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83rd OREGON LEGISLATIVE ASSEMBLY--2025 Regular Session
House Bill 2020
Sponsored by Representative ELMER (at the request of Amanda Dalton for Oregon Resource Association) (Preses-
sion filed.)
SUMMARY
The following summary is not prepared by the sponsors of the measure and is not a part of the body thereof subject
to consideration by the Legislative Assembly. It is an editor’s brief statement of the essential features of the
measure as introduced.The statement includes a measure digest written in compliance with applicable readability
standards.
Digest: Says that a company that gives work to people with disabilities must use people with
disabilities for at least 50 percent of the work hours that go into making goods or doing services.
Says what must happen if a public agency ends a contract for goods or services and a new company
takes over. Says that the new contract must have a health plan as good as or better than the health
plan in the old contract. Says the new contract can do this by joining a labor union’s health plan
or giving benefits as good as those in the Oregon Health Plan. (Flesch Readability Score:64.0).
Requires that qualified nonprofit agencies for individuals with disabilities employ individuals
with disabilities for not less than 50 percent of the work hours of direct labor required for manu-
facturing or providing products or services.
Requires that a service provider that enters into a contract with a public agency to provide
goods or services after the public agency terminated or declined to renew a previous contract with
a different service provider must in the new contract provide health benefits that are as favorable
as, or more favorable than, the health benefits available under the previous contract. Permits the
successor service provider to provide health benefits through enrollment in a health plan that a la-
bor organization maintains or to provide health benefits that are as favorable as, or more favorable
than, the benefits available under the Oregon Health Plan.
A BILL FOR AN ACT
Relating to qualified nonprofit agencies for individuals with disabilities; creating new provisions; and
amending ORS 279.835 and 279.853.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 279.835 is amended to read:
279.835. As used in ORS 279.835 to 279.855:
(1) “Department” means the Oregon Department of Administrative Services.
(2) “Direct labor” includes all hours directly related to the performance of a service or manu-
facture of a product, but not supervision, administration, inspection and shipping.
(3) “Disability” means a physical or mental impairment that substantially limits one or more
major life activities.
(4) “Individual with a disability” means an individual who, because of the nature of disabilities,
relies upon specialized employment services to find, secure and maintain employment.
(5) “Public agency” [or “public contracting agency”] means any agency of the State of Oregon
or any political subdivision [thereof] of the State of Oregon that is authorized by law to enter into
public contracts and any public body created by intergovernmental agreement.
(6) “Qualified nonprofit agency for individuals with disabilities” means a nonprofit organization:
(a) Organized under the laws of the United States or of this state and operated to provide
training or employment for individuals with disabilities in this state, and the net income of which
does not inure in whole or in part to the benefit of any shareholder or other individual;
(b) That complies with any applicable occupational health and safety standard required by the
laws of the United States and of this state; and
NOTE:Matter in boldfaced type in an amended section is new; matter [italic and bracketed] is existing law to be omitted.
New sections are in boldfaced type.
LC 1485 HB2020
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(c) That in the manufacture of products and in the provision of services, whether or not the
products or services are procured under ORS 279.835 to 279.855, employs individuals with disabilities
for not less than[:]
[(A) 75 percent of the work hours of direct labor required for the manufacture or provision of the
products or services during a fiscal year that begins on or before June 30, 2019.]
[(B) 65 percent of the work hours of direct labor required for the manufacture or provision of the
products or services during a fiscal year that begins on or after July1,2019, and before June 30,
2021.]
[(C) 60] 50 percent of the work hours of direct labor required for the manufacture or provision
of the products or services[, or the federal ratio, whichever is lower, during a fiscal year that begins
on or after July 1, 2021].
SECTION 2. ORS 279.853 is amended to read:
279.853. (1)(a) If a public agency or a qualified nonprofit agency for individuals with disabilities
terminates or declines to renew a contract procured under ORS 279.850 for janitorial services,
grounds maintenance services or security services and the public agency enters into a new contract
for the same services, the public agency shall provide in the new contract that the successor service
provider, during a period that ends 90 days after the date on which the public agency enters into
the new contract, offer employment to the individuals with disabilities who worked 28 hours or more
per week under the contract that was terminated or [nonrenewed contract] not renewed at the
time the contract ended, at wages [and with health benefits] as favorable as, or more favorable than,
the wages [and health benefits] the individuals with disabilities received under the [terminated or
nonrenewed] contract that was terminated or not renewed. The new contract must also provide
health benefits that:
(A) Are as favorable as, or more favorable than, the health benefits the individuals with
disabilities received under the contract that was terminated or not renewed, for which pur-
pose the new contract may provide for enrolling the individuals with disabilities in a health
insurance plan that a labor organization maintains for members of the labor organization
and that allows enrollment of individuals with disabilities under the circumstances described
in this paragraph; or
(B) Provide benefits that are as favorable as, or more favorable than, the minimum
benefits provided in the Oregon Health Plan.
(b) The new contract described in paragraph (a) of this subsection must provide the
health benefits described in paragraph (a)(A) or (B) of this subsection not later than one year
after the effective date of the new contract.
[(b)] (c) If the successor service provider under paragraph (a) of this subsection is not a qualified
nonprofit agency for individuals with disabilities, the public agency shall provide in the new con-
tract that the successor service provider, during a period that ends 90 days after the date on which
the public agency enters into the new contract, offer employment to all individuals who worked 28
hours or more per week under the [terminated or nonrenewed] contract that was terminated or
not renewed at the time the contract ended, except managers and supervisors, at wages and with
health benefits as favorable as, or more favorable than, the wages and health benefits the individuals
received under the [terminated or nonrenewed] contract that was terminated or not renewed .
(2) A successor service provider that provides the same services under a new contract [as] that
were provided under the [terminated or nonrenewed] contract that was terminated or not renewed
may require an individual whom the successor service provider hires under subsection (1) of this
[2] HB2020
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section to undergo the hiring procedures and demonstrate during a probationary period the quali-
fications that the successor service provider establishes for new hires.
SECTION 3. The amendments to ORS 279.835 and 279.853 by sections 1 and 2 of this 2025
Act apply to contracts that a public agency enters into, terminates or declines to renew on
or after the effective date of this 2025 Act.
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