Oregon Statute | Act | Code |Title 22 Public Officers And Employees| US Code - US Statute | Chapter 243 Public Employee Rights And Benefits

(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) (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 such a “fair-share” agreement has been agreed to by the
public employer and exclusive representative, nothing shall prohibit the
deduction of the payment-in-lieu-of-dues from the salaries or wages of
such 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 such awards as final and binding upon them.

(h) Refuse to reduce an agreement, reached as a result of
collective bargaining, to writing and sign such 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 such 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 shall apply 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 unfair labor practice provision shall 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 $250 is imposed. For each answer to an unfair
labor practice complaint filed, a fee of $100 is imposed. The Employment
Relations Board may, in its discretion, order filing 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. [1973 c.536 §4; 1995
c.286 §2](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)If a question of representation exists, the
Employment Relations Board shall:

(1) 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.

(2) 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.

(3) Except as provided in ORS 243.692, if the board finds in a
hearing conducted pursuant to subsection (2) of this section that a
question of representation exists, it shall conduct an election by secret
ballot, at a time and place convenient for the employees of the
jurisdiction and also within a reasonable period of time after the filing
has taken place, and certify the results thereof. [1973 c.536 §7](1) The Employment
Relations Board shall place on the ballot only those labor organizations
designated to be placed on the ballot by more than 10 percent of the
employees in an appropriate bargaining unit.

(2) The ballot shall contain a provision for marking no
representation.

(3) The board shall determine who is eligible to vote in the
election and require the employer to provide a complete list of all such
eligible persons, their names, addresses and job classifications to each
candidate organization on the ballot at least 20 days before the election
is to occur.

(4) The labor organization which receives the majority of the votes
cast in an election shall be certified by the board as the exclusive
representative.

(5) In any election where there are more than two choices on the
ballot and none of the choices receives a majority of the votes cast, a
runoff election shall be conducted. The ballot in the runoff election
shall contain the two choices on the original ballot that received the
largest number of votes.

(6)(a) In conducting an election involving the faculty of a
university administered by the State Board of Higher Education, the
Employment Relations Board shall place on the same ballot provisions for
voting on two issues:

(A) For or against representation; and

(B) For those labor organizations designated to be placed on the
ballot by more than 10 percent of the employees in an appropriate
bargaining unit.

(b) If a majority of votes in paragraph (a)(A) of this subsection
are cast in favor of no representation, the board shall not count the
votes cast for labor organizations and shall certify no representative
for the unit.

(c) If a majority of votes in paragraph (a)(A) of this subsection
are cast in favor of representation, the board shall count the votes in
paragraph (a)(B) of this subsection for the designated labor
organizations and, if an organization receives a majority of those votes
cast, shall certify that organization as the exclusive representative. If
no labor organization receives a majority of the votes cast in paragraph
(a)(B) of this subsection, a runoff election shall be conducted. The
ballot in the runoff election shall contain only the two labor
organizations that received the largest number of votes.

(7) Nothing in this section is intended to prohibit the waiving of
hearings by stipulation for the purpose of a consent election, in
conformity with the rules of the board. [1973 c.536 §8; 1983 c.83 §27;
1997 c.11 §4] (1) No
election shall be conducted under ORS 243.682 (3) in any appropriate
bargaining unit within which during the preceding 12-month period an
election was held, nor during the term of any lawful collective
bargaining agreement between a public employer and an employee
representative. However, a contract with a term of more than three years
shall be a bar for only the first three years of its term.

(2) Notwithstanding subsection (1) of this section, the Employment
Relations Board shall rule that a contract will not be given the effect
of barring an election if it finds that:

(a) Unusual circumstances exist under which the contract is no
longer a stabilizing force; and

(b) An election should be held to restore stability to the
representation of employees in the unit.

(3) A petition for an election where a contract exists must be
filed not more than 90 calendar days and not less than 60 calendar days
before the end of the contract period. If the contract is for more than
three years, a petition for election may be filed any time after three
years from the effective date of the contract. [1973 c.536 §9; 1999 c.572
§1](Bargaining; Mediation; Fact-Finding)(1) The Oregon Department of
Administrative Services shall represent all state agencies which have
bargaining units in collective bargaining negotiations with the certified
or recognized exclusive representatives of all appropriate bargaining
units of exempt, unclassified and classified employees, except those
unclassified employees governed by the provisions of ORS 240.240. The
department may delegate such collective bargaining responsibility to
operating agencies as may be appropriate.

(2) The Chief Justice of the Supreme Court shall represent the
judicial department in collective bargaining negotiations with the
certified or recognized exclusive representatives of all appropriate
bargaining units of officers and employees of the courts of this state
who are state officers or employees. The Chief Justice may delegate such
collective bargaining responsibility to the state court administrator.
[1973 c.536 §10; 1979 c.468 §25; 1983 c.763 §64](1) When the employer is obligated to bargain over
employment relations during the term of a collective bargaining agreement
and the exclusive representative demands to bargain, the bargaining may
not, without the consent of both parties and provided the parties have
negotiated in good faith, continue past 90 calendar days after the date
the notification specified in subsection (2) of this section is received.

(2) The employer shall notify the exclusive representative in
writing of anticipated changes that impose a duty to bargain.

(3) Within 14 calendar days after the employer’s notification of
anticipated changes specified in subsection (2) of this section is sent,
the exclusive representative may file a demand to bargain. If a demand to
bargain is not filed within 14 days of the notice, the exclusive
representative waives its right to bargain over the change or the impact
of the change identified in the notice.

(4) The expedited bargaining process shall cease 90 calendar days
after the written notice described in subsection (2) of this section is
sent, and the employer may implement the proposed changes without further
obligations to bargain. At any time during the 90-day period, the parties
jointly may agree to mediation, but that mediation shall not continue
past the 90-day period from the date the notification specified in
subsection (2) of this section is sent. Neither party may seek binding
arbitration during the 90-day period. [1995 c.286 §13]Note: 243.698 was added to and made a part of 243.650 to 243.782 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation. (1) In
the event any words or sections of a collective bargaining agreement are
declared to be invalid by any court of competent jurisdiction, by ruling
by the Employment Relations Board, by statute or constitutional amendment
or by inability of the employer or the employees to perform to the terms
of the agreement, then upon request by either party the invalid words or
sections of the collective bargaining agreement shall be reopened for
negotiation.

(2) Renegotiation of a collective bargaining agreement pursuant to
this section is subject to ORS 243.698. [1973 c.536 §11; 1995 c.286 §4](1) A public employer may enter into a written agreement with
the exclusive representative of an appropriate bargaining unit setting
forth a grievance procedure culminating in binding arbitration or any
other dispute resolution process agreed to by the parties. As a condition
of enforceability, any arbitration award that orders the reinstatement of
a public employee or otherwise relieves the public employee of
responsibility for misconduct shall comply with public policy
requirements as clearly defined in statutes or judicial decisions
including but not limited to policies respecting sexual harassment or
sexual misconduct, unjustified and egregious use of physical or deadly
force and serious criminal misconduct, related to work. In addition, with
respect to claims that a grievant should be reinstated or otherwise
relieved of responsibility for misconduct based upon the public
employer’s alleged previous differential treatment of employees for the
same or similar conduct, the arbitration award must conform to the
following principles:

(a) Some misconduct is so egregious that no employee can reasonably
rely on past treatment for similar offenses as a justification or defense
to discharge or other discipline.

(b) Public managers have a right to change disciplinary policies at
any time, notwithstanding prior practices, if such managers give
reasonable advance notice to affected employees and the change does not
otherwise violate a collective bargaining agreement.

(2) In addition to subsection (1) of this section, a public
employer may enter into a written agreement with the exclusive
representative of its employees providing that a labor dispute over
conditions and terms of a contract may be resolved through binding
arbitration.

(3) In an arbitration proceeding under this section, the
arbitrators, or a majority of the arbitrators, may:

(a) Issue subpoenas on their own motion or at the request of a
party to the proceeding to:

(A) Compel the attendance of a witness properly served by either
party; and

(B) Require from either party the production of books, papers and
documents the arbitrators find are relevant to the proceeding;

(b) Administer oaths or affirmations to witnesses; and

(c) Adjourn a hearing from day to day, or for a longer time, and
from place to place.

(4) The arbitrators shall promptly provide a copy of a subpoena
issued under this section to each party to the arbitration proceeding.

(5) The arbitrators issuing a subpoena under this section may rule
on objections to the issuance of the subpoena.

(6) If a person fails to comply with a subpoena issued under this
section or if a witness refuses to testify on a matter on which the
witness may be lawfully questioned, the party who requested the subpoena
or seeks the testimony may apply to the arbitrators for an order
authorizing the party to apply to the circuit court of any county to
enforce the subpoena or compel the testimony. On the application of the
attorney of record for the party or on the application of the
arbitrators, or a majority of the arbitrators, the court may require the
person or witness to show cause why the person or witness should not be
punished for contempt of court to the same extent and purpose as if the
proceedings were pending before the court.

(7) Witnesses appearing pursuant to subpoena, other than parties or
officers or employees of the public employer, shall receive fees and
mileage as prescribed by law for witnesses in ORS 44.415 (2). [1973 c.536
§12; 1995 c.286 §5; 1999 c.75 §1](1) If after a 150-calendar-day period of good faith
negotiations over the terms of an agreement or 150 days after
certification or recognition of an exclusive representative, no agreement
has been signed, either or both of the parties may notify the Employment
Relations Board of the status of negotiations and the need for assignment
of a mediator. Any period of time in which the public employer or labor
organization has been found by the Employment Relations Board to have
failed to bargain in good faith shall not be counted as part of the
150-day period. This provision cannot be invoked by the party found to
have failed to bargain in good faith. The parties may agree to request a
mediator before the end of the 150-day period. Upon receipt of such
notification, the board shall appoint a mediator and shall notify the
parties of the appointment. The 150 days of negotiation shall begin when
the parties meet for the first bargaining session and each party has
received the other party’s initial proposal.

(2) The board on the request of one of the parties shall render
assistance to resolve the labor dispute according to the following
schedule:

(a) Mediation shall be provided by the State Conciliation Service
as provided by ORS 662.405 to 662.455. Any time after 15 days of
mediation, either party may declare an impasse. The mediator may declare
an impasse at any time during the mediation process. Notification of an
impasse shall be filed in writing with the board, and copies of the
notification shall be submitted to the parties on the same day the
notification is filed with the board.

(b) Within seven days of the declaration of impasse, each party
shall submit to the mediator in writing the final offer of the party,
including a cost summary of the offer. Upon receipt of the final offers,
the mediator shall make public the final offers, including any proposed
contract language and each party’s cost summary dealing with those
issues, on which the parties have failed to reach agreement. Each party’s
proposed contract language shall be titled “Final Offer.”

(c) Within 30 days after the mediator makes public the parties’
final offers, the parties may agree and must jointly petition the
Employment Relations Board to appoint a fact finder. If the parties
jointly petition for fact-finding, a fact finder shall be appointed and
the hearing conducted as provided in ORS 243.722.

(d) If no agreement has been reached 30 days after the mediator
makes public the final offers, or if the parties participated in
fact-finding, 30 days after the receipt of the fact finder’s report, the
public employer may implement all or part of its final offer, and the
public employees have the right to strike. After a collective bargaining
agreement has expired, and prior to agreement on a successor contract,
the status quo with respect to employment relations shall be preserved
until completion of impasse procedures except that no public employer
shall be required to increase contributions for insurance premiums unless
the expiring collective bargaining agreement provides otherwise. Merit
step and longevity step pay increases shall be part of the status quo
unless the expiring collective bargaining agreement expressly provides
otherwise.

(e) Nothing in this section shall be construed to prohibit the
parties at any time from voluntarily agreeing to submit any or all of the
issues in dispute to final and binding arbitration. The arbitration shall
be scheduled and conducted in accordance with ORS 243.746. The
arbitration shall supersede the dispute resolution procedures set forth
in ORS 243.726 and 243.746. [1973 c.536 §13; 1987 c.84 §1; 1995 c.286 §6] The use
of volunteers to provide services shall not be considered contracting out
for services. The use of reserve police personnel that does not require
layoff shall not be considered contracting out for services. [1995 c.286
§14]Note: 243.716 was added to and made a part of 243.650 to 243.782 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.(1) In carrying out
the fact-finding procedures authorized in ORS 243.712 (2)(c), the public
employer and the exclusive representative may select their own fact
finder.

(2)(a) Where the parties have not selected their own fact finder
within five days after written acknowledgment by the Employment Relations
Board that fact-finding has been jointly initiated, the board shall
submit to the parties a list of seven qualified, disinterested, unbiased
persons. A list of Oregon fact-finding interest arbitrations for which
each person has issued an award shall be included. Each party shall
alternately strike three names from the list. The order of striking shall
be determined by lot. The remaining individual shall be designated the
“fact finder.”

(b) When both parties desire a panel of three fact finders instead
of one as provided in this subsection, the board shall submit to the
parties a list of seven qualified, unbiased, disinterested persons. Each
party shall alternately strike two names from the list. The order of
striking shall be determined by lot. The remaining three persons shall be
designated “fact finders.”

(c) When the parties have not designated the fact finder and
notified the board of their choice within five days after receipt of the
list, the board shall appoint the fact finder from the list. However, if
one of the parties strikes the names as prescribed in this subsection and
the other party fails to do so, the board shall appoint the fact finder
only from the names remaining on the list.

(d) The concerns regarding the bias and qualifications of the
person designated by lot or by appointment may be challenged by a
petition filed directly with the board. A hearing shall be held by the
board within 10 days of filing the petition and the board shall issue a
final and binding decision regarding the person’s neutrality within 10
days of the hearing.

(3) The fact finder shall establish dates and places of hearings.
Upon the request of either party or the fact finder, the board shall
issue subpoenas. The fact finder may administer oaths and shall afford
all parties full opportunity to examine and cross-examine all witnesses
and to present any evidence pertinent to the dispute. Not more than 30
days from the date of conclusion of the hearings, the fact finder shall
make written findings of fact and recommendations for resolution of the
dispute and shall serve such findings and recommendations upon the
parties and upon the board. Service may be personal or by registered or
certified mail. Not more than five working days after the findings and
recommendations have been sent, the parties shall notify the board and
each other whether or not they accept the recommendations of the fact
finder. If the parties do not accept them, the board, five days after
receiving notice that one or both of the parties do not accept the
findings, shall publicize the fact finder’s findings of facts and
recommendations.

(4) The parties may voluntarily agree at any time during or after
fact-finding to submit any or all of the issues in dispute to final and
binding arbitration, and if such agreement is reached prior to the
publication of the fact finder’s findings of facts and recommendations,
the board shall not publicize such findings and recommendations.

(5) The cost of fact-finding shall be borne equally by the parties
involved in the dispute.

(6) Fact finders shall base their findings and opinions on the
matters prescribed in this subsection in accordance with the criteria set
out in ORS 243.746 (4)(a) to (h). [1973 c.536 §14; 1995 c.286 §7](Strikes)(1)
Participation in a strike shall be unlawful for any public employee who
is not included in an appropriate bargaining unit for which an exclusive
representative has been certified by the Employment Relations Board or
recognized by the employer; or is included in an appropriate bargaining
unit that provides for resolution of a labor dispute by petition to final
and binding arbitration; or when the strike is not made lawful under ORS
240.060, 240.065, 240.080, 240.123, 243.650 to 243.782, 292.055 and
341.290.

(2) It shall be lawful for a public employee who is not prohibited
from striking under subsection (1) of this section and who is in the
appropriate bargaining unit involved in a labor dispute to participate in
a strike over mandatory subjects of bargaining provided:

(a) The requirements of ORS 243.712 and 243.722 relating to the
resolution of labor disputes have been complied with in good faith;

(b) Thirty days have elapsed since the board has made public the
fact finder’s findings of fact and recommendations or the mediator has
made public the parties’ final offers;

(c) The exclusive representative has given 10 days’ notice by
certified mail of its intent to strike and stating the reasons for its
intent to strike to the board and the public employer;

(d) The collective bargaining agreement has expired, or the labor
dispute arises pursuant to a reopener provision in a collective
bargaining agreement or renegotiation under ORS 243.702 (1) or
renegotiation under ORS 243.698; and

(e) The union’s strike does not include unconventional strike
activity not protected under the National Labor Relations Act on June 6,
1995, and does not constitute an unfair labor practice under ORS 243.672
(2)(f).

(3)(a) Where the strike occurring or is about to occur creates a
clear and present danger or threat to the health, safety or welfare of
the public, the public employer concerned may petition the circuit court
of the county in which the strike has taken place or is to take place for
equitable relief including but not limited to appropriate injunctive
relief.

(b) If the strike is a strike of state employees the petition shall
be filed in the Circuit Court of Marion County.

(c) If, after hearing, the court finds that the strike creates a
clear and present danger or threat to the health, safety or welfare of
the public, it shall grant appropriate relief. Such relief shall include
an order that the labor dispute be submitted to final and binding
arbitration within 10 days of the court’s order pursuant to procedures in
ORS 243.746.

(4)(a) No labor organization shall declare or authorize a strike of
public employees that is or would be in violation of this section. When
it is alleged in good faith by the public employer that a labor
organization has declared or authorized a strike of public employees that
is or would be in violation of this section, the employer may petition
the board for a declaration that the strike is or would be unlawful. The
board, after conducting an investigation and hearing, may make such
declaration if it finds that such declaration or authorization of a
strike is or would be unlawful.

(b) When a labor organization or individual disobeys an order of
the appropriate circuit court issued pursuant to enforcing an order of
the board involving this section and ORS 243.736, they shall be punished
according to the provisions of ORS 33.015 to 33.155, except that the
amount of the fine shall be at the discretion of the court.

(5) An unfair labor practice by a public employer shall not be a
defense to a prohibited strike. The board upon the filing of an unfair
labor charge alleging that a public employer has committed an unfair
labor practice during or arising out of the collective bargaining
procedures set forth in ORS 243.712 and 243.722, shall take immediate
action on such charge and if required, petition the court of competent
jurisdiction for appropriate relief or a restraining order.

(6) As used in this section, “danger or threat to the health,
safety or welfare of the public” does not include an economic or
financial inconvenience to the public or to the public employer that is
normally incident to a strike by public employees. [1973 c.536 §16; 1979
c.257 §1; 1989 c.1089 §1; 1991 c.724 §28; 1995 c.286 §8] Public
employees, other than those engaged in a nonprohibited strike, who refuse
to cross a picket line shall be deemed to be engaged in a prohibited
strike and shall be subject to the terms and conditions of ORS 243.726,
pertaining to prohibited strikes. [1973 c.536 §23]
(1) It shall be unlawful for any emergency telephone worker, parole and
probation officer who supervises adult offenders, police officer,
firefighter or guard at a correctional institution or mental hospital to
strike or recognize a picket line of a labor organization while in the
performance of official duties.

(2) As used in this section, “emergency telephone worker” means a
person whose official focal duties are receiving information through a
9-1-1 emergency reporting system under ORS 401.710 to 401.816, relaying
such information to public or private safety agencies or dispatching
emergency equipment or personnel in response to such information. [1973
c.536 §17; 1985 c.232 §1; 1989 c.793 §20; 2003 c.216 §1](Arbitration) (1) It is the
public policy of the State of Oregon that where the right of employees to
strike is by law prohibited, it is requisite to the high morale of such
employees and the efficient operation of such departments to afford an
alternate, expeditious, effective and binding procedure for the
resolution of labor disputes and to that end the provisions of ORS
240.060, 240.065, 240.080, 240.123, 243.650 to 243.782, 292.055 and
341.290, providing for compulsory arbitration, shall be liberally
construed.

(2) When the procedures set forth in ORS 243.712 and 243.722,
relating to mediation of a labor dispute, have not culminated in a signed
agreement between the parties who are prohibited from striking, the
public employer and exclusive representative of its employees shall
include with the final offer filed with the mediator a petition to the
Employment Relations Board in writing which initiates binding arbitration
for bargaining units with employees referred to in ORS 243.736 (1).
Arbitration shall be scheduled by mutual agreement not earlier than 30
days following the submission of the final offer packages to the
mediator. Arbitration shall be scheduled in accordance with the
procedures prescribed in ORS 243.746. [1973 c.536 §18; 1995 c.286 §9](1)
In carrying out the arbitration procedures authorized in ORS 243.712
(2)(e), 243.726 (3)(c) and 243.742, the public employer and the exclusive
representative may select their own arbitrator.

(2) Where the parties have not selected their own arbitrator within
five days after notification by the Employment Relations Board that
arbitration is to be initiated, the board shall submit to the parties a
list of seven qualified, disinterested, unbiased persons. A list of
Oregon interest arbitrations and fact-findings for which each person has
issued an award shall be included. Each party shall alternately strike
three names from the list. The order of striking shall be determined by
lot. The remaining individual shall be designated the “arbitrator”:

(a) When the parties have not designated the arbitrator and
notified the board of their choice within five days after receipt of the
list, the board shall appoint the arbitrator from the list. However, if
one of the parties strikes the names as prescribed in this subsection and
the other party fails to do so, the board shall appoint the arbitrator
only from the names remaining on the list.

(b) The concerns regarding the bias and qualifications of the
person designated by lot or by appointment may be challenged by a
petition filed directly with the board. A hearing shall be held by the
board within 10 days of filing of the petition and the board shall issue
a final and binding decision regarding the person’s neutrality within 10
days of the hearing.

(3) The arbitrator shall establish dates and places of hearings.
Upon the request of either party or the arbitrator, the board shall issue
subpoenas. Not less than 14 calendar days prior to the date of the
hearing, each party shall submit to the other party a written last best
offer package on all unresolved mandatory subjects, and neither party may
change the last best offer package unless pursuant to stipulation of the
parties or as otherwise provided in this subsection. The date set for the
hearing may thereafter be changed only for compelling reasons or by
mutual consent of the parties. If either party provides notice of a
change in its position within 24 hours of the 14-day deadline, the other
party will be allowed an additional 24 hours to modify its position. The
arbitrator may administer oaths and shall afford all parties full
opportunity to examine and cross-examine all witnesses and to present any
evidence pertinent to the dispute.

(4) Where there is no agreement between the parties, or where there
is an agreement but the parties have begun negotiations or discussions
looking to a new agreement or amendment of the existing agreement,
unresolved mandatory subjects submitted to the arbitrator in the parties’
last best offer packages shall be decided by the arbitrator. Arbitrators
shall base their findings and opinions on these criteria giving first
priority to paragraph (a) of this subsection and secondary priority to
paragraphs (b) to (h) of this subsection as follows:

(a) The interest and welfare of the public.

(b) The reasonable financial ability of the unit of government to
meet the costs of the proposed contract giving due consideration and
weight to the other services, provided by, and other priorities of, the
unit of government as determined by the governing body. A reasonable
operating reserve against future contingencies, which does not include
funds in contemplation of settlement of the labor dispute, shall not be
considered as available toward a settlement.

(c) The ability of the unit of government to attract and retain
qualified personnel at the wage and benefit levels provided.

(d) The overall compensation presently received by the employees,
including direct wage compensation, vacations, holidays and other paid
excused time, pensions, insurance, benefits, and all other direct or
indirect monetary benefits received.

(e) Comparison of the overall compensation of other employees
performing similar services with the same or other employees in
comparable communities. As used in this paragraph, “comparable” is
limited to communities of the same or nearest population range within
Oregon. Notwithstanding the provisions of this paragraph, the following
additional definitions of “comparable” apply in the situations described
as follows:

(A) For any city with a population of more than 325,000,
“comparable” includes comparison to out-of-state cities of the same or
similar size;

(B) For counties with a population of more than 400,000,
“comparable” includes comparison to out-of-state counties of the same or
similar size; and

(C) For the State of Oregon, “comparable” includes comparison to
other states.

(f) The CPI-All Cities Index, commonly known as the cost of living.

(g) The stipulations of the parties.

(h) Such other factors, consistent with paragraphs (a) to (g) of
this subsection as are traditionally taken into consideration in the
determination of wages, hours, and other terms and conditions of
employment. However, the arbitrator shall not use such other factors, if
in the judgment of the arbitrator, the factors in paragraphs (a) to (g)
of this subsection provide sufficient evidence for an award.

(5) Not more than 30 days after the conclusion of the hearings or
such further additional periods to which the parties may agree, the
arbitrator shall select only one of the last best offer packages
submitted by the parties and shall promulgate written findings along with
an opinion and order. The opinion and order shall be served on the
parties and the board. Service may be personal or by registered or
certified mail. The findings, opinions and order shall be based on the
criteria prescribed in subsection (4) of this section.

(6) The cost of arbitration shall be borne equally by the parties
involved in the dispute. [1973 c.536 §19; 1995 c.286 §10; 2001 c.104 §76](1) A majority decision of the
arbitration panel, under ORS 243.706, 243.726, 243.736, 243.742 and
243.746, if supported by competent, material and substantial evidence on
the whole record, based upon the factors set forth in ORS 243.746 (4),
shall be final and binding upon the parties. Refusal or failure to comply
with any provision of a final and binding arbitration award is an unfair
labor practice. Any order issued by the Employment Relations Board
pursuant to this section may be enforced at the instance of either party
or the board in the circuit court for the county in which the dispute
arose.

(2) The arbitration panel may award increases retroactively to the
first day after the expiration of the immediately preceding collective
bargaining agreement. At any time the parties, by stipulation, may amend
or modify an award of arbitration. [1973 c.536 §20; 1981 c.423 §1; 1983
c.504 §2] During the
pendency of arbitration proceedings that occur after the expiration of a
previous collective bargaining agreement, all wages and benefits shall
remain frozen at the level last in effect before the agreement expired,
except that no public employer shall be required to increase
contributions for insurance premiums unless the expiring collective
bargaining agreement provides otherwise. Merit step and longevity step
pay increases shall be part of the status quo unless the expiring
collective bargaining agreement expressly provides otherwise. [1973 c.536
§21; 1995 c.286 §11]Nothing in ORS 240.060, 240.065, 240.080, 240.123,
243.650 to 243.782, 292.055 and 341.290 is intended to prohibit a public
employer and the exclusive representative of its employees from entering
into a collective bargaining agreement which provides for a compulsory
arbitration procedure which is substantially equivalent to ORS 243.742 to
243.756. [1973 c.536 §22](Miscellaneous)The Employment Relations Board shall:

(1) Establish procedures for, investigate and resolve any disputes
concerning the designation of an appropriate bargaining unit.

(2) Establish procedures for, resolve disputes with respect to, and
supervise the conduct of elections for the determination of employee
representation.

(3) Conduct proceedings on complaints of unfair labor practices by
employers, employees and labor organizations and take such actions with
respect thereto as it deems necessary and proper.

(4) Petition the appropriate circuit court for enforcement of any
order issued by the board pursuant to ORS 243.650 to 243.782.

(5) Hold such hearings and make such inquiries as it deems
necessary to carry out properly its functions and powers, and for the
purpose of such hearings and inquiries, administer oaths and
affirmations, examine witnesses and documents and issue subpoenas.

(6) Conduct studies on problems relating to public employment
relations and make recommendations with respect thereto to the
legislative bodies; request information and data from state and county
departments and agencies and labor organizations necessary to carry out
its functions and responsibilities; make available to public employers,
labor organizations, mediators, members of fact-finding boards,
arbitrators and other concerned parties statistical data relating to
wages, benefits, and employment practices in public and private
employment to assist them in resolving issues in negotiation.

(7) Adopt rules relative to the exercise of its powers and
authority and to govern the proceedings before it in accordance with ORS
chapter 183. [1973 c.536 §24]Any provisions of local charters and ordinances adopted
pursuant thereto in existence on October 5, 1973, and not in conflict
with the rights and duties established in ORS 240.060, 240.065, 240.080,
240.123, 243.650 to 243.782, 292.055 and 341.290 may remain in full force
and effect after the Employment Relations Board has determined that no
conflict exists. [1973 c.536 §15] The rights
and responsibilities prescribed for state officers and employees in ORS
292.055 shall accrue to employees of all public employers. [1973 c.536
§32](1) When an appropriate bargaining unit includes members of
the faculty of an institution of higher education, the duly organized and
recognized entity of student government at that institution may designate
three representatives to meet and confer with the public employer of
those members of the faculty and the exclusive representative of that
appropriate bargaining unit prior to collective bargaining.

(2) During the course of collective bargaining between the public
employer and the exclusive representative described in subsection (1) of
this section, the representatives of student government designated under
subsection (1) of this section shall:

(a) Be allowed to attend and observe all meetings between the
public employer and the exclusive representative at which collective
bargaining occurs;

(b) Have access to all written documents pertaining to the
collective bargaining negotiations exchanged by the public employer and
the exclusive representative, including copies of any prepared written
transcripts of the bargaining session;

(c) Be allowed to comment in good faith during the bargaining
sessions upon matters under consideration; and

(d) Be allowed to meet and confer with the exclusive representative
and the public employer regarding the terms of an agreement between them
prior to the execution of a written contract incorporating that agreement.

(3) Rules regarding confidentiality and release of information
shall apply to student representatives in the same manner as employer and
employee bargaining unit representatives.

(4) As used in this section:

(a) “Institution of higher education” means an institution under
the control of the State Board of Higher Education.

(b) “Meet and confer” means the performance of the mutual
obligation of the representatives of student government designated under
subsection (1) of this section, the exclusive representative and the
public employer, or any two of them, to meet at the request of one of
them at reasonable times at a place convenient to all to conduct in good
faith an interchange of views concerning the duties of each under this
section, employment relations of the faculty, the negotiation of an
agreement and the execution of a written agreement. [1975 c.679 §2] (1) For purposes of
proceedings commenced pursuant to ORS 240.060, 240.065, 240.080, 240.123,
243.650 to 243.782, 292.055 and 341.290, a person may be represented by
counsel or any other agent authorized by such person.

(2) As used in subsection (1) of this section, “person” means any
individual, a labor organization or a public employer. [1973 c.536 §33]OPTIONAL RETIREMENT PLAN FOR HIGHER EDUCATION EMPLOYEES(1) Notwithstanding any
provision of ORS chapter 238 or 238A or ORS 243.910 to 243.945, the State
Board of Higher Education shall establish and administer an Optional
Retirement Plan for administrative and academic employees of the Oregon
University System who are eligible for membership in the Public Employees
Retirement System. The Optional Retirement Plan must be a qualified plan
under the Internal Revenue Code, capable of accepting funds transferred
under subsection (7) of this section without the transfer being treated
as a taxable event under the Internal Revenue Code, and willing to accept
those funds. Retirement and death benefits shall be provided under the
plan by the purchase of annuity contracts, fixed or variable or a
combination thereof, or by contracts for investments in mutual funds.

(2) The State Board of Higher Education shall select at least two
life insurance companies providing fixed and variable annuities and at
least two investment companies providing mutual funds, but not more than
five companies in total, for the purpose of providing benefits under the
Optional Retirement Plan. The State Board of Higher Education shall
establish selection criteria for the purpose of this subsection.

(3) An administrative or academic employee may make an irrevocable
election to participate in the Optional Retirement Plan within six months
after being employed. An election under this subsection is effective on
the first day of the month following six full months of employment.

(4) An administrative or academic employee who does not elect to
participate in the Optional Retirement Plan:

(a) Remains or becomes a member of the Public Employees Retirement
System in accordance with ORS chapters 238 and 238A; or

(b) Continues to be assisted by the State Board of Higher Education
under ORS 243.920 if the employee is being so assisted.

(5) Except as provided in subsection (6) of this section, employees
who elect to participate in the Optional Retirement Plan are ineligible
for active membership in the Public Employees Retirement System or for
any assistance by the State Board of Higher Education under ORS 243.920
as long as those employees are employed in the Oregon University System
and the plan is in effect.

(6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable service
under ORS chapter 238 as defined by ORS 238.005 and who is not vested
shall be considered by the Public Employees Retirement Board to be a
terminated member under the provisions of ORS 238.095 as of the effective
date of the election, and the amount credited to the member account of
the member shall be transferred directly to the Optional Retirement Plan
by the Public Employees Retirement Board in the manner provided by
subsection (7) of this section.

(b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable service
under ORS chapter 238 as defined by ORS 238.005 and who is vested shall
be considered to be an inactive member by the Public Employees Retirement
Board and shall retain all the rights, privileges and options under ORS
chapter 238 unless the employee makes a written request to the Public
Employees Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A request
for a transfer must be made at the time the member elects to participate
in the Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer all amounts credited to the
member account of the member directly to the Optional Retirement Plan,
and shall terminate all rights, privileges and options of the employee
under ORS chapter 238.

(c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a vested
member of the pension program of the Oregon Public Service Retirement
Plan as described in ORS 238A.115 on the date that the election becomes
effective, shall be considered to be a terminated member of the pension
program by the Public Employees Retirement Board as of the effective date
of the election.

(d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested member
of the pension program of the Oregon Public Service Retirement Plan as
described in ORS 238A.115 on the date that the election becomes
effective, shall be considered an inactive member of the pension program
by the Public Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this paragraph
retains all the rights, privileges and options of an inactive member of
the pension program. If the actuarial equivalent of the employee’s
benefit under the pension program at the time that the election becomes
effective is $5,000 or less, the employee may make a written request to
the Public Employees Retirement Board for a transfer of the employee’s
interest under the pension program to the Optional Retirement Plan. The
request must be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amount determined to be the
actuarial equivalent of the employee’s benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.

(e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested member
of the individual account program of the Oregon Public Service Retirement
Plan as described in ORS 238A.320 on the date that the election becomes
effective, shall be considered an inactive member of the individual
account program by the Public Employees Retirement Board as of the
effective date of the election. An employee who is subject to the
provisions of this paragraph retains all the rights, privileges and
options of an inactive member of the individual account program. An
administrative or academic employee who elects to participate in the
Optional Retirement Plan, and who is a member of the individual account
program of the Oregon Public Service Retirement Plan, may make a written
request to the Public Employees Retirement Board that all amounts in the
member’s employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320, be
transferred to the Optional Retirement Plan. The request must be made at
the time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement Board
shall transfer the amounts directly to the Optional Retirement Plan, and
shall terminate the membership of the employee in the individual account
program upon making the transfer.

(f) Notwithstanding paragraphs (b), (d) and (e) of this subsection,
the Public Employees Retirement Board shall not treat any employee as an
inactive member under the provisions of this subsection for the purpose
of receiving any benefit under ORS chapter 238 or 238A that requires that
the employee be separated from all service with participating public
employers and with employers who are treated as part of a participating
public employer’s controlled group under the federal laws and rules
governing the status of the system and the Public Employees Retirement
Fund as a qualified governmental retirement plan and trust.

(7) Any amounts transferred from the Public Employees Retirement
Fund under subsection (6) of this section shall be transferred directly
to the Optional Retirement Plan by the Public Employees Retirement Board
and shall not be made available to the employee.

(8) An employee participating in the Optional Retirement Plan shall
contribute monthly an amount equal to the percentage of the employee’s
salary that the employee would otherwise have contributed as an employee
contribution to the Public Employees Retirement System if the employee
had not elected to participate in the Optional Retirement Plan.

(9) The State Board of Higher Education shall contribute monthly to
the Optional Retirement Plan the percentage of salary of each employee
participating in the plan equal to the percentage of salary that would
otherwise have been contributed as an employer contribution on behalf of
the employee to the Public Employees Retirement System, before any offset
under ORS 238.225 (9), if the employee had not elected to participate in
the Optional Retirement Plan.

(10) Both employee and employer contributions to an Optional
Retirement Plan shall be remitted directly to the companies that have
issued annuity contracts to the participating employees or directly to
the mutual funds.

(11) Benefits under the Optional Retirement Plan are payable to
employees who elect to participate in the plan and their beneficiaries by
the selected annuity provider or mutual fund in accordance with the terms
of the annuity contracts or the terms of the contract with the mutual
fund. Employees electing to participate in the plan agree that benefits
payable under the plan are not obligations of the State of Oregon or of
the Public Employees Retirement System.

(12) The percentage of salary contributed by the State Board of
Higher Education under subsection (9) of this section on behalf of an
employee is not affected by reason of the employee having a break in
service, as described by ORS 238A.025. [Formerly 243.775; 2001 c.945 §66;
2003 c.67 §34; 2003 c.733 §69; 2005 c.611 §1]Note: Section 2, chapter 611, Oregon Laws 2005, provides:

Sec. 2. ORS 243.800 (12) applies to all breaks in service that
occur before, on or after August 29, 2003. [2005 c.611 §2]Note: 238.225 (9) was deleted by amendment by section 10, chapter
808, Oregon Laws 2005. The text of 243.800 was not amended by enactment
of the Legislative Assembly to reflect the deletion. Editorial adjustment
of 243.800 for the deletion of 238.225 (9) has not been made.Note: 243.800 was added to and made a part of ORS chapter 243 by
legislative action but was not added to any smaller series therein. See
Preface to Oregon Revised Statutes for further explanation.TAX-SHELTERED ANNUITIES FOR EDUCATIONAL EMPLOYEES As used in ORS
243.810 to 243.830, unless the context requires otherwise:

(1) “Educational institution” means an educational institution that
normally maintains a regular faculty and curriculum and normally has a
regularly organized body of students in attendance at the place where its
educational activities are carried on or an education service district.

(2) “Employer” means the State Board of Higher Education, any other
state agency, a community college district, a school district, the Oregon
Health and Science University or an education service district employing
an individual who performs services for an educational institution. [1965
c.606 §1; 1979 c.227 §1; 1981 c.407 §2; 1995 c.162 §66](1) In order to obtain the advantages of
section 403(b) of title 26, United States Code, or any equivalent
provision of federal law, an employer subject to ORS 243.810 to 243.830
may agree with an individual employed by it, who performs services for an
educational institution, that:

(a) The employee’s salary will be reduced monthly by a stated
amount, or the employee will forgo monthly a salary increase of a stated
amount; and

(b) The employer will contribute monthly an amount equal to the
stated amount determined under paragraph (a) of this subsection for such
month, as premiums for an annuity contract or for shares of an investment
company registered under the federal Investment Act of 1940 for such
employee. The amount contributed by the employer shall not exceed the
stated amount.

(2) Notwithstanding any other provision of law, pursuant to an
agreement under subsection (1) of this section, the stated amounts shall
be forwarded by the employer as annuity premiums to the company or
association with which it has entered into an annuity contract or to the
investment company or its transfer agent for the benefit of such
employee. [1965 c.606 §2; 1981 c.407 §1]An agreement executed pursuant to ORS 243.820 by an employee
who is subject to ORS chapter 238 or 238A, or a similar retirement
program for public employees, in no way affects the contributions to be
made or the benefits to be provided for such employee under ORS chapter
238 or 238A or the other similar program. Reduction of salary or forgoing
a salary increase by a stated amount under ORS 243.820 shall not be
deemed a reduction in salary for the purpose of such contributions and
benefits. [1965 c.606 §3; 1999 c.130 §7; 2003 c.733 §70]COACHES PLAN(1) An eligible football coach and the State Board of Higher
Education may enter into an agreement to provide that:

(a) The coach’s salary will be reduced monthly by a stated amount
that is not less than $25 a month, or the coach will forgo monthly a
salary increase of a stated amount that is not less than $25 month; and

(b) The State Board of Higher Education will contribute monthly an
amount equal to the stated amount determined under paragraph (a) of this
subsection for the month to a designated qualified football coaches plan.
The amount contributed by the employer shall not exceed the stated amount.

(2) The amount by which an eligible football coach’s salary or
wages is reduced by reason of the salary reduction or forgoing of a
salary increase authorized by subsection (1) of this section shall
continue to be included as regular compensation for the purpose of
computing the retirement, pension and Social Security benefits earned by
the coach, but that amount shall not be considered current taxable income
for the purpose of computing federal and state income taxes withheld on
behalf of that coach.

(3) For the purposes of this section:

(a) “Eligible football coach” means a staff member of the Oregon
University System who primarily coaches football as a full-time employee
of a four-year university described in 26 U.S.C. 170(b)(1)(A)(ii).

(b) “Qualified football coaches plan” has the meaning given that
term in 29 U.S.C. 1002(37). [1991 c.604 §1; 1993 c.160 §1; 1997 c.11 §5;
2003 c.14 §114]HIGHER EDUCATION SUPPLEMENTAL RETIREMENT BENEFITS As used in ORS
243.910 to 243.945:

(1) “Board” means the State Board of Higher Education for all
institutions under the jurisdiction of that board as set forth in ORS
352.002, and for the Oregon Health and Science University means the
Oregon Health and Science University Board of Directors.

(2) “Employees” means the persons appointed or employed by or under
the authority of the board who hold academic rank as determined by the
board.

(3) “System” means the Public Employees Retirement System
established by ORS 238.600. [1965 c.297 §1; 1995 c.162 §67](1) The board may, in its discretion, assist its
employees who are members of the Public Employees Retirement System and
who elect to be so assisted by filing an election as provided in ORS
243.940, in the purchase of retirement benefits supplementing the
benefits to which those employees are entitled under the system. For this
purpose the board and its employees may enter into contracts with one or
more life insurance or annuity companies.

(2) Each employee who elects to be assisted under subsection (1) of
this section shall, as a condition to such election, either:

(a) Agree to contribute through payroll deductions toward the
purchase of the supplementary retirement benefits a percentage of the
annual salary of the employee in excess of $4,800 equal to the percentage
rate applicable to contributions made by the employee under the system,
the amounts deducted from payrolls as employee contributions to be paid
promptly by the board to the life insurance or annuity company in
accordance with the terms of the applicable contract; or

(b) Agree either to a reduction in salary or to the forgoing of a
salary increase in accordance with ORS 243.820, in an amount not less
than the amount otherwise required to be contributed under paragraph (a)
of this subsection. [1965 c.297 §2(1), (2); 1969 c.626 §1] (1)
If an employee assisted under ORS 243.920 (1) has made contributions to
the Public Employees Retirement Fund during each of five calendar years,
the board shall contribute an amount toward the purchase of the
supplemental retirement benefits equal to the contributions toward the
purchase made by the employee on annual salary in excess of $4,800. The
amounts of those contributions by the board shall be paid promptly by the
board to the life insurance or annuity company in accordance with the
terms of the applicable contract.

(2) If an employee assisted under ORS 243.920 (1) has not made
contributions to the Public Employees Retirement Fund during each of five
calendar years, the board shall contribute an amount toward the purchase
of the supplemental retirement benefits equal to that which it would
contribute for current service under the Public Employees Retirement
System with respect to the annual salary in excess of $4,800 of the
employee if the employee contributed under the system on that part of the
salary.

(3) The amounts of contributions by the board under subsection (2)
of this section, at intervals designated by the Public Employees
Retirement Board, shall be paid into the Public Employees Retirement
Fund. The Public Employees Retirement Board shall keep a separate account
for those amounts and prorated earnings thereof, and for investment
purposes the moneys in the separate account shall be commingled with
those of the Public Employees Retirement Fund and shall be invested in
the same manner as moneys of the Public Employees Retirement Fund are
invested.

(4) When an employee, with respect to whose annual salary in excess
of $4,800 the board has contributed under subsection (2) of this section,
has made contributions to the Public Employees Retirement Fund during
each of five calendar years, an amount equal to the contributions made
under ORS 243.920 (2) shall be paid promptly to the life insurance or
annuity company out of the separate account referred to in subsection (3)
of this section for the purchase of additional supplemental retirement
benefits for the employee. If the moneys in the separate account are not
sufficient for that purpose, the amount of the deficiency shall be paid
promptly by the board to the life insurance or annuity company for that
purchase.

(5) If an employee is separated from the service of the board
before the employee has made contributions to the Public Employees
Retirement Fund during each of five calendar years, the amounts of
contributions by the board paid into the Public Employees Retirement Fund
under subsection (3) of this section and prorated earnings thereof shall
remain in the separate account referred to in subsection (3) of this
section for the purpose described in subsection (4) of this section, and
the employee is not entitled to any part thereof or any benefit derived
therefrom. [1965 c.297 §2(3), (4); 1969 c.626 §2; 2003 c.733 §71; 2005
c.755 §5]Pursuant to the provisions of ORS 238.205, an employer may
“pick-up,” assume or pay the full amount of contributions which would
otherwise have been made by an employee assisted under ORS 243.920,
whether the employee agreed to make the contributions by payroll
deduction, reduction in salary or the forgoing of a salary increase.
[1989 c.799 §18] (1) Employees
may elect to be assisted by the board under ORS 243.920 (1), or may
cancel that election, only as provided in this section.

(2) An employee who is a member of the Public Employees Retirement
System before the board commences to assist its employees under ORS
243.920 (1) may elect to be so assisted by the board not later than one
month before that commencement.

(3) An employee who becomes a member of the system after the board
commences to assist its employees under ORS 243.920 (1) may elect to be
so assisted by the board not later than one month before the employee
becomes a member of the system.

(4) An employee who is a member of the system and who has not filed
an election under subsection (2) or (3) of this section, or who has filed
that election but thereafter canceled it, thereafter may elect to be
assisted by the board under ORS 243.920 (1) only within the first 60 days
of any calendar year commencing after the board commences to assist its
employees under ORS 243.920 (1).

(5) An employee who has filed an election under subsection (2), (3)
or (4) of this section may cancel that election only within the first 60
days of any calendar year commencing after the board commences to assist
its employees under ORS 243.920 (1).

(6) An election or cancellation thereof under this section shall be
filed in writing with the board. The board shall inform the Public
Employees Retirement Board in writing of all elections or cancellations
so filed. [1965 c.297 §3] Notwithstanding ORS
243.910 to 243.945, any person who is hired on or after September 9,
1995, is not eligible to be assisted by the Oregon University System
under the provisions of ORS 243.910 to 243.945. [1995 c.600 §4]PUBLIC SAFETY MEMORIAL FUND The Public Safety Memorial
Fund is established in the State Treasury, separate and distinct from the
General Fund. Interest earned, if any, shall inure to the benefit of the
Public Safety Memorial Fund. All moneys deposited in the fund are
continuously appropriated to the Department of Public Safety Standards
and Training for the purposes of ORS 243.954 to 243.974, to be expended
by the Public Safety Memorial Fund Board, established by ORS 243.952, as
provided in ORS 243.954 to 243.974. However, the board may not expend
more than $60,000 per biennium of the moneys for administrative costs of
the board incurred under ORS 243.954 to 243.974. [1999 c.981 §3]Note: 243.950 to 243.974 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.(1) There is established within the Board on Public
Safety Standards and Training a Public Safety Memorial Fund Board
consisting of six members appointed by the Governor from the membership
of the Board on Public Safety Standards and Training. The Governor shall
appoint members to represent each of the following:

(a) Police officers;

(b) Fire service professionals;

(c) Corrections personnel; and

(d) The public.

(2)(a) Before the expiration of the term of a member of the Public
Safety Memorial Fund Board, the Governor shall appoint a successor whose
term begins immediately upon the expiration of the term of the current
member. A member is eligible for reappointment.

(b) In case of a vacancy for any cause, the Governor shall appoint
a person to fill the office for the unexpired term.

(3)(a) The Public Safety Memorial Fund Board shall select one of
its members as chairperson and another as vice chairperson, for such
terms and with duties and powers necessary for the performance of the
functions of such offices as the board determines.

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

(4) The Public Safety Memorial Fund Board shall meet at least once
every three months at a place, day and hour determined by the board. The
board also shall meet at other times and places specified by the call of
the chairperson or of a majority of the members of the board.

(5) The Department of Public Safety Standards and Training shall
provide staff for the Public Safety Memorial Fund Board.

(6) Members of the Public Safety Memorial Fund Board are entitled
to per diem and expenses as provided in ORS 292.495. [1999 c.981 §14]Note: See note under 243.950. As used in ORS
243.954 to 243.974:

(1) “Child” means a person who is a natural child, adopted child or
stepchild of a public safety officer and who is:

(a) 18 years of age or younger;

(b) 19 through 22 years of age and enrolled as a full-time
undergraduate student; or

(c) 19 years of age or older and incapable of self-support due to a
physical or mental disability.

(2) “Family member” means:

(a) The spouse of a public safety officer.

(b) A child of a public safety officer.

(c) A person who qualifies as a dependent of a public safety
officer for state income tax purposes.

(3) “Permanent total disability” has the meaning given that term in
ORS 656.206.

(4) “Public safety officer” means:

(a) Corrections officers, as defined in ORS 181.610.

(b) Fire service professionals, as defined in ORS 181.610, and
includes volunteer firefighters as defined in ORS 652.050.

(c) Parole and probation officers, as defined in ORS 181.610.

(d) Police officers, as defined in ORS 181.610, and includes
reserve officers, as defined in ORS 181.610.

(e) Youth correction officers, as defined in ORS 181.610.

(5) “Qualifying death or disability” means death or permanent total
disability suffered by a public safety officer while on or off duty that
is the direct or proximate result of:

(a) An enforcement action, an emergency response or public safety
training for an enforcement action or emergency response that the public
safety officer is authorized or obligated to perform by law, rule,
regulation or condition of employment or service; or

(b) An act committed against the public safety officer because of
the public safety officer’s position as a public safety officer.

(6) “Survivor” means:

(a) A family member; or

(b) A parent of a public safety officer. [1999 c.981 §4; 2001 c.493
§3; 2003 c.295 §1]Note: See note under 243.950. (1)
A person is eligible for an award of benefits from the Public Safety
Memorial Fund if the person:

(a)(A) Is a family member or a parent of a public safety officer
who has suffered a qualifying death or disability; or

(B) Is a public safety officer who has suffered a qualifying
disability; and

(b) Has submitted an initial application for an award of benefits
under ORS 243.958.

(2) Notwithstanding subsection (1) of this section, a person is not
eligible for an award of benefits if:

(a) The person’s actions were a substantial contributing factor to
the qualifying death or disability of the public safety officer;

(b) The public safety officer’s intentional misconduct caused the
qualifying death or disability;

(c) The public safety officer intended to bring about the officer’s
qualifying death or disability;

(d) The public safety officer was voluntarily intoxicated at the
time of the injury that caused the qualifying death or disability; or

(e) The public safety officer was performing the officer’s duties
in a grossly negligent manner at the time of the injury that caused the
qualifying death or disability.

(3) If a person who is eligible for an award of benefits under
subsection (1) of this section is younger than 18 years of age or is
incompetent, another person may file the application for an award of
benefits on behalf of the eligible person.

(4) Within 14 days after receipt of a notice under ORS 243.974 or
entry of an order under ORS 243.964 awarding benefits based on an initial
application, whichever occurs later, the Public Safety Memorial Fund
Board shall pay a lump sum amount of $25,000:

(a) In the manner described under ORS 243.969, to a survivor of a
public safety officer who suffered a qualifying death; or

(b) To the public safety officer who suffered a qualifying
disability.

(5) If alternative coverage is not provided, the board may award
benefits to the family members of a public safety officer who has
suffered a qualifying death or disability in an amount sufficient to
allow the family members to purchase health and dental insurance
comparable to that provided by the public safety officer:

(a) For five years or until the spouse remarries, whichever occurs
first; and

(b) Until a child or a dependent attains 18 years of age or, if the
child or the dependent is attending school, 23 years of age.

(6) If alternative coverage is not provided, the board may award
benefits for five years to a public safety officer who has suffered a
qualifying disability in an amount sufficient to allow the public safety
officer to purchase health and dental insurance comparable to the health
and dental insurance coverage that the public safety officer had
immediately prior to the qualifying disability.

(7) The board may award benefits to an eligible spouse of a public
safety officer who has suffered a qualifying death or to a public safety
officer who has suffered a qualifying disability in an amount up to the
equivalent of 12 monthly mortgage payments on the residence of the spouse
or the public safety officer if there is no mortgage insurance to cover
the cost.

(8) The board may award scholarships for a graduate program of
higher education to a family member of a public safety officer who has
suffered a qualifying death or disability or to a public safety officer
who has suffered a qualifying disability. In determining the amount of a
scholarship, the board shall consider the person’s financial need, the
funds available in the Public Safety Memorial Fund and the anticipated
demands on the fund. The board may not grant a scholarship in an amount
exceeding the highest tuition charged by a state institution of higher
education for a graduate program.

(9) A family member or a public safety officer is eligible to apply
for a scholarship under subsection (8) of this section only if the family
member or public safety officer:

(a) Has exhausted the education benefits available under 28 C.F.R.,
Part 32, subpart B;

(b) Applies for the scholarship within one year from the date of
exhaustion of the education benefits under paragraph (a) of this
subsection; and

(c) Has applied for other available public education benefits.

(10) If a person described in subsection (8) of this section is
ineligible to receive education benefits under 28 C.F.R., Part 32,
subpart B, if funds for education benefits are unavailable under those
provisions or if the education benefit program under those provisions no
longer exists, the person may apply to the board for a scholarship for an
undergraduate program. Scholarships for only undergraduate degrees may be
awarded to a person under this subsection. The board may not grant a
scholarship under this subsection in an amount exceeding the highest
tuition charged by a state institution of higher education for an
undergraduate program.

(11)(a) A person may apply for a scholarship under subsection (10)
of this section at any time up to:

(A) Five years after the date on which the applicant graduated from
high school if:

(i) The applicant was a minor at the time the public safety officer
suffered a qualifying death or disability; and

(ii) An application for an award of some type of benefits was filed
by a person described in subsection (8) of this section;

(B) The date the applicant remarries, if the applicant is the
surviving spouse of a public safety officer who suffered a qualifying
death, or the date the applicant divorces the public safety officer, if
the applicant is the spouse of a public safety officer who suffered a
qualifying disability; or

(C) Five years after the date of the injury that caused the
disability, if the applicant is a public safety officer who suffered a
qualifying disability.

(b) The board may extend the time period for applying for a
scholarship under subsection (10) of this section.

(12) If the family member or public safety officer who is awarded a
scholarship under this section is receiving other public education
benefits, the amount of the scholarship awarded to the family member or
the public safety officer shall be reduced by the amount of the other
public education benefits. [1999 c.981 §5; 2001 c.493 §1; 2003 c.295 §2]Note: See note under 243.950. (1) An applicant for
benefits under ORS 243.956 (4) must file an initial application under
oath on a form furnished by the Public Safety Memorial Fund Board. The
initial application must include:

(a) The name and address of the applicant and the applicant’s
relationship to the public safety officer;

(b) The public safety officer’s name, the date of the qualifying
death or disability and the agency that employed the public safety
officer;

(c) Releases authorizing the surrender to the board of reports,
documents and other information relating to matters specified in this
subsection; and

(d) Any other information that the board determines is necessary.

(2) The board may require that an applicant submit with the initial
application any materials that substantiate the facts stated in the
initial application.

(3) If the board finds that an initial application does not contain
the required information or materials or finds that the facts stated
therein have not been substantiated, the board shall notify the applicant
in writing that specific additional items of information or materials are
required and that the applicant has 180 days from the date of mailing of
the notice in which to furnish the additional items to the board. Unless
an applicant requests and is granted an extension of time by the board,
the board shall reject with prejudice the claim of the applicant for
failure to file the additional information or materials within the
specified time.

(4) An applicant may file an amended initial application or
additional substantiating materials to correct inadvertent errors or
omissions at any time before the board has completed its consideration of
the original initial application. [1999 c.981 §6; 2001 c.493 §2; 2003
c.295 §3]Note: See note under 243.950. An applicant for
benefits under ORS 243.956 (5) to (10) shall file a supplemental
application under oath on a form furnished by the Public Safety Memorial
Fund Board. The supplemental application must include:

(1) The amount of benefits, payments or awards, if any, payable
from any source, that the applicant has received or for which the
applicant is eligible as a result of the qualifying death or disability
of a public safety officer; and

(2) Any other information that the board determines is necessary.
[2003 c.295 §10]Note: See note under 243.950. All information
submitted to the Public Safety Memorial Fund Board by an applicant is a
public record under ORS 192.410 and is open to public inspection unless
the board determines that the information should be kept confidential.
[1999 c.981 §7]Note: See note under 243.950. (1) In determining the
amount of benefits for which an applicant is eligible, the Public Safety
Memorial Fund Board shall:

(a) Consider the facts stated in the initial application filed
under ORS 243.958 or the supplemental application filed under ORS 243.959;

(b) Consider the amount of funds available for benefit awards, as
provided in the current biennial board budget approved by the Legislative
Assembly or the Emergency Board, and the anticipated claims against those
funds; and

(c) Award the resultant amount to the applicant as provided in ORS
243.956.

(2) In determining the amount of an award to be made to an
applicant, the board may consider the number and type of claims filed and
the number and type of claims anticipated to be filed with the board
during the current biennial budget period. If the board determines that
insufficient funds will be available during the current biennial budget
period to pay all approved and anticipated claims, the board may
prioritize claims or prorate the amounts awarded based upon the
anticipated available funds. The board’s decision to prioritize claims or
prorate the amounts awarded is not subject to administrative or judicial
review, including review under ORS 243.966. [1999 c.981 §8; 2003 c.295 §4]Note: See note under 243.950. After processing an initial application filed under
ORS 243.958 or a supplemental application filed under ORS 243.959, the
Public Safety Memorial Fund Board shall enter an order stating:

(1) The board’s findings of fact;

(2) The board’s decision as to whether benefits are due under ORS
243.954 to 243.974;

(3) The amount of benefits, if any, that is due under ORS 243.954
to 243.974, as determined under ORS 243.956 and 243.962; and

(4) The manner in which the board will pay the award pursuant to
ORS 243.956 (8) to (10). [1999 c.981 §9; 2003 c.295 §5]Note: See note under 243.950. (1) If an applicant disagrees
with the order entered under ORS 243.964, the applicant may request
reconsideration by the Public Safety Memorial Fund Board by filing the
request with the board no later than 30 days after entry of the order.
The board shall reconsider any order for which a request for
reconsideration is timely received. The board shall notify the applicant
of its decision on reconsideration within 30 days of the board’s receipt
of the request for reconsideration. The board’s decision is final and not
subject to administrative or judicial review.

(2) Notwithstanding subsection (1) of this section, upon the
request of and good cause shown by the applicant, the board may extend
the 30-day time period for:

(a) The applicant to file a request for reconsideration.

(b) The board to notify the applicant of its decision on
reconsideration. [1999 c.981 §10; 2001 c.493 §5; 2005 c.404 §1]Note: See note under 243.950. (1) When a person eligible to receive an
award under ORS 243.956 is younger than 18 years of age or is
incompetent, the board may pay the award to a relative, guardian or
attorney of the person on behalf of and for the benefit of the person. In
such case, the board may require the payee to:

(a) File an annual accounting of the award with the board; and

(b) Take such other action that the board determines is necessary
and appropriate for the benefit of the beneficiary of the award.

(2) Payment of claims is subject to availability of funds for
benefit awards as provided in the board’s current biennial budget
approved by the Legislative Assembly or the Emergency Board. [1999 c.981
§11; 2003 c.295 §6]Note: See note under 243.950. (1) If the Public Safety
Memorial Fund Board awards lump sum benefits under ORS 243.956, the board
shall pay the benefits to the survivor of a public safety officer who
suffered a qualifying death as follows:

(a) 100 percent to the surviving spouse.

(b) If there is no surviving spouse, 100 percent to the surviving
child.

(c) If there is no surviving spouse or child, 100 percent to a
person who qualifies as a dependent of the public safety officer for
state income tax purposes.

(d) If there is no surviving spouse or child or dependent, 100
percent to the parent of the public safety officer.

(2) If more than one child, or both parents, or more than one
dependent are survivors, the board shall pay the percentage amount one
child or one parent or one dependent would have received under subsection
(1) of this section in equal shares to the children or parents or
dependents. [2003 c.295 §11]Note: See note under 243.950. To carry out the
provisions and purposes of ORS 243.954 to 243.974, the Public Safety
Memorial Fund Board may:

(1) Request from law enforcement officials and from any other
agency of the state or any local governmental unit such assistance and
information as will enable the board to carry out its functions and
duties.

(2) Request the assistance of the State Treasurer.

(3) Accept gifts, grants and donations from public and private
sources. Such gifts, grants and donations shall be deposited by the board
in the Public Safety Memorial Fund.

(4) Adopt rules pursuant to ORS chapter 183.

(5) Determine all claims for awards filed with the board under ORS
243.958 and 243.959.

(6) Report biennially to the Governor and the Legislative Assembly
on its activities, pursuant to ORS 192.245. [1999 c.981 §13; 2003 c.295
§7]Note: See note under 243.950. The Public
Safety Memorial Fund Board shall investigate whether gifts made to the
board under ORS 243.970 are, or could be, tax deductible contributions
for the donors. If the gifts do not qualify as tax deductible
contributions, the board shall take whatever actions are necessary to
ensure that gifts meet the requirements for tax deductibility, unless
such action would alter the purposes of ORS 243.954 to 243.974. [1999
c.981 §18]Note: See note under 243.950.No later than three days after a
determination that a public safety officer suffered a qualifying death or
disability, the agency employing or utilizing the public safety officer
shall notify the Public Safety Memorial Fund Board of the fact by sending
the board the appropriate form supplied by the Department of Public
Safety Standards and Training. [1999 c.981 §15; 2001 c.493 §4; 2003 c.295
§8]Note: See note under 243.950.

_______________
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; 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] 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]
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]
(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]
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]

(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]PUBLIC EMPLOYEES’ BENEFIT BOARD(1) There is created in the Oregon Department of
Administrative Services 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 Department of Administrative
Services 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 Department of Administrative
Services 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]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. (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.BENEFIT PLANS(Generally) 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
or 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 the state institutions of higher education.

(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]A person employed by a state institution of
higher education 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](1) The Public Employees’ Benefit Board shall prescribe rules
for the conduct of its business. 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](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. [1971 c.527
§4; 1975 c.560 §2; 1977 c.313 §1; 1983 c.640 §3; 1997 c.222 §30](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.(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 Department of
Administrative Services 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]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]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](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](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. 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]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] (1) 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.

(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] 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]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](Miscellaneous)
(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] (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] 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. [1985 c.224 §7](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] (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](Long Term Care Insurance)
(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.(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.(Retirees)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(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(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](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 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](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] 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
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](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) 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)](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] 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]
(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] 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] (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](State Deferred Compensation Plan)(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](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](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] 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](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,
but that 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] (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](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)(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] (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] (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](Immunities)(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](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)(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 on the date
the employee separates from service or at such later date as may be
allowed 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) Payment of all or any part of deferred compensation to an
alternate payee under this section 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.

(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]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 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. (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. (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. (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.(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. (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.COLLECTIVE BARGAINING(Generally) 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 cannot 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 shall 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. Nothing in this subsection shall 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, so 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” shall not include
subjects which 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” shall 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” shall
expressly exclude 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, and any
other subject proposed that is permissive under paragraphs (b), (c) and
(d) of this subsection.

(f) For all other employee bargaining except school districts,
“employment relations” expressly excludes staffing levels and safety
issues (except those staffing levels and safety issues which 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 such agreement be rescinded, the board shall
take a secret ballot of the employees in such 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 such union security agreement, the board shall certify
deauthorization thereof. 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 shall
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” shall
not be construed to 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 shall be equivalent to
regular union dues and assessments, if any, or shall 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 such 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 shall not thereafter
prevent assertion of supervisory status in any subsequent board
proceeding or contract negotiation. Notwithstanding the provisions of
this subsection, no nurse, charge nurse or similar nursing position shall
be deemed to be supervisory unless such 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] 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]
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]

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