) of this section to local government deferred compensation plans, including proof of compliance under ORS 243.476. The system may require that participating local governments that enter into agreements with the system under this section have uniform provisions on plan administration and record keeping.

      (3) The system may assess a charge, in an amount to be determined by the system, against the total account balances in the Deferred Compensation Fund of all local governments that have entered into service agreements under this section. The charge imposed under this subsection is in addition to any charges that may be assessed against local governments by the system under ORS 243.474 or deducted by the State Treasurer under ORS 293.718.

      (4) In the event the assessment provided for in subsection (3) of this section is inadequate to meet the administrative expenses incurred by the system for local government deferred compensation plans during a fiscal period, and the expenses are not carried over to another fiscal period pursuant to ORS 243.472 (2), the excess expenses may be paid by an additional one-time assessment against the account balances in the Deferred Compensation Fund of participating local governments that have entered into service agreements under this section. [1997 c.179 §17]

 

      243.480 [1977 c.721 §9; 1983 c.789 §6; repealed by 1991 c.618 §20]

 

(Immunities)

 

      243.482 Immunity of governmental agencies from liability for plan administration or investment of funds. (1) A civil action for damages may not be brought against the state, the State Treasurer, the Oregon Investment Council, the Public Employees Retirement Board, or the officers or employees of the board by reason of:

      (a) A breach of any duty in administering or investing of funds in the Deferred Compensation Fund;

      (b) A breach of any duty in administering or investing of the funds of participating local governments; or

      (c) Any losses suffered by a state plan participant or local plan participant or the beneficiaries of those participants because of the participant’s choice of an investment option available through the deferred compensation investment program established under ORS 243.421.

      (2) Any claim that the council, the board, the State Treasurer or the system, or any of their officers or employees, violated federal or state securities laws, including antifraud provisions, in the implementation or administration of ORS 243.401 to 243.507 is subject to the provisions of ORS 30.260 to 30.300. With respect to such claims, the state shall defend, save harmless and indemnify the State Treasurer, the system, members of the council, the board, and their officers and employees, as provided for other torts under the provisions of ORS 30.260 to 30.300.

      (3) The limitations on liability established by this section do not include an exemption from any liability that may be imposed under the provisions of ORS chapter 59. Except to the extent that the state deferred compensation plan and the deferred compensation investment program are exempted from registration and licensing requirements under ORS 243.421, ORS chapter 59 applies to the administration and investment of the Deferred Compensation Fund, the state deferred compensation plan, local government deferred compensation plans and the deferred compensation investment program. [1997 c.179 §18; 2011 c.9 §31]

 

      243.490 [1977 c.721 §7; repealed by 1997 c.179 §36]

 

      243.495 [1977 c.721 §13; 1983 c.789 §7; 1991 c.618 §8; repealed by 1997 c.179 §36]

 

(Deferred Compensation Advisory Committee)

 

      243.505 Deferred Compensation Advisory Committee. (1) The Deferred Compensation Advisory Committee shall be appointed by the Public Employees Retirement Board, consisting of seven members with knowledge of deferred compensation plans.

      (2) At the direction of the board, the committee shall advise the Public Employees Retirement Board on policies and procedures and such other matters as the board may request.

      (3) The term of office of each member is three years, but a member serves at the pleasure of the board. Before the expiration of the term of a member, the board shall appoint a successor whose term begins on July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the board shall make an appointment to become immediately effective for the unexpired term.

      (4) A member of the Deferred Compensation Advisory Committee is entitled to compensation and expenses as provided in ORS 292.495.

      (5) The Deferred Compensation Advisory Committee 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 committee determines.

      (6) A majority of the members of the committee constitutes a quorum for the transaction of business.

      (7) The Deferred Compensation Advisory Committee may meet at a place, day and hour determined by the committee. The committee also may meet at other times and places specified by the call of the chairperson or of a majority of the members of the committee. [1991 c.618 §10; 1997 c.179 §19; 1999 c.406 §1]

 

(Payment of Deferred Compensation to Alternate Payee)

 

      243.507 Payment of deferred compensation to alternate payee under judgment or order; procedure; compliance with state and federal requirements; administrative expenses; limitations; rules. (1) Notwithstanding any other provision of law, deferred compensation under a deferred compensation plan that would otherwise be paid by a public employer to an eligible employee shall be paid, in whole or in part, to an alternate payee if and to the extent expressly provided for in the terms of any judgment of annulment or dissolution of marriage or of separation, or the terms of any court order or court-approved property settlement agreement incident to any judgment of annulment or dissolution of marriage or of separation. Any payment under this subsection to an alternate payee bars recovery by any other person.

      (2) A judgment, order or agreement providing for payment to an alternate payee under subsection (1) of this section may also provide:

      (a) That payments to the alternate payee may commence earlier than the date the employee would be eligible to receive payments under the provisions of the deferred compensation plan.

      (b) That the alternate payee may elect to receive payment in any manner available to the employee under the deferred compensation plan, without regard to the form of payment elected by the employee.

      (c) That the alternate payee’s life is the measuring life for the purposes of measuring payments to the alternate payee under the form of payment selected by the alternate payee.

      (d) That all or a portion of the deferred compensation account of the eligible employee be segregated in an account in the name of and for the benefit of the alternate payee, and that the alternate payee have the same rights and privileges as an eligible employee only concerning the investment or deposit of funds under the deferred compensation plan.

      (3) Subsection (1) of this section applies only to payments of deferred compensation made after the date of receipt by the administrator of the deferred compensation plan of written notice of the judgment, order or agreement and such additional information and documentation as the plan administrator may prescribe.

      (4)(a) Payment of all or any part of deferred compensation to an alternate payee who is a child or dependent of the employee shall be reported for state and federal income tax purposes as payment to the eligible employee. Any amount required to be withheld for state or federal income tax purposes shall be withheld from the payment to the alternate payee.

      (b) Payment of all or any part of deferred compensation to an alternate payee who is the spouse or former spouse of the employee shall be reported for state and federal income tax purposes as payment to the alternate payee. Any amount required to be withheld for state or federal income tax purposes shall be withheld from the payment to the alternate payee.

      (5) If an eligible employee transfers from a deferred compensation plan of a public employer to a deferred compensation plan established by another public employer, the new employer is not required to accept as part of the transfer any portion of the eligible employee’s account with the former employer that is subject to judgment, order or agreement requiring payment of that portion of the eligible employee’s account to an alternate payee.

      (6) If an eligible employee transfers from a deferred compensation plan of a public employer to a deferred compensation plan established by another public employer, the employee’s previous employer shall not transfer to the plan established by the new employer any portion of the eligible employee’s account that is subject to a judgment, order or agreement requiring payment of that portion of the eligible employee’s account to an alternate payee.

      (7) The Public Employees Retirement Board, or the plan administrator for any local government deferred compensation plan, may adopt rules, policies or other regulations for the purpose of maintaining compliance of a deferred compensation plan with section 457 of the Internal Revenue Code or any other provision of federal law that affects the tax qualification of a deferred compensation plan. Rules, policies or other regulations adopted under this subsection may vary from the express language of this section if the rules, policies or other regulations are required for the purpose of maintaining compliance of a deferred compensation plan with section 457 of the Internal Revenue Code or any other provision of federal law that affects the tax qualification of a deferred compensation plan.

      (8) Any public employer or deferred compensation plan that is required by the provisions of this section to make a payment to an alternate payee shall charge and collect out of the deferred compensation payable to the eligible employee and the alternate payee actual and reasonable administrative expenses and related costs incurred by the public employer or deferred compensation plan in obtaining data and making calculations that are necessary by reason of the provisions of this section. A public employer or deferred compensation plan may not charge more than $300 for total administrative expenses and related costs incurred in obtaining data or making calculations that are necessary by reason of the provisions of this section. A public employer or deferred compensation plan that charges and collects administrative expenses and related costs under the provisions of this subsection shall allocate those expenses and costs between the eligible employee and the alternate payee based on the fraction of the benefit received by the member or alternate payee.

      (9) As used in this section:

      (a) “Alternate payee” means a spouse, former spouse, child or other dependent of a member.

      (b) “Court” means any court of appropriate jurisdiction of this or any other state or of the District of Columbia.

      (c) “Eligible employee” means a state plan participant or local plan participant.

      (d) “Public employer” means the state or a local government that establishes a deferred compensation plan. [1993 c.715 §5; 1997 c.179 §32; 2003 c.576 §406; 2007 c.54 §1]

 

      243.510 [1955 c.368 §1; repealed by 1975 c.609 §25]

 

      243.520 [1955 c.368 §2; repealed by 1975 c.609 §25]

 

      243.530 [1955 c.368 §3; repealed by 1975 c.609 §25]

 

      243.540 [1955 c.368 §4; repealed by 1975 c.609 §25]

 

DEPENDENT CARE ASSISTANCE PLAN

 

      243.550 Dependent care assistance plan. (1) The state or any agency thereof shall establish in its accounting system allowances for employees to dedicate part of their salary to a dependent care assistance plan.

      (2) Upon application by a public employee, the state or any agency thereof shall allow the employee to participate in a dependent care assistance plan at that place of employment.

      (3) Portions of a public employee’s salary dedicated to a dependent care assistance plan shall be included in any computation of benefits under that employee’s public employee retirement program. [1987 c.621 §1]

 

      Note: 243.550 to 243.585 were enacted into law by the Legislative Assembly but were not added to or made a part of ORS chapter 243 or any series therein by legislative action. See Preface to Oregon Revised Statutes for further explanation.

 

EXPENSE REIMBURSEMENT PLAN

 

      243.555 Definitions for ORS 243.555 to 243.575. As used in ORS 243.555 to 243.575:

      (1) “Expense reimbursement plan” means a plan established by the Public Employees’ Benefit Board in accordance with state and federal tax laws to reimburse qualified employee expenses.

      (2) “Payroll disbursing officer” means the state officer or official authorized to disburse moneys in payment of salaries and wages of employees of a state agency.

      (3) “Qualified employee expenses” includes expenses for dependent care, medical expenses, insurance premiums and any other expenses qualified for tax free reimbursement under the federal Internal Revenue Code.

      (4) “State agency” means every state officer, board, commission, department or other activity of state government. [1987 c.621 §2; 1997 c.222 §46]

 

      Note: See note under 243.550.

 

      243.560 Rulemaking; charge for administration; records. (1) The Public Employees’ Benefit Board may provide, administer and maintain an expense reimbursement plan for the benefit of eligible employees of this state.

      (2) In providing an expense reimbursement plan, the board shall adopt rules to:

      (a) Determine the qualifications of eligible employees and the expenses eligible for reimbursement.

      (b) Establish limits on the amount by which an eligible employee’s compensation may be reduced.

      (c) Establish procedures for enrollment of eligible employees in an expense reimbursement plan.

      (d) Establish requirements for verification of reimbursable expenses.

      (3) The board may assess a charge to participating employees to pay the cost of administering the plan or may pay some or all of the cost from funds authorized to pay general administration expenses incurred by the board or from earnings on moneys deposited with the account administrator as designated by the board.

      (4) The state shall maintain accounts and records necessary and appropriate to the efficient administration of ORS 243.550 to 243.585 and 657A.440 or that may be required under federal or state law. [1987 c.621 §3; 1989 c.160 §1; 1997 c.222 §47]

 

      Note: See note under 243.550.

 

      243.565 Administration of plan. (1) The Public Employees’ Benefit Board may contract with a private organization for administration of an expense reimbursement program.

      (2) An agreement or contract entered into pursuant to this section may provide that the administering organization shall exercise the authority and responsibility of the board in administering the expense reimbursement program. [1987 c.621 §6; 1997 c.222 §48]

 

      Note: See note under 243.550.

 

      243.570 Compensation reduction agreement. (1) After the adoption of an expense reimbursement plan by the Public Employees’ Benefit Board, and prior to the effective date of the plan, the state shall enter into a compensation reduction agreement with eligible employees electing to participate in the plan for the purpose of funding reimbursements under the plan.

      (2) The payroll disbursing officer is authorized, upon the enrollment of an eligible employee in the plan, to reduce each pay period the compensation of the eligible employee by the amount specified in the compensation reduction agreement. The payroll disbursing officer may pay that amount to the account administrator as designated by the board. All interest income shall be credited to the account. [1987 c.621 §4; 1989 c.160 §2; 1997 c.222 §49]

 

      Note: See note under 243.550.

 

      243.575 Computation of retirement and pension benefits; taxable income. (1) The amount by which an eligible employee’s compensation is reduced under ORS 243.570 shall continue to be included as regular salary for the purpose of computing the retirement and pension benefits earned by the employee, but that amount shall not be considered current taxable income for the purpose of computing Social Security benefits or federal and state income taxes withheld on behalf of the employee.

      (2) All amounts by which compensation is reduced under ORS 243.570 shall remain assets of this state until such time as the amounts are disbursed to or on behalf of eligible employees in accordance with the terms of compensation reduction agreements between the employees and the state. [1987 c.621 §§5,7]

 

      Note: See note under 243.550.

 

      243.580 [1987 c.621 §8; repealed by 1989 c.160 §4]

 

      243.585 Accounting system allowances for dedication of salary. (1) Any political subdivision in this state may establish in its accounting system allowances for employees to dedicate part of their salary to expenses for dependent care, medical expenses, insurance premiums and any other expenses qualified for tax-free reimbursement under the federal Internal Revenue Code.

      (2) Upon application by a public employee, a political subdivision that has established allowances described in subsection (1) of this section may allow the employee to participate in an expense reimbursement plan qualified under the federal Internal Revenue Code at that place of employment.

      (3) Portions of a public employee’s salary dedicated to an expense reimbursement plan under this section shall be included in any computation of benefits under that employee’s public employee retirement program.

      (4) The amount by which an eligible employee’s compensation is reduced under subsections (1) to (3) of this section shall continue to be included as regular salary for the purpose of computing the retirement and pension benefits earned by the employee, but that amount shall not be considered current taxable income for the purpose of computing Social Security benefits or federal and state income taxes withheld on behalf of the employee.

      (5) All amounts by which compensation is reduced under subsection (4) of this section shall remain assets of the political subdivision until such time as the amounts are disbursed to or on behalf of eligible employees in accordance with the terms of compensation reduction agreements between the employees and the state.

      (6) The amount by which an eligible employee’s salary is reduced shall be deposited with the account administrator as designated by the Public Employees’ Benefit Board for disbursement to, or on behalf of, eligible employees in accordance with the terms of compensation reduction agreements between the employees and the state. [1987 c.621 §§9,10,11; 1989 c.160 §3; 1997 c.222 §50]

 

      Note: See note under 243.550.

 

      243.610 [1955 c.382 §1; repealed by 1975 c.609 §25]

 

      243.620 [1955 c.382 §2; 1961 c.507 §1; repealed by 1975 c.609 §25]

 

COLLECTIVE BARGAINING

 

(Generally)

 

      243.650 Definitions for ORS 243.650 to 243.782. As used in ORS 243.650 to 243.782, unless the context requires otherwise:

      (1) “Appropriate bargaining unit” means the unit designated by the Employment Relations Board or voluntarily recognized by the public employer to be appropriate for collective bargaining. However, an appropriate bargaining unit may not include both academically licensed and unlicensed or nonacademically licensed school employees. Academically licensed units may include but are not limited to teachers, nurses, counselors, therapists, psychologists, child development specialists and similar positions. This limitation does not apply to any bargaining unit certified or recognized prior to June 6, 1995, or to any school district with fewer than 50 employees.

      (2) “Board” means the Employment Relations Board.

      (3) “Certification” means official recognition by the board that a labor organization is the exclusive representative for all of the employees in the appropriate bargaining unit.

      (4) “Collective bargaining” means the performance of the mutual obligation of a public employer and the representative of its employees to meet at reasonable times and confer in good faith with respect to employment relations for the purpose of negotiations concerning mandatory subjects of bargaining, to meet and confer in good faith in accordance with law with respect to any dispute concerning the interpretation or application of a collective bargaining agreement, and to execute written contracts incorporating agreements that have been reached on behalf of the public employer and the employees in the bargaining unit covered by such negotiations. The obligation to meet and negotiate does not compel either party to agree to a proposal or require the making of a concession. This subsection may not be construed to prohibit a public employer and a certified or recognized representative of its employees from discussing or executing written agreements regarding matters other than mandatory subjects of bargaining that are not prohibited by law as long as there is mutual agreement of the parties to discuss these matters, which are permissive subjects of bargaining.

      (5) “Compulsory arbitration” means the procedure whereby parties involved in a labor dispute are required by law to submit their differences to a third party for a final and binding decision.

      (6) “Confidential employee” means one who assists and acts in a confidential capacity to a person who formulates, determines and effectuates management policies in the area of collective bargaining.

      (7)(a) “Employment relations” includes, but is not limited to, matters concerning direct or indirect monetary benefits, hours, vacations, sick leave, grievance procedures and other conditions of employment.

      (b) “Employment relations” does not include subjects determined to be permissive, nonmandatory subjects of bargaining by the Employment Relations Board prior to June 6, 1995.

      (c) After June 6, 1995, “employment relations” does not include subjects that the Employment Relations Board determines to have a greater impact on management’s prerogative than on employee wages, hours, or other terms and conditions of employment.

      (d) “Employment relations” does not include subjects that have an insubstantial or de minimis effect on public employee wages, hours, and other terms and conditions of employment.

      (e) For school district bargaining, “employment relations” excludes class size, the school or educational calendar, standards of performance or criteria for evaluation of teachers, the school curriculum, reasonable dress, grooming and at-work personal conduct requirements respecting smoking, gum chewing and similar matters of personal conduct, the standards and procedures for student discipline, the time between student classes, the selection, agendas and decisions of 21st Century Schools Councils established under ORS 329.704, requirements for expressing milk under ORS 653.077, and any other subject proposed that is permissive under paragraphs (b), (c) and (d) of this subsection.

      (f) For employee bargaining involving employees covered by ORS 243.736, “employment relations” includes safety issues that have an impact on the on-the-job safety of the employees or staffing levels that have a significant impact on the on-the-job safety of the employees.

      (g) For all other employee bargaining except school district bargaining and except as provided in paragraph (f) of this subsection, “employment relations” excludes staffing levels and safety issues (except those staffing levels and safety issues that have a direct and substantial effect on the on-the-job safety of public employees), scheduling of services provided to the public, determination of the minimum qualifications necessary for any position, criteria for evaluation or performance appraisal, assignment of duties, workload when the effect on duties is insubstantial, reasonable dress, grooming, and at-work personal conduct requirements respecting smoking, gum chewing, and similar matters of personal conduct at work, and any other subject proposed that is permissive under paragraphs (b), (c) and (d) of this subsection.

      (8) “Exclusive representative” means the labor organization that, as a result of certification by the board or recognition by the employer, has the right to be the collective bargaining agent of all employees in an appropriate bargaining unit.

      (9) “Fact-finding” means identification of the major issues in a particular labor dispute by one or more impartial individuals who review the positions of the parties, resolve factual differences and make recommendations for settlement of the dispute.

      (10) “Fair-share agreement” means an agreement between the public employer and the recognized or certified bargaining representative of public employees whereby employees who are not members of the employee organization are required to make an in-lieu-of-dues payment to an employee organization except as provided in ORS 243.666. Upon the filing with the board of a petition by 30 percent or more of the employees in an appropriate bargaining unit covered by such union security agreement declaring they desire that the agreement be rescinded, the board shall take a secret ballot of the employees in the unit and certify the results thereof to the recognized or certified bargaining representative and to the public employer. Unless a majority of the votes cast in an election favor the union security agreement, the board shall certify deauthorization of the agreement. A petition for deauthorization of a union security agreement must be filed not more than 90 calendar days after the collective bargaining agreement is executed. Only one such election may be conducted in any appropriate bargaining unit during the term of a collective bargaining agreement between a public employer and the recognized or certified bargaining representative.

      (11) “Final offer” means the proposed contract language and cost summary submitted to the mediator within seven days of the declaration of impasse.

      (12) “Labor dispute” means any controversy concerning employment relations or concerning the association or representation of persons in negotiating, fixing, maintaining, changing, or seeking to arrange terms or conditions of employment relations, regardless of whether the disputants stand in the proximate relation of employer and employee.

      (13) “Labor organization” means any organization that has as one of its purposes representing employees in their employment relations with public employers.

      (14) “Last best offer package” means the offer exchanged by parties not less than 14 days prior to the date scheduled for an interest arbitration hearing.

      (15) “Legislative body” means the Legislative Assembly, the city council, the county commission and any other board or commission empowered to levy taxes.

      (16) “Managerial employee” means an employee of the State of Oregon who possesses authority to formulate and carry out management decisions or who represents management’s interest by taking or effectively recommending discretionary actions that control or implement employer policy, and who has discretion in the performance of these management responsibilities beyond the routine discharge of duties. A “managerial employee” need not act in a supervisory capacity in relation to other employees. Notwithstanding this subsection, “managerial employee” does not include faculty members at a community college, college or university.

      (17) “Mediation” means assistance by an impartial third party in reconciling a labor dispute between the public employer and the exclusive representative regarding employment relations.

      (18) “Payment-in-lieu-of-dues” means an assessment to defray the cost for services by the exclusive representative in negotiations and contract administration of all persons in an appropriate bargaining unit who are not members of the organization serving as exclusive representative of the employees. The payment must be equivalent to regular union dues and assessments, if any, or must be an amount agreed upon by the public employer and the exclusive representative of the employees.

      (19) “Public employee” means an employee of a public employer but does not include elected officials, persons appointed to serve on boards or commissions, incarcerated persons working under section 41, Article I of the Oregon Constitution, or persons who are confidential employees, supervisory employees or managerial employees.

      (20) “Public employer” means the State of Oregon, and the following political subdivisions: Cities, counties, community colleges, school districts, special districts, mass transit districts, metropolitan service districts, public service corporations or municipal corporations and public and quasi-public corporations.

      (21) “Public employer representative” includes any individual or individuals specifically designated by the public employer to act in its interests in all matters dealing with employee representation, collective bargaining and related issues.

      (22) “Strike” means a public employee’s refusal in concerted action with others to report for duty, or his or her willful absence from his or her position, or his or her stoppage of work, or his or her absence in whole or in part from the full, faithful or proper performance of his or her duties of employment, for the purpose of inducing, influencing or coercing a change in the conditions, compensation, rights, privileges or obligations of public employment; however, nothing shall limit or impair the right of any public employee to lawfully express or communicate a complaint or opinion on any matter related to the conditions of employment.

      (23) “Supervisory employee” means any individual having authority in the interest of the employer to hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward or discipline other employees, or responsibly to direct them, or to adjust their grievances, or effectively to recommend such action, if in connection therewith, the exercise of the authority is not of a merely routine or clerical nature but requires the use of independent judgment. Failure to assert supervisory status in any Employment Relations Board proceeding or in negotiations for any collective bargaining agreement does not thereafter prevent assertion of supervisory status in any subsequent board proceeding or contract negotiation. Notwithstanding the provisions of this subsection, a nurse, charge nurse or similar nursing position may not be deemed to be supervisory unless that position has traditionally been classified as supervisory.

      (24) “Unfair labor practice” means the commission of an act designated an unfair labor practice in ORS 243.672.

      (25) “Voluntary arbitration” means the procedure whereby parties involved in a labor dispute mutually agree to submit their differences to a third party for a final and binding decision. [Formerly 243.711; 1975 c.728 §1; 1978 c.5 §1; 1987 c.792 §1; 1995 c.286 §1; 1999 c.59 §61; 2001 c.104 §75; 2007 c.141 §1a; 2007 c.144 §3]

 

      243.656 Policy statement. The Legislative Assembly finds and declares that:

      (1) The people of this state have a fundamental interest in the development of harmonious and cooperative relationships between government and its employees;

      (2) Recognition by public employers of the right of public employees to organize and full acceptance of the principle and procedure of collective negotiation between public employers and public employee organizations can alleviate various forms of strife and unrest. Experience in the private and public sectors of our economy has proved that unresolved disputes in the public service are injurious to the public, the governmental agencies, and public employees;

      (3) Experience in private and public employment has also proved that protection by law of the right of employees to organize and negotiate collectively safeguards employees and the public from injury, impairment and interruptions of necessary services, and removes certain recognized sources of strife and unrest, by encouraging practices fundamental to the peaceful adjustment of disputes arising out of differences as to wages, hours, terms and other working conditions, and by establishing greater equality of bargaining power between public employers and public employees;

      (4) The state has a basic obligation to protect the public by attempting to assure the orderly and uninterrupted operations and functions of government; and

      (5) It is the purpose of ORS 243.650 to 243.782 to obligate public employers, public employees and their representatives to enter into collective negotiations with willingness to resolve grievances and disputes relating to employment relations and to enter into written and signed contracts evidencing agreements resulting from such negotiations. It is also the purpose of ORS 243.650 to 243.782 to promote the improvement of employer-employee relations within the various public employers by providing a uniform basis for recognizing the right of public employees to join organizations of their own choice, and to be represented by such organizations in their employment relations with public employers. [1973 c.536 §2]

 

      243.662 Rights of public employees to join labor organizations. Public employees have the right to form, join and participate in the activities of labor organizations of their own choosing for the purpose of representation and collective bargaining with their public employer on matters concerning employment relations. [Formerly 243.730]

 

      243.666 Certified or recognized labor organization as exclusive employee group representative; protection of employee nonassociation rights. (1) A labor organization certified by the Employment Relations Board or recognized by the public employer is the exclusive representative of the employees of a public employer for the purposes of collective bargaining with respect to employment relations. Nevertheless any agreements entered into involving union security including an all-union agreement or agency shop agreement must safeguard the rights of nonassociation of employees, based on bona fide religious tenets or teachings of a church or religious body of which such employee is a member. Such employee shall pay an amount of money equivalent to regular union dues and initiation fees and assessments, if any, to a nonreligious charity or to another charitable organization mutually agreed upon by the employee affected and the representative of the labor organization to which such employee would otherwise be required to pay dues. The employee shall furnish written proof to the employer of the employee that this has been done.

      (2) Notwithstanding the provisions of subsection (1) of this section, an individual employee or group of employees at any time may present grievances to their employer and have such grievances adjusted, without the intervention of the labor organization, if:

      (a) The adjustment is not inconsistent with the terms of a collective bargaining contract or agreement then in effect; and

      (b) The labor organization has been given opportunity to be present at the adjustment.

      (3) Nothing in this section prevents a public employer from recognizing a labor organization which represents at least a majority of employees as the exclusive representative of the employees of a public employer when the board has not designated the appropriate bargaining unit or when the board has not certified an exclusive representative in accordance with ORS 243.686. [Formerly 243.735; 1983 c.740 §65]

 

(Unfair Labor Practices)

 

      243.672 Unfair labor practices; complaints; filing fees. (1) It is an unfair labor practice for a public employer or its designated representative to do any of the following:

      (a) Interfere with, restrain or coerce employees in or because of the exercise of rights guaranteed in ORS 243.662.

      (b) Dominate, interfere with or assist in the formation, existence or administration of any employee organization.

      (c) Discriminate in regard to hiring, tenure or any terms or condition of employment for the purpose of encouraging or discouraging membership in an employee organization. Nothing in this section is intended to prohibit the entering into of a fair-share agreement between a public employer and the exclusive bargaining representative of its employees. If a “fair-share” agreement has been agreed to by the public employer and exclusive representative, nothing prohibits the deduction of the payment-in-lieu-of-dues from the salaries or wages of the employees.

      (d) Discharge or otherwise discriminate against an employee because the employee has signed or filed an affidavit, petition or complaint or has given information or testimony under ORS 243.650 to 243.782.

      (e) Refuse to bargain collectively in good faith with the exclusive representative.

      (f) Refuse or fail to comply with any provision of ORS 243.650 to 243.782.

      (g) Violate the provisions of any written contract with respect to employment relations including an agreement to arbitrate or to accept the terms of an arbitration award, where previously the parties have agreed to accept arbitration awards as final and binding upon them.

      (h) Refuse to reduce an agreement, reached as a result of collective bargaining, to writing and sign the resulting contract.

      (2) Subject to the limitations set forth in this subsection, it is an unfair labor practice for a public employee or for a labor organization or its designated representative to do any of the following:

      (a) Interfere with, restrain or coerce any employee in or because of the exercise of any right guaranteed under ORS 243.650 to 243.782.

      (b) Refuse to bargain collectively in good faith with the public employer if the labor organization is an exclusive representative.

      (c) Refuse or fail to comply with any provision of ORS 243.650 to 243.782.

      (d) Violate the provisions of any written contract with respect to employment relations, including an agreement to arbitrate or to accept the terms of an arbitration award, where previously the parties have agreed to accept arbitration awards as final and binding upon them.

      (e) Refuse to reduce an agreement, reached as a result of collective bargaining, to writing and sign the resulting contract.

      (f) For any labor organization to engage in unconventional strike activity not protected for private sector employees under the National Labor Relations Act on June 6, 1995. This provision applies to sitdown, slowdown, rolling, intermittent or on-and-off again strikes.

      (g) For a labor organization or its agents to picket or cause, induce, or encourage to be picketed, or threaten to engage in such activity, at the residence or business premises of any individual who is a member of the governing body of a public employer, with respect to a dispute over a collective bargaining agreement or negotiations over employment relations, if an objective or effect of such picketing is to induce another person to cease doing business with the governing body member’s business or to cease handling, transporting or dealing in goods or services produced at the governing body’s business. For purposes of this paragraph, a member of the Legislative Assembly is a member of the governing body of a public employer when the collective bargaining negotiation or dispute is between the State of Oregon and a labor organization. The Governor and other statewide elected officials are not considered members of a governing body for purposes of this paragraph. Nothing in this paragraph may be interpreted or applied in a manner that violates the right of free speech and assembly as protected by the Constitution of the United States or the Constitution of the State of Oregon.

      (3) An injured party may file a written complaint with the Employment Relations Board not later than 180 days following the occurrence of an unfair labor practice. For each unfair labor practice complaint filed, a fee of $300 is imposed. For each answer to an unfair labor practice complaint filed with the board, a fee of $300 is imposed. The board may allow any other person to intervene in the proceeding and to present testimony. A person allowed to intervene shall pay a fee of $300 to the board. The board may, in its discretion, order fee reimbursement to the prevailing party in any case in which the complaint or answer is found to have been frivolous or filed in bad faith. The board shall deposit fees received under this section to the credit of the Employment Relations Board Administrative Account. [1973 c.536 §4; 1995 c.286 §2; 2007 c.296 §1; 2011 c.593 §2]

 

      243.676 Processing of unfair labor practice complaints; civil penalties. (1) Whenever a written complaint is filed alleging that any person has engaged in or is engaging in any unfair labor practice listed in ORS 243.672 (1) and (2) and 243.752, the Employment Relations Board or its agent shall:

      (a) Cause to be served upon such person a copy of the complaint;

      (b) Investigate the complaint to determine if a hearing on the unfair labor practice charge is warranted. If the investigation reveals that no issue of fact or law exists, the board may dismiss the complaint; and

      (c) Set the matter for hearing if the board finds in its investigation made pursuant to paragraph (b) of this subsection that an issue of fact or law exists. The hearing shall be before the board or an agent of the board not more than 20 days after a copy of the complaint has been served on the person.

      (2) Where, as a result of the hearing required pursuant to subsection (1)(c) of this section, the board finds that any person named in the complaint has engaged in or is engaging in any unfair labor practice charged in the complaint, the board shall:

      (a) State its findings of fact;

      (b) Issue and cause to be served on such person an order that the person cease and desist from the unfair labor practice;

      (c) Take such affirmative action, including but not limited to the reinstatement of employees with or without back pay, as necessary to effectuate the purposes of ORS 240.060, 240.065, 240.080, 240.123, 243.650 to 243.782, 292.055 and 341.290;

      (d) Designate the amount and award representation costs, if any, to the prevailing party; and

      (e) Designate the amount and award attorney fees, if any, to the prevailing party on appeal, including proceedings for Supreme Court review, of a board order.

      (3) Where the board finds that the person named in the complaint has not engaged in or is not engaging in an unfair labor practice, the board shall:

      (a) Issue an order dismissing the complaint; and

      (b) Designate the amount and award representation costs, if any, to the prevailing party.

      (4) The board may award a civil penalty to any person as a result of an unfair labor practice complaint hearing, in the aggregate amount of up to $1,000 per case, without regard to attorney fees, if:

      (a) The complaint has been affirmed pursuant to subsection (2) of this section and the board finds that the person who has committed, or who is engaging, in an unfair labor practice has done so repetitively, knowing that the action taken was an unfair labor practice and took the action disregarding this knowledge, or that the action constituting the unfair labor practice was egregious; or

      (b) The complaint has been dismissed pursuant to subsection (3) of this section, and that the complaint was frivolously filed, or filed with the intent to harass the other person, or both.

      (5) As used in subsections (1) to (4) of this section, “person” includes but is not limited to individuals, labor organizations, associations and public employers. [1973 c.536 §5; 1979 c.219 §1; 1983 c.504 §1; 1983 c.559 §1]

 

(Representation Matters)

 

      243.682 Representation questions; investigation and hearings on petitions; certification without election; rules; elections. (1) If a question of representation exists, the Employment Relations Board shall:

      (a) Upon application of a public employer, public employee or a labor organization, designate the appropriate bargaining unit, and in making its determination shall consider such factors as community of interest, wages, hours and other working conditions of the employees involved, the history of collective bargaining, and the desires of the employees. The board may determine a unit to be the appropriate unit in a particular case even though some other unit might also be appropriate.

      (b) Investigate and conduct a hearing on a petition that has been filed by:

      (A) A labor organization alleging that 30 percent of the employees in an appropriate bargaining unit desire to be represented for collective bargaining by an exclusive representative;

      (B) A labor organization alleging that 30 percent of the employees in an appropriate bargaining unit assert that the designated exclusive representative is no longer the representative of the majority of the employees in the unit;

      (C) A public employer alleging that one or more labor organizations has presented a claim to the public employer requesting recognition as the exclusive representative in an appropriate bargaining unit; or

      (D) An employee or group of employees alleging that 30 percent of the employees assert that the designated exclusive representative is no longer the representative of the majority of employees in the unit.