ORS 294.735: Payments to fund by political subdivisions; benefit cost rate, account reserve ratio and percentage rate determinations and redeterminations; effect of negative balance; refunds; extended plans of additional payments.

(1) A political subdivision shall pay into the Local Government Employer Benefit Trust Fund an amount equal to the percentage rate of the political subdivision, as determined under subsections (2) to (5) of this section, multiplied by the gross wages the political subdivision pays to individuals in employment subject to ORS chapter 657, except that minor adjustments to wages in a calendar quarter on which payments have previously been made may not result in either a credit to the political subdivision or an additional amount due the fund. (2)(a) As soon as possible after June 30 of each year, the Employment Department shall determine for each political subdivision the benefit cost rate, the account reserve ratio and the percentage rate, applicable as of that June 30. (b) Notwithstanding paragraph (a) of this subsection, upon the written request of a political subdivision, the Director of the Employment Department or an authorized representative of the director may redetermine at any time the benefit cost rate, the account reserve ratio and the percentage rate of the political subdivision. (3)(a) The percentage rate assigned to a political subdivision whose account has been potentially chargeable with benefits for each of the last four calendar quarters ending on the June 30 immediately preceding the determination shall be the benefit cost rate of the political subdivision plus one-third of the difference obtained by subtracting the political subdivision’s account reserve ratio from 1.5 times the political subdivision’s benefit cost rate. The resulting percentage rate shall be rounded up to the nearest one-tenth of one percent. A political subdivision’s percentage rate shall be at least one-tenth of one percent but no more than five percent. (b) The percentage rate assigned to a political subdivision whose account has not been potentially chargeable with benefits for each of the last four calendar quarters ending on the immediately preceding June 30 shall be the greater of one percent or 1.5 times the aggregate benefit cost rate. (4) Notwithstanding subsection (3) of this section, a local government employer with an account balance on June 30 that is less than five percent of the taxable wage base currently in effect may not be assigned a percentage rate of: (a) Less than two percent if the payroll of the employer was less than $25,000 during the four most recently completed calendar quarters; (b) Less than one percent if the payroll of the employer was $25,000 or more but less than $50,000 during the four most recently completed calendar quarters; (c) Less than one-half of one percent if the payroll of the employer was $50,000 or more but less than $100,000 during the four most recently completed calendar quarters; or (d) Less than two-tenths of one percent if the payroll of the employer was $100,000 or more during the four most recently completed calendar quarters. (5) Percentage rates determined or redetermined in subsections (3) and (4) of this section apply until July 1 next following the determination or redetermination. (6)(a) In addition to the payment made into the fund under subsection (1) of this section, a political subdivision that has a negative account balance at the end of a calendar quarter and had a negative account balance at the end of each of the three immediately preceding calendar quarters shall make additional payments into the fund during each of the next four calendar quarters. (b) The additional payment required under this subsection shall be computed as follows, with all computations omitting cents: (A) Multiply the gross payroll reported by the employer during the four most recent calendar quarters by the current percentage rate of payment into the fund. (B) Subtract the amount of benefits attributable to the employer that was reimbursed from the fund during the most recent four calendar quarters from the product computed under subparagraph (A) of this paragraph. (C) If the remainder computed under subparagraph (B) of this paragraph is more than zero, subtract the remainder from the negative balance of the account. (D) If the remainder computed under subparagraph (B) of this paragraph is zero or less, make no adjustment to the amount of the negative balance of the account. (E) Divide the amounts computed under either subparagraph (C) or (D) of this paragraph by four. The resulting quotient is the additional payment required for each quarter. (c) One computation under this subsection may be made for an employer in each calendar quarter. If the negative balance is eliminated before the end of the four quarters in which the additional payments were determined necessary, further additional payments may not be required under this subsection. (7) During the first four calendar quarters in which a political subdivision is a participant in the fund, additional payments shall be required if the account balance of the political subdivision is negative at the end of any of the four calendar quarters. The additional payment shall be computed in the same manner described in subsection (6) of this section except that the computation in subsection (6)(b)(A) and (B) of this section shall include only those calendar quarters in which the political subdivision was a participant in the fund. (8) Employers subject to this section may request a refund of amounts in excess of the amount determined using the minimum percentage rate. (9)(a) Notwithstanding subsection (6) of this section, a political subdivision that has an account reserve ratio equal to or less than zero and a percentage rate assigned under subsection (3) of this section equal to or greater than three percent may request in writing that the Director of the Employment Department grant an extended plan of additional payments. (b) An extended plan of additional payments granted under this subsection may not exceed a period of 12 consecutive calendar quarters. [1977 c.491 §5; 1981 c.5 §1; 1983 c.53 §2; 1989 c.135 §3; 1993 c.778 §3; 2007 c.71 §92; 2011 c.569 §2]