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

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-Engrossed.html

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     77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .

LC 3854

                           A-Engrossed

                         House Bill 3472
                  Ordered by the House April 18
            Including House Amendments dated April 18

Sponsored by Representatives WHISNANT, HARKER, GILLIAM

                             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.

   { +  Directs Higher Education Coordinating Commission, Oregon
Student Access Commission, Oregon University System and
Department of Community Colleges and Workforce Development to
propose Pay Forward, Pay Back pilot program to replace current
system of tuition and fees required to attend institution of
higher education.
  Sets criteria for pilot program proposal.
  Requires proposal to be submitted to Seventy-eighth Legislative
Assembly for approval. + }
  Directs Higher Education Coordinating Commission to conduct
study on freezing tuition increases for incoming undergraduate
students at public universities.
  Requires commission to submit report to interim legislative
committees no later than September 30, 2013.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to higher education tuition; and declaring an emergency.
  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,
Be It Enacted by the People of the State of Oregon:
  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. + }
  SECTION 3.  { + (1) The Higher Education Coordinating
Commission shall conduct a study on whether public universities
listed in ORS 352.002 can successfully implement a tuition freeze
that will guarantee that incoming undergraduate students have the
same tuition rate for four years. The study must include an
analysis of:
  (a) The 'Western Tuition Promise' offered by Western Oregon
University;
  (b) The 'Finish in Four' program proposed in Florida; and
  (c) Ways of mitigating the financial strain that the adoption
of a tuition freeze would place on a university's finances.
  (2) The commission shall submit a report on the study described
in subsection (1) of this section to the interim legislative
committees on higher education no later than September 30,
2013. + }
  SECTION 4.  { + This 2013 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2013 Act takes effect on its
passage. + }
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