ARTICLE XIV - FINANCIAL
Section 1. The fiscal year of the Union is October 1 through September 30.

Section 2.
(a) Each active or staff member shall pay 1.7 percent (1.7%) or $5.00, whichever is greater, of their gross monthly salary derived from time in regular pay status as dues to the Union.
(b) Semi-active members may continue in good standing by continuing to pay associate dues while on semi-active status. The semi-active member may make payment to the Union ninety days after the end of their season.
(c) For retiree members, dues will be no more than $4.17 per month payable semi-annually in January and July each year. Members may make alternate payment arrangements. Persons joining during one of the semi-annual periods may pay prorated dues to the end of the period including the month in which they join. Each eligible retiring member shall be sent a notice that his/her membership will be converted to a temporary retiree membership and carried at no cost to the member for 90 days. Included in this notice will be information on the benefits of continuing as a retired member of SEIU Local 503, OPEU, and an application form for continuing membership beyond the 90 days. A person becomes a permanent member upon formal application and payment of dues and the person is eligible in conformance with the Constitution and Bylaws and AP&P.
(1) In addition to required per capita payments to SEIU, $1.00 will go to the SEIU Local 503, OPEU General Fund, $2.67 will go to the Retiree Local account and $0.50 will go to reimburse the cost of the retiree life insurance policy. Members may contribute an additional $9.00 per year ($0.75 cents per month x 12 months) to Citizen Action for Political Education (CAPE).
(2) All monies of the Retiree Local will reside in the Central Ledger Accounting System at Headquarters.
(3) Dues amounts will be set by the R.M.C. subject to approval by the General Council.
(4) Dues payments will not be required for retired members who have reached age seventy-five (75) and have been dues paying members (active or retired) for the previous ten (10) years.
(d) Each associate member shall pay $10.00 monthly as dues to the Union.
(e) The Board, when negotiating an affiliation agreement with an existing organization, may negotiate the phasing in of the above dues structure over a period of time not to exceed five (5) years.

Section 3. The amounts and structures of SEIU Local 503, OPEU dues, as stipulated in Section 2(a) above, shall not be changed except by a vote of the active and staff membership. A simple majority of the votes cast by the membership shall determine the outcome. Any vote by the membership on change or restructuring of SEIU Local 503, OPEU dues shall be kept distinct from votes on other issues.

Section 4.
(a) Out of each member or fair share payer's dues received at Headquarters, there shall be returned to each local on a quarterly basis the following amounts except that for each CAPE contributor in its membership, the local shall receive an extra five (5) cents per member per month.
65¢ per member per month for single site locals.
55¢ per fair share payer per month for single site locals.
85¢ per member per month for statewide locals.
75¢ per fair share payer per month for statewide locals.
In addition to the rebate system outlined above, newly organized locals that have ratified their first contract shall be granted an initial treasury equal to two (2) full rebate cycles based on the above formula in order to carry out the business of their new local. This initial rebate grant is on a one time only basis, shall be allocated from the Union's General Fund, and is not required to be repaid. In no event will a local receive less than $100 per quarter except as noted below. For locals with a balance exceeding three (3) fiscal years’ rebates, quarterly rebates will be stopped until such time as the account balance drops below two (2) fiscal years’ rebates, at which time the next quarterly rebate will resume.
Should it appear to the Board that a local is artificially spending funds in a manner to increase its rebate, it may request a full review of spending for that local by the Finance committee, and upon a two-thirds (2/3) majority vote of the Board, authorize the lower rebate amount for the next twelve (12) months if it is determined that local reserves have been manipulated to increase its rebate.

Section 5. Locals shall file an annual budget with Headquarters. Locals not filing an annual budget within forty-five (45) days of the end of the fiscal year will have their next quarterly rebate checks reduced by the following amount: 50 percent (50%) for all quarters until the annual budget is filed with Headquarters.
Funds not rebated to locals due to delinquent filing of annual budgets will be transferred to the Union's general fund.
The exception to this procedure will occur when local financial records are being held for audit, or other extenuating circumstances with the Union Secretary-Treasurer's approval.

Section 6. Local rebates shall not be sent to locals in inactive status.

Section 7. A member who joins in the formation of a new local is exempt from dues to the new local for any period for which he/she has fully paid his/her dues to the local from which he/she transfers.

Section 8. Job-Share Positions. The term "job-share" shall be defined as "one (1) full-time position in Oregon employment held by more than one (1) employee." Each job-share partner shall have full membership and voting rights and benefits in the Union.

Section 9. As a portion of the membership dues as provided in Section 2 of this Article, there shall be collected from each member, as part of such cash or payroll deducted dues a contribution of $0.75 per month for the benefit of the Union's political action program. If the member desires that this contribution not be expended for political action purposes and so indicates in writing, the contribution shall be paid to the Union's scholarship fund.

Section 10. The Board shall establish and maintain a General Fund Account for recording of all income to the Union except those funds under custodianship of the Union.

Section 11. There will be a Prudent Reserve of 16.6% (sixteen point six percent) – two months' worth – of each year's operating budget in a Special Fund. This Fund will annually be balanced to the next budget cycle's appropriate amount. The Board shall have the authority to authorize placement of amounts in excess of the Prudent Reserve into the Special Fund.
The Special Fund may be augmented from any lawful source, such as gifts or the income therefrom, and interest earned on invested funds.

Section 12. Withdrawals from the Special Fund will be made upon authorization by a two-thirds (2/3) vote of the Board.

Section 13. All Union monies shall be invested by the Union Finance Committee in such a way as to obtain a maximum rate of interest within prudent guidelines adopted by the Board, taking into account the requirements and policies of the Union and benefit to the members.

Section 14. All persons who handle funds or other property of the Union, except officers of locals using the Central Ledger System, shall be bonded under a blanket bond which shall meet the following requirements:
(a) Protection shall be provided against loss by reason of fraud or dishonesty on the part of such person or through connivance with others.
(b) The coverage shall be in an amount not less than 10 percent (10%) of the funds and value of property handled by such person during the preceding fiscal year, up to a maximum of $500,000.
(c) The bond shall be individual or schedule in form.
(d) The surety shall be a corporate surety company.
Any person not covered by such bond shall not receive, handle, disburse, or otherwise exercise custody or control of funds or property of the Union or of a trust in which the Union is interested. No such bond shall be placed through an agent or broker or with a surety company in which the Union or any officeholder, employee, agent, Union Steward, or other representative of the Union has any direct or indirect interest. Such surety company shall be a company, which has met the requirements to be an acceptable surety on federal bonds.

Section 15. The Union shall compensate the Union President at a rate of $400 per month and the Vice President and the Secretary-Treasurer at the rate of $130 per month while in his/her respective positions.

Section 16. The Union's revenues will be accounted for in three categories:
(1) dues and fair share money, (2) non-dues income, and (3) voluntary contributions. Expenditures for all aspects of collective bargaining, including the necessary work for legislative approval, for merit system benefit grievances, and discharge and discipline cases under the statutes, shall ordinarily be paid out of dues and fair share revenues. Expenditures for the non-bargaining aspects of the Union publications and General Council, for
programs for services and benefits for the common good of represented employees, and for all programs limited to members only, shall ordinarily be paid out of dues income. Voluntary contributions shall be spent as provided for by the donor.

Section 17. Each local shall record its monies spent on collective bargaining or noncollective bargaining in accordance with the AP&P. Failure of a local to record monies spent on collective bargaining and non-collective bargaining activities shall constitute grounds for stopping payment of rebates.

Section 18. $1.00 per dues payer per month will be put into the Strike and Job Protection Fund.