Bill Text: OR HB3472 | 2013 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Relating to higher education tuition; and declaring an emergency.

Sponsorship: Bipartisan Bill

Status: (Passed) 2013-07-29 - Chapter 700, (2013 Laws): Effective date July 29, 2013. [HB3472 Detail]

Download: Oregon-2013-HB3472-Amended.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

HA to HB 3472

LC 3854/HB 3472-1

                       HOUSE AMENDMENTS TO
                         HOUSE BILL 3472

   By COMMITTEE ON HIGHER EDUCATION AND WORKFORCE DEVELOPMENT

                            April 18

  After line 2 of the printed bill, insert:
  ' Whereas the Legislative Assembly recognizes that
post-secondary education has expanded opportunities for
Oregonians to qualify for high-quality jobs and entry into the
middle class, providing clear benefits to this state's economy;
and
  ' Whereas Oregon ranks 42nd in the United States in terms of
state appropriations for higher education, with public investment
in higher education in this state decreasing over the past decade
from its peak of $856 million in the 2000-2001 academic year to
$626.9 million in the 2010-2011 academic year, a 27 percent
decline; and
  ' Whereas in response to decreased state support, over the past
two decades annual tuition and fees in this state have risen by
nearly $4,100, or 133 percent, at public four-year institutions
of higher education and by more than $1,900, or 150 percent, at
public two-year institutions of higher education; and
  ' Whereas tuition at Oregon's public institutions of higher
education has been rising far more rapidly than family incomes,
with tuition, fees and room and board at public four-year
institutions of higher education in Oregon rising from 18 percent
of median household income in the 1990-1991 academic year to
nearly 31 percent of median household income in the 2009-2010
academic year; and
  ' Whereas with college costs rising beyond the reach of many
Oregonians, financial aid programs are inadequate to reach all
students with financial need, with state grants of financial aid
cut by 75 percent in the 2010-2011 academic year to $19.3
million, providing aid to just eight percent of all Oregon
students; and
  ' Whereas the increasing unaffordability of a college education
has forced students to borrow more money to pay for higher
education, causing 60 percent of students graduating from public
four-year institutions of higher education in Oregon in 2010 to
be left with student debt averaging $24,626, a 50 percent
increase from the average student debt of $16,361 that was owed
by students graduating from Oregon's public four-year
institutions of higher education just seven years earlier; and
  ' Whereas high levels of student debt are damaging not only to
the individual student's ability to succeed financially but also
will have grave consequences for the future economy of this
state; and
  ' Whereas the Legislative Assembly now finds that it must halt
the decrease in this state's support for public education and,
over time, must increase its contribution to the funding of
higher education; and
  ' Whereas the Legislative Assembly finds that it must
immediately seek another approach to financing the students'
share of the cost of public higher education in this state that

will not result in students graduating from Oregon's public
colleges and universities burdened with debt; and
  ' Whereas there is growing interest in a new financing strategy
known as Pay Forward, Pay Back; and
  ' Whereas the Legislative Assembly recognizes that it is in
this state's interest to study and recommend a potential Pay
Forward, Pay Back program; now, therefore,'.
  After line 3, insert:
  '  { +  SECTION 1. + }  { + (1) The Higher Education
Coordinating Commission, Oregon Student Access Commission, Oregon
University System and Department of Community Colleges and
Workforce Development shall jointly create a proposed pilot
program called Pay Forward, Pay Back. The pilot program shall be
designed to replace the current system of charging students
tuition and fees for enrollment at public institutions of higher
education. The proposal shall identify one or more public
institutions of higher education to participate in the pilot
program.
  ' (2) The proposed pilot program shall be submitted to the
Seventy-eighth Legislative Assembly for approval.
  ' (3) The pilot program shall:
  ' (a) Allow students who are residents of this state, as
defined by the institution, and who qualify for admission to the
institution to enroll in the institution without paying tuition
or fees.
  ' (b) Provide that, in lieu of paying tuition or fees, students
must sign binding contracts to pay to the State of Oregon or the
institution a certain percentage of the student's annual adjusted
gross income upon graduation from the institution for a specified
number of years.
  ' (4) The pilot program may vary by institution depending on:
  ' (a) The total cost of education at the institution.
  ' (b) The portion of the cost that is paid by the State of
Oregon.
  ' (c) The number of years specified in the contract.
  ' (d) The percentage of annual adjusted gross income specified
in the contract.
  ' (5) The proposal shall specify the number of years and the
percentage of annual adjusted gross income for contracts at each
participating institution and base the specifications on research
to date.
  ' (6) The proposal shall establish an immediate funding source
for the first 15 to 20 years of the pilot program and must
include the establishment of a revolving fund to deposit payments
made under the pilot program. + }
  '  { +  SECTION 2. + }  { + Section 1 of this 2013 Act is
repealed on June 30, 2015. + } ' .
  In line 4, delete '1' and insert '3'.
  In line 15, delete '2' and insert '4'.
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