68th OREGON LEGISLATIVE ASSEMBLY--1995 Regular Session

CCA to B-Eng. SB 750

LC 1699-3

               CONFERENCE COMMITTEE AMENDMENTS TO
                   B-ENGROSSED SENATE BILL 750

                             June 1




                         Amended Summary
   { +  Revises laws relating to public employment and collective
bargaining by public employees. Provides teacher who files appeal
of dismissal shall be required to waive any contract grievance
claim regarding same dismissal as condition to review. Provides
school district and bargaining representative may agree to waive
Fair Dismissal Law rights and procedures if third party review of
dismissal is available. Revises laws concerning employee
transfers. + }
    { - Revises certain scope and procedural matters for
collective bargaining by public employees. Modifies provisions
regarding retention of teaching staff. - }  Modifies overtime pay
provisions for public employees.   { - Imposes civil penalty
against labor organization for participation in illegal
strike. - }
    { - Repeals provisions regarding transfer of public
employees. - }
   { +  Creates Public Employee Collective Bargaining Task Force
to study public employee collective bargaining law. Directs
report to Legislative Assembly. + }
  Declares emergency, effective on passage.

President Smith:
  Your Conference Committee to whom was referred B-engrossed
Senate Bill 750, having had the same under consideration,
respectfully reports it back with the recommendation that the
Senate concur in the House amendments dated May 3 and that the
bill be amended as follows and repassed.

  On ****************************page 1, of the printed
B-engrossed bill, line 2, after 'ORS ' delete the rest of the
line and delete lines 3 through 6 and insert '182.320, 236.370,
236.605, 236.610, 236.620, 236.630, 237.255, 240.212, 243.650,
243.672, 243.702, 243.706, 243.712, 243.722, 243.726, 243.742,
243.746, 243.756, 279.340, 279.342, 292.055 and 679.020;
repealing ORS 236.650 and 279.315 and section 1, chapter ___,
Oregon Laws 1995 (Enrolled Senate Bill 1003); and declaring an
emergency.'.
  Delete lines 8 through 26 and delete
****************************pages 2 through 24 and insert:
  ' ****************************  { +  SECTION 1. + } ORS 243.650
is amended to read:
  ' 243.650. As used in ORS 243.650 to 243.782, unless the
context requires otherwise:
  ' (1) 'Appropriate bargaining unit' means the unit designated
by the   { - board to be appropriate for the purpose of
collective bargaining. - }  { +  Employment Relations Board or
voluntarily recognized by the public employers 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 the
effective date of this 1995 Act, 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  { - , or the
negotiation of an agreement, or any question arising thereunder,
and the execution of a written contract incorporating any
agreement reached if requested by either party - }  { +  for the
purpose of negotiations concerning mandatory subjects of
bargaining as defined in this section, 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 + }.   { - However, this - }  { +  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 the effective date of
this 1995 Act.
  ' (c) After the effective date of this 1995 Act, '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 minimus 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 Site Councils established under ORS 329.705, 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
  { - which - }  { +  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) 'Factfinding' 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. + }
  '  { - (11) - }   { + (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.
  '  { - (12) - }   { + (13) + } 'Labor organization' means any
organization
  { - which - }   { + 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. + }
  '  { - (13) - }   { + (15) + } 'Legislative body' means the
Legislative Assembly, the city council, the county commission and
any other board or commission empowered to levy taxes.
  '  { - (14) '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 having responsibility 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. However, the exercise
of any function of authority enumerated in this subsection shall
not necessarily require the conclusion that the individual so
exercising that function is a supervisor within the meaning of
ORS 240.060, 240.065, 240.080, 240.123, 243.650 to 243.782,
292.055, 341.290, 662.705, 662.715 and 662.785. - }
  '  { +  (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. + }
  '  { - (15) - }  { +  (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.
  '  { - (16) - }   { + (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.
  '  { - (17) - }   { + (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 { + , + }  { -  ' or ' - }
supervisory employees  { - ' - }  { +  or managerial
employees + }.
  '  { - (18) - }   { + (20) + } 'Public employer' means the
State of Oregon   { - or any - }  { + , and the following
 + }political   { - subdivision - }  { +  subdivisions: + }
  { - therein, including - }  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.   { -  ' Public employer' - }
  '  { +  (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
  { - public employees - }  { +  employee representation,
collective bargaining and related issues + }.

  '  { - (19) - }  { +  (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. + }
  '  { - (20) - }  { +  (25) + } 'Unfair labor practice' means
the commission of an act designated an unfair labor practice in
ORS 243.672.
  '  { - (21) - }   { + (26) + } '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.
  ' ****************************  { +  SECTION 2. + } ORS 243.672
is amended to read:
  ' 243.672. (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.
  '  { - (i) Communicate directly or indirectly with employees in
the bargaining unit other than the designated bargaining
representative during the period of negotiations regarding
employment relations, except for matters relating to the
performance of the work involved. - }
  ' (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 the effective
date of this 1995 Act. 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. + }
  '  { - (f) Communicate directly or indirectly during the period
of negotiations with officials other than those designated to
represent the employer regarding employment relations. - }
  '  { - (3) No provision of ORS 243.650 to 243.782 makes an
unfair labor practice any act that was performed before October
5, 1973. - }
  '  { - (4) - }  { +  (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. + }
  '  { +  **************************** NOTE: + } Section 3 was
deleted by amendment. Subsequent sections were not renumbered.
  ' ****************************  { +  SECTION 4. + } ORS 243.702
is amended to read:
  ' 243.702. (1) In the event any   { - provision - }  { +  words
or sections + } of a collective bargaining agreement   { - is - }
 { + 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
 { - all or any part of the entire - }   { + the + }  { + invalid
words or sections of the + } collective bargaining agreement
shall be reopened for negotiation.
  '  { - (2) The public employer and the exclusive representative
shall provide for and make every reasonable effort to conclude
negotiations, including provisions for an effective date, a
reopening date, and an expiration date, at a time to coincide, as
nearly as possible, with the period during which the appropriate
legislative bodies may act on the operating budget of the
employers. - }
  '  { +  (2) Renegotiation of a collective bargaining agreement
pursuant to this section is subject to section 13 of this 1995
Act. + }
  ' ****************************  { +  SECTION 5. + } ORS 243.706
is amended to read:
  ' 243.706. (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.
  ' ****************************  { +  SECTION 6. + } ORS 243.712
is amended to read:
  ' 243.712. (1) If after a   { - reasonable - }
 { + 150-calendar-day + } period of   { - negotiation - }
 { + good faith negotiations + } over the terms of an agreement
or   { - after a reasonable time following - }   { + 150 days
after + } certification or recognition of an exclusive
representative { + , + } no agreement has been signed, either or
both of the parties   { - shall - }  { + 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. + }   { - Such notification shall contain a statement of
each issue on which the public employer and the exclusive
representative have failed to achieve an agreement through
negotiation; or the board on its own motion may determine that
the public employer and the exclusive representative have failed
to achieve an agreement on a labor dispute through
negotiations. - }  Upon receipt of such notification { + , + }
the board shall   { - assign - }  { +  appoint + } a mediator
 { - upon request of either party or upon its own motion - }
 { +  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)   { - Where - }  The board on the request of one of the
parties
  { - or on its own motion has determined that the parties have
failed to achieve agreement through negotiation, the board - }
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)   { - When a party is the exclusive representative of
public employees who are prohibited from striking under ORS
243.736, if the labor dispute has not been settled after 15 days
of mediation and if all the parties to the dispute have not
jointly petitioned the board in writing to initiate factfinding,
the parties or the board shall initiate binding arbitration as
provided in ORS 243.742 to 243.762. In such cases, - }  Within
seven days of the
  { - conclusion of mediation - }  { +  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
 { - a list of the issues - }  { +  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.   { - Arbitration shall not be
requested until the expiration of 30 days following the
conclusion of mediation. In all other cases, if the labor dispute
has not been settled after 15 days of mediation, the parties
jointly or individually may petition the board in writing to
initiate factfinding. In lieu of a petition, the board on its own
motion may initiate such factfinding if it deems it appropriate
and in the public interest. - }  { +  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 factfinder.
If the parties jointly petition for factfinding, a factfinder

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 factfinding, 30 days after the receipt of the
factfinder'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. + }
  '  { - (c) - }   { + (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 { + . + }   { - , and If such agreement
is reached - }   { + The arbitration shall be scheduled and
conducted in accordance with ORS 243.746. + }
  { - Said - }  { +  The + } arbitration shall supersede the
 { - mediation and factfinding - }  { +  dispute resolution + }
procedures set forth in   { - this section - }  { +  ORS 243.726
and 243.746 + }.
  ' ****************************  { +  SECTION 7. + } ORS 243.722
is amended to read:
  ' 243.722. (1) In carrying out the factfinding procedures
authorized in ORS 243.712 (2)  { - (b) - }  { +  (c) + }, the
public employer and the exclusive representative may select their
own factfinder.
  ' (2) { + (a) + } Where the parties have not selected their own
factfinder within five days after   { - notification - }  { +
written acknowledgment + } by the  { + Employment Relations + }
Board that factfinding
  { - is to be - }  { +  has been jointly + } initiated, the
board shall submit to the parties a list of   { - five - }  { +
seven + } qualified, disinterested { + , unbiased + }
persons. { +  A list of Oregon factfinding interest arbitrations
for which each person has issued an award shall be included. + }
Each party shall alternately strike   { - two - }  { +  three + }
names from the list. The order of striking shall be determined by
lot.  The remaining individual shall be designated the
'factfinder.  '
  '  { - (a) - }  { +  (b) + } When both parties desire a panel
of three factfinders 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 ' factfinders.  '
  '  { - (b) - }  { +  (c) + } When the parties have not
designated the factfinder and notified the board of their choice
within five days after receipt of the list, the board shall
appoint the factfinder 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
factfinder 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 factfinder shall establish dates and places of
hearings. Upon the request of either party or the factfinder, the
board shall issue subpoenas. The factfinder 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 factfinder 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 factfinder. 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 factfinder's findings of facts and recommendations.
  ' (4) The parties may voluntarily agree at any time during or
after factfinding 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 factfinder's findings of
facts and recommendations, the board shall not publicize such
findings and recommendations.
  ' (5) The cost of factfinding shall be borne equally by the
parties involved in the dispute.
   { +  ' (6) Factfinders 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). + }
  ' ****************************  { +  SECTION 8. + } ORS 243.726
is amended to read:
  ' 243.726. (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   { - which - }  { + that + } provides for
resolution of a labor dispute by   { - referral - }
 { + 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, 341.290, 662.705, 662.715
and 662.785.
  ' (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   { - after - }   { + 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 factfinder's findings of fact and recommendations { +  or the
mediator has made public the parties' final offers + };
 { - and - }
  ' (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 section 13 of this 1995 Act;
and
  ' (e) The union's strike does not include unconventional strike
activity not protected under the National Labor Relations Act on
the effective date of this 1995 Act 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 + }.
 { - The manner of selection of a board of arbitration shall be
as set forth in ORS 240.060, 240.065, 240.080, 240.123, 243.650
to 243.782, 292.055, 341.290, 662.705, 662.715 and 662.785. - }
  ' (4)(a) No labor organization shall declare or authorize a
strike of public employees   { - which - }   { + 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
 { - which - }   { + 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.
  ' ****************************  { +  SECTION 9. + } ORS 243.742
is amended to read:
  ' 243.742. (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, 341.290,
662.705, 662.715 and 662.785, providing for compulsory
arbitration, shall be liberally construed.
  ' (2) When the procedures set forth in ORS 243.712 and 243.722,
relating to mediation   { - and factfinding - }  of a labor
dispute, have not culminated in a signed agreement between the
parties who are prohibited from striking, the public employer
 { - or - }  { +  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   { - to initiate - }   { + which
initiates + } binding arbitration { +  for bargaining units with
employees referred to in ORS 243.736 (1) + }.   { - In lieu of a
petition, the board on its own motion may initiate such
arbitration if it deems it appropriate and in the public
interest. - }  { +  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. + }
  ' ****************************  { +  SECTION 10. + } ORS
243.746 is amended to read:
  ' 243.746. (1) In carrying out the arbitration procedures
authorized in ORS  { + 243.712 (2)(d), 243.726 (3)(c) and + }
243.742
  { - (2) - } , 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   { - five - }
 { + seven + } qualified, disinterested { + , unbiased + }
persons.  { + A list of Oregon interest arbitrations and
factfindings for which each person has issued an award shall be
included. + } Each party shall alternately strike   { - two - }
 { + three + } names from the list. The order of striking shall
be determined by lot. The remaining individual shall be
designated the 'arbitrator':
  '  { - (a) When both parties desire a panel of three
arbitrators instead of one as provided in this subsection, the
board shall submit to the parties a list of seven qualified,
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
'arbitrators.' - }
  '  { - (b) - }   { + (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,   { - and wage rates or other conditions of
employment under the proposed new or amended agreement are in
dispute, - }  { +  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 subsections (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. + }
  '  { - the arbitration panel shall base its findings, opinions
and order upon the following factors, as applicable: - }
  '  { - (a) The lawful authority of the employer. - }
  '  { - (b) Stipulations of the parties. - }
  '  { - (c) The interest and welfare of the public and the
financial ability of the unit of government to meet those
costs. - }
  '  { - (d) Comparison of the wages, hours and conditions of
employment of other employees performing similar services and
with other employees generally: - }
  '  { - (A) In public employment in comparable communities. - }
  '  { - (B) In private employment in comparable communities. - }

  '  { - (e) The average consumer prices for goods and services
commonly known as the cost of living. - }

  '  { - (f) The overall compensation presently received by the
employees, including direct wage compensation, vacations,
holidays and other excused time, insurance and pensions, medical
and hospitalization benefits, the continuity and stability of
employment, and all other benefits received. - }
  '  { - (g) Changes in any of the foregoing circumstances during
the pendency of the arbitration proceedings. - }
  '  { - (h) Such other factors, not confined to the foregoing,
which are normally or traditionally taken into consideration in
the determination of wages, hours and conditions of employment
through voluntary collective bargaining, mediation, factfinding,
arbitration or otherwise between the parties, in the public
service or in private service. - }
  ' (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   { - make written findings of
fact and promulgate a written opinion and order upon the issues
presented to the arbitrator and upon the record made before the
arbitrator, and shall serve such findings, opinions and order
upon the parties and upon the board - }  { +  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 just and
reasonable and based upon the factors - }  { +  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.
  ' ****************************  { +  SECTION 11. + } ORS
243.756 is amended to read:
  ' 243.756. During the pendency of  { + arbitration + }
proceedings
  { - before the arbitration panel, existing wages, hours and
other conditions of employment shall not be changed by action of
either party without the consent of the other but a party may so
consent without prejudice to the rights or position of the party
under ORS 240.060, 240.065, 240.080, 240.123, 243.650 to 243.782,
292.055, 341.290, 662.705, 662.715 and 662.785 - }  { +  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 + }.
  ' ****************************  { +  SECTION 12. + }
 { + Sections 13 and 14 of this Act are added to and made a part
of ORS 243.650 to 243.782. + }
  ' ****************************  { +  SECTION 13. + }  { + (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. + }
  ' ****************************  { +  SECTION 14. + }  { + 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. + }
  ' ****************************  { +  SECTION 15. + }
 { + Section 16 of this Act is added to and made a part of ORS
342.800 to 342.934. + }
  ' ****************************  { +  SECTION 16. + }  { + (1)
Any teacher who files an appeal of a dismissal decision with the
Fair Dismissal Appeals Board, upon motion of the school district,
shall be required to waive any contract grievance claim regarding
the same dismissal as a condition to Fair Dismissal Appeals Board
or subsequent judicial review.
  ' (2) A school district and an exclusive bargaining
representative of certificated teachers may agree to waive all or
any part of the Fair Dismissal Law rights and procedures if third
party review of any dismissal is available. + }
  ' ****************************  { +  SECTION 17. + } ORS
182.320 is amended to read:
  ' 182.320. (1) There is established the Employee Suggestion
Awards Commission consisting of seven members appointed by the
Governor. At least two members shall be public employees, as
defined by ORS 243.650   { - (17) - } . The term of office is one
year, beginning July 1. Members may be reappointed. Members serve
at the pleasure of the Governor.
  ' (2) The members of the commission shall elect annually one
member as chairman. The Director of the Oregon Department of
Administrative Services shall appoint a state officer or employee
to serve as secretary of the employee suggestion program. The
commission members shall serve without compensation.
  ' (3) The commission shall formulate, establish and maintain an
employee suggestion program to encourage and reward meritorious
suggestions by state employees that will promote effectiveness,
efficiency and economy in the performance of any function of
state government.
  ' (4) The secretary, with the approval of the commission, shall
adopt rules necessary or appropriate for the proper
administration of ORS 182.310 to 182.360.
  '  { +  **************************** NOTE: + } Section 18 was
deleted by amendment. Subsequent sections were not renumbered.
  ' ****************************  { +  SECTION 19. + } ORS
236.370 is amended to read:
  ' 236.370. ORS 236.350 to 236.370 does not apply to
disciplinary action taken against police officers who are:
  ' (1) In an initial probationary period of employment that does
not exceed 12 months or in a probationary period under a
collective bargaining agreement which is in excess of 12 months;
  ' (2) Under a collective bargaining agreement requiring just
cause for disciplinary action;
  ' (3) Under a county civil service system adopted pursuant to
ORS 241.002 to 241.009;
  ' (4) Under a county or municipal civil service system which
provides police officers with disciplinary action protections at
least equivalent to those provided under ORS 236.350 and 236.360;
  ' (5) The chief executive officers of law enforcement units, as
defined in ORS 181.610; or
  ' (6) Supervisory employees, as defined under ORS 243.650
  { - (14) - } , where a collective bargaining agreement is in
effect with their public employer.
  ' ****************************  { +  SECTION 20. + } ORS
236.605 is amended to read:
  ' 236.605. As used in ORS 236.605 to   { - 236.650 - }  { +
236.640 + }:
  ' (1) 'Public employee' means an employee whose compensation is
paid from public funds.
  ' (2) 'Public employer' includes the state, or cities, or
counties, or special districts but not including school
districts, or an Oregon nonprofit corporation any of which has
accepted the transfer of a public program from a public employer
in this state for maintenance and operation.
  ' ****************************  { +  SECTION 21. + } ORS
236.610 is amended to read:
  ' 236.610. (1) No public employee shall be deprived of
employment solely because the duties of employment have been
assumed or acquired by another public employer, whether or not an
agreement, annexation or consolidation with the present employer
is involved. Notwithstanding any statute, charter, ordinance or
resolution, but subject to ORS 236.605 to   { - 236.650 - }  { +
236.640 + }, the public employee shall be transferred to the
employment of the public employer   { - which - }   { + that + }
assumed or acquired the duties of the public employee, without
further civil service examination.
  ' (2) The transferred public employee shall not have the
employee's salary reduced as a result of a transfer under this
section { +  during the first 12 months of employment with the
receiving employer. After the first 12 months of employment with
the receiving employer, the transferred public employee shall be
placed at the closest salary for the position as designated under
the receiving employer's salary schedule + }.   { +
  ' (3) + } It is the responsibility of the transferring employer
to liquidate accrued compensatory time at the time of transfer,
consistent with any applicable statute or collective bargaining
agreement.   { - The employee shall retain any accrued sick
leave. The employee may elect to retain up to 80 hours of
vacation leave at the time of the transfer. Additional vacation
leave may be retained if agreed to by the transferring employer,
the receiving employer and the employee. - }
   { +  ' (4)(a) At the time of transfer, the transferred public
employee may elect to:
  ' (A) Retain any accrued sick leave;
  ' (B) Retain up to 80 hours of vacation leave; and
  ' (C) Retain additional vacation leave if agreed to by the
transferring employer, the receiving employer and the transferred
public employee.
  ' (b) At the time of transfer, the transferring employer shall
pay to the receiving employer a sum equal to the number of hours
of accrued leave retained times the employee's hourly rate of
pay.
  ' (c) + } After the transfer, the receiving employer shall
grant any leaves according to its rules or any bargaining
agreement governing use of leaves.
  '  { - (3) - }  { +  (5) + } In the event that any transferred
employee is subject to a waiting period for coverage of
preexisting conditions under the health insurance plan of the
receiving employer, the receiving employer shall arrange for a
waiver of such waiting period with its health insurer. The
transferring employer shall reimburse the receiving employer for
the additional premium costs, if any, resulting from such waiver,
for a period of not to exceed 12 months.

  '  { - (4) - }  { +  (6) + } In transferring a public employee
under subsection (1) of this section, the employer shall furnish
the employment records of that employee to the receiving employer
at the time of transfer. The time of transfer shall be by written
agreement between the public employers involved.
  ' ****************************  { +  SECTION 22. + } ORS
236.620 is amended to read:
  ' 236.620. A public employer who receives a transferred
employee under ORS 236.610 (1), including an employee whose
transfer is provided for by an agreement under ORS 190.010, shall
place that employee on its employee roster, subject to the
following:
  ' (1) If the employee was serving a probationary period with
the employer at the time of transfer, the past service of the
employee on probation shall apply on the regular probation
requirements of the receiving employer.
  ' (2) Notwithstanding any other provision of law applicable to
a retirement system for employees of the prior employer or of the
receiving employer, the employee at the option of the employee
may elect to continue  { + for 12 months + } under any retirement
system in which the employee was participating prior to transfer
or, if the employee meets the qualifications therefor, the
employee may elect to participate in the retirement system
available to employees of the receiving employer. The employee's
election shall be in writing and made within 30 days after the
date of transfer. If the employee elects to continue under the
retirement system in which the employee was participating prior
to transfer, the employee shall retain all rights and be entitled
to all benefits under that system, the employee shall continue to
make contributions to that system and the receiving employer
shall make contributions on behalf of the employee to that system
as required of employers participating in that system, as if the
transfer had not occurred.
  ' (3) The employee shall retain the seniority the employee
accrued under prior employment, but no regular employee of the
receiving employer shall be demoted or laid off by reason of that
seniority at the time the transfer occurs. Thereafter, the
employee's seniority from the transferring employer shall be
regarded as seniority acquired under the receiving employer.
  ' (4) The employee otherwise shall enjoy the same privileges,
including benefits, hours and conditions of employment, and be
subject to the same regulations as other employees of the
receiving employer.
  ' ****************************  { +  SECTION 23. + } ORS
236.630 is amended to read:
  ' 236.630. A public employer who receives a transferred  { +
public + } employee under ORS 236.610 (1) shall place that
employee in a position comparable to the position the employee
enjoyed under prior employment, subject to the following:
  ' (1) The receiving employer, in determining a comparable
position, shall consider the employee's educational and physical
qualifications, experience, and the salary, duties and
responsibilities of prior employment.
  ' (2) If the receiving employer finds that no comparable
position exists under subsection (1) of this section, the
employee shall be offered a lesser position, if such position is
available, according to the qualifications of the employee, by
the receiving employer. The finding and action of such employer
under this subsection, and subsection (3) of this section shall
be subject to a hearing upon the employee's request and subject
to review under ORS 34.010 to 34.100.
  ' (3) If the receiving employer finds that no position exists,
the employee shall be listed as a regular laid-off employee and
shall have priority to appointment over other persons eligible
for any position for which the employee is qualified, subject to
any applicable collective bargaining agreement.
  ' ****************************  { +  SECTION 24. + } ORS
237.255 is amended to read:
  ' 237.255. (1) Members of the  { + Public Employes'
Retirement + } Board shall have the following qualifications:
  ' (a) Each member shall be a citizen of the United States and a
resident of this state for at least two years immediately
preceding appointment to the board.
  ' (b) One member shall not have been employed by a public
employer during the two years immediately preceding appointment
to the board or be so employed throughout the term of
appointment.
  ' (c) Each of four members shall be an employee of a
participating public employer in a management position at the
time of appointment and throughout the term of appointment. At
the time of appointment and throughout the term of appointment,
one of those four members shall be employed by a political
subdivision of the state other than a school district, one shall
be employed by a school district and one shall be employed by the
state.
  ' (d) Each of four members shall be a public employee, as
defined in ORS 243.650   { - (17) - } , of a participating public
employer and be in an appropriate bargaining unit, as defined in
ORS 243.650   { - (1) - } , having an exclusive representative at
the time of appointment and throughout the term of appointment;
but membership on the board shall not itself affect the status of
such a member as a public employee as defined in ORS 243.650
 { - (17) - } . At the time of appointment and throughout the
term of appointment, one of those four members shall be engaged
in teaching or other school activity, one shall be a police
officer or firefighter, one shall be an employee of the state in
a category other than teaching or other school activity or police
officer or firefighter and one shall be an employee of a
political subdivision of the state in a category other than
teaching or other school activity or police officer or fire
fighter.
  ' (e) Notwithstanding paragraphs (c) and (d) of this
subsection, one member shall be a retired member of the system at
the time of appointment and throughout the term of appointment.
  ' (f) The successor of a board member in any category shall
have the qualifications prescribed for that category.
  ' (2) Any vacancy on the board shall be filled by appointment
for the unexpired term of the member replaced.
  ' (3) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495 from the Public Employes'
Retirement Fund.
  ' ****************************  { +  SECTION 24a. + } If House
Bill 2475 becomes law, section 24 of this Act (amending ORS
237.255) is repealed and ORS 237.255, as amended by section 2,
chapter ___, Oregon Laws 1995 (Enrolled House Bill 2475), is
amended to read:
  '  { +  237.255. + } (1) Members of the board shall have the
following qualifications:
  ' (a) Each member shall be a citizen of the United States and a
resident of this state for at least two years immediately
preceding appointment to the board.
  ' (b) Three public members shall not have been employed by a
public employer during the two years immediately preceding
appointment to the board or be so employed throughout the term of
appointment and may not be retired members of the system.
  ' (c) Two members shall be employees of a participating public
employer in a management position at the time of appointment and
throughout the term of appointment. At the time of appointment
and throughout the term of appointment, one of the two members
appointed under this paragraph shall be employed by a school
district and one shall be employed by the state.

  ' (d) At the time of appointment and throughout the term of the
appointment, two members shall hold an elective office, by
election or appointment, in the governing body of two different
participating public employers, other than school districts or
the state.
  ' (e) Three members shall be public employees, as defined in
ORS 243.650   { - (17) - } , of a participating public employer
and be in an appropriate bargaining unit, as defined in ORS
243.650   { - (1) - } , having an exclusive representative at the
time of appointment and throughout the term of appointment; but
membership on the board shall not itself affect the status of
such a member as a public employee as defined in ORS 243.650
 { - (17) - } . At the time of appointment and throughout the
term of appointment, one of those three members shall be engaged
in teaching or other school activity, one shall be a police
officer or firefighter and one shall be an employee of the state
in a category other than teaching or other school activity or
police officer or firefighter.
  ' (f) One member shall be a retired employee of a political
subdivision of the state who was employed in a category other
than teaching or other school activity or police officer or
firefighter.
  ' (g) The successor of a board member in any category shall
have the qualifications prescribed for that category.
  ' (2) Any vacancy on the board shall be filled by appointment
for the unexpired term of the member replaced.
  ' (3) Except as provided in subsection (4) of this section, a
member of the board is entitled to compensation and expenses as
provided in ORS 292.495 from the Public Employes' Retirement
Fund.
  ' (4) Any member of the board who is an active member of the
system shall be released by the participating public employer who
employs the member for the purpose of conducting the official
business of the board. The wages or salary of the member shall
not be reduced during periods that the member is released from
duty for the purpose of conducting the official business of the
board.  The board shall reimburse a public employer for the cost
of continuing the wages or salary of the member while the member
is released from duty under this subsection. A member who
continues to receive wages or salary under the provisions of this
subsection shall not receive compensation under ORS 292.495, but
shall receive travel and other expenses provided for under ORS
292.495.  The provisions of this subsection do not apply to any
person who is a member of the board and who holds another office
that is subject to the provisions of section 10, Article II of
the Oregon Constitution prohibiting the holding of more than one
lucrative office.
  ' ****************************  { +  SECTION 25. + } ORS
240.212 is amended to read:
  ' 240.212. The management service shall comprise all positions
not in the unclassified or exempt service   { - which - }  { +
that + } have been determined to be   { -  ' - } confidential
employees { + , + }  { -  ' as defined by ORS 243.650 (6) and
' - } supervisory employees  { -  ' as defined by ORS 243.650
(14) - }  { +  or managerial employees, as defined in ORS
243.650 + }.
  ' ****************************  { +  SECTION 26. + } ORS
279.340 is amended to read:
  ' 279.340.  { + (1) + } Labor directly employed by   { - a
county, municipality, municipal corporation, school district or
subdivision - }  { +  any public employer as defined in ORS
243.650 + } shall be   { - allowed overtime as follows: - }
  '  { - (1) Overtime shall be - }  compensated, if budgeted
funds for such purpose are available, for overtime worked in
excess of

  { - eight hours in any one day or - }  40 hours in any one
week, at not less than one and one-half times the regular rate of
such employment. If budgeted funds are not available for the
payment of overtime, such overtime shall be allowed in
compensatory time off at not less than time and a half for
employment in excess of
  { - eight hours in any one day or - }  40 hours in any one
week.
  '  { - (2) Notwithstanding the provisions of subsection (1) of
this section, if a county, municipality, municipal corporation,
school district or subdivision adopts a 10-hour day and a
four-day week for any of its laborers, such laborers shall be
allowed overtime compensation for employment in excess of 10
hours in any one day. - }
  '  { +  (2) Nothing in this section shall prevent a labor
organization under the National Labor Relations Act or ORS
243.650 to 243.782 or other employees from negotiating additional
overtime pay requirements with a public employer. + }
  ' ****************************  { +  SECTION 26a. + }  { + If
Senate Bill 1003 becomes law, section 1, chapter ___, Oregon Laws
1995 (Enrolled Senate Bill 1003), (amending ORS 279.340) is
repealed. + }
  ' ****************************  { +  SECTION 27. + } ORS
279.342 is amended to read:
  ' 279.342. The provisions of ORS 279.340 relating to pay for
overtime shall not apply to:
  ' (1) Labor employed in forest fire fighting.
  ' (2) Employees of any irrigation system district actually
engaged in the distribution of water for irrigation or domestic
use.
  ' (3) Fire or police protection personnel employed by any fire
or police department of any municipal corporation.
  '  { - (4) Employment less than 10 hours in any one day where
labor is directly employed on a four-day workweek. - }
  '  { - (5) - }   { + (4) + } Employees exempted from overtime:
  ' (a) By a county, municipality, municipal corporation, school
district or subdivision because of the executive, administrative,
supervisory or professional nature of their employment as the
nature of such employment is defined by rule of the Commissioner
of the Bureau of Labor and Industries; or
  ' (b) By a collective bargaining agreement expressly waiving
application of ORS 279.340.
  '  { - (6) - }   { + (5) + } Employees of a county, city,
municipal corporation or other political subdivision engaged in
the operation of a hospital or an establishment   { - which - }
 { + that + } is an institution primarily engaged in the care of
the sick, the aged, or the mentally ill or defective who reside
on the premises if, before performance of the work and pursuant
to an agreement between the employer and employee or between the
employer and the bargaining representative of the employees when
the employees are represented under a collective bargaining
agreement, a work period of 14 consecutive days is accepted in
lieu of the workweek of seven consecutive days for purposes of
overtime computation and if, for the employee's employment in
excess of eight hours in any workday and in excess of 80 hours in
such 14-day period, the employee receives compensation at a rate
not less than one and one-half times the rate at which the
employee is employed.
  ' ****************************  { +  SECTION 28. + } ORS
292.055 is amended to read:
  ' 292.055. (1) Upon receipt of the request in writing of a
state officer or employee so to do, the state official authorized
to disburse funds in payment of the salary or wages of such state
officer or employee each month shall deduct from the salary or
wages of such officer or employee the amount of money indicated

in such request, for payment thereof to a labor organization as
the same is defined in ORS 243.650   { - (12) - } .
  ' (2) Such state official each month shall pay such amount so
deducted to any such labor organization so designated to receive
it.
  ' (3) Unless there is a contract to the contrary, upon receipt
of the request in writing of such officer or employee so to do,
such state official shall cease making such deductions and
payments.
  ' (4) In addition to making such deductions and payments to any
labor organization certified under the rules of the Employment
Relations Board as representatives of employees in a bargaining
unit, any department, board, commission, bureau, institution or
other agency of the state shall make deductions for and payments
to noncertified, yet bona fide, labor organizations, if requested
to do so by officers and employees in that department, board,
commission, bureau, institution, or other state agency, and for
so long as the requests are not revoked. No deductions for and
payments to any labor organization under this section shall be
deemed an unfair labor practice under ORS 243.672.
  ' (5) Upon receipt from the Oregon Department of Administrative
Services of a copy of a valid fair-share agreement in a
collective bargaining unit, the state official authorized to
disburse funds in payment of the salary or wages of the employees
in such unit each month shall deduct from the salary or wages of
the employees covered by the agreement the in-lieu-of-dues
payment stated in the agreement and pay such amount to the labor
organization party the agreement in the same manner as deducted
dues are paid to a labor organization. Such deduction and payment
shall continue for the life of the agreement.
  ' ****************************  { +  SECTION 29. + } ORS
679.020 is amended to read:
  ' 679.020. (1) No person shall practice dentistry without a
license.
  ' (2) Before engaging, conducting, operating or maintaining any
dental office in any way, every individual shall obtain a license
to practice dentistry in this state.
  ' (3) The provisions of subsections (1) and (2) of this section
as they relate to owning and operating a dental clinic do not
apply to a labor organization as defined in ORS 663.005 (6) and
243.650   { - (12) - } , or to any nonprofit organization formed
by or on behalf of such labor organization for the purpose of
providing dental services. Such labor organization shall have had
an active existence for at least three years, have a constitution
and bylaws, and be maintained in good faith for purposes other
than providing dental services.
  ' (4) Any labor organization that owns or operates a dental
clinic pursuant to subsection (3) of this section shall appoint
an actively licensed dentist as its dental director who shall be
subject to the provisions of ORS 679.140 in the capacity as
dental director. The dental director shall have responsibility
for all matters affecting the clinical practice of dentistry,
which includes, but is not limited to:
  ' (a) Diagnosis of conditions within the human oral cavity and
its adjacent tissues and structures.
  ' (b) Prescribing drugs which are administered to patients in
the practice of dentistry.
  ' (c) Treatment plan of any dental patient.
  ' (d) Overall quality of patient care which is rendered or
performed in the practice of dentistry.
  ' (e) Supervision of dental hygienists or dental assistants and
the authorization for procedures performed by them as provided by
the rules of the board.
  ' (f) Other specific services within the scope of clinical
dental practice.

  ' (5) As used in this section 'owning and operating a dental
clinic' means relating to the business aspects of the dental
practice, which includes, but is not limited to, the ownership
and management of a dental clinic. 'Management' includes, but is
not limited to, prices, credit, refunds, warranties, advertising,
office personnel and hours of practice, but does not include the
clinical practice of dentistry.
  '  { +  **************************** NOTE: + } Sections 30 and
31 were deleted by amendment.  Subsequent sections were not
renumbered.
  '  { +  **************************** SECTION 32. + }  { + (1)
There is created a Public Employee Collective Bargaining Task
Force consisting of nine members. The President of the Senate
shall appoint two members from the Senate, and the Speaker of the
House of Representatives shall appoint two members from the House
of Representatives. The Governor shall appoint the remaining
members of the task force, including the chairperson.
  ' (2) The mission of the task force, through the involvement
and collaboration of the task force members, is to study public
employee collective bargaining law.
  ' (3) The task force shall:
  ' (a) Study whether statewide salary schedules or bargaining
for teachers is appropriate in light of the shift of most funding
to the state; and
  ' (b) Study whether ORS 243.650 to 243.782 should be further
amended to address separately labor relations issues for schools,
cities and counties, and public safety employees.
  ' (4) The task force is subject to the provisions of ORS
171.605 to 171.635 and has the authority contained in ORS 171.505
and 171.510.
  ' (5) The task force shall submit a final report to the
Governor and, in accordance with ORS 192.245, to the Sixty-ninth
Legislative Assembly. This report shall outline the findings and
recommendations of the task force.
  ' (6) All agencies, departments and officers of this state are
directed to assist the task force in the performance of the
functions of the task force and to furnish such information and
advice as the members of the task force consider necessary to
perform their duties.
  ' (7) The task force may accept contributions of funds and
assistance from the United States, its agencies or from any other
source, public or private, and agree to conditions thereon not
inconsistent with the purposes of the task force. All such funds
are to aid in financing the functions of the task force and shall
be deposited in the General Fund of the State Treasury to the
credit of a separate account for the task force and shall be
disbursed for the purposes for which contributed in the same
manner as funds appropriated for the task force.
  ' (8) Official action by the task force established pursuant to
this section shall require the approval of a majority of the
quorum of the members. All legislation recommended by official
action of the task force must indicate that it is introduced at
the request of the task force. Such legislation shall be prepared
in time for presession numbering and presession filing pursuant
to ORS 171.130, for presentation to the regular session of the
Sixty-ninth Legislative Assembly. + }
  ' ****************************  { +  SECTION 33. + }
 { + Section 32 of this Act is repealed on December 31, 1997. + }
  ' ****************************  { +  SECTION 34. + }  { + ORS
236.650 and 279.315 are repealed. + }
  ' ****************************  { +  SECTION 35. + }
 { + Sections 1 to 14 of this Act first become operative August
1, 1995. + }
  ' ****************************  { +  SECTION 36. + }  { + This
Act being necessary for the immediate preservation of the public

peace, health and safety, an emergency is declared to exist, and
this Act takes effect on its passage. + } ' .

                         /sGene Derfler
                           Senator

                         /sNeil Bryant
                           Senator

                         /sGordon Smith
                           Senator

                         /sRay Baum
                           Representative

                         /sLee Beyer
                           Representative

                         /sJohn Watt
                           Representative
                         ----------