DIVISION 70 FIRST SOURCE HIRING AGREEMENTS. General

Transcription

1 DIVISION 70 FIRST SOURCE HIRING AGREEMENTS General Purpose and Scope (1) The purpose of this division of administrative rules is to implement ORS , under which business firms are required to enter into a First Source Agreement if benefiting from funds derived from the Oregon State Lottery through certain economic or community development programs, as determined by the Oregon Business Development Department. (2) Provisions of this division of administrative rules also apply to businesses benefiting under the following tax incentive programs, as provided by the relevant statutes: (a) The Strategic Investment Program under ORS 285C.600 to 285C.626 and (4) and , as specified in division 023 of this chapter of administrative rules OAR ; and (b) The standard exemption in enterprise zones under ORS 285C.050 to 285C.250, as specified in division 065 of this chapter of administrative rules and OAR chapter 150 OAR (3) Requiring Benefited Businesses to enter into a First Source Agreement is intended to help individuals, who are already receiving job training and assistance supported by public funds, by linking these individuals with private sector employment opportunities of businesses that: (a) Will be hiring in association with the receipt of public benefits; and (b) Should make a good faith effort to hire and retain such individuals, who are presumed to have low incomes or otherwise face disadvantages in finding employment. (4) First Source Agreements and this division of administrative rules are not intended to do the following: (a) Guarantee employment for any such individual; (b) Dictate the actual hiring by a Benefited Business; or (c) Necessarily accomplish other public or social objectives associated with employment opportunities. (5) As used in ORS (1), good faith effort to hire and retain as employees low-income individuals who have received job training assistance from publicly funded job training providers means the Benefited Business will do whatever is reasonably feasible to honor the

2 terms of the First Source Agreement entered into with the Contact Agency for local Providers as specified in OAR Stat. Auth.: ORS 285A.075, 285C.060(1), 285C.215(3) & 285C.615(7) Stats. Implemented: ORS 285C.060, 285C.175, 285C.215, 285C.606 & Definitions For purposes of this division of administrative rules, in addition to definitions in OAR (Procedural Rules), unless the context demands otherwise: (1) Contact Agency is defined as means the entity designated to that represents publicly funded job training providers as specified in OAR (3)(a), and it. It shall designate a Contact Person, which means an accessible and appropriate staff person at the Contact Agency, who is charged with interacting with Benefited Businesses and other entities and with representing the Contact Agency on matters related to First Source Agreements. (2) First Source Agreement means the contract between a Benefited Business and Providers, as executed by a Contact Agency, under this division of administrative rules, and it has the same meaning as first-source hiring agreement as used in under ORS 285C.050(10), 285C.606(4) and (4)(b), which. It covers and is applicable to all of the Benefited Business s hiring or job openings, except for those persons or positions that are: (a) Hired solely to construct, renovate or install property; (b) Excluded by a waiver in accordance with OAR ; or (c) Specified in OAR as inapplicable for enterprise zone purposes. (3) Interagency Agreement is the agreement entered into among Providers as specified in OAR (4) Provider has the same meaning as publicly funded job training provider, as used in ORS 285C.050(14), 285C.606(4) and (4)(c) and means one of the following: (a) A local office of the Oregon Department of Human Services that delivers training or employment services for low-income parents, seniors, persons with disabilities and so forth; (b) An administrative agent for programs under the federal Workforce Investment Act of 1998 (Public Law ) or amendments thereto; (c) A community college of this state;

3 (d) A government or government-supported entity, similar to those in subsections (a) to (c) of this section, that is directly or indirectly engaged in training or assisting people to perform or succeed in the workplace or in a particular occupation; or (e) Any other entity that is a party to the Interagency Agreement as described in OAR , but such inclusion is effective only insofar as the entity, including but not limited to a local office of this state s Employment Department, remains such a party. (5) Qualified Applicants means individuals who have received job training assistance and who meet the Benefited Business s minimum requirements for education, experience, reliability and skills, or who are able to meet these requirements within a reasonable time period (as negotiated with the Benefited Business) with training provided either by the Benefited Business or by a Provider. (6) As used in sections (5) and (8) of this rule and OAR , received job training assistance means the individual has received intake or other services from a Provider. (7) Local zone manager means a person appointed by the sponsor of the enterprise zone under ORS 285C.105(1)(a). Stat. Auth.: ORS 285A.075, 285C.060(1), 285C.215(3) & 285C.615(7) Stats. Implemented: ORS 285C.050, 285C.060, 285C.215, 285C.606 & Waivers and Geographic Coverage of First Source Agreements (1) Except in the case of the Strategic Investment Program, the Director may issue a waiver that does the following: (a) Relieves a Benefited Business of the requirement of entering into the First Source Agreement, entirely; or (b) Excludes professional, managerial, technical, highly skilled or seasonal positions of a Benefited Business from the First Source Agreement. (2) The Director shall make the final decision to grant the waiver under section (1) of this rule may be granted by the Director, who shall make the final decision, upon written recommendation by Department staff that explains why: (a) The Benefited Business s small size or the technical, professional or unusual nature of its needs with respect to employees means that it will generally be unable to fill positions with persons referred by the Providers for much of its anticipated jobs openings, either in general or for the excluded positions, as defined in the waiver, and will thus receive little or no meaningful service through the First Source Agreement; or

4 (b) The waiver will further the goals or purposes of applicable and specified state policies, whether or not such policies are directly associated with the program. (3) A Benefited Business may request to Department staff for a waiver by the Department under this rule at the time of application for the grant or loan assistance, or before execution of the contract for such assistance is signed, in the case of lottery-funded programs, or at any time prior to qualifying for an enterprise zone exemption. (4) Department staff will notify the Benefited Business and the Contact Agency for the geographic area in which the Benefited Business is located of the Director s decision and send a copy of any approved waiver. Such notice and distribution shall also include other entities as described in OAR (5)-674, as applicable for an enterprise zone exemption. (5) Except as specified in OAR for an enterprise zone exemption, the First Source Agreement entered into by a Benefited Business shall apply only to the Benefited Business s operations at the site receiving the benefit, unless other locations are d: (a) Designated by the Department; or s (b) Specifically agreed to by the Benefited Business and the Contact Agency. Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.215(3) Stats. Implemented: ORS 285C.060, 285C.215 &

5 Enterprise ZonesFirst Source Hiring Agreements Enterprise Zone: First -Source Coverage of Employees For purposes of a Benefited Business that is an authorized or qualified for business firm s entering into a First Source Hiring Agreement in an enterprise zone exemption on qualified property: (1) Contact agency means the entity that represents publicly funded job training providers, consistent with OAR , which is exclusively the local office of Worksource Oregon (State Employment Department). (2) The First Source A agreement shall apply to all of the Benefited Business s firm s sites of operation within the enterprise zone but only for that zone. (2) Unless the Contact Agency and the Benefited Business agree otherwise, except for job openings, for purposes of OAR (4) and (1), exclude positions and persons that are not recognized do not matter directly under ORS 285C.050 and 285C.200, namely, employees who are temporary, seasonal, part-time (32 hours or less per week) or working at ineligible operations (see OAR ). (3) Whenever the Benefited Business firm intends to fill a job opening with someone, who, in a voluntary, temporary, part-time or other capacity, has been working at the business or job site for at least 30 days prior to the closure date of the job opening, the Benefited Business: (a) The firm must indicate this situation and include the name of the prospective hire in its notification to the Ccontact Aagency as described in OAR (1)(c). On receiving. (b) With receipt of such notification from a Benefited Business, the Ccontact Aagency is in no way obligated to still perform any duty as described in OAR (1)(d) send job applicants, but the Benefited Business is not excused from OAR (1)(e) or any other requirement. Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.215(3) Stats. Implemented: ORS 285C.050, 285C.060, 285C.200 & 285C Enterprise Zone: Initial First -Source Procedures For purposes of qualifying for an enterprise zone tax exemption:

6 (1) An "eligible business firm" as defined in ORS 285C.050(6) A Firm/applicant shall enter into a First Source A an agreement as described in OAR either: (a) After the local zone manager approves the application for authorization of the eligible business firm (see ); (b) Before hiring new employees to qualify under ORS 285C.200; or (c) Both as possible. (2) Consistent with OAR (4)(d) and (1)(d), t The local zone manager shall: (a) Advise the eligible business firm/benefited Business under section (1) of this rule every Firm/applicant to immediately promptly seek a First Source A such an agreement; (b) Notify the relevant Contact Person contact agency about the Benefited Business s application for authorization Application and about how to contact the Benefited B business firm; and (c) Send the Contact Person contact agency the appropriate colored copy from the completed authorization approval form Approval Form. (3) After being informed by a local zone manager of an authorization/application pursuant to section (2) of this rule Upon learning of the Firm/applicant, the Ccontact Aagency shall contact the Benefited Business and arrange an opportunity for it to enter into a First Source A execute an agreement. A Benefited Business shall not be deterred from initiating A Firm/applicant shall have the right to initiate such contact or from pursuing a prompt First Source A and to enter promptly into an agreement. (4) The Ccontact Aagency shall p: (a) Provide a copy of the First Source A each executed agreement to the respective local zone manager within ten 10 business days of entering into a First Source Agreement with the authorized Benefited Business, it with a Firm/Applicant; or shall n (b) Notify the local zone manager of any problems that arises in association with executing it such a Benefited Business s entering into a First Source Agreement. (5) The local zone manager shall use the information under section (4) of this rule to do the following: (a) See that each authorized business firm enters has entered into a timely, valid and accurate First Source A agreement, in accordance with this division of administrative rules OAR ; and

7 (b) Inform the county assessor under ORS 285C.215(2)(a) of a business firm any such firm that may might have failed to enter into First Source A such an agreement under ORS 285C.215(2)(a); and (c) Check that a proper and up-to-date First Source Agreement conforming to OAR is being used for Benefited Businesses in the zone, such that the local zone manager shall inform the Contact Agency and the Department of any needed corrections or revisions to a locally developed First Source Agreement. (6) The local zone manager shall assist in advising and explaining to Benefited B businesses firms about their obligations under the First Source A agreement, including but not limited to requests by the Contact Agency or a Provider contact agency or any publicly funded job training provider. Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.215(3) Stats. Implemented: ORS 285C.050, 285C.060, 285C.200 & 285C Enterprise Zone: Handling Exemption Claims For purposes of the First Source Hiring Agreement and the county assessor s processing of a Benefited Business s enterprise zone an initial exemption claim with property schedule under ORS 285C.220 and 285C.225 as described in OAR , except in the case of an existing general waiver as described in under ORS 285C.215(3) (see OAR (1)(a): (1) The Benefited Business An authorized business firm may attach a copy of the First Source A agreement to the claim form. (2) For purposes of ORS 285C.175(1)(c), the assessor shall primarily rely principally on the zone sponsor, Contact Agency or other Provider and contact agency to informing the assessor s office under ORS 285C.215(2) that if a requisite First Source A agreement is lacking, for purposes of checking that the Benefited Business has entered into a current First Source Agreement consistent with this division of administrative rules. (3) If an assessor wishes t To verify the existence, effectiveness or general suitability of the First Source A agreement, the assessor may do the following: (a) Request and receive an agreement copy of the First Source Agreement and related input directly from the local zone manager, the C contact Aagency, the Benefited Business or any other entity Firm/applicant, regardless of what is said elsewhere in this division or division 065 of these administrative rules; or (b) FollowORS 285C.230(1)(b) and request Seek assistance from the local zone manager under ORS 285C.230(1)(b) before approving the exemption claim, for which inability or unwillingness

8 on the part of the zone sponsor to provide such assistance may result in termination of the zone, as a mandatory duty of the zone sponsor. (4) If learning of a problem with the Benefited Business s execution of a suitable First Source A agreement by whatever means the Firm/applicant, then pending a corrective waiver as described in OAR (1) or by the Director, the county assessor: (a) May deny the exemption claim, if the First Source A agreement was not executed as described in OAR (1) (b) Shall deny the exemption claim, if the First Source A agreement: (A) W was not executed on or before December 31 directly preceding the first exemption year under ORS 285C.175;(B) D, does not cover at least all years of exemption;, or (C) Is not signed, violates this division of administrative rule or is contractually otherwise deficient. (5) The assessor shall deny the exemption under ORS 285C.175(6), if by August 31 of the first tax year of exemption, a problem as described in subsection (4)(b) of this rule is not resolved through copies/documentation of the following: (a) A (revised/replacement) First Source A agreement; (b) Applicable waiver as described in OAR or as allowed in OAR or ; or (c) Both, as necessary. (6) Once a Benefited Business a business firm is qualified and approved to receive the exemption, the exemption may not later be revoked or disqualified is not subject to later revocation or disqualification for lack of compliance with this division of administrative rules an agreement, except for the case of fraudulent representations by the Benefited Business or an agent thereof. (7) Subject to requisite resolution of the outstanding problem, the assessor may reverse a denial as described in section (5) of this rule may be reversed and grant the exemption granted, as otherwise allowed under the laws and rules governing the procedures and authority of the assessor. Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.215(3) Stats. Implemented: ORS 285C.060, 285C.105, 285C.175, 285C.215, 285C.220, 285C Enterprise Zone: Allowing Late Execution of First-Source Agreement For purposes of an authorized business firm s needing to have entered into a First Source Hiring Agreement:

9 (1) The Director may issue a waiver that excuses the requirement of entering into a First Source Agreement for the purposes of enterprise zones up until the time when it the agreement is actually executed or takes effect, such that it the firm is not required to have been entered into the agreement: (a) At the time of applicable hiring regardless of OAR (1) or (1)(b); or (b) On or before December 31 of the year when qualified property is placed in service, directly before the first exemption year, as otherwise required under ORS 285C.215(1). (2) A The Director may issue waiver as described in section (1) of this rule may be issued for the following reasons: (a) The Benefited Business began or Firm/applicant was using the first-source services of the Contact Agency or other Providers in a timely fashion, without having a formal First Source A agreement; (b) Mistaken communications, an absence of local contacts or other similar situations the like hampered the ability or understanding of the Benefited Business Firm/applicant regarding the First Source A as to the agreement or the need to enter into it; (c) The Benefited Business Firm/applicant made a good faith effort to obtain a First Source A an agreement, but it was misled or otherwise unable to readily obtain a First Source Agreement it through no fault of its own; or (d) Other comparable Similar circumstances, including but not limited to what is described in OAR (2). (3) A Benefited Business, the The local zone manager, county assessor or Ccontact Aagency on behalf of the Benefited Business, authorized business firm or the firm itself may seek a waiver under this rule by contacting the Department staff at any time following approval of the application for after authorization, whether before or after an action by the county assessor as described in OAR (4) A waiver under this rule shall take the form of a written recommendation from Department staff to the Director that is approved by signature of the Director approves. The written recommendation shall describe: (a) The justification for the waiver pursuant to this rule; (b) The basis or source of evidence for such justification or determinations, including but not limited to verbal communications with the Ccontact Aagency, the county assessor or other local parties;

10 (c) The status of the Benefiting Business Firm/applicant s entering into a First Source A an agreement; and (d) The date by which the First Source A agreement must be in effect. (5) The Department shall provide notice of the Director s decision and distribute copies of any approved waiver, as well as any waiver as described in OAR affecting an enterprise zone exemption, to the: (a) Benefited Business Firm/applicant; (b) County assessor; (c) Contact Aagency; (d) Local zone manager; and (e) Department of Revenue (Attention: Exemptions Specialist, Property Tax Division). Stat. Auth.: ORS 285A.075, 285C.060(1) & 285C.215(3) Stats. Implemented: ORS 285C.050, 285C.060, 285C.200 & 285C.215