Bill Text: OR HB4062 | 2012 | Regular Session | Introduced


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

Spectrum: Partisan Bill (Democrat 8-0)

Status: (Failed) 2012-03-05 - In committee upon adjournment. [HB4062 Detail]

Download: Oregon-2012-HB4062-Introduced.html


     76th OREGON LEGISLATIVE ASSEMBLY--2012 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 176

                         House Bill 4062

Sponsored by Representative BEYER; Representatives BARNHART,
  HOLVEY, HOYLE, NATHANSON, Senators BEYER, EDWARDS, PROZANSKI
  (Presession 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.

  Abolishes State Board of Higher Education and transfers
functions to Oregon Education Investment Board. Abolishes
position of Chancellor of Oregon University System and transfers
functions to Chief Education Officer. Repeals sunset provisions
relating to Oregon Education Investment Board and Chief Education
Officer.  Requires Senate confirmation for Chief Education
Officer.  Authorizes Governor to appoint presidents of public
universities, subject to confirmation by Senate. Establishes
process for authorizing local university governing boards. Makes
conforming language changes.
  Becomes operative on July 1, 2012.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to higher education; creating new provisions; amending
  ORS 30.264, 30.864, 36.155, 62.720, 182.122, 184.631, 190.510,
  190.520, 190.530, 190.540, 190.580, 190.590, 190.610, 196.438,
  200.025, 200.055, 238.200, 238.215, 243.107, 243.800, 243.820,
  243.850, 243.910, 244.050, 273.573, 273.586, 273.785, 276.610,
  276.612, 282.076, 283.310, 284.540, 284.706, 284.711, 285B.168,
  291.002, 291.038, 291.055, 291.445, 292.043, 292.044, 293.790,
  293.812, 294.311, 320.100, 321.185, 329.489, 337.521, 342.147,
  342.447, 343.961, 344.259, 348.010, 348.205, 348.210, 348.282,
  348.603, 348.849, 348.890, 348.900, 351.011, 351.015, 351.047,
  351.049, 351.052, 351.054, 351.057, 351.060, 351.062, 351.063,
  351.064, 351.065, 351.067, 351.070, 351.072, 351.077, 351.085,
  351.086, 351.087, 351.088, 351.092, 351.094, 351.096, 351.097,
  351.105, 351.110, 351.117, 351.130, 351.140, 351.150, 351.155,
  351.160, 351.165, 351.170, 351.180, 351.190, 351.203, 351.205,
  351.210, 351.220, 351.230, 351.240, 351.250, 351.260, 351.267,
  351.277, 351.282, 351.284, 351.287, 351.310, 351.320, 351.340,
  351.345, 351.350, 351.353, 351.356, 351.460, 351.473, 351.476,
  351.505, 351.506, 351.590, 351.615, 351.627, 351.633, 351.638,
  351.642, 351.643, 351.644, 351.646, 351.647, 351.658, 351.663,
  351.666, 351.668, 351.692, 351.697, 351.708, 351.718, 351.735,
  351.810, 351.820, 351.830, 351.840, 351.870, 351.875, 351.880,
  351.885, 352.002, 352.004, 352.010, 352.021, 352.035, 352.051,
  352.230, 352.360, 352.383, 352.385, 352.390, 352.510, 352.530,
  352.580, 352.610, 353.040, 353.050, 353.108, 353.260, 353.330,
  353.370, 353.440, 354.090, 357.004, 358.575, 366.785, 390.235,
  461.543, 468A.245, 471.580, 471.810, 526.215, 526.225, 542.710,
  542.720, 561.364, 566.210, 567.025, 567.030, 567.035, 567.205,
  567.210, 567.220, 567.230, 567.235, 567.255, 567.260, 567.270,
  567.275, 567.325, 567.330, 567.405, 567.410, 567.430, 567.455,
  567.475, 567.480, 567.505, 567.510, 567.515, 567.520, 567.575,
  567.580, 576.035, 659.850, 659.855, 659.860, 815.080, 820.100,
  820.110, 820.120, 820.130, 820.150 and 825.017 and sections 1,
  2 and 6, chapter 519, Oregon Laws 2011; repealing ORS 351.020,
  351.040, 351.045 and 351.075 and sections 10 and 11, chapter
  519, Oregon Laws 2011, and section 33, chapter 637, Oregon Laws
  2011; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:

                               { +
STATE BOARD OF HIGHER EDUCATION; + }
                               { +
CHANCELLOR OF OREGON UNIVERSITY SYSTEM + }

                               { +
(Abolishment and Transfer of Duties, Functions and Powers) + }

  SECTION 1.  { + (1) The State Board of Higher Education and the
position of Chancellor of the Oregon University System are
abolished. On the operative date of this section, the tenure of
office of the members of the State Board of Higher Education and
the Chancellor of the Oregon University System ceases.
  (2) All the duties, functions and powers of the State Board of
Higher Education are imposed upon, transferred to and vested in
the Oregon Education Investment Board.
  (3) All the duties, functions and powers of the Chancellor of
the Oregon University System are imposed upon, transferred to and
vested in the Chief Education Officer. + }
  SECTION 2.  { + (1) The State Board of Higher Education and the
Chancellor of the Oregon University System shall:
  (a) Deliver to the Chief Education Officer all records and
property within the jurisdiction of the state board or the
chancellor that relate to the duties, functions and powers
transferred by section 1 of this 2012 Act; and
  (b) Transfer to the Chief Education Officer those employees
engaged primarily in the exercise of the duties, functions and
powers transferred by section 1 of this 2012 Act.
  (2) The Chief Education Officer shall take possession of the
records and property, and shall take charge of the employees and
employ them in the exercise of the duties, functions and powers
transferred by section 1 of this 2012 Act, without reduction of
compensation but subject to change or termination of employment
or compensation as provided by law.
  (3) The Governor shall resolve any dispute between the State
Board of Higher Education or the Chancellor of the Oregon
University System with the Oregon Education Investment Board or
the Chief Education Officer relating to transfers of records,
property and employees under this section, and the Governor's
decision is final. + }
  SECTION 3.  { + (1) The unexpended balances of amounts
authorized to be expended by the State Board of Higher Education
and the Chancellor of the Oregon University System for the
biennium beginning July 1, 2011, from revenues dedicated,
continuously appropriated, appropriated or otherwise made
available for the purpose of administering and enforcing the
duties, functions and powers transferred by section 1 of this
2012 Act are transferred to and are available for expenditure by
the Oregon Education Investment Board and the Chief Education
Officer for the biennium beginning July 1, 2011, for the purpose
of administering and enforcing the duties, functions and powers
transferred by section 1 of this 2012 Act.
  (2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the State Board of
Higher Education and the Chancellor of the Oregon University
System remain applicable to expenditures by the Oregon Education
Investment Board and the Chief Education Officer under this
section. + }
  SECTION 4.  { + The transfer of duties, functions and powers to
the Oregon Education Investment Board and the Chief Education
Officer by section 1 of this 2012 Act does not affect any action,
proceeding or prosecution involving or with respect to such
duties, functions and powers begun before and pending at the time
of the transfer, except that the Oregon Education Investment
Board or the Chief Education Officer is substituted for the State
Board of Higher Education or the Chancellor of the Oregon
University System in the action, proceeding or prosecution. + }
  SECTION 5.  { + (1) Nothing in sections 1 to 8 of this 2012 Act
relieves a person of a liability, duty or obligation accruing
under or with respect to the duties, functions and powers
transferred by sections 1 to 8 of this 2012 Act. The Oregon
Education Investment Board or the Chief Education Officer may
undertake the collection or enforcement of any such liability,
duty or obligation.
  (2) The rights and obligations of the State Board of Higher
Education or the Chancellor of the Oregon University System
legally incurred under contracts, leases and business
transactions executed, entered into or begun before the operative
date of section 1 of this 2012 Act are transferred to the Oregon
Education Investment Board or the Chief Education Officer. For
the purpose of succession to these rights and obligations, the
Oregon Education Investment Board or the Chief Education Officer
is a continuation of the State Board of Higher Education or the
Chancellor of the Oregon University System and not a new
authority. + }
  SECTION 6.  { + Notwithstanding the transfer of duties,
functions and powers by section 1 of this 2012 Act, the rules of
the State Board of Higher Education in effect on the operative
date of section 1 of this 2012 Act continue in effect until
superseded or repealed by rules of the Oregon Education
Investment Board.  References in rules of the State Board of
Higher Education to the board or an officer or employee of the
board are considered to be references to the Oregon Education
Investment Board or an officer or employee of the board. + }
  SECTION 7.  { + (1) Whenever, in any uncodified law or
resolution of the Legislative Assembly or in any rule, document,
record or proceeding authorized by the Legislative Assembly,
reference is made to the State Board of Higher Education or an
officer or employee of the board, the reference is considered to
be a reference to the Oregon Education Investment Board or an
officer or employee of the Oregon Education Investment Board.
  (2) Whenever, in any uncodified law or resolution of the
Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Chancellor of the Oregon University System, the
reference is considered to be a reference to the Chief Education
Officer. + }
  SECTION 8.  { + (1) For the purpose of harmonizing and
clarifying statutory law, the Legislative Counsel may substitute
for words designating the 'State Board of Higher Education' or
its officers, wherever they occur in statutory law, words
designating the 'Oregon Education Investment Board' or its
officers.
  (2) For the purpose of harmonizing and clarifying statutory
law, the Legislative Counsel may substitute for words designating
the 'Chancellor of the Oregon University System' wherever they
occur in statutory law, words designating the 'Chief Education
Officer.' + }
                               { +
OREGON EDUCATION INVESTMENT BOARD; + }
                               { +
CHIEF EDUCATION OFFICER + }

                               { +
(Duties, Functions and Powers; Appointments by Governor) + }

  SECTION 9. Section 1, chapter 519, Oregon Laws 2011, as amended
by section 8, chapter 519, Oregon Laws 2011, is amended to read:
   { +  Sec. 1. + } (1) The Oregon Education Investment Board is
established for the purpose of ensuring that all public school
students in this state reach the education outcomes established
for the state. The board shall accomplish this goal by overseeing
a unified public education system that begins with early
childhood services and continues throughout public education from
kindergarten to post-secondary education.
  (2)(a) The board consists of 13 members as follows:
  (A) The Governor, or the designee of the Governor; and
  (B) Twelve members who are appointed by the Governor, subject
to confirmation by the Senate in the manner provided in ORS
171.562 and 171.565, and who serve at the pleasure of the
Governor.
  (b) When determining who to appoint to the board, the Governor
shall:
  (A) Ensure that each congressional district of this state is
represented by at least one member of the board; and
  (B) Solicit recommendations from the Speaker of the House of
Representatives for at least two members and from the President
of the Senate for at least two members.
  (3) The Governor, or the Governor's designee, shall serve as
chairperson of the Oregon Education Investment Board.
  (4) The duties of the board include:
  (a) Ensuring that early childhood services are streamlined and
connected to public education from kindergarten through grade 12
and that public education from kindergarten through grade 12 is
streamlined and connected to post-secondary education. To assist
the board in fulfilling this duty, the board shall oversee:
  (A) The Early Learning Council established by section 4
 { - of this 2011 Act - }  { + , chapter 519, Oregon Laws
2011 + }.
  (B) The Higher Education Coordinating Commission established by
 { - section 1, chapter 637, Oregon Laws 2011 - }   { + ORS
351.715 + }.
  (b) Recommending strategic investments in order to ensure that
the public education budget is integrated and is targeted to
achieve the education outcomes established for the state.
  (c) Providing an integrated, statewide, student-based data
system that monitors expenditures and outcomes to determine the
return on statewide education investments. The board shall
provide the data system described in this paragraph by:
  (A) Developing the data system or identifying or modifying an
existing data system that accomplishes the goals of the data
system; and
  (B) Ensuring that the data system is maintained.
   { +  (d) Conducting the operations of the Oregon University
System established in ORS 351.011. + }
  (5) An appointed member of the board is entitled to
compensation and expenses as provided in ORS 292.495.
  (6) A majority of the members of the board constitutes a quorum
for the transaction of business.
  (7) The board shall meet at such times and places specified by
the call of the chairperson or of a majority of the members of
the board.
  (8) In accordance with applicable provisions of ORS chapter
183, the board may adopt rules necessary for the administration
of the laws that the board is charged with administering,
including any rules necessary for the oversight of the direction
and control of the Higher Education Coordinating Commission.
  SECTION 10. Section 2, chapter 519, Oregon Laws 2011, is
amended to read:
   { +  Sec. 2. + } (1) The   { - Oregon Education Investment
Board established by section 1 of this 2011 Act - }  { +
Governor + } shall appoint a Chief Education Officer { + ,
subject to confirmation by the Senate in the manner provided in
ORS 171.562 and 171.565, + } who shall serve at the pleasure of
the   { - board - }  { +  Governor + }.
  (2) The Chief Education Officer shall be a person who, by
training and experience, is well qualified to:
  (a) Perform the duties of the office, as determined by the
 { +  Oregon Education Investment + } Board;   { - and - }
  (b) Assist in carrying out the functions of the board, as
described in section 1   { - of this 2011 Act. - }  { + , chapter
519, Oregon Laws 2011; and
  (c) Exercise administrative authority over the Oregon
University System as directed by the board. + }
  SECTION 11. Section 6, chapter 519, Oregon Laws 2011, is
amended to read:
   { +  Sec. 6. + } (1) The Oregon Education Investment Board
established by section 1   { - of this 2011 Act shall submit a
report to the interim legislative committees on education on or
before December 15, 2011, and - }  { + , chapter 519, Oregon Laws
2011, + } may file proposed legislative measures with the
Legislative Counsel in the manner allowed by both houses of the
Legislative Assembly.
  (2) The report required by this section shall describe the
proposed legislative measures, which may provide for any of the
following:
  (a) Allowing the Oregon Education Investment Board to carry out
the duties of the board described in section 1   { - of this 2011
Act - }  { + , chapter 519, Oregon Laws 2011 + }.
  (b) Merging, redesigning or improving the coordination of early
childhood services and aligning early childhood services with
child-centered outcomes, as described in section 5 (2)   { - of
this 2011 Act - }  { + , chapter 519, Oregon Laws 2011 + }.
  (c) Implementing early childhood services that meet the goals
described in section 5 (3)   { - of this 2011 Act - }  { + ,
chapter 519, Oregon Laws 2011 + }.
  (d) Merging the State Board of Education   { - and the State
Board of Higher Education - }  { +  with the Oregon Education
Investment Board + } and transferring the duties of   { - those
boards - }  { +  the State Board of Education  + }and the State
Commission on Children and Families to the Oregon Education
Investment Board by June 30, 2012.
  (e) Requiring the Commissioner for Community College Services
 { - , the Chancellor of the Oregon University System - }  and
the executive director of the Oregon Student Access Commission to
function under the direction and control of the Chief Education
Officer   { - of the Oregon Education Investment Board - }  by
June 30, 2012.
  (f) Consolidating, aligning and coordinating governance,
programs and funding for youth development and training,
including the Oregon Youth Investment Foundation, juvenile crime
prevention programs and services, the Oregon Youth Conservation
Corps and the Youth Standing Committee of the Oregon Workforce
Investment Board.

                               { +
PUBLIC UNIVERSITY PRESIDENTS + }

                               { +
(Appointments by Governor) + }
  SECTION 12. ORS 352.004 is amended to read:
  352.004. The president of each public university within the
Oregon University System { + :
  (1) Except as provided in section 14 of this 2012 Act, shall be
appointed by the Governor, who shall consider recommended
candidates from the Oregon Education Investment Board and the
faculty of the public university, for a four-year term, subject
to confirmation by the Senate in the manner provided by ORS
171.562 and 171.565;
  (2) Except as provided in section 14 of this 2012 Act, shall
serve at the pleasure of the Governor;
  (3) + } Is also president of the faculty  { - . - }  { +  for
the public university;
  (4) + }   { - The president - }  Is also the executive and
governing officer of the public university, except as otherwise
provided by statute or action of the   { - State Board of Higher
Education. - }  { +  Oregon Education Investment Board; and
  (5) + } Subject to the supervision of the board,   { - the
president of the public university - }  has authority to control
and give general directions to the practical affairs of the
public university.
  SECTION 13.  { + The Governor shall appoint a president for
each of the public universities listed in ORS 352.002 within 60
days after the operative date of this 2012 Act. + }

                               { +
LOCAL BOARDS + }

  SECTION 14.  { + (1) The Oregon Education Investment Board is
authorized, upon an affirmative vote of a majority of the members
of the board, to establish by rule a local board to discharge
specified duties and obligations on behalf of the Oregon
Education Investment Board for one or more of the public
universities listed in ORS 352.002.
  (2) In the event the Oregon Education Investment Board
establishes a local board for one or more of the public
universities listed in ORS 352.002, the Oregon Education
Investment Board shall, by rule:
  (a) Establish the membership and terms of office of the local
board. The rules must:
  (A) Require a majority of the members to be appointed by the
Governor and confirmed by the Senate in the manner provided by
ORS 171.562 and 171.565;
  (B) Include among the membership at least one current member of
the Oregon Education Investment Board, who shall be appointed to
the local board by the chairperson of the Oregon Education
Investment Board;
  (C) Include among the membership at least one member
representing the university's faculty;
  (D) Include among the membership at least one member who is a
student enrolled at the university; and
  (E) Allow a minority of the members to be appointed by the
local board, once it has been constituted, to meet specific
institutional needs.
  (b) Specify the duties and obligations delegated to the local
board.
  (c) Establish a mechanism, including but not limited to a
performance agreement, to hold the local board accountable for
advancement of the goals of public higher education for which the
Oregon Education Investment Board is responsible.
  (3) Notwithstanding ORS 352.004:
  (a) A local board established under this section shall appoint
the university's president; and
  (b) The university president appointed by the local board shall
serve at the pleasure of the local board. + }

                               { +
CONFORMING AMENDMENTS + }

  SECTION 15. ORS 30.264 is amended to read:
  30.264. (1) The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may authorize public
universities listed in ORS 352.002 to provide liability insurance
coverage for students involved in off-campus experiential
activities, including, but not limited to, student teaching,
internships, clinical experiences, capstone projects and related
activities.
  (2) If commercial liability insurance coverage is not available
to the public universities, students participating in the
activities described in subsection (1) of this section shall be
considered to be acting within the course and scope of state
employment duties for purposes of ORS 30.260 to 30.300.
  SECTION 16. ORS 30.864 is amended to read:
  30.864. (1) Any person claiming to be aggrieved by the reckless
disclosure of personally identifiable information from a
student's education records as prohibited by rules of the State
Board of Education or the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } may
file a civil action in circuit court for equitable relief or,
subject to the terms and conditions of ORS 30.265 to 30.300, for
damages, or both. The court may order such other relief as may be
appropriate.
  (2) The action authorized by this section shall be filed within
two years of the alleged unlawful disclosure.
  (3) In an action brought under this section, the court may
allow the prevailing party costs, disbursements and reasonable
attorney fees.
  SECTION 17. ORS 36.155 is amended to read:
  36.155. The Dean of the University of Oregon School of Law
shall award grants for the purpose of providing dispute
resolution services in counties. Grants under this section shall
be made from funds appropriated to the Oregon University System
on behalf of the University of Oregon School of Law for
distribution under this section. The   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } may
adopt rules for the operation of the grant program.
  SECTION 18. ORS 62.720 is amended to read:
  62.720. (1) All intangible personal property distributable in
the course of a voluntary or involuntary dissolution of a
cooperative that is unclaimed by the owner within two years after
the date for final distribution is presumed abandoned. Such
property shall be subject to the provisions of ORS 98.302 to
98.436 and 98.992, except that with respect to agricultural
cooperatives, the report of unclaimed property shall be filed
with the Department of State Lands as set forth in ORS 98.352. A
copy of the report shall also be filed with the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + }.
  (2) All unclaimed property specified in the report required by
ORS 98.352 shall be delivered within the time specified in ORS
98.362 to the Department of State Lands which shall assume
custody and shall be responsible for the safekeeping thereof. The
department shall reconcile the report to the delivered funds,
deduct the costs as provided for in subsection (3) of this
section, and forward the funds to the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } within
14 working days of receipt of the funds. Any person who pays or
delivers unclaimed property to the Department of State Lands
under this section is relieved of all liability to the extent of
the value of the property so paid or delivered for any claim
which then exists or which thereafter may arise or be made in
respect to the property.
  (3) All funds received under this section shall be used for the
benefit of Oregon State University in such programs related to
agricultural research as the university may determine except for:
  (a) The payment of claims which may be made pursuant to this
section; and
  (b) The payment of expenses of mailing and publication in
connection with any unclaimed property, reasonable service
charges and expenses of the Department of State Lands in
connection with claims made pursuant to ORS 98.392 to 98.402.
  (4) The provisions of ORS 98.392 to 98.402 are applicable to
claims against unclaimed property delivered to the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } pursuant to this section. The   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall pay such claims from funds delivered to it pursuant to this
section within 30 days of receipt of a verified copy of a finding
and decision of the Department of State Lands made pursuant to
ORS 98.396 or a certified copy of a judgment made pursuant to ORS
98.402.
  (5) As used in this section, an agricultural cooperative is any
cooperative in which farmers act together in producing,
processing, preparing for market, handling or marketing the
agricultural products of such farmers, and any cooperative in
which farmers act together in purchasing, testing, grading,
processing, distributing and furnishing farm supplies or farm
business services.
  (6) The provisions of this section are applicable with respect
to the voluntary or involuntary dissolution of any cooperative,
which dissolution commenced on or after January 1, 1970.
  SECTION 19. ORS 182.122 is amended to read:
  182.122. (1) As used in this section:
  (a) 'Executive department' has the meaning given that term in
ORS 174.112.
  (b) 'Information systems' means computers, hardware, software,
storage media, networks, operational procedures and processes
used in the collection, processing, storage, sharing or
distribution of information within, or with any access beyond
ordinary public access to, the state's shared computing and
network infrastructure.
  (2) The Oregon Department of Administrative Services has
responsibility for and authority over information systems
security in the executive department, including taking all
measures reasonably necessary to protect the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The Oregon Department
of Administrative Services shall, after consultation and
collaborative development with agencies, establish a state
information systems security plan and associated standards,
policies and procedures.
  (3) The Oregon Department of Administrative Services, in its
sole discretion, shall:
  (a) Review and verify the security of information systems
operated by or on behalf of agencies;
  (b) Monitor state network traffic to identify and react to
security threats; and
  (c) Conduct vulnerability assessments of agency information
systems for the purpose of evaluating and responding to the
susceptibility of information systems to attack, disruption or
any other event that threatens the availability, integrity or
confidentiality of information systems or the information stored
in information systems.
  (4) The Oregon Department of Administrative Services shall
contract with qualified, independent consultants for the purpose
of conducting vulnerability assessments under subsection (3) of
this section.

  (5) In collaboration with agencies, the Oregon Department of
Administrative Services shall develop and implement policies for
responding to events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems, whether those systems
are within, interoperable with or outside the state's shared
computing and network infrastructure. In the policies, the
department shall prescribe actions reasonably necessary to:
  (a) Promptly assemble and deploy in a coordinated manner the
expertise, tools and methodologies required to prevent or
mitigate the damage caused or threatened by an event;
  (b) Promptly alert other persons of the event and of the
actions reasonably necessary to prevent or mitigate the damage
caused or threatened by the event;
  (c) Implement forensic techniques and controls developed under
subsection (6) of this section;
  (d) Evaluate the event for the purpose of possible improvements
to the security of information systems; and
  (e) Communicate and share information with agencies, using
preexisting incident response capabilities.
  (6) After consultation and collaborative development with
agencies, the Oregon Department of Administrative Services shall
implement forensic techniques and controls for the security of
information systems, whether those systems are within,
interoperable with or outside the state's shared computing and
network infrastructure. The techniques and controls must include
the use of specialized expertise, tools and methodologies, to
investigate events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The department shall
consult with the Oregon State Police, the Office of Emergency
Management, the Governor and others as necessary in developing
forensic techniques and controls under this section.
  (7) The Oregon Department of Administrative Services shall
ensure that reasonably appropriate remedial actions are
undertaken when the department finds that such actions are
reasonably necessary by reason of vulnerability assessments of
information systems under subsection (3) of this section,
evaluation of events under subsection (5) of this section and
other evaluations and audits.
  (8)(a) Agencies are responsible for the security of computers,
hardware, software, storage media, networks, operational
procedures and processes used in the collection, processing,
storage, sharing or distribution of information outside the
state's shared computing and network infrastructure following
information security standards, policies and procedures
established by the Oregon Department of Administrative Services
and developed collaboratively with agencies. Agencies may
establish plans, standards and measures that are more stringent
than the standards established by the department to address
specific agency needs if those plans, standards and measures do
not contradict or contravene the state information systems
security plan. Independent agency security plans shall be
developed within the framework of the state information systems
security plan.
  (b) An agency shall report the results of any vulnerability
assessment, evaluation or audit conducted by the agency to the
department for the purposes of consolidating statewide security
reporting and, when appropriate, to prompt a state incident
response.
  (9) This section does not apply to:
  (a) Research and student computer systems used by or in
conjunction with the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } or any public
university listed in ORS 352.002; and

  (b)(A) Gaming systems and networks operated by the Oregon State
Lottery or its contractors; or
  (B) The results of Oregon State Lottery reviews, evaluations
and vulnerability assessments of computer systems outside the
state's shared computing and network infrastructure.
  (10) The Oregon Department of Administrative Services shall
adopt rules to carry out its responsibilities under this section.
  SECTION 20. ORS 184.631 is amended to read:
  184.631. (1) The Department of Transportation shall establish a
public-private partnership research and development program.
  (2) As part of the program established under this section, the
department may enter into joint research and development
agreements for the purpose of developing products for market that
may reduce the cost of maintenance and preservation or extend the
useful life of the state's highways or that may improve highway
safety. The department may enter into agreements with the
following:
  (a) Individuals.
  (b) Businesses.
  (c) Nonprofit organizations.
  (d) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }.
  (3) The department may enter into agreements under subsection
(2) of this section that allow the department to obtain royalties
or other financial benefits from the sale or use of products
developed through the public-private partnership research and
development program.
  (4) Moneys that the department is authorized to spend on
planning and research may be used for development of products
under this section.
  (5) The department shall adopt rules that govern the
solicitation and selection of product development projects that
will receive funding under the program established under this
section.
  SECTION 21. ORS 190.510 is amended to read:
  190.510. As used in ORS 190.510 to 190.610, unless the context
requires otherwise:
  (1) 'Board' means the   { - State Board of Higher Education - }
 { + Oregon Education Investment Board + } established under
 { - ORS 351.015 - }  { +  section 1, chapter 519, Oregon Laws
2011 + }.
  (2) 'City' means any incorporated city or town.
  SECTION 22. ORS 190.520 is amended to read:
  190.520. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall:
  (a) Annually estimate the population as of July 1 of each city
and county within the state and no later than December 15 of each
year prepare a certificate of population showing the board's
estimate of the population of each city and county within the
state as of July 1. The board's estimate may be based upon
statistical or other pertinent data or upon an actual count. The
certificate shall also indicate the results of any enumeration of
cities or annexed areas made after July 1.
  (b) Annually estimate the number of persons between the ages of
4 and 20 who resided in each county as of October 25. The board
shall certify such estimate to the Superintendent of Public
Instruction and to the executive officer of the administrative
office of each county, as defined in ORS 328.001, by January 1 of
each year.
  (c) Upon an official request from a city, county, political
subdivision, public corporation or state agency, cause to be
conducted at the expense of the requesting party an actual count
of the population of the area specified in the request and
prepare a certificate of population based upon such count.
  (d) Upon the incorporation of a city, cause to be conducted at
the expense of the city an actual count of the population of the
city. The board shall prepare a certificate of population based
upon such count. If the election of officers of the newly
incorporated city is held 40 days or more before the end of the
calendar quarter, the certificate shall be prepared before the
end of the calendar quarter. If the election is held less than 40
days before the end of the calendar quarter, the certificate
shall be prepared before the end of the calendar quarter next
following the election.
  (2) All certificates prepared under this section shall be filed
with the Portland State University Population Research Center.
  SECTION 23. ORS 190.530 is amended to read:
  190.530. Upon petition from a city, county, political
subdivision, public corporation or state agency for
reconsideration, or upon its own motion, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
may revise its determination of the population of a city, county
or other area.  Payment of funds to a city, county or other area
under ORS 323.455, 366.785 to 366.820 or 471.810 shall be
affected by a subsequent filing of a corrected certificate under
this section in the manner provided by ORS 190.620.
  SECTION 24. ORS 190.540 is amended to read:
  190.540. (1) The population shown in the certificate of
population of the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } filed pursuant to ORS
190.520 or 190.530 shall be the official population of the city,
county or other area covered by the certificate until a later
certificate covering such city, county or other area is filed by
the board.
  (2) After a certificate of population is filed pursuant to ORS
190.520 or 190.530, the population of a city, county or other
area as shown in the certificate shall be the official and
exclusive basis for determining per capita allocation and payment
of funds to such city, county or other area under ORS 366.785 to
366.820 and 471.810 until the filing by the board of a later
certificate for such city, county or other area.
  SECTION 25. ORS 190.580 is amended to read:
  190.580. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may adopt such rules and
regulations as it considers desirable and expedient in the
conduct of its duties under ORS 190.510 to 190.610.
  SECTION 26. ORS 190.590 is amended to read:
  190.590. Any state agency, or officer thereof, and any city, or
department, officer or employee thereof, shall, upon request of
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }, furnish such available
information as may be required by the board in securing accurate
data and information upon which to base its estimates. The board
may prescribe the form for reporting such information.
  SECTION 27. ORS 190.610 is amended to read:
  190.610. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall establish a program
at one or more of the public universities under its control,
designed to perform the duties imposed upon it by ORS 190.510 to
190.610.
  SECTION 28. ORS 196.438 is amended to read:
  196.438. (1) The Governor shall establish an Ocean Policy
Advisory Council that is staffed by the State Department of Fish
and Wildlife, the Department of Land Conservation and Development
and other departments as the Governor deems necessary. The
council shall be composed of:
  (a) The Governor or the Governor's designee, as a nonvoting
member;
  (b) The director or the director's designee of the following
agencies, as nonvoting members:
  (A) Department of Environmental Quality;
  (B) State Department of Fish and Wildlife;
  (C) State Department of Geology and Mineral Industries;
  (D) Department of Land Conservation and Development;
  (E) Department of State Lands;
  (F) Parks and Recreation Department;
  (G) State Department of Agriculture; and
  (H) On behalf of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, the director or
director's designee of Oregon State University, Sea Grant
College;
  (c) A member of the governing body of Coos, Curry, Douglas or
Lane County to be appointed by the Governor, chosen in
consultation with and with the approval of a majority of the
members of the governing bodies of Coos, Curry, Douglas and Lane
Counties;
  (d) A member of the governing body of Clatsop, Lincoln or
Tillamook County to be appointed by the Governor, chosen in
consultation with and with the approval of a majority of the
members of the governing bodies of Clatsop, Lincoln and Tillamook
Counties;
  (e) An elected city official from a coastal city bordering the
territorial sea to be appointed by the Governor with advice from
an Oregon coastal zone management association;
  (f) A representative of each of the following ocean interests,
to be appointed by the Governor, and subject to confirmation by
the Senate pursuant to section 4, Article III, Oregon
Constitution:
  (A) Commercial ocean fisheries of the North Coast from Newport
north;
  (B) Commercial ocean fisheries of the South Coast south of
Newport;
  (C) Charter, sport or recreation ocean fisheries of the North
Coast from Newport north;
  (D) Charter, sport or recreation ocean fisheries of the South
Coast south of Newport;
  (E) Ports marine navigation or transportation;
  (F) Coastal nonfishing recreation interests of surfing, diving,
kayaking or windsurfing;
  (G) A coastal conservation or environmental organization;
  (H) Oregon Indian tribes appointed after consultation with the
Commission on Indian Services;
  (I) A coastwide organization representing a majority of small
ports and local governments, as a nonvoting member; and
  (J) A statewide conservation or environmental organization; and
  (g) Two representatives of the public, at least one of whom
shall be a resident of a county bordering the territorial sea, to
be appointed by the Governor.
  (2) The term of office of each member appointed by the Governor
is four years, but a member serves at the pleasure of the
Governor. Before the expiration of the term of a member, the
Governor shall appoint a successor whose term begins on July 1
next following. A member is eligible for reappointment. If there
is a vacancy for any cause, the Governor shall make an
appointment to become immediately effective for the unexpired
term.
  (3) A majority of the voting members of the council constitutes
a quorum for the transaction of business.
  (4) The voting members of the council shall elect a person from
among the membership to chair the council.
  SECTION 29. ORS 200.025 is amended to read:
  200.025. (1) There is created, in the Office of the Governor,
the Advocate for Minority, Women and Emerging Small Business who
shall be appointed by the Governor.
  (2) There is created in the Oregon Business Development
Department the Office for Minority, Women and Emerging Small
Business, the employees of which shall be appointed by the
Director of the Oregon Business Development Department.
  (3)(a) The director may prescribe the duties and assignments of
all officers and employees of the Office for Minority, Women and
Emerging Small Business. The director shall establish the
compensation of all officers and employees of the office.
  (b) The officers and employees of the office shall be allowed
reimbursement for reasonable and necessary travel and other
expenses incurred in the performance of their duties.
  (4) The Advocate for Minority, Women and Emerging Small
Business shall:
  (a) Advise the Governor and the director on activities and
initiatives that may promote the economic integration of
minorities, women and emerging small businesses into the business
sector;
  (b) Prepare an annual report to the Governor, director and
Legislative Assembly on the status of minorities and women in the
marketplace, accomplishments and resolutions of issues of concern
to minority and women's enterprises and recommendations for
executive and legislative actions; and
  (c) Carry out other duties that may be assigned by the
Governor.
  (5) The Office for Minority, Women and Emerging Small Business
shall:
  (a) Provide information to minority, women and emerging small
businesses;
  (b) Assist in the development and implementation of an
aggressive strategy for this state, based on research and
monitoring, that encourages participation of minorities, women
and emerging small businesses in the state's economy;
  (c) Make recommendations to the director on the research,
development and implementation of the plan for the involvement of
disadvantaged and minority groups and emerging small businesses
in all state programs;
  (d) Maintain an Oregon Opportunity Register and Clearinghouse
for information on public agency and other contract solicitations
for professional services, supplies and services and other bid
opportunities, in consultation with the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + },
the Department of Transportation and other entities;
  (e) Monitor the certification and compliance program for
disadvantaged, minority, women and emerging small businesses
under ORS 200.055;
  (f) Investigate complaints and possible abuses of the
certification program; and
  (g) Assist in the promotion and coordination of plans, programs
and operations of state government that strengthen minority and
women participation in the economic life of this state.
  SECTION 30. ORS 200.055 is amended to read:
  200.055. (1) Any disadvantaged, minority, women or emerging
small business enterprise is entitled to be certified as such
upon application to the Oregon Business Development Department.
If the application is approved by the department, the department
shall certify the applicant as a disadvantaged, minority, women
or emerging small business enterprise. The enterprise shall be
considered so certified by any public contracting agency.
  (2) In consultation with the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and the
Department of Transportation, and with the approval of the
Advocate for Minority, Women and Emerging Small Business, the
Oregon Business Development Department by rule shall adopt a
uniform standard form and procedure designed to provide complete
documentation that a business enterprise is certified as a
disadvantaged, minority, women or emerging small business
enterprise. The department shall compile and make available upon
request a list of certified disadvantaged, minority, women or
emerging small business enterprises.

  (3) Any business enterprise that is refused certification as a
disadvantaged business enterprise or denied recertification as
such or whose certification is revoked may appeal directly to the
United States Department of Transportation.
  (4) Any business enterprise that is refused certification as a
minority, women or emerging small business enterprise or has its
certification revoked may request a contested case hearing as
provided in ORS chapter 183.
  (5) The Oregon Business Development Department shall be the
sole agency authorized to certify enterprises as disadvantaged,
minority, women or emerging small business enterprises eligible
to perform on public contracts in this state.
  (6) The Oregon Business Development Department by rule may
establish a fee not to exceed $100 for a copy of the list of
certified disadvantaged, minority, women and emerging small
business enterprises and may assess state agencies for services
under ORS 200.005 to 200.075.
  (7) The Department of Transportation may collect a fee, not to
exceed $200, from a bidder upon bidder prequalifications to cover
the costs of the Oregon Business Development Department in
administering ORS 200.005 to 200.075. The Department of
Transportation shall transfer such fees to the credit of the
account established under subsection (8) of this section.
  (8) The Oregon Business Development Department shall establish
a special account in which to deposit fees and assessments. The
special account is continuously appropriated to the department to
meet its expenses in administering ORS 200.005 to 200.075.
  SECTION 31. ORS 238.200 is amended to read:
  238.200. (1)(a) An active member of the Public Employees
Retirement System shall contribute to the Public Employees
Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
  (b) Notwithstanding paragraph (a) of this subsection, an
employee who is an active member of the system on August 21,
1981, shall contribute to the fund and there shall be withheld
from salary of the member, as long as the employee continues to
be an active member of the system, four percent of that salary if
the salary for a month is less than $500, or five percent of that
salary if the salary for a month is $500 or more and less than
$1,000. Notwithstanding subsection (2) of this section, for the
purpose of computing the percentage of salary to be withheld
under this paragraph from a member who is an employee of a school
district or of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } whose salary is based
on an annual agreement, the agreed annual salary of the member
shall be divided into 12 equal installments, and each installment
shall be considered as earned and paid in separate, consecutive
months, commencing with the first month that payment is actually
made under the terms of the salary agreement.
  (2) The contributions of each member as provided in subsection
(1) of this section shall be deducted by the employer from each
payroll and transmitted by the employer to the Public Employees
Retirement Board, which shall cause them to be credited to the
member account of the member. Salary shall be considered earned
in the month in which it is paid. The date inscribed on the
paycheck or warrant shall be considered as the pay date,
regardless of when the salary is actually delivered to the
member.
  (3) An active member who is concurrently employed by more than
one participating public employer, and who is a member of or
entitled to membership in the system, shall make contributions to
the fund on the basis of salary paid by each employer.
  (4) Notwithstanding subsections (1) to (3) of this section, a
member of the system, or a participating employer acting on
behalf of the member pursuant to ORS 238.205, is not permitted or
required to make employee contributions to the fund for service
performed on or after January 1, 2004. This subsection does not
affect any contribution for the purpose of unit purchases under
ORS 238.440 or amounts paid for acquisition of creditable service
under ORS 238.105 to 238.175.
  SECTION 32. ORS 238.215 is amended to read:
  238.215. Notwithstanding any other provision of this chapter:
  (1) An employee, as defined in ORS 243.910 (2), who is an
active member of the system and who has elected, and not canceled
that election, to be assisted by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } under
ORS 243.920 (1), shall not contribute to the fund on any part of
the annual salary of the employee in excess of $4,800 at any time
during which the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } assists the employee under
ORS 243.920 (1).
  (2) The current service pension, whether for service or
disability retirement, under this chapter provided by the
contributions of the employers of such employee shall be:
  (a) If the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } is assisting such employee
under ORS 243.920 (1) at the time of retirement, a pension equal
to the annuity provided by the employee's accumulated
contributions to the fund.
  (b) If the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } is not assisting such
employee under ORS 243.920 (1) at the time of retirement, but
previously so assisted the employee:
  (A) For service before the date the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } last
ceased to assist the employee, a pension equal to the annuity
provided by the employee's accumulated contributions to the fund
before that date.
  (B) For service on and after the date the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
last ceased to so assist the employee, a pension computed as
provided in ORS 238.300 (2), but if the employee retires before
reaching the normal retirement age, actuarially reduced and
computed on the then attained age. For the purpose of computing
the pension under this subparagraph, only the number of years of
membership of the employee after the day before that date and
only the salary of the employee on which the employee contributes
to the fund for those years shall be considered.
  (3) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system, who elected to be assisted by the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } under ORS 243.920 (1) before January 1, 1968, who
canceled that election within the first 60 days of the calendar
year 1968 as provided in ORS 243.940 (5) and who does not
thereafter elect to be assisted by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
under ORS 243.920 (1).
  (4) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system and has been an active member of the system
continuously since any date before January 1, 1968; who elected
to be assisted by the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } under ORS 243.920 (1)
before January 1, 1968; and who cancels that election in any
calendar year after 1968, but before the calendar year in which
the employee retires, as provided in ORS 243.940 (5) and does not
thereafter elect to be assisted by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
under ORS 243.920 (1). In this case the benefit, whether for
service or disability retirement, shall be computed as under ORS
238.300; however, for service during periods in which the
employee was assisted by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } under
ORS 243.920 (1), a year of membership as used in ORS 238.300 (2)
shall be a portion of a year which is represented by a fraction
the numerator of which is $4,800 and the denominator of which is
the salary earned by the employee in that year. However, in no
case shall the fraction be greater than one.
  SECTION 33. ORS 243.107 is amended to read:
  243.107. A person employed by a public university listed in ORS
352.002 or the Oregon Health and Science University may be
considered an eligible employee for participation in one of the
group benefit plans described in ORS 243.135 if the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }, or the Oregon Health and Science University Board of
Directors for Oregon Health and Science University employees,
determines that funds are available therefor and if:
  (1) Notwithstanding ORS 243.105 (4)(b)(F), the person is a
student enrolled in an institution of higher education and is
employed as a graduate teaching assistant, graduate research
assistant or a fellow at the institution and elects to
participate; or
  (2) Notwithstanding ORS 243.105 (4)(b)(B) or (C), the person is
employed on a less than half-time basis in an unclassified
instructional or research support capacity and elects to
participate.
  SECTION 34. ORS 243.800 is amended to read:
  243.800. (1) Notwithstanding any provision of ORS chapter 238
or 238A or ORS 243.910 to 243.945, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall establish and administer an Optional Retirement Plan for
administrative and academic employees of the Oregon University
System who are eligible for membership in the Public Employees
Retirement System.  The Optional Retirement Plan must be a
qualified plan under the Internal Revenue Code, capable of
accepting funds transferred under subsection (7) of this section
without the transfer being treated as a taxable event under the
Internal Revenue Code, and willing to accept those funds.
Retirement and death benefits shall be provided under the plan by
the purchase of annuity contracts, fixed or variable or a
combination thereof, or by contracts for investments in mutual
funds.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall select at least two life
insurance companies providing fixed and variable annuities and at
least two investment companies providing mutual funds, but not
more than five companies in total, for the purpose of providing
benefits under the Optional Retirement Plan. The   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } shall establish selection criteria for the purpose of
this subsection.
  (3) An administrative or academic employee may make an
irrevocable election to participate in the Optional Retirement
Plan within six months after being employed. An election under
this subsection is effective on the first day of the month
following six full months of employment.
  (4) An administrative or academic employee who does not elect
to participate in the Optional Retirement Plan:
  (a) Remains or becomes a member of the Public Employees
Retirement System in accordance with ORS chapters 238 and 238A;
or
  (b) Continues to be assisted by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } under
ORS 243.920 if the employee is being so assisted.
  (5) Except as provided in subsection (6) of this section,
employees who elect to participate in the Optional Retirement
Plan are ineligible for active membership in the Public Employees
Retirement System or for any assistance by the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + } under ORS 243.920 as long as those employees are
employed in the Oregon University System and the plan is in
effect.
  (6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
  (b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
  (c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
  (d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
  (e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership
of the employee in the individual account program upon making the
transfer.
  (f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be separated
from all service with participating public employers and with
employers who are treated as part of a participating public
employer's controlled group under the federal laws and rules
governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
  (7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
  (8) An employee participating in the Optional Retirement Plan
shall contribute monthly an amount equal to the percentage of the
employee's salary that the employee would otherwise have
contributed as an employee contribution to the Public Employees
Retirement System if the employee had not elected to participate
in the Optional Retirement Plan.
  (9) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall contribute monthly to the
Optional Retirement Plan the percentage of salary of each
employee participating in the plan equal to the percentage of
salary that would otherwise have been contributed as an employer
contribution on behalf of the employee to the Public Employees
Retirement System, before any offset under ORS 238.229 (2), if
the employee had not elected to participate in the Optional
Retirement Plan.
  (10) Both employee and employer contributions to an Optional
Retirement Plan shall be remitted directly to the companies that
have issued annuity contracts to the participating employees or
directly to the mutual funds.
  (11) Benefits under the Optional Retirement Plan are payable to
employees who elect to participate in the plan and their
beneficiaries by the selected annuity provider or mutual fund in
accordance with the terms of the annuity contracts or the terms
of the contract with the mutual fund. Employees electing to
participate in the plan agree that benefits payable under the
plan are not obligations of the State of Oregon or of the Public
Employees Retirement System.
  SECTION 35. ORS 243.820 is amended to read:
  243.820. (1) In order to obtain the advantages of 26 U.S.C.
403(b), or any equivalent provision of federal law, an employer
may agree with an employee who performs services for an
educational institution that:

  (a) The employee's salary will be reduced monthly by a stated
amount, or the employee will forgo monthly a salary increase of a
stated amount; and
  (b) On behalf of the employee, the employer shall contribute
monthly an amount equal to the stated amount determined under
paragraph (a) of this subsection as premiums for an annuity
contract or to a custodial account for investment in the stock of
regulated investment companies as defined in 26 U.S.C.
403(b)(7)(C). The amount contributed by the employer under this
subsection may not exceed the stated amount.
  (2) Notwithstanding any other provision of law, pursuant to an
agreement under subsection (1) of this section, the stated
amounts shall be forwarded by the employer as annuity premiums to
the company or association with which it has entered into an
annuity contract or to the regulated investment company or its
transfer agent for the benefit of the employee.
  (3) An employer may make nonelective employer contributions on
behalf of an employee who performs services for an educational
institution as premiums for an annuity contract, or to a
custodial account for investment in the stock of regulated
investment companies as defined in 26 U.S.C. 403(b)(7)(C), for
the purpose of obtaining the advantages of 26 U.S.C. 403(b) or
any equivalent provision of federal law. Employer contributions
under this subsection are in addition to any employee
contributions under subsection (1) of this section.
  (4) As used in this section:
  (a) 'Educational institution' means an educational institution
that normally maintains a regular faculty and curriculum and
normally has a regularly organized body of students in attendance
at the place where its educational activities are carried on or
an education service district.
  (b) 'Employer' means the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }, any
other state agency, a community college district, a school
district, the Oregon Health and Science University or an
education service district employing an individual who performs
services for an educational institution.
  SECTION 36. ORS 243.850 is amended to read:
  243.850. (1) An eligible football coach and the   { - State
Board of Higher Education - }   { + Oregon Education Investment
Board + } may enter into an agreement to provide that:
  (a) The coach's salary will be reduced monthly by a stated
amount that is not less than $25 a month, or the coach will forgo
monthly a salary increase of a stated amount that is not less
than $25 a month; and
  (b) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } will contribute monthly an amount
equal to the stated amount determined under paragraph (a) of this
subsection for the month to a designated qualified football
coaches plan. The amount contributed by the employer shall not
exceed the stated amount.
  (2) The amount by which an eligible football coach's salary or
wages is reduced by reason of the salary reduction or forgoing of
a salary increase authorized by subsection (1) of this section
shall continue to be included as regular compensation for the
purpose of computing the retirement, pension and Social Security
benefits earned by the coach, but that amount shall not be
considered current taxable income for the purpose of computing
federal and state income taxes withheld on behalf of that coach.
  (3) For the purposes of this section:
  (a) 'Eligible football coach' means a staff member of the
Oregon University System who primarily coaches football as a
full-time employee of a four-year university described in 26
U.S.C. 170(b)(1)(A)(ii).
  (b) 'Qualified football coaches plan' has the meaning given
that term in 29 U.S.C. 1002(37).
  SECTION 37. ORS 243.910 is amended to read:
  243.910. As used in ORS 243.910 to 243.945:
  (1) 'Board' means the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } for all public
universities listed in ORS 352.002, and for the Oregon Health and
Science University means the Oregon Health and Science University
Board of Directors.
  (2) 'Employees' means the persons appointed or employed by or
under the authority of the board who hold academic rank as
determined by the board.
  (3) 'System' means the Public Employees Retirement System
established by ORS 238.600.
  SECTION 38. ORS 244.050, as amended by section 81a, chapter
637, Oregon Laws 2011, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
district attorneys and members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The   { - Chancellor - }  { +  Chief Education Officer + }
and { +  the + } Vice Chancellors of the Oregon University System
and the president and vice presidents, or their administrative
equivalents, in each public university listed in ORS 352.002.
  (g) The following state officers:
  (A) Adjutant General.
  (B) Director of Agriculture.
  (C) Manager of State Accident Insurance Fund Corporation.
  (D) Water Resources Director.
  (E) Director of Department of Environmental Quality.
  (F) Director of Oregon Department of Administrative Services.
  (G) State Fish and Wildlife Director.
  (H) State Forester.
  (I) State Geologist.
  (J) Director of Human Services.
  (K) Director of the Department of Consumer and Business
Services.
  (L) Director of the Department of State Lands.
  (M) State Librarian.
  (N) Administrator of Oregon Liquor Control Commission.
  (O) Superintendent of State Police.
  (P) Director of the Public Employees Retirement System.
  (Q) Director of Department of Revenue.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (TT) Deputy Superintendent of Public Instruction.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I)   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }.
  (J) Oregon Investment Council.
  (K) Land Conservation and Development Commission.
  (L) Oregon Liquor Control Commission.
  (M) Oregon Short Term Fund Board.
  (N) State Marine Board.
  (O) Mass transit district boards.
  (P) Energy Facility Siting Council.
  (Q) Board of Commissioners of the Port of Portland.
  (R) Employment Relations Board.
  (S) Public Employees Retirement Board.
  (T) Oregon Racing Commission.
  (U) Oregon Transportation Commission.
  (V) Wage and Hour Commission.
  (W) Water Resources Commission.
  (X) Workers' Compensation Board.
  (Y) Oregon Facilities Authority.
  (Z) Oregon State Lottery Commission.
  (AA) Pacific Northwest Electric Power and Conservation Planning
Council.
  (BB) Columbia River Gorge Commission.
  (CC) Oregon Health and Science University Board of Directors.
  (DD) Capitol Planning Commission.
  (EE) Higher Education Coordinating Commission.
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 39. ORS 273.573 is amended to read:
  273.573. (1) To aid and advise the State Parks and Recreation
Director in the performance of the functions related to the
Natural Areas Program, the director may establish a natural areas
advisory committee.
  (2) The advisory committee may assist the State Parks and
Recreation Department:
  (a) In the development of policy for the Natural Areas Program
through the review and approval of the Oregon Natural Areas Plan;
  (b) By reviewing nominations for registration and the voluntary
dedication of natural areas, and instruments of dedication for
such areas;
  (c) In providing recommendations to the State Parks and
Recreation Commission, State Land Board, State Board of Forestry,
State Fish and Wildlife Commission,   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and
Oregon Transportation Commission regarding areas under their
respective jurisdictions that are appropriate for dedication; and

  (d) In advising the State Parks and Recreation Commission in
the adoption of rules that may be considered necessary in
carrying out ORS 273.563 to 273.591.
  (3) Members of the advisory committee are not entitled to
compensation, but in the discretion of the director may be
reimbursed from funds available to the department for actual and
necessary travel and other expenses incurred by them in the
performance of their official duties in the manner and amount
provided in ORS 292.495.
  SECTION 40. ORS 273.586 is amended to read:
  273.586. (1) A private individual or organization that is the
owner of any registered natural area may voluntarily agree to
dedicate that area as a state natural area by executing with the
State Parks and Recreation Department an instrument of
dedication.  The instrument of dedication shall be effective upon
its recording in the real property records of the office of the
clerk of the county in which any or all of the state natural area
is located.
  (2) Any public agency may dedicate lands under the provisions
of ORS 273.563 to 273.591 following the providing of opportunity
for adequate public notice and hearing by the agency. The Oregon
Transportation Commission, the State Fish and Wildlife
Commission, the State Board of Forestry, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + },
the State Parks and Recreation Commission and the State Land
Board shall, with the advice and assistance of the department,
establish procedures for the dedication of state natural areas on
land, the title of which is held by the State of Oregon, and
which is under that agency's management and control.
  (3) The instrument of dedication shall contain any information
or provisions as the private owner, organization or agency and
department consider necessary to complete the dedication.
  (4) Dedication of a state natural area may be terminated as
follows:
  (a) The dedication of a state natural area by a public agency
may be terminated following the providing of opportunity for
adequate public notice and hearing and a finding by that agency
of an imperative and unavoidable necessity, or a finding by that
agency, with the approval of the department, that the state
natural area is no longer needed according to the guidelines of
the Oregon Natural Areas Plan.
  (b) The dedication of a state natural area by a private
individual or organization may be terminated by the private
individual or organization after the department is assured that
there has been compliance with the procedures required by the
terms of the dedication instrument.
  (c) The dedication of a state natural area may be terminated by
the State Parks and Recreation Commission upon the advice of the
department if the area is no longer needed according to the
guidelines of the plan, or has permanently lost its natural
character.
  SECTION 41. ORS 273.785 is amended to read:
  273.785. ORS 273.551 and 273.775 to 273.790 do not apply to:
  (1) Soil, clay, stone, sand and gravel acquired or used by
state agencies for the purpose of constructing or repairing roads
or other state facilities, or the proceeds from those materials.
  (2) Mineral or geothermal resource rights or proceeds from
those rights acquired by the State Fish and Wildlife Commission
pursuant to an agreement with the federal government under 16
U.S.C. 669 to 669i (P.L. 75-415).
  (3) Mineral or geothermal resource rights or proceeds from
those rights if other disposition is required by federal rules or
regulations or any agreement entered into at the time of
acquisition of the mineral or geothermal resource rights by the
state.

  (4) Proceeds of mineral and geothermal resource rights acquired
by the state pursuant to ORS 530.010 and 530.030, other than
those distributed under ORS 530.110 (1)(c).
  (5) Mineral or geothermal resource rights or proceeds from
those rights acquired after January 1, 1974, for the state by the
Department of Veterans' Affairs pursuant to ORS 88.720, 406.050
(2), 407.135 or 407.145. After consultation, the Department of
State Lands and the Department of Veterans' Affairs shall enter
into an interagency agreement governing consultation between them
concerning mineral and geothermal resource values on properties
acquired for the state by the Department of Veterans' Affairs.
The Department of Veterans' Affairs shall adopt rules relating to
the release of mineral and geothermal rights on such properties.
  (6) Mineral or geothermal resource rights or proceeds from
those rights given by a donor to any public university or office,
department or activity under the control of the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + } that are acquired or held for the state by the
 { - State Board of Higher Education - }  { +  board + } pursuant
to ORS chapters 351 and 567. In managing mineral or geothermal
resource leases, the   { - State Board of Higher Education - }
 { +  board + } shall consult with the Department of State Lands
in accordance with an interagency agreement established by the
department and the   { - State Board of Higher Education - }
 { +  board + } governing consultation between the department and
the   { - State Board of Higher Education - }  { +  board + } and
governing management of the mineral or geothermal resources.
  (7) Mineral or geothermal resource rights or proceeds from
those rights acquired and held by the Department of
Transportation. In managing mineral or geothermal resource
leases, the Department of Transportation shall enter into an
intergovernmental agreement with the Department of State Lands
governing consultation between the departments and governing
management of the mineral or geothermal resources.
  SECTION 42. ORS 276.610 is amended to read:
  276.610. There is established a fund in the State Treasury to
be known as the State Building Fund which shall be used for the
construction, alteration and repair of buildings required for use
of institutions and activities under the jurisdiction of the
Department of Corrections, the Department of Human Services, the
Oregon Health Authority or the State Board of Education and the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } and for the furnishing and equipping of
buildings so constructed, altered or repaired.
  SECTION 43. ORS 276.612 is amended to read:
  276.612. The Department of Corrections, the Department of Human
Services, the Oregon Health Authority and the State Board of
Education each shall determine the buildings to be constructed,
altered, repaired, furnished and equipped for the use of
institutions and activities under their respective jurisdictions.
The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall determine the buildings to
be constructed, altered, repaired, furnished and equipped for the
use of public universities or offices, departments or activities
under its jurisdiction.
  SECTION 44. ORS 282.076 is amended to read:
  282.076. (1) An athletic department of any university under the
jurisdiction of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall not be required
to use state printing services controlled by the Director of the
Oregon Department of Administrative Services or the designee of
the director as required by ORS 282.020 (1).
  (2) A state agency that gives to the director prior written
notice of its intent to use other printing services shall not be
required to use state printing services controlled by the
director or the director's designee as required by ORS 282.020
(1), if the agency can demonstrate that these other printing
services provide better value in the form of lower prices or
better responsiveness than those services already provided by the
Oregon Department of Administrative Services.
  SECTION 45. ORS 283.310 is amended to read:
  283.310. (1) The Oregon Department of Administrative Services
shall control and regulate the acquisition, operation, use,
maintenance and disposal of and access to motor vehicles used
for:
  (a) State business by state agencies of this state; or
  (b) Official public business by a unit of local government or a
state agency of another state, by an agency created by an
interstate compact between this state and another state or
states, by a United States governmental agency, or by an American
Indian tribe or an agency of an American Indian tribe, pursuant
to an intergovernmental agreement between the agency or agencies
and the department, entered into in accordance with ORS chapter
190, for the provision of motor pool vehicles, supplies and
services, or any of them.
  (2) The state agency on whose behalf a motor vehicle is used
must state in writing in advance of such use that the particular
activity for which the vehicle is to be used advances the lawful
policies of the agency.
  (3) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may not authorize or allow the use
of any motor vehicle to transport students to an event or
activity not directly related to an officially sanctioned
program, as established under ORS 351.277, of a public university
listed in ORS 352.002.
  (4) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }, in conjunction with the Oregon
Department of Administrative Services, shall establish by rule
vehicle operation standards and training to promote safe
vehicular travel practices in the conduct of all travel by
employees, students and official volunteers at all public
universities in the Oregon University System.
  SECTION 46. ORS 284.540 is amended to read:
  284.540. (1) There is established the Governor's Council on
Oregon's Economy.
  (2) The members of the council are:
  (a) The presiding officer of the Oregon Business Development
Commission;
  (b) The chairperson of the Oregon Transportation Commission;
  (c) The chairperson of the State Board of Agriculture;
  (d) The   { - president - }  { +  chairperson + } of the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }; and
  (e) Other persons designated by the Governor.
  (3) The council shall meet quarterly to:
  (a) Discuss and coordinate the activities of each entity
described in subsection (2) of this section that relate to
economic development and improving the economy in Oregon; and
  (b) Discuss and recommend to the Legislative Assembly methods
for creating certainty for the development process.
  SECTION 47. ORS 284.706 is amended to read:
  284.706. (1) There is created the Oregon Innovation Council
consisting of the following voting members:
  (a) The Governor or the Governor's designated representative,
who shall be chairperson of the council.
  (b) Five members appointed by the Governor who are engaged in
the operations of Oregon traded sector industries or Oregon
growth businesses.
  (c) One member appointed by the Governor who is a
representative of an Oregon-based, generally accredited,
not-for-profit private institution of higher education.

  (d) A member of the Oregon Growth Account Board, appointed by
the board, who has experience in the field of venture capital.
  (e) A member of the Engineering and Technology Industry
Council, appointed by the Engineering and Technology Industry
Council.
  (f) The Director of the Oregon Business Development Department.
  (g) The   { - Chancellor of the Oregon University System - }
 { +  Chief Education Officer + }.
  (h) The Commissioner for Community College Services.
  (i) The State Treasurer.
  (2)(a) The Speaker of the House of Representatives shall
appoint two members to the council who are members of the House
of Representatives.
  (b) The President of the Senate shall appoint two members to
the council who are members of the Senate.
  (c) Members of the Legislative Assembly appointed to the
council are nonvoting members and may act in an advisory capacity
only.
  (3) The following persons, or their representatives, shall
serve as ex officio, nonvoting members of the council:
  (a) The presiding officer of the Oregon Business Development
Commission.
  (b) The   { - president - }  { +  chairperson + } of the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }.
  (c) The chairperson of the State Board of Education.
  (d) An executive officer of an association representing
Oregon-based, generally accredited, not-for-profit private
institutions of higher education, appointed by the Governor.
  (4) The term of office of each appointed voting member of the
council is three years, but an appointed member serves at the
pleasure of the appointing authority. Before the expiration of
the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next
following. An appointed member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
remainder of the unexpired term.
  (5) A majority of the voting members of the council constitutes
a quorum for the transaction of business.
  (6) Official action by the council requires the approval of a
majority of the voting members of the council.
  (7) The council shall meet at least twice per fiscal year at a
place, day and time determined by the chairperson. The council
may also meet at other times and places specified by a call of
the chairperson or by written request of a majority of the voting
members of the council.
  (8) The council may adopt rules necessary for the operation of
the council.
  (9) The council may establish committees and delegate to the
committees duties as the council considers desirable.
  (10) The Oregon Business Development Department shall provide
staff support to the council.
  (11) Members of the council who are members of the Legislative
Assembly are entitled to compensation and expense reimbursement
as provided in ORS 171.072.
  (12) Members of the council who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are
public officers shall be paid out of funds appropriated to the
public agency that employs the member. Claims for compensation
and expenses of members of the council who are not public
officers shall be paid out of funds appropriated to the Oregon
Business Development Department for that purpose.
  (13) All agencies of state government, as defined in ORS
174.111, are directed to assist the council in the performance of
its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
  SECTION 48. ORS 284.711 is amended to read:
  284.711. (1) The Oregon Innovation Council shall provide advice
to the Governor, the Legislative Assembly, research institutions,
public agencies that provide economic development and the private
sector on issues related to:
  (a) Promoting agreements between research institutions and
private industry that increase technology transfer and the
commercialization of research;
  (b) Promoting investment in specialized research facilities and
signature research centers where Oregon has a distinct or
emerging advantage for creating new products and businesses;
  (c) Stimulating seed and start-up capital investment and
entrepreneurial capacity that will promote economic growth in
Oregon traded sector industries or Oregon growth businesses;
  (d) Developing the entrepreneurial and management capacity
critical to the competitiveness of Oregon traded sector
industries or Oregon growth businesses in rapidly growing global
markets;
  (e) Enhancing the international competitiveness of Oregon
traded sector industries or Oregon growth businesses; and
  (f) Identifying workforce issues for occupations critical to
the competitiveness of Oregon traded sector industries or Oregon
growth businesses, including but not limited to scientific,
engineering, information technology, business management and
innovation-based economic development occupations.
  (2) The Oregon Innovation Council shall advise the Engineering
and Technology Industry Council established in ORS 351.663 on how
to coordinate the Engineering and Technology Industry Council's
goals and policies with the state plan developed under ORS
284.715.
  (3) The council, the Oregon Business Development Commission,
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } and the office of the State
Treasurer shall coordinate policies and programs related to the
duties of the council.
  (4) Based on the state plan developed under ORS 284.715 and
subject to the approval of the Oregon Business Development
Department, the council may distribute moneys in the Oregon
Innovation Fund by grant or loan or pursuant to contracts with
research institutions, the private sector and public entities.
  (5) The council may assess and charge fees for making grants or
loans under ORS 284.742.
  SECTION 49. ORS 285B.168 is amended to read:
  285B.168. (1) The Oregon Business Development Department may
make grants available to a community college district, a
community college service district or, with the concurrence of
the Commissioner for Community College Services and the
 { - Chancellor of the Oregon University System - }  { +  Chief
Education Officer + }, a public university listed in ORS 352.002
to assist in the formation, improvement and operation of small
business development centers.  If a community college district, a
community college service district or a public university is
unable to adequately provide services in a specific geographic
area, the department may make grants available to other service
providers as determined by the department. The grant application
shall include:
  (a) Plans for providing small business owners and managers
individual counseling, to the greatest extent practicable, in
subject areas critical to small business success;

  (b) A budget for the year for which a grant is requested,
including cost apportionment among the department, small business
clients, the community college, the public university or other
service providers and other sources;
  (c) A plan for evaluating the effect of the program on small
business clients served; and
  (d) A plan for providing collaboration with other state
agencies, state-supported organizations and private sector
entities that provide services to small businesses.
  (2) The grants made under subsection (1) of this section are to
be used by the grant recipient to provide:
  (a) Small business development center staff and support staff;
  (b) Expert resource persons from the business community;
  (c) Other training and business resources as approved by the
department in skill areas for which, or areas of the state where,
the grant recipient can demonstrate it does not otherwise have
the capacity or expertise to provide the resources; and
  (d) Other costs related to providing training, counseling and
business resources to small business clients.
  (3) To be eligible for a grant under subsection (1) of this
section, the recipient shall be required to provide funds,
in-kind contributions or some combination of funds and
contributions, in accordance with rules adopted by the
department.
  (4) Subject to the approval of the department, a grant
recipient may subcontract funds received under this section to
any other entity that is eligible to receive funding under this
section.
  (5) The grant recipient shall submit a final report to the
department after the distribution of grant funds and the delivery
of services to the proposed business clients. The report shall
state whether the plan and related budget have met the applicable
criteria as described in the recipient's application for the
grant period.
  SECTION 50. ORS 291.002 is amended to read:
  291.002. As used in ORS 291.001 to 291.034, 291.201 to 291.222,
291.232 to 291.260, 291.261, 291.307 and 291.990, unless the
context requires otherwise:
  (1) 'Classification of expenditures' means the major groups or
categories of expenditures for the purpose of budget-making and
accounting that are established as provided in ORS 291.206.
  (2) 'Dedicated fund' means a fund in the State Treasury, or a
separate account or fund in the General Fund in the State
Treasury, that by law is dedicated, appropriated or set aside for
a limited object or purpose, but 'dedicated fund' does not
include a revolving fund or a trust fund.
  (3) 'Department' means the Oregon Department of Administrative
Services.
  (4) 'Director' means the Director of the Oregon Department of
Administrative Services.
  (5) 'Legislatively adopted budget' means the budget enacted by
the Legislative Assembly during an odd-numbered year regular
session.
  (6) 'Legislatively approved budget' means the legislatively
adopted budget as modified by the Emergency Board meeting in an
interim period or by the Legislative Assembly meeting in special
session or in an even-numbered year regular session.
  (7) 'Revolving fund' means a fund in the State Treasury,
established by law, from which is paid the cost of goods or
services furnished to or by a state agency, and which is
replenished through charges made for such goods or services or
through transfers from other accounts or funds; and specifically
includes funds derived from receipts by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
of tuition, fees, dormitory earnings, student activity receipts

and sales of products and services incident to education
functions.
  (8) 'State agency' or 'agency' means every state officer,
board, commission, department, institution, branch or agency of
the state government, whose costs are paid wholly or in part from
funds held in the State Treasury, except:
  (a) The Legislative Assembly, the courts and their officers and
committees;
  (b) The Public Defense Services Commission; and
  (c) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices.
  (9) 'State officer' means any elected or appointed state
officer, including members of boards and commissions, except the
members and officers of the Legislative Assembly, the courts, the
Secretary of State and the State Treasurer in the performance of
the duties of their constitutional offices and the members of the
Public Defense Services Commission.
  (10) 'Trust fund' means a fund in the State Treasury in which
designated persons or classes of persons have a vested beneficial
interest or equitable ownership, or which was created or
established by a gift, grant, contribution, devise or bequest
that limits the use of the fund to designated objects or
purposes.
  SECTION 51. ORS 291.038 is amended to read:
  291.038. (1) The planning, acquisition, installation and use of
all information and telecommunications technology by state
government and agencies of state government shall be coordinated
so that statewide plans and activities, as well as those of
individual agencies, are addressed in the most integrated,
economic and efficient manner. To provide policy direction for
and coordination of information technology for state government,
the Director of the Oregon Department of Administrative Services
shall chair and appoint not fewer than five agency executives to
an Information Resources Management Council. The council
membership shall include at least two members who represent the
private sector and political subdivisions of the state.
  (2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of
Administrative Services shall adopt rules, policies and standards
to plan for, acquire, implement and manage the state's
information resources. In developing rules, policies and
standards, the department shall consult with state agencies that
have needs that information resources may satisfy. State agencies
shall cooperate with the department in preparing and complying
with rules, policies and standards. The rules, policies and
standards must be formulated to promote electronic communication
and information sharing among state agencies and programs,
between state and local governments and with the public where
appropriate.
  (3) Rules, policies, plans, standards and specifications must
be formulated to ensure that information resources fit together
in a statewide system capable of providing ready access to
information, computing or telecommunication resources. Plans and
specifications the department adopts must be based on industry
standards for open systems to the greatest extent possible.
Before adopting rules described in subsection (2) of this
section, the department shall present the proposed rules to the
appropriate legislative committee. The department has the
responsibility to review, oversee and ensure that state agencies'
planning, acquisition and implementation activities align with
and support the statewide information resources management plan.
The department is responsible for procuring information
technology fairly, competitively and in a manner that is
consistent with the department's rules.
  (4)(a) The policy of the State of Oregon is that state
government telecommunications networks should be designed to
provide state-of-the-art services where economically and
technically feasible, using shared, rather than dedicated, lines
and facilities.
  (b) The department shall, when procuring telecommunications
network services, consider achieving the economic development and
quality of life outcomes set forth in the Oregon benchmarks.
  (5)(a) The department, upon request, may furnish and deliver
statewide integrated videoconferencing and statewide online
access service to a public or private entity that primarily
conducts activities for the direct good or benefit of the public
or community at large in providing educational, economic
development, health care, human services, public safety, library
or other public services. The department shall adopt rules with
respect to furnishing the service.
  (b) The department shall establish the statewide integrated
videoconferencing and statewide online access user fees,
services, delivery, rates and long range plans in consultation
with the Stakeholders Advisory Committee created pursuant to this
section.  The rates shall reflect the department's cost in
providing the service.
  (c) The department by rule shall restrict the department's
furnishing or delivery of Internet access service to private
entities when the service would directly compete with two or more
local established providers of Internet access services within
the local exchange telecommunications service area.
  (d) The rates and services established and provided under this
section are not subject to the Public Utility Commission's
regulation or authority.
  (6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director
of the Oregon Department of Administrative Services. In making
appointments, the director shall give consideration to geographic
balance and adequate representation of the department's users and
providers and the general public.
  (b) The committee must consist of members who represent
elementary or secondary education, higher education, community
colleges, economic development, health care, human services and
public safety. At least four members must reside in areas east of
the Cascade Mountains.
  (c) The term of office of each member is three years, but a
member serves at the sole discretion of the director. The
director shall appoint a successor to a member before the
member's term expires. A member is eligible for reappointment. If
a position on the committee is vacant for any cause, the director
shall make an appointment to the position that is immediately
effective for the unexpired term.
  (d) A member of the committee is entitled to travel expenses
pursuant to ORS 292.495. Members of the committee are not
entitled to compensation.
  (e) The director may establish additional advisory and
technical committees as the director considers necessary to aid
and advise the Stakeholders Advisory Committee in the performance
of the committee's functions.
  (f) The director may delegate to the State Chief Information
Officer a duty, function or power that this subsection imposes
upon the director.
  (7) An organization or organizations recognized as tax exempt
under section 501(c)(3) of the Internal Revenue Code that
primarily conduct activities for the direct good or benefit of
the public or community at large in providing educational,
economic development, health care, human services, public safety,
library or other public services and have formed an affiliation
with one or more federal, state or local governmental units
within this state may apply to the department for designation as
a community of interest. The application must be in the form
prescribed by the department and contain information regarding
the governmental affiliation relationship, the tax exempt status
of each organization and the public benefit services to be
provided. The department shall establish an application review
and appeal process to ensure that designating the organizations
as a community of interest for the purposes of including the
organization in telecommunications contracts under ORS 283.520
will result in providing educational, medical, library or other
services for public benefit.
  (8) This section does not apply to the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
or any public university listed in ORS 352.002.
  (9) As used in this section:
  (a) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  (b) 'Information technology' includes, but is not limited to,
present and future forms of hardware, software and services for
data processing, office automation and telecommunications.
  (c) 'Internet access service' means electronic connectivity to
the Internet and the services of the Internet.
  (d) 'Open systems' means systems that allow state agencies
freedom of choice by providing a vendor-neutral operating
environment where different computers, applications, system
software and networks operate together easily and reliably.
  (e) 'State-of-the-art services' includes equipment, facilities
and the capability to distribute digital communication signals
that transmit voice, data, video and images over a distance.
  (f) 'Telecommunications' means hardware, software and services
for transmitting voice, data, video and images over a distance.
  (g) 'Statewide integrated videoconferencing' means a statewide
electronic system capable of transmitting video, voice and data
communications.
  (h) 'Statewide online access' means electronic connectivity to
information resources such as computer conferencing, electronic
mail, databases and Internet access.
  SECTION 52. ORS 291.055 is amended to read:
  291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted during the period beginning
on the date of adjournment sine die of a regular session of the
Legislative Assembly and ending on the date of adjournment sine
die of the next regular session of the Legislative Assembly:
  (a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
  (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  (e) Are rescinded on adjournment sine die of the next regular
session of the Legislative Assembly as described in this
subsection, unless otherwise authorized by enabling legislation
setting forth the approved fees.
  (2) This section does not apply to:
  (a) Any tuition or fees charged by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
and the public universities listed in ORS 352.002.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.
  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Department of
Consumer and Business Services pursuant to ORS 731.804 or fees
charged by the Division of Finance and Corporate Securities of
the Department of Consumer and Business Services to banks, trusts
and credit unions pursuant to ORS 706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget or the legislatively approved budget for the
agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 53. ORS 291.445 is amended to read:
  291.445. (1) Before July 1 of each fiscal year, the Oregon
Department of Administrative Services shall request from the
appropriate state agency a certificate as prescribed in this
section. The request shall be made by letter to the agency.
  (2) Each state agency authorized to issue general obligation
bonds that are ordinarily to be repaid from other than General
Fund appropriations shall, on or before August 15 of each fiscal
year:
  (a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year to the bond program debt
service fund to pay bond principal and interest that has accrued
or will accrue during the current year are sufficient and will be
sufficient to pay bond program principal and interest scheduled
for payment during the current year; or
  (b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year to the bond program debt
service fund will not be sufficient to pay bond program principal
and interest scheduled for payment during the current year. A
certificate issued under this paragraph shall specify the amount
of the anticipated current year deficit. The Director of the
Oregon Department of Administrative Services shall review and
confirm the correctness of each certification made under this
paragraph.
  (3) On or before August 15 of each fiscal year, the
administrative division of the Oregon Department of
Administrative Services that has primary responsibility for
accounting for each general obligation bond program in which the
bond principal and interest is ordinarily to be repaid from
General Fund appropriations shall:
  (a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year from General Fund
appropriations to defray program bond principal and interest that
has accrued or will accrue during the current year are sufficient
and will be sufficient to pay program bond principal and interest
scheduled for payment during the current year; or
  (b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year from General Fund
appropriations will not be sufficient to pay program bond
principal and interest scheduled for payment during the current
year. A certificate issued under this paragraph shall specify the
amount of the anticipated current year deficit.
  (4)(a) If a deficit in funds available to pay principal and
interest in any general obligation bond program is certified and
confirmed under subsection (2) or certified under subsection (3)
of this section, the amount of the deficit, together with any
deficit that is certified for any other general obligation bond
program shall upon certification constitute a state tax levy on
property that shall be apportioned among and charged to the
several counties in that proportion which the total assessed
value of all the taxable property in each county bears to the
total assessed value of all the taxable property of the state as
equalized.
  (b) If any agency fails to make the certification under
subsection (2) or (3) of this section with respect to any general
obligation bond fund program, the Oregon Department of
Administrative Services shall determine the amount of revenue and
other funds that are available and the amount of taxes, if any,
that should be levied in addition to the revenues and funds, to
pay bond principal and interest under the program for the fiscal
year in question. The additional amount so determined shall
thereupon constitute a state tax levy on property that shall be
apportioned, certified, collected and distributed as if
determined and certified as a deficit by the agency. The Oregon
Department of Administrative Services shall charge the agency for
cost recovery for time spent on that agency's behalf.

  (5) Immediately after the department has determined the amount
of a state tax levy on property in accordance with subsection (4)
of this section, a certificate of levy, signed by the director of
the department, shall be filed in the office of the department.
If no state levy is required for the fiscal or tax year, a
certificate so stating and signed by the director shall be filed
in the office of the department.
  (6) If, for any reason, after the close of any regular session
of the Legislative Assembly, it becomes necessary to reduce
General Fund appropriations, General Fund appropriations for a
debt service fund of a general obligation bond program described
under subsection (3) of this section may not be reduced.
  (7) For purposes of this section:
  (a) State agencies that are authorized to issue general
obligation bonds ordinarily to be repaid from other than General
Fund appropriations include but are not limited to:
  (A) The Director of Veterans' Affairs, as authorized by Article
XI-A of the Oregon Constitution and ORS chapter 407 (veterans
loans).
  (B) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }, as authorized by Article XI-F(1)
of the Oregon Constitution and ORS 351.350 (building projects).
  (C) The Department of Environmental Quality, as authorized by
Article XI-H of the Oregon Constitution and ORS 468.195 to
468.260 (pollution control).
  (D) The Water Resources Commission and the Water Resources
Director, as authorized by Article XI-I(1) of the Oregon
Constitution and ORS 541.700 to 541.855 (water development).
  (E) The Housing and Community Services Department, as
authorized by Article XI-I(2) of the Oregon Constitution and ORS
456.515 to 456.725 and 458.505 to 458.515 (housing).
  (F) The Director of the State Department of Energy, as
authorized by Article XI-J of the Oregon Constitution and ORS
470.220 to 470.290 (small scale energy projects).
  (G) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of
this subsection.
  (b) Each agency authorized to issue general obligation bonds
that are ordinarily to be repaid from other than General Fund
appropriations shall determine the amount of revenues or other
funds that are available and the amount of taxes, if any, that
should be levied for the ensuing year in the manner required
under rules adopted by the Oregon Department of Administrative
Services and make the certification required under subsection (2)
of this section.
  (8)(a) State agencies that are authorized to issue general
obligation bonds that are ordinarily to be repaid from General
Fund appropriations include but are not limited to:
  (A) The State Board of Forestry and the State Forester, as
authorized by Article XI-E of the Oregon Constitution and ORS
530.210 to 530.280 (state reforestation).
  (B) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }, as authorized by Article XI-G of
the Oregon Constitution and ORS 351.345 (higher education and
community colleges).
  (C) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of
this subsection.
  (b) Each agency authorized to issue general obligation bonds
ordinarily to be repaid from General Fund appropriations shall
furnish any data required by the Oregon Department of
Administrative Services to determine the amount of revenues or
other funds that are available and the amount of taxes, if any,
that should be levied for the ensuing year and the administrative
division of the Oregon Department of Administrative Services that
has primary responsibility for accounting shall make the
determination for purposes of the making of the certification
required under subsection (3) of this section.
  SECTION 54. ORS 292.043 is amended to read:
  292.043. (1) As used in this section:
  (a) 'Foundation' means:
  (A) A tax exempt organization designated by a rule adopted by a
state agency; or
  (B) A tax exempt organization designated by the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } to solicit contributions for the support of a public
university listed in ORS 352.002.
  (b) 'Salary and wages' has the meaning given that term in ORS
292.014.
  (2) Any state official authorized to disburse funds in payment
of salaries or wages of the officers and employees of a state
agency, or of the officers, teachers, instructors and other
employees of the Oregon University System, is authorized, upon
written request of the individual, to deduct each month from the
salary or wages of the individual the amount of money designated
by the individual for payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency or the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }, the
state official authorized to disburse the funds in payment of
salaries and wages may prescribe any procedures necessary to
carry out this section.
  SECTION 55. ORS 292.044 is amended to read:
  292.044. (1) As used in this section:
  (a) 'Employee' means officers, faculty, teachers, instructors
and other employees of the Oregon University System as described
in ORS 352.002.
  (b) 'Nonprofit organization' means an organization described in
section 501(c)(3) of the Internal Revenue Code that is exempt
from income tax under section 501(a) of the Internal Revenue
Code.
  (2) The   { - Chancellor of the Oregon University System - }
 { +  Chief Education Officer + } or a designee of the
 { - chancellor - }  { +  Chief Education Officer + } may approve
a written request made by a public university or office,
department or activity under the jurisdiction of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }, in which an employee of the public university or
office, department or activity may designate an amount from the
salary or wages of the employee for payment to a qualifying
nonprofit organization. A request made to the
  { - chancellor - }  { +  Chief Education Officer + } under this
section must identify the nonprofit organization to whom payments
would be made.
  (3) Upon written approval of the   { - chancellor - }  { +
Chief Education Officer + } or of a designee of the
 { - chancellor - }  { +  Chief Education Officer + } and a
written request of an employee of the public university or
office, department or activity to which the approval applies, the
state official within the Oregon University System authorized to
disburse funds in payment of salaries or wages shall deduct from
the salary or wages of the employee the amount of money
designated by the employee for payment to the nonprofit
organization.
  (4) The moneys deducted from the salaries or wages under
subsection (3) of this section shall be paid over promptly to the
nonprofit organization.
  (5) The   { - Chancellor of the Oregon University System - }
 { +  Chief Education Officer + } or a designee of the
 { - chancellor - }  { +  Chief Education Officer + } shall
prescribe procedures for determining whether an organization
qualifies as a nonprofit organization under this section.
  SECTION 56. ORS 293.790 is amended to read:
  293.790. (1) Under authority of section 6, Article XI of the
Oregon Constitution, the state, subject to subsection (2) of this
section, may hold and dispose of the stock of any company,
association or corporation, including stock already received,
that is donated or bequeathed and the state, acting by and
through the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }, subject to subsection (2) of this section,
may invest and reinvest in the stock of any company, association
or corporation, any funds or moneys of the   { - State Board of
Higher Education - }  { +  board + } that:
  (a) Are or have been donated or bequeathed for higher education
purposes;
  (b) Are the proceeds from the disposition of stock that is
donated or bequeathed for higher education purposes, including
stock already received; or
  (c) Are dividends paid with respect to stock that is donated or
bequeathed for higher education purposes, including stock already
received.
  (2) The state, including any of its agencies having control of,
or authority to invest and reinvest in, any stock described in
subsection (1) of this section, in holding, disposing of or
investing and reinvesting in such stock, shall be governed by ORS
130.750 to 130.775, notwithstanding the date of acquisition of
such stock. Moneys received from the disposition of such stock,
including dividends, shall be maintained separate and distinct
from the General Fund, and those moneys, including interest
earned thereon, are appropriated continuously for the purposes of
the donation or bequest and of the investments and reinvestments
authorized by subsection (1) of this section and by ORS 351.130.
Except as specifically authorized by law, the state or any of its
agencies may not purchase stock.
  (3)(a) This section does not apply to investment and
reinvestment of moneys in the Public Employees Retirement Fund,
the Industrial Accident Fund, the Deferred Compensation Fund and
the Education Stability Fund or to acquisition, retention,
management and disposition of investments of those funds as
provided in ORS 293.701 to 293.820.
  (b) This section does not apply to investment or reinvestment
of moneys or stock resulting from the holding and disposing of
stock by the state as allowed under section 6 (2), Article XI of
the Oregon Constitution.
  SECTION 57. ORS 293.812 is amended to read:
  293.812. As used in ORS 293.811 to 293.817:
  (1) 'Company' means any sole proprietorship, organization,
firm, association, corporation, utility, partnership, venture,
public franchise, franchisor, franchisee or its wholly owned
subsidiary that exists for profit-making purposes or otherwise to
secure economic advantage.
  (2) 'Doing business' means maintaining equipment, facilities,
personnel or any other apparatus of business or commerce in
Sudan, including the ownership or possession of real or personal
property located in Sudan.
  (3) 'Investment' or 'invest' means the commitment of funds or
other assets to a company, including a loan or other extension of
credit made to that company, or the ownership or control of a
share or interest in that company or of a bond or other debt
instrument issued by that company.
  (4) 'Subject investment funds' means:
  (a) The Public Employees Retirement Fund referred to in ORS
238.660;
  (b) The Industrial Accident Fund referred to in ORS 656.632;
  (c) The Common School Fund referred to in ORS 327.405;
  (d) The Oregon War Veterans' Fund referred to in ORS 407.495;
and
  (e) Investment funds of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }
available for investment or reinvestment by the Oregon Investment
Council.
  (5) 'Sudan' means the Republic of the Sudan and any territory
under the administration, legal or illegal, of Sudan, including
but not limited to the Darfur region.
  SECTION 58. ORS 294.311 is amended to read:
  294.311. As used in ORS 294.305 to 294.565, unless the context
requires otherwise:
  (1) 'Accrual basis' means the recording of the financial
effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the
municipal corporation in the periods in which those transactions,
events and circumstances occur, rather than only in the periods
in which cash is received or paid by the municipal corporation.
  (2) 'Activity' means a specific and distinguishable service
performed by one or more organizational components of a municipal
corporation to accomplish a function for which the municipal
corporation is responsible.
  (3) 'Appropriation' means an authorization granted by the
governing body to make expenditures and to incur obligations for
specific purposes. An appropriation is limited to a single fiscal
year for municipal corporations preparing annual budgets, or to
the budget period for municipal corporations preparing biennial
budgets.
  (4) 'Basis of accounting' means the cash basis, the modified
accrual basis or the accrual basis.
  (5) 'Budget' means a plan of financial operation embodying an
estimate of expenditures for a given period or purpose and the
proposed means of financing the estimated expenditures.
  (6) 'Budget document' means the estimates of expenditures and
budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
  (7) 'Budget period' means, for municipal corporations with the
power to levy a tax upon property, the two-year period commencing
on July 1 and closing on June 30 of the second calendar year next
following, and for all other municipal corporations, an
accounting period of 24 months ending on the last day of any
month.
  (8) 'Budget resources' means resources to which recourse can be
had to meet obligations and expenditures during the fiscal year
or budget period covered by the budget.
  (9) 'Cash basis' means a basis of accounting under which
transactions are recognized only in the period during which cash
is received or disbursed.
  (10) 'Current budget period' means the budget period in
progress.
  (11) 'Current year' means the fiscal year in progress.
  (12) 'Encumbrance accounting' means the method of accounting
under which outstanding encumbrances are recognized as reductions
of appropriations and the related commitments are carried in a
reserve for encumbrances until liquidated, either by replacement
with an actual liability or by cancellation. This method of
accounting may be used as a modification to the accrual basis of
accounting in accordance with generally accepted accounting
principles.
  (13) 'Encumbrances' means obligations in the form of purchase
orders, contracts or salary commitments which are chargeable to
an appropriation and for which a part of the appropriation is
reserved. Obligations cease to be encumbrances when paid or when
the actual liability is set up.

  (14) 'Ensuing budget period' means the budget period following
the current budget period.
  (15) 'Ensuing year' means the fiscal year following the current
year.
  (16) 'Expenditure' means, if the accounts are kept on the
accrual basis or the modified accrual basis, decreases in net
financial resources and may include encumbrances. If the accounts
are kept on the cash basis, the term covers only actual
disbursement, the drawing of the check or warrant for these
purposes and not encumbrances, except that deferred employee
compensation shall be included as a personnel service expenditure
where an approved deferred employee compensation plan is in
effect for a municipal corporation.
  (17) 'Fiscal year' means for municipal corporations with the
power to impose ad valorem property taxes, the fiscal year
commencing on July 1 and closing on June 30, and for all other
municipal corporations, an accounting period of 12 months ending
on the last day of any month.
  (18) 'Fund balance' means the excess of the assets of a fund
over its liabilities and reserves except in the case of funds
subject to budgetary accounting where, prior to the end of a
fiscal period, it represents the excess of the fund's assets and
estimated revenues for the period over its liabilities, reserves
and appropriations for the period.
  (19) 'General county resources' means resources from property
taxes, state and federal shared revenue, beginning balances
available for expenditure and interest not required to be
allocated to specific programs or activities.
  (20) 'Governing body' means the city council, board of
commissioners, board of directors, county court or other managing
board of a municipal corporation including a board managing a
municipally owned public utility or a dock commission.
  (21) 'Grant' means a donation or contribution of cash to a
governmental unit by a third party.
  (22) 'Intergovernmental entity' means an entity created under
ORS 190.010 (5). The term includes any council of governments
created prior to the enactment of ORS 190.010 (5).
  (23) 'Internal service fund' means a fund properly authorized
to finance, on a cost reimbursement basis, goods or services
provided by one organizational unit of a municipal corporation to
other organizational units of the municipal corporation.
  (24) 'Liabilities' means probable future sacrifices of economic
benefits, arising from present obligations of a municipal
corporation to transfer assets or provide services to other
entities in the future as a result of past transactions or
events.  The term does not include encumbrances.
  (25)(a) 'Modified accrual basis' means the accrual basis of
accounting adapted to the governmental fund-type measurement
focus. Under this basis of accounting, revenues and other
financial resource increments, such as bond proceeds, are
recognized when they become susceptible to accrual, that is, when
they become both measurable and available to finance expenditures
in the current period.
  (b) As used in this subsection, 'available' means collectible
in the current period or soon enough thereafter to be used to pay
liabilities of the current period. Under this basis of
accounting, expenditures are recognized when the fund liability
is incurred except for:
  (A) Inventories of material and supplies that may be considered
expenditures either when purchased or when used; and
  (B) Prepaid insurance and similar items that may be considered
expenditures either when paid for or when consumed.
  (26) 'Municipal corporation' means any county, city, port,
school district, union high school district, community college
district and all other public or quasi-public corporations
including a municipal utility or dock commission operated by a
separate board or commission. 'Municipal corporation' includes an
intergovernmental entity or council of governments that proposes
to impose or imposes ad valorem property taxes.
  (27) 'Net working capital' means the sum of the cash, cash
equivalents, investments, accounts receivable expected to be
converted to cash during the ensuing year or ensuing budget
period, inventories, supplies and prepaid expenses less current
liabilities and, if encumbrance accounting is adopted, reserve
for encumbrances. The term is not applicable to the cash basis of
accounting.
  (28) 'Object' means, as used in expenditure classification,
articles purchased including, but not limited to, land,
buildings, equipment and vehicles, or services obtained
including, but not limited to, administrative services, clerical
services, professional services, property services and travel, as
distinguished from the results obtained from expenditures.
  (29) 'Object classification' means a grouping of expenditures
on the basis of goods or services purchased, including, but not
limited to, personnel services, materials, supplies and
equipment.
  (30) 'Operating taxes' has the meaning given that term in ORS
310.055.
  (31) 'Organizational unit' means any administrative subdivision
of a municipal corporation, especially one charged with carrying
on one or more functions or activities.
  (32) 'Population' means the number of inhabitants of a
municipal corporation according to certified estimates of
population made by the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }.
  (33) 'Program' means a group of related activities aimed at
accomplishing a major service or function for which the
municipality is responsible.
  (34) 'Public utility' means those public utility operations
authorized by ORS chapter 225.
  (35) 'Publish' or 'publication' means any one or more of the
following methods of giving notice or making information or
documents available to members of the general public:
  (a) Publication in one or more newspapers of general
circulation within the jurisdictional boundaries of the municipal
corporation.
  (b) Posting through the United States Postal Service by first
class mail, postage prepaid, to each street address within the
jurisdictional boundaries of the municipal corporation and to
each post office box and rural route number belonging to a
resident within the jurisdictional boundaries of the municipal
corporation.
  (c) Hand delivery to each street address within the
jurisdictional boundaries of the municipal corporation.
  (36) 'Receipts' means cash received unless otherwise qualified.
  (37) 'Reserve for encumbrances' means a reserve representing
the segregation of a portion of a fund balance to provide for
unliquidated encumbrances.
  (38) 'Revenue' means the gross receipts and receivables of a
governmental unit derived from taxes, licenses, fees and from all
other sources, but excluding appropriations, allotments and
return of principal from investment of surplus funds.
  (39) 'Special revenue fund' means a fund properly authorized
and used to finance particular activities from the receipts of
specific taxes or other revenues.
  SECTION 59. ORS 320.100 is amended to read:
  320.100. (1) All moneys received from the taxes imposed under
ORS 320.011 and 320.012, including penalties, shall be paid by
the Department of Revenue in the following manner:
  (a) Seventy-five percent (75%) of the moneys shall be credited,
appropriated or remitted as follows:

  (A) Forty-three and two-tenths percent (43.2%) thereof shall be
credited to the General Fund to be available for payment of
general governmental expenses.
  (B) Nine and seven-tenths percent (9.7%) is continuously
appropriated to pay the expenses of state and local programs of
the Oregon Youth Conservation Corps established under ORS 418.650
to 418.663.
  (C) Forty-seven and one-tenth percent (47.1%) thereof shall be
remitted to the county treasurers of the several counties of the
state. Each county shall receive such share of the moneys as its
population, determined by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }, bears
to the total population of the counties of the state, as
determined by the census last preceding such apportionment.
  (b) Twenty-five percent (25%) of the moneys shall be
continuously appropriated to pay the expenses of the state and
local programs of the Oregon Youth Conservation Corps established
under ORS 418.650 to 418.663.
  (2) All revenues received under this section by the treasurers
of the several counties shall be placed in the general fund of
each county to be expended by the county courts or the board of
county commissioners of the several counties for general
governmental expenses.
  SECTION 60. ORS 321.185 is amended to read:
  321.185. (1) There hereby is established in the State Treasury
in the General Fund an account to be known as the Forest Research
and Experiment Account, which account hereby is appropriated
continuously to the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } for the purposes of
ORS 526.215 and 526.225.
  (2) The Forest Research and Experiment Account shall consist of
allocations from harvest taxes as provided in ORS 321.015 (1).
  SECTION 61. ORS 329.489 is amended to read:
  329.489. (1) Within the State of Oregon's kindergarten through
grade 12 education system, proficiency for students in American
Sign Language shall be in accordance with rules adopted by the
State Board of Education pursuant to ORS chapter 329 and any
other applicable state or federal law.
  (2) The State Board of Education is encouraged to continue to:
  (a) Coordinate with the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and the
Oregon School for the Deaf to develop curricula for American Sign
Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and
  (c) Assist public high schools in identifying local and
regional needs and resources available for American Sign Language
courses.
  SECTION 62. ORS 337.521 is amended to read:
  337.521. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may work with
publishers, recognized national organizations of publishers,
representatives of post-secondary education institutions, the
system described in ORS 192.517 and other interested parties to:
  (a) Develop unified, statewide guidelines consistent with ORS
337.511 to 337.524;
  (b) Administer ORS 337.511 to 337.524; and
  (c) Review guidelines annually and revise the guidelines as
necessary due to changes in technology or other changes.
  (2) The guidelines may address the following:
  (a) The procedures and standards relating to the distribution
of files and materials pursuant to ORS 337.511 to 337.524;
  (b) Available electronic formats;
  (c) Procedures for granting exceptions when it is determined
that a publisher is not able to comply with the requirements of

ORS 337.511 to 337.524 due to technical, economic or other
practical impediments; and
  (d) Other matters deemed necessary or appropriate to carry out
the purposes of ORS 337.511 to 337.524.
  (3) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall review the recommendations,
published on or after July 1, 2007, of the Association of
American Publishers' Alternative Formats Solutions Initiative,
and determine whether the recommendations should be incorporated
into ORS 337.511 to 337.524.
  SECTION 63. ORS 342.147 is amended to read:
  342.147. (1) After considering recommendations of the State
Board of Education, the Teacher Standards and Practices
Commission shall establish by rule standards for approval of
teacher education institutions and teacher education programs.
Public teacher education institutions shall be approved for
programs of more than four years' duration only if teacher
education programs which are reasonably attainable in a four-year
period are also available in the system of higher education and
are designed to culminate in a baccalaureate degree that
qualifies its graduates for entry-level teaching licenses.
  (2) The commission shall establish rules that allow teacher
education programs leading to graduate degrees to commence prior
to the student's completion of baccalaureate degree requirements
and that allow the combined use of undergraduate and graduate
level course work in achieving program completion.
  (3) Whenever any teacher education institution or program is
denied approved status or has such status withdrawn, such denial
or withdrawal must be treated as a contested case within the
meaning of ORS chapter 183.
  (4) Nothing in this section is intended to grant any authority
to the commission relating to granting degrees or establishing
degree requirements that are within the authority of the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } or any of the public universities listed in
ORS 352.002, or that are within the authority of the governing
board of any private institution of higher education.
  SECTION 64. ORS 342.447 is amended to read:
  342.447. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall require each
public teacher education program in this state to prepare a plan
with specific goals, strategies and deadlines for the
recruitment, admission, retention and graduation of minority
teachers.
  (2) The   { - state - }  board shall review the plans for the
adequacy and feasibility of the plans and, after making necessary
revisions, shall adopt the plans.
  (3) The   { - state - }  board shall adopt rules governing:
  (a) The contents of the plans;
  (b) The   { - state - }  board's initial and biennial review
process, including timetables for revising plans; and
  (c) Other matters necessary for carrying out the provisions of
ORS 342.433 to 342.449 and 351.077.
  SECTION 65. ORS 343.961 is amended to read:
  343.961. (1) As used in this section:
  (a) 'Day treatment program' means a public or private program
that provides treatment of children with a mental illness, an
emotional disturbance or another mental health issue.
  (b) 'Eligible day treatment program' means a day treatment
program with which the Oregon Health Authority contracts for long
term care or treatment. 'Eligible day treatment program' does not
include residential treatment programs or programs that provide
care or treatment to juveniles who are in detention facilities.
  (c) 'Eligible residential treatment program' means a
residential treatment program with which the Oregon Health
Authority, the Department of Human Services or the Oregon Youth
Authority contracts for long term care or treatment. 'Eligible
residential treatment program' does not include psychiatric day
treatment programs or programs that provide care or treatment to
juveniles who are in detention facilities.
  (d) 'Residential treatment program' means a public or private
residential program that provides treatment of children with a
mental illness, an emotional disturbance or another mental health
issue.
  (e) 'Student' means a child who is placed in an eligible day
treatment program or eligible residential treatment program by a
public or private entity or by the child's parent.
  (2) The Department of Education shall be responsible for
payment of the costs of education of students in eligible day
treatment programs and eligible residential treatment programs by
contracting with the school district in which the eligible day
treatment program or eligible residential treatment program is
located. The costs of education do not include transportation,
care, treatment or medical expenses.
  (3)(a) The school district in which an eligible day treatment
program or eligible residential treatment program is located is
responsible for providing the education of a student, including
the identification, location and evaluation of the student for
the purpose of determining the student's eligibility to receive
special education and related services.
  (b) A school district that is responsible for providing an
education under this subsection may provide the education:
  (A) Directly or through another school district or an education
service district; and
  (B) In the facilities of an eligible day treatment program or
eligible residential treatment program, the facilities of a
school district or the facilities of an education service
district.
  (c) When a student is no longer in an eligible day treatment
program or eligible residential treatment program, the
responsibilities imposed by this subsection terminate and become
the responsibilities of the school district where the student is
a resident, as determined under ORS 339.133 and 339.134.
  (4) A school district may request the Department of Education
to combine several eligible day treatment programs or eligible
residential treatment programs into one contract with another
school district or an education service district.
  (5) The Oregon Health Authority, the Department of Human
Services or the Oregon Youth Authority shall give the school
district providing the education at an eligible day treatment
program or an eligible residential treatment program 14 days'
notice, to the extent practicable, before a student is dismissed
from the program.
  (6) The Department of Education may make advances to school
districts responsible for providing an education to students
under this section from funds appropriated for that purpose based
on the estimated agreed cost of educating the students per school
year.  Advances equal to 25 percent of the estimated cost may be
made on September 1, December 1 and March 1 of the current year.
The balance may be paid whenever the full determination of cost
is made.
  (7) School districts that provide the education described in
this section on a year-round plan may apply for 25 percent of the
funds appropriated for that purpose on July 1, October 1, January
1, and 15 percent on April 1. The balance may be paid whenever
the full determination of cost is made.
  (8) In addition to the payment methods described in this
section, the Department of Education may:
  (a) Negotiate interagency agreements to pay for the cost of
education in day treatment programs and residential treatment
programs operated under the auspices of the   { - State Board of

Higher Education - }  { +  Oregon Education Investment Board + };
and
  (b) Negotiate intergovernmental agreements to pay for the cost
of education in day treatment programs and residential treatment
programs operated under the auspices of the Oregon Health and
Science University Board of Directors.
  SECTION 66. ORS 344.259 is amended to read:
  344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult
self-improvement, professional and technical education for
agencies under its regulatory authority. The   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall coordinate continuing education in upper division and
graduate education for public universities under its
jurisdiction.
  (2) When significantly adverse impact is alleged by one or more
of the agencies listed in this subsection, the affected parties
jointly shall provide for written agreements. These agreements
shall allocate responsibility for planning and providing
continuing education or off-campus instruction in specific areas
or by specific types. The agencies are:
  (a) The State Board of Education.
  (b) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }.
  (c) Community college districts.
  (d) Independent colleges.
  (e) Proprietary schools.
  (3) In the event the affected parties fail to reach a written
agreement within 120 days following receipt of written notice of
the allegation, either party may request the Education and
Workforce Policy Advisor to review and to recommend resolution.
  (4) Nothing in this section prohibits the offering of upper
division or graduate programs within 30 miles of the campus of
the Oregon University System university offering the program, or
the offering of lower division programs within 30 miles of the
campus offering the program in areas outside a community college
district. Such programs are entitled to the same college credit
and financial support as programs offered on the campus of the
university.
  SECTION 67. ORS 348.010 is amended to read:
  348.010. (1) An account in the Oregon University System Fund
established under ORS 351.506 is designated for the purpose of
granting student loans under the terms established by the
National Defense Education Act of 1958, as amended, under the
terms of the Health Professions Educational Assistance Act of
1963, as amended, and under the terms of the Nurses Training Act
of 1964, as amended.
  (2) The account designated under this section consists of:
  (a) All moneys made available to the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
for student loan purposes by state appropriations and by the
federal government under terms of the National Defense Education
Act of 1958, as amended, under the terms of the Health
Professions Educational Assistance Act of 1963, as amended, and
under the terms of the Nurses Training Act of 1964, as amended;
  (b) Repayments of loans identified in paragraph (a) of this
subsection;
  (c) Interest earned on student loans identified in paragraph
(a) of this subsection; and
  (d) Earnings from investments of the account.
  (3) The repayment in whole or part of any student loan made
under terms of the National Defense Education Act of 1958, as
amended, under the terms of the Health Professions Educational
Assistance Act of 1963, as amended, and under the terms of the
Nurses Training Act of 1964, as amended, shall be made pursuant
to the provisions of the applicable federal statutes and
repayment to the account designated under this section shall be
made in accordance with applicable federal statutes.
  (4) Income and interest derived from moneys in the account
designated by this section are credited to the account.
  SECTION 68. ORS 348.205 is amended to read:
  348.205. (1) The Oregon Opportunity Grant program is
established within the Oregon Student Access Commission.
  (2) Under the program, the cost of education of a qualified
student shall be shared by the student, the family of the
student, the federal government and the state.
  (3) The commission shall determine the cost of education of a
qualified student based on the type of eligible post-secondary
institution the student is attending. The cost of education
equals:
  (a) For a student attending a community college, the average
cost of education of attending a community college in this state;
  (b) For a student attending a public university under the
direction of the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }, the average cost of
education of attending a public university under the direction of
the board;
  (c) For a student attending a two-year Oregon-based, generally
accredited, not-for-profit institution of higher education, the
average cost of education of attending a community college in
this state; and
  (d) For a student attending the Oregon Health and Science
University or a four-year Oregon-based, generally accredited,
not-for-profit institution of higher education, the average cost
of education of attending an institution under the direction of
the board.
  (4)(a) The commission shall determine the amount of the student
share. The student share shall be based on:
  (A) The type of eligible post-secondary institution the student
is attending;
  (B) The number of hours of work that the commission determines
may be reasonably expected from the student; and
  (C) The amount of loans that the commission determines would
constitute a manageable debt burden for the student.
  (b) The student shall determine how to cover the student share
through income from work, loans, savings and scholarships.
  (c) The student share for a student who attends a community
college may not exceed the amount that the commission determines
a student may earn based on the number of hours of work
reasonably expected from the student under paragraph (a) of this
subsection.
  (d) The student share for a student who attends an eligible
post-secondary institution that is not a community college may
not exceed the sum of the amount that the commission determines a
student may receive as loans plus the amount a student may earn
based on the number of hours of work reasonably expected from the
student under paragraph (a) of this subsection.
  (5) The commission shall determine the amount of the family
share. The family share shall be based on the resources of the
family.
  (6) The commission shall determine the amount of the federal
share based on how much the student or the student's family is
expected to receive from the federal government as grants, loans,
tax credits or other student assistance.
  (7)(a) The commission shall determine the amount of the state
share. The state share shall be equal to the cost of education
reduced by the student share, family share and amount received by
the student from the federal government.
  (b) The commission shall establish a minimum amount that a
student may receive as a state share. If the commission
determines that the amount of the state share of a student is

below the minimum amount, the student may not receive the state
share.
  (c) In determining the amount of the state share, the
commission shall consider the total amount available to award as
grants to all qualified students. If the commission must reduce
the amount of the state share under this paragraph, the
commission may not reduce the amount of the state share awarded
to students in the low income range in a greater proportion than
the amount that the state share for students in other income
ranges is reduced.
  (8)(a) The commission shall adopt rules that prioritize current
foster children and former foster children for receiving Oregon
Opportunity Grants when the Oregon Opportunity Grant program does
not have sufficient funding to serve all eligible Oregon
students.
  (b) For the purposes of this subsection, 'former foster child'
has the meaning given that term in ORS 351.293.
  SECTION 69. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student Access Commission may award scholarships
at Eastern Oregon University to resident undergraduate students
applying for enrollment in the university or who are pursuing
courses therein. The number of students who receive scholarships
under this subsection may not exceed two and one-half percent of
the number of students who are enrolled at the university. The
scholarships shall be awarded upon the basis of a record of high
intellectual standing and deportment in the school or institution
where the applicant has received or is receiving preparatory
training, the necessity for financial assistance and other
qualifications of such nature that the awarding of scholarships
will operate not only to the advantage of the applicant but to
the people of Oregon. A scholarship awarded under this subsection
may not exceed in value the amount of the tuition and other fees,
including the fees that are levied against the recipient of the
scholarship by the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } at the university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
public universities listed in ORS 352.002. A student may not
receive a scholarship under this subsection that exceeds the
amount of tuition and fees owed by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the Oregon University System by students
enrolled in public universities listed in ORS 352.002 who were
not Oregon residents.
  SECTION 70. ORS 348.282 is amended to read:
  348.282. As used in this section and ORS 348.283:
  (1) 'Armed Forces of the United States' means:
  (a) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (b) The reserves of the Army, Navy, Air Force, Marine Corps and
Coast Guard of the United States; and
  (c) The Oregon National Guard and a National Guard of any other
state or territory.
  (2) 'Public post-secondary institution' means:
  (a) A public university under the direction of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }; and
  (b) A community college operated under ORS chapter 341.
  (3) 'Veteran' has the meaning given that term in ORS 408.225.
  SECTION 71. ORS 348.603, as amended by section 180, chapter
637, Oregon Laws 2011, is amended to read:
  348.603. (1) The Higher Education Coordinating Commission
shall:
  (a) Authorize approved schools to offer academic degree
programs;
  (b) Authorize approved degree-granting schools to offer
nondegree programs leading to a certificate or diploma;
  (c) Validate claims of degree possession;
  (d) Terminate substandard or fraudulent degree activities;
  (e) Terminate activities of diploma mills operating in or from
Oregon;
  (f) Except as provided in subsection (4) of this section,
terminate the operation in or from Oregon of post-secondary
accrediting bodies that are not recognized by the United States
Department of Education or by the commission; and
  (g) Review proposed new publicly funded post-secondary programs
and locations.
  (2)(a) Following review of a proposed new publicly funded
post-secondary program or location that is not a career pathways
certificate of completion program described in ORS 348.611, the
commission shall recommend resolution to the appropriate
governing boards and mediate between the boards to seek a
negotiated resolution if:
  (A) There is a detrimental duplication of programs; or
  (B) The program or location would have a significantly adverse
impact on one or more other segments of education.
  (b) If the boards do not resolve the issue raised under
paragraph (a) of this subsection within 90 days of the date when
the issue was recommended to the boards for mediation, the
commission shall have final authority for approval or disapproval
of the program or location. If the boards do not resolve the
issue, the commission shall approve or disapprove the program or
location within 180 days of the date when the review began.
  (c) If the boards do not resolve the issue, the commission
shall approve the program or location if the commission finds
that the program or location meets an unmet workforce need in the
state.
  (d) The commission shall establish by rule a fair and neutral
decision-making process in consultation with representatives
designated by the State Board of Education, the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + }, associations representing Oregon independent colleges,
associations representing Oregon career colleges, and the
governing boards of otherwise unrepresented post-secondary
schools.
  (3) The commission, by rule, may impose a fee on any school or
person requesting information from the commission. The amount of
the fee shall be established to recover designated expenses
incurred by the commission in carrying out the administration of
ORS 348.594 to 348.615. Any fees collected under this subsection
shall be deposited in the Degree Authorization Account
established under ORS 348.601.
  (4) Subsection (1)(f) of this section does not apply to a body
the role of which is to accredit schools that offer only
associate, bachelor's or master's degrees with titles in theology
or religious occupations or, if the schools also offer doctoral
degrees, offer doctoral degrees only in theology or religious
occupations that have been approved by a federally recognized
accrediting organization.
  SECTION 72. ORS 348.849 is amended to read:
  348.849. (1) There is established the Oregon 529 College
Savings Board to administer ORS 348.841 to 348.873.
  (2) The board shall consist of:
  (a) The State Treasurer or a designee of the State Treasurer;
  (b) A member of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, to be selected by
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + };

  (c) A representative of accredited private colleges and
universities located in this state, who shall be appointed by the
State Treasurer; and
  (d) Two public members, who by reason of their education and
experience are qualified to serve, and who shall be appointed by
the State Treasurer.
  (3) The State Treasurer shall designate the board chairperson
from among the members of the board. The chairperson shall serve
at the pleasure of the State Treasurer.
  (4)(a) The board member who is a member of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } shall serve at the pleasure of the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
but may not serve on the board following the end of the member's
term on the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }.
  (b) The representative of private colleges and universities and
the public members of the board shall serve at the pleasure of
the State Treasurer for a term of office of three years. These
members of the board may be reappointed to subsequent terms.
  (5) The State Treasurer and the Oregon University System shall
provide staff and assistance to the board in the administration
of the Oregon 529 College Savings Network as directed by the
board.
  (6) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495.
  (7) A majority of the members of the board constitutes a quorum
for the transaction of business.
  SECTION 73. ORS 348.890, as amended by section 205a, chapter
637, Oregon Laws 2011, is amended to read:
  348.890. (1) The Higher Education Coordinating Commission shall
provide policy direction to implement regional partnership
proposals and any other joint program or activity approved by the
State Board of Education and the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }.
  (2) Notwithstanding ORS 351.063 (3), the Department of
Community Colleges and Workforce Development and the Oregon
University System may use appropriations from the General Fund to
implement agreements approved by the Higher Education
Coordinating Commission that provide direct aid to a student, or
other incentives that encourage shared use of facilities,
programs and other resources of public universities listed in ORS
352.002 and community colleges.
  SECTION 74. ORS 348.900, as amended by section 206a, chapter
637, Oregon Laws 2011, is amended to read:
  348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  (2) Based on the needs assessment, the Higher Education
Coordinating Commission shall inform the community colleges,
public universities listed in ORS 352.002, Oregon Health and
Science University and health care industry employers of the
identified statewide needs and invite the development of health
care education programs that are responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education, the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } and the Oregon Health
and Science University Board of Directors shall use the statewide
needs assessment to evaluate whether a program fulfills statewide

needs.  If a board determines there is a statewide need, the
board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges, public universities, Oregon Health
and Science University, the State Board of Education, the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } and the Oregon Health and Science University
Board of Directors shall consider issues related to statewide
access, student transferability between programs, course
articulation and common student learning outcomes for health care
education programs. The community colleges, public universities,
Oregon Health and Science University and boards shall continue to
provide and improve upon an effective articulation and transfer
framework for students in Oregon's post-secondary sectors.
  SECTION 75. ORS 351.011 is amended to read:
  351.011. The Oregon University System is established as a
public university system, consisting of the   { - office of the
Chancellor of the Oregon University System - }  { +  office
directed by the Chief Education Officer + }, the public
universities listed in ORS 352.002 and any related offices,
departments or activities. The
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }, on behalf of the Oregon University System,
shall exercise and carry out all of the powers, rights and duties
that are expressly conferred upon the board or that are implied
by law or incident to such powers, rights and duties. The Oregon
University System is an instrumentality of the state and a
government entity performing governmental functions and
exercising governmental powers. Notwithstanding the status of the
Oregon University System as an instrumentality of the state, the
Oregon University System is not eligible to request or receive
legal services from the Attorney General and the Department of
Justice pursuant to ORS chapter 180, except as otherwise
expressly provided by law. The Oregon University System is not
considered a unit of local or municipal government.
  SECTION 76. ORS 351.015 is amended to read:
  351.015. The Oregon University System shall be conducted under
the control of   { - a board of 15 directors, to be known as the
State Board of Higher Education - }  { +  the Oregon Education
Investment Board + }. Except as otherwise provided by law, the
board has sole authority to govern, set policy and otherwise
manage the affairs of the public universities listed in ORS
352.002.   { - The board shall consist of: - }
    { - (1) Two students who at the time of their appointment to
the board are attending different public universities listed in
ORS 352.002. - }
    { - (2) One member of the faculty at Oregon State University,
Portland State University or University of Oregon. - }
    { - (3) One member of the faculty at Eastern Oregon
University, Oregon Institute of Technology, Southern Oregon
University or Western Oregon University. - }
    { - (4) Eleven members of the general public who are not
students or faculty members at the time of appointment. - }
  SECTION 77. ORS 351.047 is amended to read:
  351.047. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall:
  (1) Review all mission statements of the public universities
listed in ORS 352.002; and
  (2) Approve all academic programs offered at the public
universities, and shall ensure that the academic programs:
  (a) Are consistent with the mission statement of the respective
public university;
  (b) Do not unnecessarily duplicate academic programs offered by
other public universities listed in ORS 352.002; and
  (c) Are allocated among the public universities in the Oregon
University System to maximize the achievement of statewide needs
and requirements.
  SECTION 78. ORS 351.049 is amended to read:
  351.049. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall forward all mission
statements of the public universities listed in ORS 352.002 to
the Higher Education Coordinating Commission for approval.
  SECTION 79. ORS 351.052 is amended to read:
  351.052. (1) For the purposes of this section, 'performance
compact' means an agreement between the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
and the State of Oregon to achieve certain performance targets in
order to enhance the success of Oregon University System students
in exchange for consideration of the appropriations sought in a
funding request submitted by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } to the
Oregon Department of Administrative Services.
  (2)(a) On or before May 1 of each even-numbered year, the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } shall submit a draft funding request to the
Higher Education Coordinating Commission for the Oregon
University System, applicable to the biennium beginning on July 1
of the following year. The draft funding request must include a
performance compact.
  (b) If the Higher Education Coordinating Commission approves
the draft funding request and performance compact, or approves
the draft funding request and performance compact with
modifications, the commission shall take such action prior to
August 15 of the same even-numbered year.
  (c) If the Higher Education Coordinating Commission rejects the
draft funding request and performance compact, the commission
shall take such action prior to June 15 of the same even-numbered
year. In returning the rejected draft funding request and
performance compact to the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }, the
commission shall give specific direction to the board regarding
the changes necessary to earn commission approval.
  (3) On or before September 1 of each even-numbered year, the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } shall submit the funding request and
performance compact to the Oregon Department of Administrative
Services for the Oregon University System.
  (4) The Governor's biennial budget submitted to the Legislative
Assembly may include the   { - State Board of Higher
Education's - }  { +  Oregon Education Investment Board's + }
funding request submitted to the Oregon Department of
Administrative Services for the Oregon University System. Any
funding request approved by the Legislative Assembly must specify
that the moneys be appropriated to the Oregon Department of
Administrative Services for allocation to the Oregon University
System.
  (5) The funding request must include, in addition to the
performance compact, a report on performance from the previous
biennium's performance compact.
  (6) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall, by rule, establish a
framework for the development of a performance compact that must
accompany the funding request to the Oregon Department of

Administrative Services. The framework must address, among other
issues, the issue of tuition affordability for students.
  SECTION 80. ORS 351.054 is amended to read:
  351.054. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } is authorized to:
  (1) Request, as part of the funding request under ORS 351.052,
appropriations for budgetary items, including but not limited to
education and general operations, statewide public services,
state funded debt service, capital improvements and other special
initiatives and investments; and
  (2) Allocate moneys, from funds appropriated to the board and
other available moneys, among the office of the   { - Chancellor
of the Oregon University System - }  { +  Chief Education
Officer + }, public universities listed in ORS 352.002 and
offices, departments and activities under the control of the
board.
  SECTION 81. ORS 351.057 is amended to read:
  351.057. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } is not required to seek
expenditure limitation approval from the Legislative Assembly to
spend any available moneys, including but not limited to moneys
from enrollment fees collected pursuant to ORS 351.063.
  SECTION 82. ORS 351.060 is amended to read:
  351.060. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may:
  (1) Control and provide for, subject to the conditions of this
section, the custody and occupation of the grounds, buildings,
books, papers and documents belonging to each and all of the
public universities and offices, departments or activities under
the control of the   { - State Board of Higher Education - }
 { +  board + }.
  (2) Manage, control and apply all property of whatever nature
given to or appropriated for the use, support or benefit of any
or all of the public universities or offices, departments or
activities under the control of the   { - State Board of Higher
Education - }  { +  board + }, according to the terms and
conditions of such gift or appropriation. Moneys received under
this section shall be deposited in a designated account in the
Oregon University System Fund established by ORS 351.506.
Interest earned by the account shall be credited to the account.
  (3) Design, acquire, erect, improve, repair, maintain, lease,
renovate, demolish, equip, furnish and dispose of buildings,
structures and lands necessary for carrying out its powers,
rights and duties.
  (4) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lend, license, improve and develop any and all
property, real or personal:
  (a) Given to any of the public universities or offices,
departments or activities under the control of the   { - State
Board of Higher Education - }  { +  board + } by private donors,
whether such gifts are made to the   { - State Board of Higher
Education - }  { +  board + } or to the State of Oregon; or
  (b) Acquired by any other method or from any source by the
  { - State Board of Higher Education - }  { +  board + } for the
benefit of any of the public universities or offices, departments
or activities under the control of the board, except for any
structure, equipment or asset encumbered by a certificate of
participation.
  (5) Exercise the power of eminent domain for the condemnation
of property of any kind and all water rights, easements and
appurtenances thereto that the   { - State Board of Higher
Education - }  { +  board + } considers necessary for carrying
out the powers, rights and duties of the board.
  (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers, rights and duties of the
  { - State Board of Higher Education - }  { +  board + }.
  (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of such mortgages or for the purpose
of carrying into effect any and all of the powers, rights and
duties of the   { - State Board of Higher Education - }  { +
board + }. Except as otherwise provided by ORS 30.260 to 30.300,
the board has the authority to defend and indemnify its
employees, officers and agents when they are acting in good faith
within the course and scope of their duties for public purposes.
  (8) Acquire, receive, hold, control, sell, manage, operate,
lease, license or lend any goods, supplies, materials, equipment,
services and information technology, for the use, support or
benefit of any of the public universities or offices, departments
or activities under the control of the   { - State Board of
Higher Education - }  { +  board + }.
  (9) With the approval of the State Treasurer, request that the
Oregon Department of Administrative Services enter into financing
agreements in accordance with ORS 283.085 to 283.092 on behalf of
the Oregon University System. The Oregon University System shall
be considered a state agency for purposes of ORS 286A.730.
  (10) Own, control and operate Oregon University System motor
vehicles for use by public universities and offices, departments
and activities under the control of the   { - State Board of
Higher Education - }  { +  board + }. The board shall, by rule,
establish requirements governing the use and operation of Oregon
University System motor vehicles.
  (11) Hire or retain attorneys for the provision of legal
services, including but not limited to general advice,
representation in litigation and representation in appellate
matters. The   { - State Board of Higher Education - }  { +
board + } shall reimburse the State Treasurer for legal fees
incurred in connection with borrowings done at the request of the
Oregon University System.
  SECTION 83. ORS 351.062 is amended to read:
  351.062. Except for the power to prescribe enrollment fees
under ORS 351.063 and the power to adopt rules, the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } may delegate any of the powers, duties or functions of
the board to a committee of the board, the   { - Chancellor of
the Oregon University System - }  { +  Chief Education
Officer + } or a president of a public university listed in ORS
352.002.
  SECTION 84. ORS 351.063 is amended to read:
  351.063. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall set enrollment
fees for each public university listed in ORS 352.002. Enrollment
fees include tuition for education and services and any other
charges found by the   { - State Board of Higher Education - }
 { +  board + } to be necessary to carry out the educational
program of the Oregon University System.
  (2) The   { - State Board of Higher Education - }  { +
board + } shall, by rule, establish a process under which each
public university may develop and submit proposed enrollment fees
for board consideration. The process must provide for
participation of enrolled students and the recognized student
government of the public university.
  (3) Each public university listed in ORS 352.002 is authorized
to offer fee remissions to its students, including remissions
offered on the basis of need, from any authorized source of
revenue. Moneys appropriated from the General Fund may not be
used to fund fee remissions to students of the public university.
  SECTION 85. ORS 351.064 is amended to read:
  351.064. The Higher Education Coordinating Commission may set
limits on the enrollment fees established by the   { - State

Board of Higher Education - }  { +  Oregon Education Investment
Board + } under ORS 351.063 (1).
  SECTION 86. ORS 351.065 is amended to read:
  351.065. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may, for each public
university or office, department or activity under its control,
adopt rules and specific orders by or through the president of
each public university governing access to personnel records of
the public university or office, department or activity that are
less than 25 years old.
  (2) Rules adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless upon a finding by the president of the public
university that the public interest in maintaining individual
rights to privacy in an adequate educational environment would
not suffer by disclosure of such records. Access to such records
may be limited to designated classes of information or persons,
or to stated times and conditions, or to both, but cannot be
limited for records more than 25 years old.
  (3) No rule or order promulgated pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the board or its public universities or
offices, departments or activities, except as provided in
subsections (7) and (8) of this section.
  (4) The number of files relating to the evaluation of a faculty
member shall be limited to three, to be kept in designated,
available locations.
  (5) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (6) A faculty member shall be entitled to submit, for placement
in the three files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that
the member believes might be of assistance in the evaluation
process.
  (7) Letters and other information submitted in confidence to
the board or its public universities, offices, departments or
activities prior to July 1, 1975, shall be maintained in the
files designated. However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected.  The full text shall be made available except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the three prescribed by subsection (4)
of this section.
  (8) Confidential letters and other information submitted to or
solicited after July 1, 1975, by the board or its public
universities, offices, departments or activities prior to the
employment of a prospective faculty member are exempt from the
provisions of this section. However, if the member is employed by
the board or its public universities, offices, departments or
activities, the confidential preemployment materials shall be
placed in the three authorized files. If a faculty member
requests access to the member's files, the anonymity of the
contributor of confidential preemployment letters and other
preemployment information shall be protected. The full text shall
be made available, except that portions of the text that would
serve to identify the contributor shall be excised and retained
in a file other than the three designated in subsection (4) of
this section.
  (9) Classroom survey evaluation by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated in subsection (4) of this section. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (10) After July 1, 1975, the board and its public universities,
offices, departments or activities, when evaluating its employed
faculty members, may not solicit or accept letters, documents or
other materials, given orally or in written form, from
individuals or groups who wish their identity kept anonymous or
the information they provide kept confidential.
  (11) No rule or order promulgated pursuant to this section
limits the authority of the public universities, offices,
departments or activities under the control of the board to
prepare, without identification of individual persons who have
not consented thereto, statistical or demographic reports from
personnel records.
  (12) Any category of personnel records specifically designated
as confidential pursuant to valid rules or orders pursuant to
this section is not a public record for the purposes of ORS
192.420.
  (13) As used in this section, 'personnel records' means records
containing information kept by the public university, office,
department or activity concerning a faculty member and furnished
by the faculty member or by others about the faculty member at
the request of the faculty member or the public university,
office, department or activity, including, but not limited to,
information concerning discipline, membership activity,
employment performance or other personal records of individual
persons.
  SECTION 87. ORS 351.067 is amended to read:
  351.067. (1) In carrying out its authority under ORS 351.070,
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may authorize receipt of
compensation for any officer or employee of the Oregon University
System from private or public resources, including, but not
limited to, income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the Oregon University
System;
  (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
Oregon University System and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates, that augments an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies and rules
established by the board.
  (2) The board may not authorize compensation, as described in
subsection (1) of this section, that, in the board's judgment,
does not comport with the mission of a public university listed
in ORS 352.002 and the Oregon University System or substantially
interferes with an officer's or employee's duties to the Oregon
University System.
  (3) Any compensation described and authorized under subsection
(1) of this section is considered official compensation or
reimbursement of expenses for purposes of ORS 244.040 and is not
considered an honorarium prohibited by ORS 244.042. If
authorization or receipt of the compensation creates a potential
conflict of interest, the officer or employee shall report the
potential conflict in writing in accordance with rules of the
board. The disclosure is a public record subject to public
inspection.
  (4) The board shall adopt by rule standards governing employee
outside employment and activities, including potential conflict
of interest, as defined by board rule and consistent with ORS
244.020, and the public disclosure thereof, and procedures for
reporting and hearing potential or actual conflict of interest
complaints.
  SECTION 88. ORS 351.070 is amended to read:
  351.070. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall, by rule,
implement a personnel system for the Oregon University System and
may engage in collective bargaining with the employees. All
collective bargaining with any certified or recognized exclusive
employee representative shall be under the direction and
supervision of the
  { - Chancellor of the Oregon University System - }  { +  Chief
Education Officer + }. The board and the Oregon University System
shall have payroll authority.
  (2)(a) The board shall establish competitive procedures for the
purchasing, procurement and contracting of goods, services and
information technology, for the benefit of the Oregon University
System and all the public universities and offices, departments
and activities under the control of the board. The board may also
establish exemptions from the competitive procedures when
appropriate.
  (b) The board shall ensure that the hourly rate of wage paid by
any contractor upon all public improvements contracts undertaken
for the board shall not be less than the same rate of wage as
determined by the Bureau of Labor and Industries for an hour's
work in the same trade or occupation in the locality where such
labor is performed. Claims or disputes arising under this
subsection shall be decided by the Commissioner of the Bureau of
Labor and Industries.
  (c) The board shall adopt policies and procedures that achieve
results equal to or better than the standards existing on July
17, 1995, regarding affirmative action, pay equity for comparable
work, recycling, the provision of workers' compensation insurance
to workers on contract and the participation of emerging small
businesses and businesses owned by minorities and women.
  (3) The board may, for each public university listed in ORS
352.002:
  (a) Appoint and employ a president and the requisite number of
employees and prescribe their compensation and tenure of office
or employment.
  (b) Demand and receive the interest mentioned in ORS 352.510
and all sums due and accruing for admission and tuition, and
apply the same, or so much thereof as is necessary, to the
payment of the compensation referred to in paragraph (a) of this
subsection and the other current expenses.
  (c) Prescribe incidental fees for programs under the
supervision or control of the board found by the board, upon its
own motion or upon recommendation of the recognized student
government, to be advantageous to the cultural or physical
development of students. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students by the president
upon the recommendation of the recognized student government.
  (d) Upon recommendation of the recognized student government,
collect optional fees for student activities not included in
paragraph (c) of this subsection or ORS 351.063 as authorized by
the president. The payment of such optional fees is at the option
and selection of the student and is not a prerequisite of
enrollment.
  (e) Confer, consistent with the mission and programs of each
public university and on the recommendation of the faculty of the
public university, such degrees as usually are conferred by
public universities, or as the faculty deems appropriate.
  (f) Prescribe the qualifications for admission.
  (4) Subject to such delegation as the board may decide to make
to the public universities and offices, departments and
activities under its control, the board, for each public
university, office, department or activity under its control:
  (a) Shall supervise the general course of instruction therein,
and the research, extension, educational and other activities
thereof.
  (b) Shall adopt rules and bylaws for the government thereof,
including the faculty, teachers, students and employees therein.
  (c) Shall maintain cultural and physical development services
and facilities therefor and, in connection therewith, may
cooperate and enter into agreements with any person or
governmental agency.
  (d) May contract to provide health services at student health
centers.
  (e) Shall provide health services at student health centers to
students.
  (f) May provide health services at student health centers to
any of the following:
  (A) Dependents of students.
  (B) Staff.
  (C) Faculty.
  (g) Shall prescribe and collect charges.
  (h) Shall adopt rules relating to the creation, use, custody
and disclosure, including access, of student education records
that are consistent with the requirements of applicable state and
federal law. Whenever a student has attained 18 years of age or
is attending a public university listed in ORS 352.002, the
permission or consent required of and the rights accorded to a
parent of the student regarding education records shall
thereafter be required of and accorded to only the student.
  (5) For each public university listed in ORS 352.002, the board
shall provide opportunities for part-time students to obtain
complete undergraduate degrees at unconventional times, which
include but are not limited to early morning and noon hours,
evenings and weekends. In administering these degree programs,
the public university may use any educational facility available
for the use of the public university.
  (6) For all public universities listed in ORS 352.002, the
board shall, to the extent feasible and cost beneficial, develop
and implement a common admissions process that permits applicants
to be considered for admission to more than one public
university.
  SECTION 89. ORS 351.072 is amended to read:
  351.072. (1) Notwithstanding ORS chapter 183, the following
actions may be taken by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } or the
public universities under its control without compliance with the
rulemaking provisions of ORS chapter 183:
  (a) Adoption of standards, regulations, policies or practices
relating primarily to admissions, academic advancement, classroom
grading policy, the granting of academic credits, granting of
degrees, scholarships and similar academic matters.
  (b) Adoption of fees or fee schedules relating to charges for
symposiums, conferences, short courses, food, books or other
retail goods, prices of admission to athletic, entertainment or
cultural events or advertising rates in student or university
publications. However, student loan service charges, charges
levied as penalties for prohibited conduct, general tuition,
building fees, incidental fees, health service fees and residence
hall and housing charges shall be adopted in accordance with the
provisions of ORS chapter 183.
  (2) Any standards, regulations, policies, practices or fees
adopted under this section by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } or by
any of the public universities under its control shall be reduced
to writing and made available to interested persons upon request.
  SECTION 90. ORS 351.077 is amended to read:
  351.077. (1) Pursuant to ORS 342.447, the   { - Chancellor of
the Oregon University System - }  { +  Chief Education
Officer + } shall ensure the implementation of the plans
developed for recruitment of minority teachers.
  (2) The   { - chancellor - }  { +  Chief Education Officer + }
shall report biennially to the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and the
Legislative Assembly on the implementation and results of the
plans. The report may include recommendations on ways in which
the Legislative Assembly can assist in increasing the number of
minority teachers.
  SECTION 91. ORS 351.085 is amended to read:
  351.085. The   { - Chancellor of the Oregon University
System - }  { +  Chief Education Officer + } shall exercise,
under the direction of the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }, the administrative and management authority
necessary to carry out the policies and directives of the board
with respect to the public universities and offices, departments
and activities under the control of the board. In carrying out
the duties of the
  { - chancellor - }  { +  Chief Education Officer + }, the
 { - chancellor - }  { +  Chief Education Officer + } shall:
  (1) Serve as chief executive officer of the Oregon University
System and administrative officer of the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }.
  (2) Supervise the presidents of the public universities listed
in ORS 352.002   { - and recommend the terms and conditions of
their employment to the board, including but not limited to
appointment, compensation and termination - } .
  (3) Maintain a centralized service program for all public
universities and offices, departments and activities under the
control of the board, including but not limited to accounting,
statistical services, capital construction, management analysis,
legal services, academic affairs and educational research.
  (4) Collect and compile information and statistics relative to
the operation of the public universities and offices, departments
and activities under the control of the board.
  (5) Prepare and submit to the board an annual operating budget
for all public universities and offices, departments and
activities under the control of the board, including but not
limited to budget allocations to the public universities and
offices, departments and activities.
  (6) Oversee the preparation and submission to the board of the
funding request for the Oregon University System for
consideration by the board as the funding request under ORS
351.052.
  (7) Appoint such personnel as may be necessary for the
performance of the duties of the   { - chancellor - }  { +  Chief
Education Officer + }.
  (8) Designate, if the   { - chancellor - }  { +  Chief
Education Officer + } wishes, one or more suitable persons to
sign or countersign warrants, vouchers, certificates or other
papers and documents requiring the signature of the
 { - chancellor - }  { +  Chief Education Officer + }.
  (9) Prepare the agendas for board meetings and provide an
analysis of proposals made to the board, including such
alternatives as may be necessary or desirable for their
consideration, and make recommendations thereon.
  (10) Prepare and submit to the board on or about December 31 of
each year an annual report in which the   { - chancellor - }
 { +  Chief Education Officer + } describes the principal

activities of the Oregon University System during the fiscal year
ending June 30.
  (11) Keep a record of the transactions of the board.
  (12) Have the custody of all books, papers, documents and other
property belonging to the board.
  (13) Give such instructions as may be necessary to carry out
the directives of the board and forward them to the various
institution presidents and heads of offices, departments and
activities.
  (14) Provide for meetings of the presidents and principal
executives of the public universities and offices, departments
and activities under the control of the board, at such times as
the board may direct. The meetings shall be open to any member of
the board.
  (15) Perform such other administrative or management assistance
and consider other administrative or management matters as the
board may require.
  SECTION 92. ORS 351.086 is amended to read:
  351.086. (1) Except as otherwise provided in this chapter and
ORS chapter 352, the provisions of ORS chapters 182, 240, 270,
273, 276, 278, 279A, 279B, 279C, 282, 283, 291 and 292 and ORS
180.060, 180.160, 180.210, 180.220, 180.225 and 180.230 do not
apply to the Oregon University System.
  (2) Notwithstanding subsection (1) of this section, ORS
182.100, 182.109, 240.167, 276.073 to 276.090, 279A.065 (2),
279B.055 (3), 279C.380 (1)(a) and (3), 279C.600 to 279C.625,
279C.800, 279C.810, 279C.825, 279C.830, 279C.835, 279C.840,
279C.845, 279C.850, 279C.855, 279C.860, 279C.865, 279C.870,
283.085 to 283.092, 291.200, 291.201 to 291.222, 291.223, 291.224
(2) and (6), 291.226, 291.272 to 291.278, 291.322 to 291.334,
291.405, 291.407, 291.445, 292.043 and 292.044 apply to the
Oregon University System.
  (3) Notwithstanding subsection (1) of this section, ORS 273.413
to 273.456 apply to any structure, equipment or asset owned by
the Oregon University System that is encumbered by a certificate
of participation.
  (4) Notwithstanding subsection (6) of this section:
  (a) The provisions of ORS chapters 35, 190, 192, 244, 286A, 295
and 297 and ORS 30.260 to 30.460, 184.480, 184.483, 184.486,
184.488, 200.005 to 200.025, 200.045 to 200.090, 200.100 to
200.120, 200.160 to 200.200, 236.605 to 236.640, 243.650 to
243.782, 243.800, 243.820, 243.830, 243.850, 243.910 to 243.945,
307.090 and 307.112 apply to the Oregon University System under
the same terms as they apply to other public bodies other than
the State of Oregon.
  (b) The provisions of ORS 293.115, 293.117, 293.130, 293.169,
293.171, 293.205 to 293.225, 293.250, 293.265 to 293.280,
293.285, 293.295, 293.321, 293.353, 293.375, 293.406, 293.465 to
293.485, 293.490, 293.495, 293.525, 293.701 to 293.820, 293.875,
293.880 and 293.990 apply to the Oregon University System under
the same terms as they apply to state agencies with moneys held
by the State Treasurer, to the Oregon University System Fund
established in ORS 351.506 and to any other moneys deposited with
or held by the State Treasurer for the Oregon University System.
  (5) Notwithstanding subsections (1) and (6) of this section,
the Oregon University System and its agents and employees remain
subject to all statutes and administrative rules of this state
that create rights, benefits or protections in favor of military
veterans, service members and families of service members to the
same extent as an agency of this state would be subject to such
statutes and administrative rules.
  (6) The Oregon University System, as a distinct governmental
entity, is not subject to any provision of law enacted after
January 1, 2011, with respect to any governmental entity, that is
unique to governmental entities, unless the provision

specifically provides that it applies to the Oregon University
System.
  (7) In carrying out the duties, functions and powers imposed by
law upon the Oregon University System, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
or the
  { - Chancellor of the Oregon University System - }  { +  Chief
Education Officer + } may contract with any public agency for the
performance of such duties, functions and powers as the board or
 { - chancellor - }   { + the Chief Education Officer + }
considers appropriate.
  SECTION 93. ORS 351.087 is amended to read:
  351.087. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall establish
policies for the operation of the Oregon University System,
consistent with ORS 351.086.
  (2) For the purpose of clarifying areas of oversight and in
accordance with subsection (1) of this section, wherever the
Oregon Department of Administrative Services would otherwise have
authority over administrative matters concerning the performance,
operating policies or structure of the Oregon University System,
that authority shall be transferred to the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }.
  SECTION 94. ORS 351.088 is amended to read:
  351.088. Notwithstanding ORS chapter 183, the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + } or any public university listed in ORS 352.002 may, by
rule, establish adjudicative procedures that are consistent with
federal and state constitutional requirements and other
provisions of law. The adjudicative procedures shall be
consistent with ORS 183.413 to 183.497 and 183.502 whenever the
type of hearing or procedure required is substantially of the
character that would necessitate the procedures required by ORS
183.413 to 183.470.
  SECTION 95. ORS 351.092 is amended to read:
  351.092. Notwithstanding ORS 293.595, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall control and supervise the acquisition, installation and use
of all data processing equipment to be used primarily for the
purposes of the accounting records and accounting system of the
Oregon University System. The board may authorize use of that
equipment for other purposes to the extent that use for those
other purposes does not conflict with use for the primary purpose
of the Oregon University System's accounting records and
accounting system.
  SECTION 96. ORS 351.094 is amended to read:
  351.094. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall provide group
insurance to employees of the Oregon University System through
the Public Employees' Benefit Board or may elect to provide
alternative group health and welfare insurance benefit plans to
employees of the Oregon University System if the same level of
benefits is available at a lower cost than through the Public
Employees' Benefit Board.
  (2) For the purposes of ORS 243.555 to 243.575, if the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } chooses not to participate in the benefit
plans offered through the Public Employees' Benefit Board, the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } may have the authority granted to the Public
Employees' Benefit Board under ORS 243.555 to 243.575 for the
administration of an appropriate expense reimbursement plan.
  (3) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall offer one or more deferred
compensation plans to employees of the Oregon University System.
The Oregon University System shall, at the discretion of the
board, choose whether to offer its employees the state deferred
compensation plan established under ORS 243.401 to 243.507 or
another deferred compensation plan that the board elects to make
available to the employees of the Oregon University System.
  SECTION 97. ORS 351.096 is amended to read:
  351.096. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may purchase any insurance,
operate a self-insurance program or otherwise arrange for the
equivalent of insurance coverage of any nature.
  SECTION 98. ORS 351.097 is amended to read:
  351.097. (1) The payment of salary or compensation of the
officers, teachers, instructors and other employees of the Oregon
University System, where such salary or compensation is payable
out of the State Treasury and is fixed by law or the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } at a definite rate per hour, day, week, month or year,
shall be made weekly, biweekly, semimonthly or monthly with any
necessary adjustments, as provided in this section.
  (2) With the approval of the board, the   { - Chancellor of the
Oregon University System - }  { +  Chief Education Officer + }
shall make out, certify and transmit to the board at the end of
each pay period a payroll, duly verified by the
 { - chancellor - }  { +  Chief Education Officer + } or other
designated   { - officer - }  { +  employee + } and approved by
the proper auditing committee or officer, showing the names of
the several officers, teachers, instructors and other employees
during the preceding payroll period, the rate of compensation of
each by the hour, day, week, month or year, the time employed,
the amount due and any other facts the board requires. The board,
if it approves the payroll, shall draw a warrant on the State
Treasurer for the aggregate amount allowed in favor of the
 { - chancellor - }  { +  Chief Education Officer + }, who shall
immediately pay over the moneys received to the several parties
entitled thereto and take receipts therefor, which shall be
transmitted to the board.
  (3) Notwithstanding subsection (2) of this section and pursuant
to ORS 293.330, the   { - State Board of Higher Education - }
 { +  board + } may authorize the   { - chancellor - }  { +
Chief Education Officer + } to designate a person employed by and
located at each public university under the jurisdiction of the
board to implement and administer the payroll system selected by
the board to pay employees designated by the board. The person
shall be under bond to the State of Oregon.
  (4) When an employee receives payment of salary or compensation
in an amount greater than the employee's entitlement, the amount
of the overpayment may be deducted from salary or compensation
earned by the employee. The deduction may be in such form and
manner as the   { - State Board of Higher Education - }  { +
board + } may prescribe.
  SECTION 99. ORS 351.105 is amended to read:
  351.105. In order to carry out the duties described in ORS
352.008, the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }, in consultation with the
Oregon Health Authority and the Alcohol and Drug Policy
Commission, shall adopt by rule, as a minimum, descriptions of
the content of what shall be included in the policy and plan
described in ORS 352.008.
  SECTION 100. ORS 351.110 is amended to read:
  351.110. All relationships and negotiations between the
Legislative Assembly and its various committees and a public
university listed in ORS 352.002 must be carried on through the
office of the   { - Chancellor of the Oregon University
System - }  { +  Chief Education Officer + }. An employee
representing any of the public universities may not appear before
the Legislative Assembly or any committee except upon the written

authority of the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } or the
  { - chancellor - }  { +  Chief Education Officer + }.
  SECTION 101. ORS 351.117 is amended to read:
  351.117. (1) If the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } determines that
enrollment is sufficient to make an American Sign Language class
economically viable and if qualified instructors are available,
the board may offer to students courses for credit in American
Sign Language at a public university. Such courses shall satisfy
any second language elective requirement.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } is encouraged to continue to:
  (a) Coordinate with the State Board of Education to develop
curricula for American Sign Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and
  (c) Assist public universities in identifying local and
regional needs and resources available for American Sign Language
courses.
  SECTION 102. ORS 351.130 is amended to read:
  351.130. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall encourage gifts
and donations to the board and the Oregon University System. For
purposes of the public universities listed in ORS 352.002, the
board, to encourage gifts and donations, shall faithfully devote
the gifts or donations to the public university for which the
gift or donation is intended.
  (2) The Higher Education Donation Fund is established in the
State Treasury, separate and distinct from the General Fund.
Moneys in the Higher Education Donation Fund are continuously
appropriated to the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } for the purpose for
which the moneys were donated. Moneys in the fund may be invested
as provided in ORS 293.701 to 293.820, subject to the terms or
restrictions of any gifts or donations. Any interest or other
income derived from the investment of the fund shall be credited
to the fund.
  (3) All gifts and donations received shall be used in
accordance with the terms of the gift or donation. Gifts or
donations may be deposited in the Oregon University System Fund
established by ORS 351.506 or in the Higher Education Donation
Fund. The board shall consider the amount, nature and purpose of,
and any restriction placed on, gifts and donations, and determine
whether to deposit the gift or donation in the Oregon University
System Fund or the Higher Education Donation Fund. Gifts and
donations may be split or transferred between the Oregon
University System Fund and the Higher Education Donation Fund.
  (4) The interest, income, dividends or profits received on any
property or funds of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } or the
Oregon University System derived from gifts and donations,
including legacies, devises, bequests or endowments, are
continuously appropriated to the use, maintenance and support of
the Oregon University System in the same manner as the principal
or corpus of each such gift or donation in accordance with the
terms of the gift or donation.
  (5) As used in this section, 'gifts or donations' includes
funds donated to the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } or the Oregon
University System to which by agreement the donor receives
consideration in return for the gift or donation or retains a
reversionary interest but does not include grant or contract
funds received from government sources.
  SECTION 103. ORS 351.140 is amended to read:

  351.140. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may purchase such
real property as in its sole discretion may be necessary for the
present or future development of any of the public universities
and offices, departments and activities under its control. The
board may enter into contracts of purchase or agreements that the
board deems necessary in carrying out this authorization.
  (2) The board may apply any funds coming into its hands, and
applicable thereto, toward the purchase of property authorized
under this section. The board may also mortgage or pledge any
property so purchased, or its contracts to purchase, or in
relation thereto, together with the income from such property, to
secure the payment of the purchase price thereof.
  (3) The   { - State Board of Higher Education - }  { +
board + } is authorized, without seeking specific approval from
the Legislative Assembly, to purchase real property or undertake
capital construction projects that do not require the use of
moneys appropriated from state funds or obtained through general
obligation bonds, for purposes consistent with the promotion and
enhancement of public higher education.
  SECTION 104. ORS 351.150 is amended to read:
  351.150. (1) As used in this section, 'university lands ' means
lands granted to this state under the Act of February 14, 1859
(11 Stat. 383), for the support and maintenance of the University
of Oregon.
  (2) Legal title to all real property acquired by any of the
public universities under the control of the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall be taken and held in the name of the State of Oregon. Legal
title to all real property heretofore or hereafter conveyed to
any of the public universities is deemed to be conveyed to and
vested in the State of Oregon. Authorized conveyances of all real
property, other than university lands, acquired by or vested in
the State of Oregon for the use or benefit of any of the public
universities shall be executed in the name of the State of Oregon
by the president and secretary of the board. Nothing in this
section or in ORS 351.060 shall be considered as exempting such
property from taxation.
  (3) The Oregon University System shall have custody and control
of and shall care for all real property used for public
university purposes. Management, maintenance and preservation of
all real property used for public university purposes is the
responsibility of the Oregon University System.
  SECTION 105. ORS 351.155 is amended to read:
  351.155. Notwithstanding the applicable provisions of ORS
279.835 to 279.855, 279A.140 to 279A.155, 279A.250 to 279A.290,
279A.990, 279B.200 to 279B.240, 279B.270, 279B.275, 279B.280,
279C.360, 279C.365, 279C.370, 279C.375, 279C.380, 279C.385,
279C.500 to 279C.530, 279C.540, 279C.545, 279C.600 to 279C.625,
279C.650 to 279C.670 and 279C.800 to 279C.870, the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } may, in the management of all forestlands under its
control and supervision, sell the forest products on such lands
in the same manner as is provided in ORS 530.059, and for that
purpose the board shall have the same powers with respect to
experimental or research projects in the field of forestland
management or for forest product utilization on forestlands under
its control as the State Forester has pursuant to the provisions
of ORS 530.050 and 530.059.
  SECTION 106. ORS 351.160 is amended to read:
  351.160. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may undertake the
construction of any building or structure for higher education
when the board conservatively estimates that the Oregon
University System will have sufficient revenues to pay the
operating costs and any indebtedness for the building or
structure. For purposes of this section, 'revenues' includes all
funds available to the board except amounts appropriated by the
Legislative Assembly from the General Fund. The board may enter
into contracts for the acquisition, erection, improvement,
repair, equipping and furnishing of buildings and structures for
dormitories, housing, boarding, off-street motor vehicle parking
facilities and other purposes for higher education pursuant to
Article XI-F(1) of the Oregon Constitution, ORS 351.160 to
351.190, 351.350 to 351.460 and 351.505.
  (2) The board may also undertake the acquisition or
construction of those buildings and structures that the
Legislative Assembly has determined will benefit higher education
institutions or activities, and may enter into contracts with
persons, firms or corporations for the acquisition, erection,
improvement, repair, equipping and furnishing of such buildings
and structures pursuant to Article XI-G of the Oregon
Constitution and ORS 351.345.
  SECTION 107. ORS 351.165 is amended to read:
  351.165. No later than March 1 of each odd-numbered year, the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } shall submit a report to the Legislative
Assembly concerning the status of all previously approved Oregon
University System capital construction projects that have not
been completed or have been completed within the preceding
24-month period. The report shall include the project title,
funding sources, the amount of the original appropriation or
expenditure limitation, the amount of unexpected funds, the
construction status and the anticipated completion date.
  SECTION 108. ORS 351.170 is amended to read:
  351.170. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may establish rates,
charges and fees for use of buildings, structures and projects
under its control.  The rates and charges shall be sufficient, in
the judgment of the board and with other available revenues, as
defined in ORS 351.160, to pay the operating costs and any
indebtedness for the buildings, structures and projects.
  (2) The board shall charge and collect from each regular
student a building fee at a rate not to exceed $45 for each
regular term, for not less than three terms in each regular
academic year, and not to exceed $67.50 if instruction is on a
semester basis, or an equivalent rate of charge when instruction
is on a different basis. The board is authorized to maintain
adequate accounts for bonds outstanding. The fee shall be in
addition to tuition and other fees charged to students and shall
be deposited in the appropriate subaccount of the account
maintained in the Oregon University System Fund under ORS
351.460.
  SECTION 109. ORS 351.180 is amended to read:
  351.180. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may cause the buildings,
structures or projects referred to in ORS 351.160 and 351.170 and
the equipment and furnishings therein and the appurtenances
thereto to be insured against fire and other hazards in such sums
as will protect the holders of the outstanding bonds issued to
finance the cost thereof. Such insurance shall be in lieu of that
afforded by the Insurance Fund, without right of insurers, in the
event of loss, to subrogation to or contribution from said fund.
  SECTION 110. ORS 351.190 is amended to read:
  351.190. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may obtain, by donation,
purchase, agreement or condemnation, the title to any land
authorized to be acquired by ORS 351.345, 351.350 and 351.450.
Condemnation proceedings instituted by the board shall be
conducted in accordance with ORS chapter 35.
  SECTION 111. ORS 351.203, as amended by section 216, chapter
637, Oregon Laws 2011, is amended to read:
  351.203. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall cooperate with
the Education and Workforce Policy Advisor in the development of
a state comprehensive education plan including post-secondary
education and in review of the board's programs and budget. The
board shall submit in timely fashion to the advisor such data as
is appropriate in a form prescribed by the advisor.
  (2) The board shall cooperate with the mediation process
administered by the Higher Education Coordinating Commission
pursuant to ORS 348.603 and, if a negotiated resolution cannot be
reached by mediation, comply with the decisions of the commission
regarding proposed new post-secondary programs and proposed new
post-secondary locations, including those proposed by Oregon
Health and Science University in cooperation with the   { - State
Board of Higher Education - }  { +  board + } under ORS 353.440.
  SECTION 112. ORS 351.205 is amended to read:
  351.205. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may allow interchange of
members of the faculties of public universities listed in ORS
352.002 with faculty members of comparable institutions of other
states or countries for a period of one year. Such exchange
service shall, for all purposes, be deemed continued service with
the Oregon public university covered, with salary paid to the
absent faculty member accordingly. Salary for the visiting
faculty member shall not be paid by the Oregon public university
covered.
  SECTION 113. ORS 351.210 is amended to read:
  351.210. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may sell or otherwise
dispose of any worn out, obsolete or otherwise unsuitable
equipment, goods, supplies, material or information technology,
the disposal of which would in the board's judgment be to the
financial benefit of the public universities under the board's
control. This section does not apply to any equipment, goods,
supplies, material or information technology encumbered by a
certificate of participation.
  (2) The proceeds from any sales or disposals made pursuant to
authority granted in this section shall be deposited in a
designated account in the Oregon University System Fund
established by ORS 351.506 and may be expended by the board for
any purpose authorized by law in the same manner as the board is
authorized to make other expenditures.
  SECTION 114. ORS 351.220 is amended to read:
  351.220. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may acquire by gift or by
purchase interests in intellectual property of any kind, whether
patentable or copyrightable or not, including patents,
copyrights, inventions, discoveries, processes and ideas. The
board may also agree to aid in the development of property
acquired pursuant to ORS 351.220 to 351.250 and to pay an
assignor of any interest in intellectual property a share of any
moneys received on account of the board's ownership or management
of the property.
  SECTION 115. ORS 351.230 is amended to read:
  351.230. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may manage, develop or
dispose of, by assignment, sale, lease, license or other action
deemed advisable by the board, property acquired under ORS
351.220, and may contract with any person or agency, board,
commission or department of this or any other state or with the
federal government regarding the management, development or
disposition thereof. The board may make gratuitous assignments of
such property to any trust or fund, the sole beneficiary of which
is the board or any of the public universities or offices,
departments or activities under its control, subject to the

share, if any, agreed to be paid to the assignor. The board may
reassign such property to the inventor, author or discoverer.
  SECTION 116. ORS 351.240 is amended to read:
  351.240. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may determine the terms and
conditions of any transaction authorized by ORS 351.220 to
351.250 and need not require competitive bids in connection
therewith. No formal publicity or advertising is required
regarding property for the development of which the board wishes
to contract, but the board shall make reasonable efforts to
disseminate such information in appropriate research and
industrial circles.
  SECTION 117. ORS 351.250 is amended to read:
  351.250. Moneys received by the board as a result of ownership
or management of property acquired under ORS 351.220 to 351.250
or of transactions regarding such property shall be credited to a
designated account in the Oregon University System Fund
established by ORS 351.506 and shall only be applied by the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } to payment of the agreed share, if any, to
assignors, and for the advancement of research or for the
acquisition and development of intellectual property, or both.
Interest earned by the account shall be credited to the account.
  SECTION 118. ORS 351.260 is amended to read:
  351.260. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may establish and maintain
planning facilities and undertake planning work for the provision
of, or related to, local planning services and may:
  (1) Upon the request of the governing body of any municipality,
county, Indian reservation or of a regional or joint planning
agency in the state, provide planning assistance to such
municipality, county, Indian reservation or planning agency
(including surveys, land use studies, urban renewal plans,
technical services and other planning work) and make or assist in
making a study or report upon any planning problem of such
municipality, county, Indian reservation or planning agency.
  (2) Agree with such governing body or planning agency as to the
amount to be paid to the board for such service.
  (3) Apply for and accept grants from the federal government and
other sources in connection with any such planning work.
  (4) Contract with respect thereto.
  SECTION 119. ORS 351.267 is amended to read:
  351.267. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall give
individual, written notice of reasonable assurance of continued
employment to all employees who are to perform services in the
same or a similar capacity during a subsequent academic year or
term or in the period immediately following a recess period. Such
notice shall be given by June 15 of each year for employees
employed as of that date and as of the date of hire for employees
employed subsequent to June 15.
  (2) Academic staff members on annual or indefinite tenure and
all other employees on regular status are considered to have been
given notice for the purposes of this section.
  (3) No liability shall accrue from failure to give the notice
required by subsection (1) of this section or from the timing or
contents thereof on the part of the board. However, the board
shall enforce the provisions of subsection (1) of this section.
  SECTION 120. ORS 351.277 is amended to read:
  351.277. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall establish by
rule procedures to identify officially sanctioned programs for
purposes of ORS 283.310 (3).
  (2) As used in this section, 'officially sanctioned program' is
a program identified by the   { - state - }  board through the

procedures established pursuant to subsection (1) of this
section.
  SECTION 121. ORS 351.282 is amended to read:
  351.282. Except for risk management and insurance functions,
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } and the Oregon University System
shall assume responsibility, in accordance with agreements
entered into with the Department of Justice and the State
Treasurer, for the indemnity and defense of their officers,
agents and employees or other persons designated by the board or
the system to carry out or further their missions with regard to
claims asserted and actions commenced as of January 1, 2012.
  SECTION 122. ORS 351.284 is amended to read:
  351.284. For risk management and insurance functions, the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } and the Oregon University System shall
assume responsibility, in accordance with agreements entered into
with the Oregon Department of Administrative Services regarding
its risk management function and the manager of the Insurance
Fund established in ORS 278.425, for the indemnity and defense of
their officers, agents and employees or other persons designated
by the board or the system to carry out or further their missions
with regard to claims asserted and actions commenced as of July
1, 2012.
  SECTION 123. ORS 351.287 is amended to read:
  351.287. Except as otherwise provided by law, all liabilities,
known and unknown, of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and the
Oregon University System existing on or arising after January 1,
2012, or, for liabilities related to risk management or insurance
functions, arising after July 1, 2012, are the sole
responsibility of the board and system. Damages, costs and other
expenses arising out of and related to liabilities of the board
and the system after January 1, 2012, shall be payable from the
Oregon University System Fund or from insurance purchased, a
self-insurance program established or another insurance
equivalent arranged for under ORS 351.096.
  SECTION 124. ORS 351.310 is amended to read:
  351.310. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall control the
use, distribution and disbursement of all funds, appropriations
and taxes now or hereafter in possession, levied and collected,
received or appropriated for the use, benefit, support and
maintenance of the public universities listed in ORS 352.002 and
offices, departments and activities under the control of the
board, including the authorization of individuals to sign
vouchers for the disbursement of funds for the various public
universities, offices, departments and activities.
  (2) All moneys, except moneys appropriated from the State
Treasury for expenditure within a specified period of time,
heretofore or hereafter received by or on behalf of the board, or
any public university or office, department or activity under the
control of the board, that are not otherwise appropriated by law,
hereby are appropriated continuously to the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
for the purposes for which such moneys were donated, granted or
received, in accordance with any applicable law governing the use
of such moneys.
  SECTION 125. ORS 351.320 is amended to read:
  351.320. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may prorate all expenses
not otherwise provided for, incurred under authority of ORS
 { - 351.040, 351.045, - } 351.100, 351.110, 351.130 and 351.310
to the public universities under its control, and pay the same
from the funds available for the general expenses of those
universities.
  SECTION 126. ORS 351.340 is amended to read:
  351.340. All sums of money provided by law for the support and
maintenance of the public universities listed in ORS 352.002 and
offices, departments and activities under the control of the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } may be used for the payment of salaries of
instructors and employees, current expenses, construction of
additional buildings, purchase of lands, purchase of equipment,
purchase of library books and periodicals, purchase of laboratory
supplies and apparatus and making necessary repairs and, in
general, for the payment of all such expenses connected with the
management of the public universities and offices, departments
and activities, as the board may from time to time determine.
However, such moneys in the instruction budget of the board shall
not be used to support hobby or recreation courses.
  SECTION 127. ORS 351.345 is amended to read:
  351.345. In order to provide funds for the purposes specified
in Article XI-G of the Oregon Constitution, the   { - State Board
of Higher Education - }   { + Oregon Education Investment
Board + } may request the State Treasurer to issue bonds in
accordance with the provisions of ORS chapter 286A.
  SECTION 128. ORS 351.350 is amended to read:
  351.350. In order to provide funds for the purposes specified
in Article XI-F(1), Oregon Constitution, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
may request the State Treasurer to issue bonds in accordance with
the provisions of ORS chapter 286A.
  SECTION 129. ORS 351.353 is amended to read:
  351.353. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may undertake the
construction of an off-street motor vehicle parking facility in
Portland, Oregon, for higher education pursuant to Article
XI-F(1), Oregon Constitution, ORS 351.160 to 351.190, 351.350 to
351.460 and 351.505. The parking facility shall be for the use of
the students and staff members of the board. The board shall
establish the rates, charges and fees for use of the parking
facility in accordance with the provisions of ORS 351.170.
  (2) Bonds may be sold to finance the facility described in this
section, in an amount authorized and under the conditions
prescribed by ORS 351.350.
  SECTION 130. ORS 351.356 is amended to read:
  351.356. (1) As used in this section:
  (a) 'Bond' means a bond issued under Article XI-F(1) of the
Oregon Constitution.
  (b) 'Credit enhancement device' means a letter of credit, line
of credit, bond insurance policy, standby purchase agreement,
surety bond or other device or facility used to enhance the
creditworthiness, liquidity or marketability of a bond.
  (c) 'Financial agreement' means an agreement for exchange of
interest rates, as defined in ORS 286A.001, a credit enhancement
device or an agreement made in connection with a credit
enhancement device, that is executed for one or more bonds.
  (2) The State of Oregon, acting through the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + } or the State Treasurer, may:
  (a) Enter into financial agreements.
  (b) Identify, segregate, pledge and agree to pay amounts due
under financial agreements entered into under this section from:
  (A) The revenues described in section 2, Article XI-F(1) of the
Oregon Constitution; or
  (B) The unexpended proceeds of the bonds for which financial
agreements are executed.
  (c) To the extent permitted by Article XI-F(1) of the Oregon
Constitution, issue bonds to secure the state's obligation to
make payments under a financial agreement. If a bond is issued
under this paragraph, the bond amount shall count toward the
limit described in section 1, Article XI-F(1) of the Oregon
Constitution, only to the extent that it increases the amount the
state is obligated to pay under other bonds.
  SECTION 131. ORS 351.460 is amended to read:
  351.460. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall maintain an
account within the Oregon University System Fund established by
ORS 351.506 to provide for the payment of the principal of and
the interest upon:
  (a) The bonds issued under authority of Article XI-F(1) of the
Oregon Constitution and ORS 351.350;
  (b) The bonds issued under authority of Article XI-G of the
Oregon Constitution and ORS 351.345; and
  (c) Amounts due under financial agreements entered into under
ORS 351.356.
  (2) The account maintained under this section comprises one
subaccount for each of the purposes of the account identified in
subsection (1) of this section.
  (3) Income and interest derived from moneys in the subaccounts
of the account maintained under this section are credited to the
appropriate subaccount.
  (4) The sources of moneys for the account maintained under this
section are:
  (a) All moneys received from ad valorem taxes levied pursuant
to ORS 291.445;
  (b) All moneys that the Legislative Assembly may provide in
lieu of ad valorem taxes;
  (c) The revenues transferred to the account maintained under
this section pursuant to subsection (6) of this section;
  (d) All moneys received as accrued interest upon bonds sold;
  (e) All earnings from investments of the account;
  (f) Net proceeds of the sale of refunding bonds; and
  (g) All moneys that the State of Oregon has agreed to hold in
the account to pay amounts due under financial agreements entered
into under ORS 351.356.
  (5) The board may credit the account maintained under this
section with moneys received from either a sale or interfund
transfer of buildings, structures, land or other projects. When
the buildings, structures, land or other projects are sold or the
use of the buildings, structures, land or other projects is
rededicated so that a transfer from one subaccount to another
subaccount is appropriate, the moneys received shall be credited
to the appropriate subaccount.
  (6)(a) The board shall transfer revenues to the account
maintained under this section in amounts sufficient to pay, when
due, the principal of and the interest and any premium upon the
bonds issued under authority of Article XI-F(1) of the Oregon
Constitution. Revenues not required for the account as described
in this subsection shall be transferred to other accounts and
subaccounts within the Oregon University System Fund that are
designated by the   { - Chancellor of the Oregon University
System - }  { +  Chief Education Officer + }. The portion of
student building fees that are imposed under ORS 351.170 to
provide the funds with which to amortize the principal of and pay
the interest on bonds issued under Article XI-F(1) of the Oregon
Constitution shall be applied only to pay those bonds.
  (b) For purposes of this subsection, 'revenues' includes all
funds available to the board except:
  (A) Amounts appropriated by the Legislative Assembly from the
General Fund; and
  (B) Lottery funds allocated for debt service.
  (7)(a) The board may not use the account maintained under this
section for any purpose other than the purposes for which the
account was created.
  (b) Notwithstanding paragraph (a) of this subsection, if the
balance in any subaccount exceeds the amount required to pay debt
service during a fiscal period, the board may transfer the
surplus in the subaccount to other accounts in the Oregon
University System Fund. This paragraph does not apply to any
surplus consisting of General Fund moneys appropriated for debt
service or lottery funds allocated for debt service. Any surplus
consisting of General Fund moneys appropriated for debt service
shall revert to the General Fund as provided in ORS 293.190.
  SECTION 132. ORS 351.473 is amended to read:
  351.473. As used in ORS 351.473 to 351.485:
  (1) 'Bond-related costs' means:
  (a) The costs and expenses of issuing, administering and
maintaining higher education revenue bonds including, but not
limited to, the costs of:
  (A) Paying or redeeming higher education revenue bonds.
  (B) Paying amounts due in connection with credit enhancement
devices or agreements for exchange of interest rates.
  (C) Paying the fees, administrative costs and expenses of the
State Treasurer and the Oregon University System, including the
costs of consultants or advisers retained by the State Treasurer
or the   { - Chancellor of the Oregon University System - }  { +
Chief Education Officer + }, for the higher education revenue
bonds.
  (b) The costs of funding reserves for the higher education
revenue bonds.
  (c) Capitalized interest for the higher education revenue
bonds.
  (d) Rebates or penalties due to the United States in connection
with the higher education revenue bonds.
  (e) Any other costs or expenses that the State Treasurer or the
 { - chancellor - }  { +  Chief Education Officer + } determines
are necessary or desirable in connection with issuing and
maintaining the higher education revenue bonds.
  (2) 'Higher education revenue bonds' means revenue bonds issued
pursuant to ORS 351.476.
  (3) 'Higher education revenues' includes:
  (a) Tuition, fees and charges imposed or collected by the
Oregon University System, or by one of the public universities in
the system; and
  (b) Moneys appropriated, allocated or otherwise made available
to the Oregon University System, or to one of its universities,
by the Legislative Assembly, if those moneys are lawfully
available to pay the bond-related costs of higher education
revenue bonds.
  SECTION 133. ORS 351.476 is amended to read:
  351.476. (1) At the request of the   { - Chancellor of the
Oregon University System - }  { +  Chief Education Officer + },
the State Treasurer may issue, as provided in ORS chapter 286A,
higher education revenue bonds from time to time, the net
proceeds of which must be used to:
  (a) Finance projects that the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }
determines will assist the Oregon University System in carrying
out its statutory powers;
  (b) Refund bonds issued for the projects; and
  (c) Pay bond-related costs.
  (2)(a) Before pledging all or a portion of higher education
revenues, pursuant to ORS 286A.102, to secure higher education
revenue bonds, higher education credit enhancement devices or
agreements for exchange of interest rates related to such revenue
bonds or credit enhancement devices, the   { - chancellor - }
 { +  Chief Education Officer + } shall reserve sufficient funds
each biennium to satisfy any payment or reserve requirements
relating to:
  (A) General obligation bonds or certificates of participation
issued for the benefit of the Oregon University System;

  (B) Credit enhancement devices or agreements for exchange of
interest rates entered into in connection with obligations
related to general obligation bonds or certificates of
participation issued for the benefit of the Oregon University
System; and
  (C) Loans to the Oregon University System funded by state
general obligation bonds.
  (b) Pursuant to ORS 286A.010, the Oregon University System
shall provide cash flow projections and other information
requested by the State Treasurer to determine the sufficiency of
higher education revenues to satisfy the requirements of
paragraph (a) of this subsection and any proposed revenue bonds.
  (c) For purposes of the issuance of bonds and ORS chapter 286A,
the Oregon University System shall be considered a related agency
as defined in ORS 286A.001 (9).
  (d) The   { - chancellor - }  { +  Chief Education Officer + }
shall identify the specific higher education revenues that will
be pledged to secure each series of higher education revenue
bonds and specify the status of the lien of each pledge.
  (3) The   { - chancellor - }  { +  Chief Education Officer + }
may enter into covenants, pursuant to ORS 286A.025 (4)(c), on
behalf of the State of Oregon for the benefit of holders of
higher education revenue bonds, providers of credit enhancement
for higher education revenue bonds and counterparties to
agreements for exchange of interest rates to:
  (a) Adjust the rates, charges or fees that produce higher
education revenues so that higher education revenues equal or
exceed specified levels during specified periods.
  (b) Create only those pledges or liens on higher education
revenues that are permitted by the covenants authorized by this
section.
  (c) Budget and apply higher education revenues, or otherwise
allow higher education revenues to be applied, in amounts that,
when added to other moneys lawfully available for the purpose,
will be sufficient:
  (A) To pay in full and when due the principal, interest and
premium on outstanding higher education revenue bonds;
  (B) To pay amounts due in connection with agreements for
exchange of interest rates and credit enhancement devices for
higher education revenue bonds; and
  (C) To maintain the balance required by covenants in any debt
service reserves established for the higher education revenue
bonds.
  (4) The   { - chancellor - }  { +  Chief Education Officer + }
shall operate the properties of the Oregon University System in
compliance with the higher education revenue bond covenants until
all higher education revenue bonds are paid or defeased.
  (5) Higher education revenue bonds are not a general obligation
of the State of Oregon, and neither the full faith and credit nor
the taxing power of the State of Oregon may be pledged to secure
or pay the higher education revenue bonds.
  (6) The State Treasurer and the Oregon University System do not
have an obligation to pay bond-related costs except as provided
in ORS 351.473 to 351.485. A holder of higher education revenue
bonds issued under this section does not have the right to compel
the exercise of the taxing power of the State of Oregon to pay
bond-related costs.
  (7) As long as any higher education revenue bonds issued under
this section are outstanding, covenants related to the higher
education revenue bonds are deemed to be contracts between the
State of Oregon and holders of the higher education revenue
bonds. The State of Oregon may not give force or effect to a
statute or initiative or referendum measure approved by the
electors of this state if doing so would unconstitutionally
impair existing covenants made with the holders of existing
higher education revenue bonds or would unconstitutionally impair
other obligations or agreements regarding the security of higher
education revenue bonds to which the moneys deposited in the
accounts established by ORS 351.479, 351.482 and 351.485 are
pledged and assigned.
  (8) The principal, interest and any premium and any issuance
costs on a financing agreement under ORS 283.085 to 283.092, any
general obligation bond, any revenue bond and any related credit
enhancement device or interest rate exchange agreement shall be
paid from the sources specified in the laws and documents
authorizing the financing agreement, bond, credit enhancement
device or interest rate exchange agreement. The Oregon University
System shall pay any other expenses and liabilities, including
but not limited to legal expenses, costs of settling claims,
judgments, federal arbitrage rebates and penalties and expenses
arising from an inquiry, audit or other action by a federal or
state regulatory body, unless the expense or liability results
solely from the negligence or willful misconduct of a state
agency.
  (9) Pursuant to ORS chapter 180, on behalf of the State
Treasurer or any other state agency, the Attorney General shall
appear, commence, prosecute or defend any action, suit, matter,
cause or proceeding arising from any financing agreement under
ORS 283.085 to 283.092, any bond issued for the benefit of the
Oregon University System and any related credit enhancement
device or interest rate exchange agreement.
  SECTION 134. ORS 351.505 is amended to read:
  351.505. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may, in its discretion,
accept financial assistance and grants, either in the form of
money or labor, from the United States or any of its agencies,
subject to the terms and conditions thereof, regardless of any
laws of this state in conflict with the regulations of the
federal government with respect thereto, and may also accept from
others any donation or grant of land or gift of money or other
valuable gift or thing, for any of the purposes contemplated by
Article XI-F(1) and Article XI-G of the Oregon Constitution, ORS
351.160 to 351.190, 351.345 to 351.460, 351.500 and 351.505.
Unless enjoined by the terms or conditions of any such gift or
grant, the board may convert the same, or any of them, into
money, through sale or disposal thereof.
  SECTION 135. ORS 351.506 is amended to read:
  351.506. (1) The Oregon University System Fund is established
in the State Treasury, separate and distinct from the General
Fund. Any interest or other investment income derived from moneys
in the Oregon University System Fund is credited to the fund.
  (2) Except for moneys otherwise designated by statute or
federal law, all moneys received by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
or the Oregon University System shall be paid into the State
Treasury and credited to the Oregon University System Fund. All
moneys in the fund are continuously appropriated to the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } for purposes authorized by law.
  (3) The moneys in the Oregon University System Fund may be
invested as provided in ORS 293.701 to 293.820.
  (4) The board may establish accounts and subaccounts within the
Oregon University System Fund when the board determines that
accounts or subaccounts are necessary or desirable. Except when
otherwise specified by a statute establishing an account, the
board may credit any interest or income derived from moneys in
the fund to any account or subaccount within the fund.
  (5) The board shall keep a record of all moneys deposited into
the Oregon University System Fund. The record shall indicate by
separate cumulative accounts and subaccounts the sources from
which the moneys are derived and the individual activity or
program against which each withdrawal is charged.
  SECTION 136. ORS 351.590 is amended to read:
  351.590. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
receiving all revenue from incidental fees, optional fees, health
services fees and all operating revenue from intercollegiate
athletics, student unions and educational activities.
  (2) Disbursements from the account designated by this section,
including any interest credited to the account, may be made for
necessary expenses for supplies, services and equipment
associated with student activities including but not limited to
recruiting, training and grant-in-aid to intercollegiate
athletes.
  (3) Income and interest derived from moneys in the account
designated by this section are credited to the account. The
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } shall distribute annually the total interest
earnings proportionately to each public university listed in ORS
352.002 based on each university's average cash balance in the
account.
  SECTION 137. ORS 351.615 is amended to read:
  351.615. Moneys set aside by higher education auxiliary
activities for repair and alteration of buildings and replacement
of equipment shall be credited to an account designated for that
purpose in the Oregon University System Fund established by ORS
351.506. Income and interest derived from moneys in the account
are credited to the account for distribution to the several
auxiliary activities in accord with rules adopted by the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }. The moneys in the account may be used only
for the repair and alteration of auxiliary enterprise buildings
and replacement of equipment as designated by the board, after
hearing any recommendations by recognized student governments.
  SECTION 138. ORS 351.627 is amended to read:
  351.627. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
capital construction.
  (2) The account designated by this section consists of moneys
credited to the account, including moneys from the Administrative
Services Economic Development Fund. Interest earned on moneys in
the account is credited to the account.
  (3) A building, facility or project to be funded from the
account designated by this section may not be commenced and an
expenditure for the building, facility or project may not be made
or incurred except for land purchases and architectural or
engineering planning until a plan for the building, facility or
project has been submitted by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } to and
approved by the Emergency Board.
  SECTION 139. ORS 351.633 is amended to read:
  351.633. Any contract entered into by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
to be paid from the account designated by ORS 351.627 for which
there are insufficient funds in the account at the time the
contract is entered into must contain a provision authorizing
cancellation of the contract if the funds do not become
available.
  SECTION 140. ORS 351.638 is amended to read:
  351.638. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
attracting new, outstanding faculty members to the public
universities listed in ORS 352.002. This purpose includes payment
of costs incurred in relocating new faculty, retraining necessary
teaching assistants for new faculty, acquisition of equipment
such as laboratory equipment and facilities to support research
by new faculty, payment of other costs incurred in recruiting new
faculty and payment of costs associated with committing salary
supplements to newly recruited faculty over a period of more than
one year.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall seek funds from private
sources for deposit to the credit of the account designated by
this section.
  SECTION 141. ORS 351.642 is amended to read:
  351.642. (1) As used in this section:
  (a) 'Active member of the Armed Forces of the United States'
includes officers and enlisted personnel of the Armed Forces of
the United States who:
  (A) Reside in this state while assigned to duty at any base,
station, shore establishment or other facility in this state;
  (B) Reside in this state while serving as members of the crew
of a ship that has an Oregon port or shore establishment as its
home port or permanent station; or
  (C) Reside in another state or a foreign country and establish
Oregon residency by filing Oregon state income taxes no later
than 12 months before leaving active duty.
  (b) 'Armed Forces of the United States' includes:
  (A) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (B) Reserve components of the Army, Navy, Air Force, Marine
Corps and Coast Guard of the United States; and
  (C) The National Guard of the United States and the Oregon
National Guard.
  (c) 'Dependent children' includes any children of an active
member of the Armed Forces of the United States who:
  (A) Are under 18 years of age and not married, otherwise
emancipated or self-supporting; or
  (B) Are under 23 years of age, unmarried, enrolled in a
full-time course of study in an institution of higher learning
and dependent on the member for over one-half of their support.
  (2) Active members of the Armed Forces of the United States and
their spouses and dependent children shall be considered
residents of this state for the purpose of admission and for the
purpose of determining fees and tuition to be paid by such
individuals while attending any public university that is under
the control of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }.
  (3) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may contract with the Armed Forces
of the United States to furnish educational service in the public
universities to active members of the Armed Forces of the United
States.
  (4) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall determine the number of such
students that should be accepted and shall make final decisions
on admission of individual applicants.
  (5) Students attending the public universities under contracts
with the Armed Forces of the United States under this section
shall pay fees and tuition customarily charged Oregon students.
  (6) Payments made by the Armed Forces of the United States
under such contracts shall be deposited in a designated account
in the Oregon University System Fund established by ORS 351.506
in the same manner that fees and tuition payments for resident
students are deposited and credited.
  SECTION 142. ORS 351.643 is amended to read:
  351.643. (1) A student at a public university listed in ORS
352.002 who is a member of the military and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:

  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
public university for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 351.644 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the public
university, the right to be readmitted and reenrolled at the
public university within one year after release from active duty
without a requirement of redetermination of admission
eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the public university
or the Oregon Student Access Commission before the student was
ordered to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the public university may
not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall adopt rules for the
administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 143. ORS 351.644 is amended to read:
  351.644. (1)(a) The amount of the credit specified in ORS
351.643 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at a public
university listed in ORS 352.002 or from the public university,
the student must elect to claim the credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the public university under ORS 351.643
(1)(c); or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
public university from which the student withdraws.
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the public university that the student died while
serving on active duty.
  (5) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall adopt rules for the
administration of this section, including rules that determine
the amount of credit and the method by which the credit is
prorated.
  SECTION 144. ORS 351.646 is amended to read:
  351.646. A public university listed in ORS 352.002 shall give
credit for education and training obtained by a person while
serving in the Armed Forces of the United States, as defined in
ORS 351.642. The education and training for which credit may be
given must meet the standards adopted by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
by rule.
  SECTION 145. ORS 351.647, as amended by section 229, chapter
637, Oregon Laws 2011, is amended to read:
  351.647. The Legislative Assembly finds that:
  (1) It is in the interest of this state and its people that
Oregon residents have access to the post-secondary institutions
in the Northwest which best provide for the educational needs of
those students;
  (2) The people of Oregon and their post-secondary institutions
benefit through the provision of access to Oregon colleges and
universities for students from the state of Washington and from
the enhanced economic and cultural well-being of the northwest
region;
  (3) The state should reduce or eliminate the nonresident
tuition barriers which might exist between the states of Oregon
and Washington to restrict or inhibit enrollment of residents of
one of these states in a community college or public college or
university in the other state;
  (4) The general policy statement on reduction of admission and
tuition barriers between the states of Oregon and Washington
shall not apply to students at the Oregon Health and Science
University, where enrollment priority shall continue to be given
to qualified Oregon residents; and
  (5) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } and the Higher Education
Coordinating Commission shall develop plans to carry out the
intent of this policy within the appropriations available, and
shall report to the appropriate legislative review agency before
implementing the plan.
  SECTION 146. ORS 351.658 is amended to read:
  351.658. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall direct each
public university listed in ORS 352.002 to waive tuition for any
course audited by an Oregon resident 65 years of age or older if:
  (a) Space is available in the course for additional students to
register after degree-seeking students have registered;
  (b) The department in which the course is being taught
approves; and
  (c) The auditing student is registered for eight credits or
fewer per term.
  (2) The public university may charge the student attending
under subsection (1) of this section fees associated with the
course being audited.
  (3) A public university may develop rules for implementation of
this section, including rules relating to registration, admission
and fees.
  SECTION 147. ORS 351.663 is amended to read:
  351.663. (1) The Engineering and Technology Industry Council is
established. A majority of the council members are
representatives of high technology companies in Oregon. The
council shall be consulted on the work plans and resource
allocations for engineering education.
  (2) The council shall establish criteria and measurements that
will be used for determining investments made from the account
designated by ORS 351.666.
  (3) The criteria and measurements established by the council
include:
  (a) Responding to the urgent engineering educational needs of
Oregon's fast growing high technology industry, especially in the
Portland metropolitan area.
  (b) Increasing this state's faculty and program capacity to
meet the graduate level, professional education needs of
engineers working in Oregon's high technology industry through
investments in public and private institutions.
  (c) Creating additional opportunities for Oregonians to pursue
education in electrical engineering, computer engineering and
other engineering disciplines critical to the advancement of
Oregon's high technology industry.
  (d) Investing relatively scarce state financial resources to:
  (A) Address the high technology industry's most demonstrated
and pressing needs;
  (B) Produce the greatest amount of educational benefits with
the least short-term and long-term costs to the public;
  (C) Avoid duplicating existing public or private resources; and
  (D) Leverage existing and future private resources for the
public benefit.
  (e) Making all investments in public and private institutions
through performance-based contracts with measurable outcomes in
order to ensure strong linkage between the most urgent
engineering education needs and implemented solutions.
  (f) Maximizing the leverage of state investment funds to build
faculty and program capacity and share existing and new faculty
and program resources.
  (4) Priority is given to investments where private financial
resources from Oregon high technology companies or individuals
with significant interests in the growth of high technology in
Oregon are made available to augment public funds.
  (5) The council must submit biennial performance reviews of all
investments made to improve engineering education with public
funds in public and private institutions. The reviews must be
submitted to the   { - Chancellor of the Oregon University
System - }  { +  Chief Education Officer + } and the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }.
  SECTION 148. ORS 351.666 is amended to read:
  351.666. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
investments in engineering education. Interest earned on moneys
in the account is credited to the account.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall use the moneys in the
account designated by this section solely for the purpose of
investing in engineering education. The board shall follow the
criteria and measurements established by the Engineering and
Technology Industry Council in allocating moneys for investments
in engineering education.
  SECTION 149. ORS 351.668 is amended to read:
  351.668. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall use the money from
the account designated by ORS 351.666 solely for the purpose of
investing in engineering education. The board shall follow the
criteria and measurements established by the Engineering and
Technology Industry Council in allocating money for investments
in engineering education.
  SECTION 150. ORS 351.692 is amended to read:
  351.692. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall adopt policies that
prescribe the requirements for a venture grant program and the
requirements that a grant applicant must meet in order to receive
grant moneys from a university venture development fund,
including requirements:
  (1) That a grant recipient remain within this state for at
least five years following the receipt of a grant or repay the
grant plus interest;
  (2) That each university that establishes a university venture
development fund report amounts of tax credit certificates issued
by the university and maintain records of income realized by the
university as the result of grants made from the fund and records
of amounts paid to the General Fund; and
  (3) Under which the Oregon University System is to maintain
records and issue directions to universities that have
established university venture development funds relating to when
universities must cease issuing certificates, in order to ensure
that the total amount owed to the General Fund by the Oregon
University System at any one time under ORS 351.697 (6) does not
exceed $6 million.
  SECTION 151. ORS 351.697 is amended to read:
  351.697. (1) Each university in the Oregon University System
and Oregon Health and Science University may elect to establish a
university venture development fund as provided in this section
for the purpose of facilitating the commercialization of
university research and development. A university shall direct
that the university venture development fund be administered, in
whole or in part, by the university or by the university's
affiliated foundation.
  (2) The purposes of a university venture development fund are
to provide:
  (a) Capital for university entrepreneurial programs;
  (b) Opportunities for students to gain experience in applying
research to commercial activities;
  (c) Proof-of-concept funding for transforming research and
development concepts into commercially viable products and
services;
  (d) Entrepreneurial opportunities for persons interested in
transforming research into viable commercial ventures that create
jobs in this state; and
  (e) Tax credits for contributors to university research
commercialization activities.
  (3) Each university that elects to establish a university
venture development fund shall:
  (a) Notify the Department of Revenue of the establishment of
the fund;
  (b) Either directly or through its affiliated foundation,
solicit contributions to the fund and receive, manage and
disburse moneys contributed to the fund;
  (c) Subject to ORS 315.521 (1), 351.692 (3) and 353.445 (3),
issue tax credit certificates to contributors to the fund in the
amount of the contributions;
  (d) Establish a grant program that meets the requirements for a
venture grant program under policies adopted by the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } under ORS 351.692 or under policies adopted by the
Oregon Health and Science University Board of Directors under ORS
353.445; and
  (e) Subject to available moneys from the fund, provide
qualified grant applicants with moneys for the purpose of
facilitating the commercialization of university research and
development.
  (4) Except as provided in subsection (5) of this section,
moneys in a university venture development fund shall be
disbursed only as directed by a university.
  (5) A university or its affiliated foundation may charge its
customary administrative assessment to manage its university
venture development fund in an amount not to exceed three percent
of the fund's average balance during the fiscal year of the
university or its affiliated foundation. The administrative
assessment may be paid from the assets in the fund. Except as
authorized by law, no other fees or indirect costs shall be
charged against the university venture development fund or any
associated grants or other disbursements from the fund.
  (6) A university that has established a university venture
development fund shall monitor the use of grants made from the
fund and identify the income realized by the university as the
result of the use of the grants. Income consists of cash realized
from royalties, milestone and license fee payments and cash from
the sale of equity. The university shall cause the transfer of 20
percent of the income realized from the grants to the General
Fund, but not to exceed the amount of the tax credits issued by
the university as a result of contributions to its university
venture development fund. Immediately upon deposit of the
transferred amount into the General Fund, the university may
issue new tax credits to equal the transferred amount.
  (7) A university that has established a university venture
development fund shall report annually to the Legislative
Assembly or, if the Legislative Assembly is not in session, to
the interim legislative committees on revenue. The report shall
be at the end of the fiscal year of the university or of its
affiliated foundation and provide information for that fiscal
year. The university shall include in the report the following
information pertaining to its university venture development
fund:
  (a) The amount of donations received for the fund;
  (b) The amount of income received from the fund;
  (c) The amount of disbursements and grants paid from the fund;
  (d) The amount of income and royalties received from
disbursements from the fund; and
  (e) The amount of moneys transferred from the fund to the
General Fund.
  SECTION 152. ORS 351.708 is amended to read:
  351.708. The State Board of Education and the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + } shall establish baselines and conduct annual reviews of
each public institution of higher education with respect to the
employment of full-time faculty and of faculty working less than
full-time. Each public institution of higher education shall
provide the necessary data for the board's report prior to
September 1 of each year. The boards shall report the results of
the reviews to the Legislative Assembly and the Governor's office
prior to October 1 of each year. The reviews shall include:
  (1) Examination of data related to the ratio of courses taught
by the following faculty categories:
  (a) Full-time faculty;
  (b) Part-time faculty; and
  (c) Graduate assistants;
  (2) The pay differential for the faculty categories; and

  (3) The health care and other benefits provided for each
faculty category.
  SECTION 153. ORS 351.718 is amended to read:
  351.718. (1) The members of the Higher Education Coordinating
Commission must be residents of this state who are well informed
on the principles of higher education.
  (2) A member of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, Oregon Health and
Science University Board of Directors or the governing board of a
community college district may not serve as a member of the
Higher Education Coordinating Commission.
  SECTION 154. ORS 351.735 is amended to read:
  351.735. The Higher Education Coordinating Commission shall:
  (1) Develop state goals and associated accountability measures
for the state post-secondary education system, including
community colleges and public universities listed in ORS 352.002,
and for the Oregon Student Access Commission.
  (2) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (a) Increasing the educational attainment of the population;
  (b) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (c) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (d) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (3) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (4) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (a) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (b) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, with the goal of
encouraging tuition affordability for students;
  (c) Tuition rates set by each community college governing board
for community colleges in this state;
  (d) Recommended biennial appropriations for student financial
aid; and
  (e) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (5) Each biennium, recommend to the Governor and the
Legislative Assembly a consolidated higher education budget
request consistent with the finance model, including
appropriations for:
  (a) Ongoing operations of the Oregon Student Access Commission;
  (b) Ongoing operations for the Oregon University System;
  (c) Ongoing operations for community colleges;
  (d) Needed new facilities or programs; and
  (e) Capital improvements.
  (6) Design and maintain a statewide educational data system, in
collaboration with the State Board of Education.
  (7) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (8) Approve and authorize degrees for the Oregon University
System.
  (9) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  SECTION 155. ORS 351.810 is amended to read:
  351.810. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }, the Oregon Health and
Science University and the Oregon members of the Western
Interstate Commission for Higher Education are authorized to take
any action necessary to achieving the ends of the Western
Regional Higher Education Compact.
  SECTION 156. ORS 351.820 is amended to read:
  351.820. (1) Prior to June 1 of each even-numbered year the
Oregon members of the Western Interstate Commission for Higher
Education shall determine the quotas of Oregon students for whom
various kinds of educational service should be purchased in
out-of-state institutions during the next biennium and shall
recommend to the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } and the Oregon Health and
Science University Board of Directors the amount to be included
in its biennial budget to cover the cost of such educational
service for students enrolled in their respective institutions.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } and the Oregon Health and Science
University Board of Directors shall negotiate contracts with the
Western Interstate Commission for Higher Education for
educational service of the kind and amount indicated by the
quotas determined under subsection (1) of this section. The
 { + Oregon Education Investment + } Board shall make payments
required by such contracts out of the money appropriated to it
for that purpose.
  (3) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may also contract with higher
education institutions, or others, which are not members of the
Western Interstate Commission for Higher Education, to furnish
educational services to students who are residents of the State
of Oregon in those areas of higher education where the
educational institutions of the State of Oregon are unable to
provide the desired professional educational opportunities.
  SECTION 157. ORS 351.830 is amended to read:
  351.830. (1) Any Oregon resident desiring to take advantage of
the Western Regional Higher Education Compact may make
application to the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } for out-of-state
educational service.  From such applicants the board shall select
students to fill the quotas determined under ORS 351.820.
  (2) The board and the Oregon members of the Western Interstate
Commission for Higher Education shall jointly establish criteria
to be observed by the board in making such selections.
  (3) The board shall certify the names of the students selected
to the Western Interstate Commission for Higher Education and to
the out-of-state institution to which each student desires
admission.
  SECTION 158. ORS 351.840 is amended to read:
  351.840. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } and the Oregon Health
and Science University Board of Directors may contract with the
Western Interstate Commission for Higher Education to furnish
educational service in their respective Oregon public
universities to out-of-state students.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } and the Oregon Health and Science
University Board of Directors shall determine the number of
out-of-state students that should be accepted into their
respective universities, and shall make final decisions on
admission of individual applicants.
  (3) Payments made by the commission under such contracts shall
be deposited in and credited to a designated account in the
Oregon University System Fund established by ORS 351.506 for
students enrolled in public universities under the jurisdiction
of the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } in the same manner that fees and
tuition payments for resident students are deposited and
credited. The estimated amount of the payments must be considered
by the  { + Oregon Education Investment + } Board in making its
biennial budgetary requests.  Payments made by the commission
under such contracts must be deposited with the Oregon Health and
Science University for students who enroll in that university
under the terms of such contracts.
  SECTION 159. ORS 351.870 is amended to read:
  351.870. (1) The Legislative Assembly finds and declares that
basic research is fundamental to the continuation and expansion
of applied research and is thus a necessary ingredient in
economic growth. The Legislative Assembly further finds that
basic research is itself an important activity which should be
promoted.
  (2) It is the policy of this state that basic research is an
appropriate and necessary activity of our public universities.
Further, the State of Oregon has an obligation with other states
and the federal government to encourage and finance basic
research if the state and nation are to be active participants in
a future which will require ever increasing levels of knowledge
and understanding.
  (3) The Legislative Assembly acknowledges that a characteristic
of basic research is that no defined result can be guaranteed and
asserts that only through scholarly investigation can knowledge
be advanced to be later developed and applied.
  (4) The Legislative Assembly believes that moneys for basic
research should be regularly appropriated and that such moneys
should be used for support of qualified investigators and funding
of research projects.
  (5) The Legislative Assembly intends that in implementing the
policy on basic research or any other research policy, the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }, in keeping with the principle of academic
freedom, shall ensure open and free inquiry and publication in
all public universities under its jurisdiction.
  SECTION 160. ORS 351.875 is amended to read:
  351.875. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated to provide grants for
research.
  (2) The account designated by this section may consist of
moneys from any public or private source. Interest earned on the
account is credited to the account.
  (3) The account designated by this section shall be
administered by the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } according to policies
and procedures adopted pursuant to ORS 351.880 and 351.885.
  (4) Expenditures from the account designated by this section
shall take the form of grants for a time certain and may extend
beyond the biennium in which the expenditure is made. Grants may
not be used for capital construction.
  SECTION 161. ORS 351.880 is amended to read:
  351.880. For the purpose of recommending policies and
procedures for the administration of the account designated by
ORS 351.875, the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall establish a Council
for Research Policy Recommendations.
  SECTION 162. ORS 351.885 is amended to read:
  351.885. (1) With the advice and recommendations of the Council
for Research Policy Recommendations established by ORS 351.880,
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } shall adopt policies and
procedures for the administration of the account designated by
ORS 351.875.
  (2) The policies and procedures shall give consideration to:
  (a) The promotion of basic research of the highest caliber at
public universities within the Oregon University System;
  (b) The identification of areas of inquiry that should be
supported so as to recognize both the intrinsic value and
extrinsic economic value of basic research;
  (c) The capacity of each public university to decide where
basic research moneys could best be spent within that public
university;
  (d) Administrative and accounting requirements that place upon
the public university receiving moneys from the account
designated by ORS 351.875 a minimum burden sufficient to
guarantee an appropriate degree of public accountability; and
  (e) Methods of ensuring nondiscriminatory access to the account
designated by ORS 351.875.
  SECTION 163. ORS 352.002 is amended to read:
  352.002. The Oregon University System established in ORS
351.011 consists of the following public universities under the
jurisdiction of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }:
  (1) University of Oregon.
  (2) Oregon State University.
  (3) Portland State University.
  (4) Oregon Institute of Technology.
  (5) Western Oregon University.
  (6) Southern Oregon University.
  (7) Eastern Oregon University.
  SECTION 164. ORS 352.010 is amended to read:
  352.010. The president and professors constitute the faculty of
each of the public universities listed in ORS 352.002 and as such
have the immediate government and discipline of the public
university and the students therein, except as otherwise provided
by statute or action of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }. The
faculty may, subject to the supervision of the board under ORS
351.070, prescribe the course of study to be pursued in the
public university and the textbooks to be used.
  SECTION 165. ORS 352.021 is amended to read:
  352.021. (1) As used in this section, 'internment camp ' means
a relocation center to which persons were ordered evacuated by
Presidential Executive Order 9066, signed on February 19, 1942.
  (2) A person who meets the requirements of subsection (4) of
this section may request a public university listed in ORS
352.002 to award the person an honorary post-secondary degree.
  (3) A representative of a deceased person who meets the
requirements of subsection (4) of this section may request a
public university to award an honorary post-secondary degree on
behalf of the deceased person.
  (4) Notwithstanding the requirements for a post-secondary
degree established by a public university or by the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }, a public university that receives a request under
subsection (2) or (3) of this section may award an honorary
post-secondary degree to a person, or on behalf of a deceased
person, who:
  (a) Was a student at the public university in 1942; and
  (b) Did not graduate from the public university because the
person was ordered to an internment camp.
  SECTION 166. ORS 352.035 is amended to read:

  352.035. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may open, establish, lay
out and dedicate to the public use such streets through the lands
situated within the corporate limits of the City of Eugene, owned
by or belonging to the University of Oregon, upon such terms and
conditions as may be agreed upon by the   { - State Board of
Higher Education - }  { +  board + } and the common council of
the City of Eugene.  When such streets are so opened, laid out
and established, they hereby are declared to be dedicated to the
public use and are further declared to be public streets of the
City of Eugene.
  SECTION 167. ORS 352.051 is amended to read:
  352.051. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall adopt rules necessary
to carry out the provisions of ORS 352.048 to 352.053.
  SECTION 168. ORS 352.230 is amended to read:
  352.230. (1) Oregon State University is designated and
permanently adopted as the agricultural college of the state and
shall provide, in accordance with the objectives sought by
Congress in the establishment of state agricultural colleges,
instruction in agriculture and the mechanic arts. The university
is also a Sea Grant College dedicated to education and research
in the marine sciences.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } is authorized to enter into
agreements with its counterpart in the State of Idaho and with
the Board of Regents of Washington State University for
cooperative development of the program in Veterinary Medicine.
  SECTION 169. ORS 352.360 is amended to read:
  352.360. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may enact such
regulations as the board deems convenient or necessary to provide
for the policing, control and regulation of traffic and parking
of vehicles on the property of any public university listed in
ORS 352.002. The regulations may provide for the registration of
vehicles, the designation of parking areas and the assessment and
collection of reasonable fees and charges for parking. The board
may require that before a quarterly or yearly parking privilege
for any vehicle is granted to any full-time or part-time student
to use board property, the student must show that the vehicle is
operated by a student holding a valid driver license, that the
vehicle is currently registered and that the student driving the
vehicle is insured under a motor vehicle liability insurance
policy that meets the requirements described under ORS 806.080 or
that the student or owner of the vehicle has provided the
Department of Transportation with other satisfactory proof of
compliance with the financial responsibility requirements of this
state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by the board for each public university. Administrative
and disciplinary sanctions may be imposed upon students, faculty
and staff for violation of the regulations, including but not
limited to, a reasonable monetary penalty which may be deducted
from student deposits, and faculty or staff salaries or other
funds in the possession of the public university. The board shall
provide opportunity for hearing for the determination of
controversies in connection with imposition of fines or
penalties.  The board may prescribe procedures for such hearings
despite the provisions of ORS 183.413 to 183.470. Persons other
than students, faculty or staff may voluntarily submit to the
hearing procedures prescribed by the board, and shall be bound by
the results of the hearing. The powers granted to the board by
this section are supplemental to the existing powers of the board
with respect to the government of activities of students, faculty

and staff and the control and management of property under its
jurisdiction.
  (3) The regulations enacted pursuant to subsection (1) of this
section may also be enforced by the impoundment of vehicles, and
a reasonable fee may be enacted for the cost of impoundment and
storage, if any, prior to the release of the vehicles to their
owners.
  (4) All fees and charges for parking privileges and violations
are deposited in a designated account in the Oregon University
System Fund established by ORS 351.506 for the purpose of
defraying the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations and maintenance and operation of parking facilities
and for the purpose of acquiring and constructing additional
parking facilities for vehicles at the various public
universities and offices, departments and activities under the
control of the board. Fees and charges may also be credited to
the account in the Oregon University System Fund designated by
ORS 351.460. Parking fees shall be established at levels no
greater than those required to finance the construction,
operation and maintenance of parking facilities on the same
campus of the public university for which the parking is
provided. Notwithstanding ORS 351.072, parking fees or changes in
fees shall be adopted by rule of the board subject to the
procedure for rules adopted in ORS chapter 183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section. The board, for the
purpose of enforcing its rules and regulations governing traffic
control, may appoint peace officers who have the same authority
as other peace officers as defined in ORS 133.005.
  (6) The board and any municipal corporation or any department,
agency or political subdivision of this state may enter into
agreements or contracts with each other for the purpose of
providing a uniform system of enforcement of the rules and
regulations of the board enacted pursuant to subsection (1) of
this section.
  (7) In proceedings brought to enforce regulations enacted
pursuant to subsection (1) of this section, it shall be
sufficient to charge the defendant by an unsworn written notice
in accordance with the provisions of ORS 221.333. In any case in
which the defendant is not subject to and does not voluntarily
submit to the hearing procedures prescribed under subsection (2)
of this section, proceedings to enforce regulations enacted
pursuant to subsection (1) of this section shall be brought in
the name of the board in a circuit court, a justice court or a
city court for offenses committed within the territorial
jurisdiction of such court. Such courts shall have concurrent
jurisdiction over offenses committed within their respective
jurisdictions. All fines, penalties and court costs recovered
shall be paid to the clerk of the court involved and shall be
disposed of as provided in ORS 153.640 to 153.680.
  SECTION 170. ORS 352.383 is amended to read:
  352.383. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may, at the request
of a public university under its control, authorize the
university to establish a police department and commission one or
more employees as police officers. A police department
established under this section has all of the authority and
immunity of a municipal police department of this state.
  (2) Police officers commissioned under this section:
  (a) May enforce criminal laws and any administrative rules and
policies adopted by the board or the commissioning university;
and
  (b) Have all the authority and immunity of a peace officer or
police officer of this state.

  (3) When a university establishes a police department and
commissions one or more employees as police officers, the
president of the university, in cooperation with the chief of the
police department, shall establish a process by which the
university will receive and respond to complaints involving the
policies of the police department and the conduct of the police
officers.
  (4) The board may:
  (a) Enter into an agreement, or authorize a university under
its control to enter into an agreement, with a municipal
corporation or any department, agency or political subdivision of
this state for the provision of mutual aid by their respective
police officers.
  (b) Adopt rules to carry out the provisions of this section.
  SECTION 171. ORS 352.385 is amended to read:
  352.385. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may, at the request
of a public university under its control, authorize the
university to commission one or more of its employees as special
campus security officers. The total number of special campus
security officers commissioned at the public universities in the
Oregon University System may not exceed 50. Special campus
security officers shall have stop and frisk authority as set
forth in ORS 131.605 to 131.625 and probable cause arrest
authority and the accompanying immunities as set forth in ORS
133.310 and 133.315 when acting in the scope of their employment
as defined by the   { - State Board of Higher Education - }  { +
board + }. Special campus security officers shall not be
authorized to carry firearms as police officers and, except as
provided in subsection (3) of this section, shall not be
considered police officers for purposes of ORS 181.610, 238.005,
243.005 or 243.736.
  (2) The Department of Public Safety Standards and Training
shall train special campus security officers at the expense of
the
  { - State Board of Higher Education - }  { +  board + }.
  (3) The   { - State Board of Higher Education - }  { +
board + }, acting by and through its special campus security
officers, is a criminal justice agency for purposes of rules
adopted pursuant to ORS 181.730 (3).
  SECTION 172. ORS 352.390 is amended to read:
  352.390. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall cause to have
prepared and submitted to the Legislative Assembly a program and
time schedule for the establishment of regional services
institutes at appropriate public universities. The program shall
include academic curriculum and practical training appropriate to
train students in various aspects of economic and community
services planning, with particular emphasis on economic services
planning for areas of the state that have common geographic,
economic and social characteristics but that do not have
sufficient population to qualify as metropolitan statistical
areas.
  (2) In carrying out its duties under subsection (1) of this
section, the board shall consult with the Oregon Business
Development Department and shall rely on the department for
technical advice and, as necessary, technical services. The board
shall also consult with community colleges, the Oregon State
University Extension Service, economic development districts and
special districts providing community and economic development
services in the region in order to prepare curriculum and
programs with particular emphasis on streamlining existing
programs, avoiding duplication and overlap of programs, better
utilizing students and resources and identifying needs in the
region that are currently unaddressed.

  (3) In preparing programs for establishing regional services
institutes, the board shall give priority to establishing
institutes at Eastern Oregon University and Southern Oregon
University. The board may also direct the hiring of an institute
director and other staff as may be from time to time required.
  SECTION 173. ORS 352.510 is amended to read:
  352.510. The interest that may accrue on an account arising
from the sale of lands for public universities that were donated
to the state by Act of Congress of February 14, 1859, may be
deposited in and credited to an account in the Oregon University
System Fund established by ORS 351.506 for the purpose of the
maintenance, use and support of the University of Oregon. No part
of the interest may be expended otherwise than in the payment of
the salaries of the president, professors and teachers of the
University of Oregon and other current expenses of the University
of Oregon. If at the close of any fiscal year an amount equal to
or greater than $500 of the interest remains unexpended after the
full payment of the salaries and expenses for the fiscal year,
the amount shall be added to and become a part of the principal
of the account. The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } or the faculty or
other officers of the University of Oregon may not pledge the
faith or credit of the University of Oregon in excess of the
interest annually accruing on the account, together with the
receipts from tuitions and other sources during the current year.
  SECTION 174. ORS 352.530 is amended to read:
  352.530. The Department of State Lands shall pay the interest
received on loans from the account designated by ORS 352.510 to
the   { - State Board of Higher Education - }   { + Oregon
Education Investment Board + } semiannually.
  SECTION 175. ORS 352.580 is amended to read:
  352.580. The Department of State Lands shall pay the interest
received on loans from the account designated by ORS 352.560 to
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } semiannually.
  SECTION 176. ORS 352.610 is amended to read:
  352.610. (1) Oregon State University shall execute the trust
created by the last will and testament of John T. Apperson,
deceased. The university shall administer the trust fund provided
for and designated in the will as the J. T. Apperson Agricultural
College Educational Fund.
  (2) Oregon State University may accept, receive, own, hold,
sell and dispose of any and all real and personal property given,
devised or bequeathed to the State Land Board by John T. Apperson
in trust for the purpose of creating the J. T. Apperson
Agricultural College Educational Fund. The university shall
manage and use it in accordance with the directions contained in
the will of John T. Apperson, deceased, for the purpose of
defraying the expenses and assisting in the education at Oregon
State University of deserving young men and women who are
residents of Oregon and are unable to bear the expense of a
collegiate course at that institution.
  (3) All necessary expenses incurred by Oregon State University
in connection with the administration of the trust fund shall be
payable out of the fund. The   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } or the
university, if authority is delegated under ORS 351.070, may
adopt any necessary rules for the transaction of business related
to and the carrying out of this section and ORS 352.620.
  SECTION 177. ORS 353.040 is amended to read:
  353.040. (1) There is established an Oregon Health and Science
University Board of Directors consisting of 10 members.  The
directors, except for the president of the university, shall be
appointed by the Governor and shall be confirmed by the Senate in
the manner prescribed in ORS 171.562 and 171.565.

  (2) Except for the president of the university, the term of
office of each nonstudent member is four years. The term of
office of the student member is two years. Before the expiration
of the term of a member, the Governor shall appoint a successor
whose term begins on October 1 next following. A member is
eligible for reappointment for one additional term. If there is a
vacancy for any cause, the Governor shall make an appointment to
become effective immediately for the unexpired term. The board
shall nominate a slate of candidates whenever a vacancy occurs or
is announced and shall forward the recommended candidates to the
Governor for consideration. To assist the Governor in appointing
the student member, the duly organized and recognized entity of
student government shall submit a list of nominees to the
Governor for consideration.
  (3) The membership of the board shall be as follows:
  (a) One representative who is a nonstudent member of the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }.
  (b) Seven representatives who, in the discretion of the
Governor, have experience in areas related to the university
missions or that are important to the success of Oregon Health
and Science University, including but not limited to higher
education, health care, scientific research, engineering and
technology and economic and business development.
  (c) One representative who is a student enrolled at the
university.
  (d) The president of the university, who shall be an ex officio
voting member.
  (4) Directors must be citizens of the United States. Except for
the president of the university, no voting member may be an
employee of the university.
  (5) The board shall select one of its members as chairperson
and another as vice chairperson for such terms and with such
duties and powers as the board considers necessary for
performance of the functions of those offices. The board shall
adopt bylaws concerning how a quorum shall be constituted and
when a quorum shall be necessary.
  (6) The board shall meet at least once every three months at
Oregon Health and Science University. The board shall meet at
such other times and places specified by the chairperson or by a
majority of the members of the board.
  (7) The Governor may remove any member of the board at any time
for cause, after notice and public hearing, but not more than
three members shall be removed within a period of four years,
unless it is for corrupt conduct in office.
  SECTION 178. ORS 353.050 is amended to read:
  353.050. Except as otherwise provided in this chapter, the
Oregon Health and Science University Board of Directors, or
university officials acting under the authority of the board,
shall exercise all the powers of the Oregon Health and Science
University and shall govern the university. In carrying out its
powers, rights and privileges, the university shall be a
governmental entity performing governmental functions and
exercising governmental powers. The university or the board may
either within or outside the state:
  (1) Determine or approve policies for the organization,
administration and development of the university.
  (2) Appoint and employ any instructional, administrative,
professional, trade, occupational and other personnel as are
necessary or appropriate to carry out the missions of the
university, and prescribe their compensation and terms of office
or employment.
  (3) Make any and all contracts and agreements, enter into any
partnership, joint venture or other business arrangement, create
and participate fully in the operation of any business structure,
including but not limited to the development of business
structures for health care delivery systems and networks with any
public or private government, nonprofit or for-profit person or
entity that in the judgment of the university or the board is
necessary or appropriate to carry out the university's missions
and goals.
  (4) Acquire, purchase, receive, hold, control, convey, sell,
manage, operate, lease, license, lend, invest, improve, develop,
use, dispose of and hold title to real and personal property of
any nature, including intellectual property, in its own name.
  (5) Sue in its own name and be sued, plead and be impleaded in
all actions, suits or proceedings in any forum brought by or
against it by any and all private or state, local, federal or
other public entities, agencies or persons.
  (6) Encourage gifts and donations for the benefit of the
university, and subject to the terms of the gift, retain, invest
and use such gifts as deemed appropriate by the university or the
board.
  (7) Acquire, receive, hold, keep, pledge, control, convey,
manage, use, lend, expend and invest all funds, appropriations,
gifts, bequests, stock and revenue from any source to the
university.
  (8) Borrow money for the needs of the university, in such
amounts and for such time and upon such terms as may be
determined by the university or the board.
  (9) Erect, construct, improve, develop, repair, maintain,
equip, furnish, lease, lend, convey, sell, manage, operate, use,
dispose of and hold title to buildings, structures and lands for
the university.
  (10) Purchase any and all insurance, operate a self-insurance
program or otherwise arrange for the equivalent of insurance
coverage of any nature and the indemnity and defense of its
officers, agents and employees or other persons designated by the
university to carry out or further the missions of the
university.
  (11) Create, develop, supervise, control and adopt academic
programs, including standards, qualifications, policies or
practices relating to admissions, curriculum, academic
advancement, grading policy, student conduct, credits and
scholarships and the granting of academic degrees, certificates
and other forms of recognition.
  (12) Authorize, create, eliminate, establish, operate,
reorganize, reduce or expand any program, school, institute,
health care facility or other unit of operation.
  (13) Establish, charge, collect and use charges for enrollment
into the university, including charges such as tuition for
education and general services, incidental fees and such other
charges found by the university to be necessary to carry out its
educational programs. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students of the university
upon the recommendation of the recognized student government of
the university.
  (14) Establish, charge, collect and use charges and fees for
university services and the use of university facilities.
  (15) Impose charges, fines, fees and such other regulations
considered convenient or necessary to control and regulate
traffic and parking of vehicles to the same extent allowed the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }. This authority includes the authority to
enforce the regulations of the university in a court to the
extent allowed the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } in enforcing the
 { - state - }   { + Oregon Education Investment  + }Board's
regulations as provided in ORS 352.360 (7).
  (16) Commission special campus security officers to be known as
university police. University police commissioned under this
subsection have all the powers and authority given by statute to
peace officers and police officers of this state. University
police shall complete training necessary for certification as
police officers at an academy operated or authorized by the
Department of Public Safety Standards and Training at the expense
of the Oregon Health and Science University Board of Directors.
University police are not authorized to carry firearms as police
officers and are not police officers for purposes of ORS 238.005,
243.005 or 243.736. The university is a criminal justice agency
for purposes of ORS 181.715 and 181.720 and a law enforcement
unit within the meaning of ORS 181.610 (12).
  (17) Enforce and recover for payment to the university any
fines that are authorized by this chapter.
  (18) Adopt, amend or repeal bylaws, administrative rules,
regulations and orders applicable to the matters that are the
subject of this chapter.
  (19) Contract with any state agency for the performance of such
duties, functions and powers as is appropriate. A state agency
shall not charge the university for such services an amount that
is greater than the actual cost of the services.
  (20) Purchase, receive, subscribe for or otherwise acquire,
own, hold, vote, use, sell, mortgage, lend, pledge, invest in or
otherwise dispose of and deal in or with the shares, stock or
other equity or interests in or obligations of any other entity.
Separate funds may be established for such investments. The State
of Oregon shall have no proprietary or other interest in such
investments or such funds.
  (21) Make available, by lease or otherwise, or control access
to any health care facilities or services or other of its
properties and assets to such persons, firms, partnerships,
associations or corporations and on such terms as considered
appropriate, charge and collect rent or other fees or charges
therefor and terminate or deny any such access or any such lease
or other agreement for such reasons as considered appropriate and
as may be consistent with its obligations under any such lease or
other agreement.
  (22) Contract for the operation of any department, section,
equipment or holdings of the university and enter into any
agreements with any person, firm or corporation for the
management by said person, firm or corporation on behalf of the
university of any of its properties or for the more efficient or
economical performance of clerical, accounting, administrative
and other functions relating to its health care facilities.
  (23) Select and appoint faculty as medical and dental staff
members and others licensed to practice the healing arts,
delineate and define the privileges granted each such individual,
adopt and direct a plan for faculty clinical income and set the
terms and conditions of that plan (including such modifications
to any such existing plan as considered necessary or appropriate
upon expiration of the term of such plan), and determine the
extent to which and the terms upon which each such individual may
provide teaching, research, consulting or other services at the
university or any other health care facility.
  (24) Enter into affiliation, cooperation, territorial,
management or other similar agreements with other public or
private universities or health care providers for the sharing,
division, allocation or furnishing of services on an exclusive or
a nonexclusive basis, referral of patients, management of
facilities, formation of health care delivery systems and other
similar activities.
  (25) Perform any other acts that in the judgment of the board
or university are requisite, necessary or appropriate in
accomplishing the purposes described in or carrying out the
powers granted by this chapter.
  (26) Exercise these powers, notwithstanding that as a
consequence of the exercise of such powers, the university
engages in activities that might otherwise be deemed
anticompetitive within the contemplation of state or federal
antitrust laws.
  SECTION 179. ORS 353.108 is amended to read:
  353.108. (1) Legal title to real property and facilities
acquired by the State of Oregon prior to July 1, 1995, and
utilized by Oregon Health and Science University shall remain
with the State of Oregon. However, the university shall have the
exclusive care, custody and control of such real property and
facilities pursuant to an exclusive leasehold interest in the
real property and facilities for a term of 99 years. The term of
the leasehold shall begin on July 1, 1995, and shall renew
automatically and perpetually for consecutive 99-year terms.
  (2) Notwithstanding any other provisions of Oregon law
concerning the authority of state agencies to lease real property
and facilities, the Oregon Department of Administrative Services
acting on behalf of the State of Oregon shall execute a ground
lease for all real property and facilities utilized by the
university consistent with the provisions of this section.
  (3) The ground lease shall not be subject to any termination
unless:
  (a) The State of Oregon causes all outstanding obligations of
the university to be defeased under the terms of any applicable
master indenture or financing agreement; and
  (b) There are no other conditions placed on the university.
  (4) Upon execution of the ground lease, the university shall
pay the State of Oregon the sum of $99 in consideration for the
ground lease.
  (5) The ground lease executed under this section shall
supersede the lease entered into between the State of Oregon and
the university in December 1995, with respect to the real
property and facilities, including but not limited to provisions
in the lease relating to or setting forth:
  (a) Purported limitations on the authority of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } to bind the State of Oregon;
  (b) The term of the lease and the absence of any renewal
provisions; and
  (c) Any circumstances under which the lease may be terminated.
  (6) The university shall manage and maintain all real property
and facilities utilized by the university. Real property and
facilities of the State of Oregon leased to the university
pursuant to this section shall not be sold by the university but
may be encumbered by the university. Such real property and
facilities shall only be encumbered by the State of Oregon in
accordance with state law and in a manner that would not impair
the financial condition of the university or the rights of the
holders of any obligations of the university issued or incurred
under any master indenture or other financing agreement.
  SECTION 180. ORS 353.260 is amended to read:
  353.260. (1) Oregon Health and Science University may adopt
policies governing access to university personnel records that
are less than 25 years old.
  (2) Policies adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless the president of the university finds that the
public interest in maintaining individual rights to privacy in an
adequate educational environment would not suffer by disclosure
of such records. Access to such records may be limited to
designated classes of information or persons, or to stated times
and conditions, or to both, but cannot be limited for records
more than 25 years old.
  (3) No rule or order adopted pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the university, except as provided in
subsection (4)(d) and (e) of this section.
  (4)(a) The files relating to the evaluation of a faculty member
shall be kept in designated, available locations.
  (b) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (c) A faculty member shall be entitled to submit, for placement
in the files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that
the member believes might be of assistance in the evaluation
process.
  (d) Letters and other information for a faculty member of the
university submitted in confidence to the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
or its public universities or offices, schools or departments
prior to July 1, 1975, shall be maintained in the files
designated by paragraph (a) of this subsection. However, if a
faculty member requests access to those files, the anonymity of
the contributor of letters and other information obtained prior
to July 1, 1975, shall be protected. The full text shall be made
available, except that portions of the text that would serve to
identify the contributor shall be excised by a faculty committee.
Only the names of the contributors and the excised portions of
the documents may be kept in a file other than the files
designated by paragraph (a) of this subsection.
  (e) Confidential letters and other information submitted to or
solicited by the university after July 1, 1995, and prior to the
employment of a prospective faculty member are exempt from the
provisions of this paragraph. However, if the member is employed
by the university, the confidential preemployment materials shall
be placed in the files designated by paragraph (a) of this
subsection. If a faculty member requests access to the member's
files, the anonymity of the contributor of confidential
preemployment letters and other preemployment information shall
be protected. The full text shall be made available, except that
portions of the text that would serve to identify the contributor
shall be excised and retained in a file other than the files
designated by paragraph (a) of this subsection.
  (f) Classroom survey evaluations by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated by paragraph (a) of this subsection. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (g) The university, when evaluating its employed faculty
members, shall not solicit or accept letters, documents or other
materials, given orally or in written form, from individuals or
groups who wish their identity kept anonymous or the information
they provide kept confidential.
  (5) No policy or order adopted pursuant to this section limits
the authority of the university to prepare, without
identification of individual persons who have not consented
thereto, statistical or demographic reports from personnel
records.
  (6) Any category of personnel records specifically designated
as confidential pursuant to valid policies or orders as provided
in this section shall not be deemed a public record for the
purposes of ORS 192.420.
  (7) As used in this section, 'personnel records' means records
containing information kept by the university concerning a
faculty member and furnished by the faculty member or by others
about the faculty member at the member's or at the university's
request, including but not limited to information concerning
discipline, membership activity, employment performance or other
personal records of individual persons.
  SECTION 181. ORS 353.330 is amended to read:
  353.330. (1) Nothing in chapter 162, Oregon Laws 1995, shall be
construed in any way to impair the obligations or agreements of
the State of Oregon or the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } with
respect to bonds, certificates of participation, financing
agreements or other agreements for the borrowing of money issued
prior to July 1, 1995, by the State of Oregon on behalf of the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } for equipment or projects for Oregon Health
and Science University. The university and the Oregon University
System shall take all actions necessary to ensure full compliance
with all indentures, resolutions, declarations, agreements and
other documents issued with respect to the bonds, certificates of
participation, financing agreements or other agreements for the
borrowing of money issued prior to July 1, 1995, by the State of
Oregon on behalf of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } for equipment or
projects for the university. The Oregon University System and the
university shall establish, in a written agreement that shall be
subject to the approval of the State Treasurer, the
responsibility of the university for the payment to the Oregon
University System of moneys sufficient to pay when due all
principal, interest and any other charges on bonds, certificates
of participation, financing agreements or other agreements for
the borrowing of money issued prior to July 1, 1995, by the State
of Oregon on behalf of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } for
equipment or projects for the university.
  (2) Holders of obligations issued by the university on or after
July 1, 1995, may be paid pari passu with the obligations issued
by the State of Oregon on behalf of the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
for equipment or projects for the university prior to July 1,
1995, from the rents, revenues, receipts, appropriations or other
income of the university, but only to the extent that:
  (a) Such holders have no rights, liens or other interests with
respect to such rents, revenues, receipts, appropriations or
other income of the university that are senior or superior to the
rights granted to the holders of obligations issued prior to July
1, 1995, by the State of Oregon on behalf of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } for equipment or projects for the university; and
  (b) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + }, the Oregon Department of
Administrative Services or the State of Oregon, acting for the
benefit of such holders of obligations, is granted a lien or
other security interest in the rents, revenues, receipts,
appropriations or other income of the university that is not
junior to and is at least pari passu with any lien or other
security interest granted to the holders of obligations issued by
the university.
  (3) Any expenses, including legal expenses, judgments,
liabilities and federal arbitrage and rebate penalties arising
from the actions of the university, if incurred with respect to
bonds, certificates of participation, financing agreements or
other agreements for the borrowing of money issued prior to July
1, 1995, by the State of Oregon on behalf of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } for equipment or projects for the university, shall be
paid when due by the university, subject to the university's
right to reasonably contest such charges, judgments, liabilities
or penalties. The university shall assist the Controller of the
Oregon University System in making any necessary calculations and
filing any necessary reports related to arbitrage and rebate on
such indebtedness.
  (4) Any amounts deposited with the State Treasurer, the
Controller of the Oregon University System, the Oregon Department
of Administrative Services or its designated agents in any debt
service in reserve accounts for the debt service associated with
any bonds, certificates of participation, financing agreements or
other agreements for the borrowing of money issued prior to July
1, 1995, by the State of Oregon on behalf of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + } for equipment or projects for the university shall
remain with the State Treasurer, the Controller of the Oregon
University System, the Oregon Department of Administrative
Services or its designated agents until such time as the bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money for which such reserve
accounts have been established have been retired or defeased. The
university shall be credited with the investment earnings on such
reserve accounts.
  SECTION 182. ORS 353.370 is amended to read:
  353.370. In addition to, and not in limitation of, the means of
satisfying state general obligation bond obligations under ORS
291.445, Oregon Health and Science University, promptly upon the
discovery of any shortfall in moneys available to the university
for the payment when due of amounts under any bonds, certificates
of participation, financing agreements or other agreements for
the borrowing of moneys issued prior to July 1, 1995, by the
State of Oregon on behalf of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } for
equipment or projects for the university, shall notify in writing
the Legislative Assembly, or if the Legislative Assembly is not
in session, the Emergency Board, of the existence and amount of
the shortfall. The Legislative Assembly or the Emergency Board,
as the case may be, may provide funds to satisfy the payment of
any such amount. By enacting this provision, the Legislative
Assembly acknowledges its current intention to provide, from
funds other than those appropriated or otherwise made available
to the Oregon University System, funds to pay such amount.
However, except as may be required by the Oregon Constitution or
ORS 291.445, neither the Legislative Assembly nor the Emergency
Board shall have any legal obligation to provide funds under this
section.
  SECTION 183. ORS 353.440, as amended by section 259, chapter
637, Oregon Laws 2011, is amended to read:
  353.440. The Legislative Assembly finds that:
  (1) Public universities in the Oregon University System and
other educational sectors have academic programs that are related
to or integrated with the programs of Oregon Health and Science
University.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.
  (3) In order to best ensure the continued harmony of such
academic programs, the Oregon Health and Science University and
the Oregon University System shall coordinate such programs and
shall advise each other of the following proposed changes to such
academic programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
  (4) The Oregon Health and Science University and the Higher
Education Coordinating Commission shall coordinate and advise
each other of the following types of proposed changes to their
related or integrated academic programs:

  (a) Coordination of strategic plans for achieving higher
education goals;
  (b) Seeking advice and input from each other on modifications
to statutory educational missions;
  (c) Working to develop a statewide educational data system;
  (d) Collaborating as necessary on the creation of any new
degree programs; and
  (e) Notifying each other and commenting on tuition rate
changes.
  (5) In order to further the coordination described by this
section, Oregon Health and Science University officers shall
maintain a role in the appropriate committees of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }, the Higher Education Coordinating Commission and the
Oregon University System.
  SECTION 184. ORS 354.090 is amended to read:
  354.090. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } is declared the managing
agency of the FM radio station KTEC, licensed to the Oregon
Institute of Technology, and as such shall prescribe rules and
regulations in conformity with the regulations and laws of the
United States Government relating to educational FM radio
stations. By such rules and regulations the   { - State Board of
Higher Education - }  { +  board + } shall make the facilities of
the radio station available in the training programs of the
Oregon Institute of Technology.
  SECTION 185. ORS 357.004 is amended to read:
  357.004. As used in ORS 357.001 to 357.200, unless the context
requires otherwise:
  (1) 'Depository library' means a library that is designated as
such under ORS 357.095.
  (2)(a) 'Issuing agency' means state government, as that term is
defined in ORS 174.111.
  (b) 'Issuing agency' does not include the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
or any public university or office, department or activity under
the control of the board.
  (3)(a) 'Public document' means informational matter produced
for public distribution or access regardless of format, medium,
source or copyright, originating in or produced with the imprint
of, by the authority of or at the total or partial expense of any
state agency. 'Public document' includes informational matter
produced on computer diskettes, CD-ROMs, computer tapes, the
Internet or in other electronic formats.
  (b) 'Public document' does not include:
  (A) Correspondence, forms, interoffice or intraoffice
memoranda;
  (B) Legislative bills;
  (C) Oregon Revised Statutes or any edition thereof; or
  (D) Reports and publications of the Oregon Supreme Court, the
Oregon Court of Appeals and the Oregon Tax Court.
  SECTION 186. ORS 358.575 is amended to read:
  358.575. (1) The voting members of the Oregon Heritage
Commission shall be representatives of:
  (a) Heritage interests, including Indian tribes with federal
recognition, that reflect the cultural and geographic diversity
of this state; and
  (b) Heritage interests reflected in community institutions,
libraries, museums, architecture, archaeology and historic
preservation.
  (2) The advisory members of the commission shall be:
  (a) One member designated by the Director of the Department of
Land Conservation and Development;
  (b) One member designated by the Trustees of the State Library;
  (c) One member designated by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + };
  (d) One member designated by the Oregon Tourism Commission;
  (e) One member designated by the Superintendent of Public
Instruction;
  (f) The Executive Director of the Oregon Historical Society or
a designee of the executive director;
  (g) The State Archivist or a designee of the archivist;
  (h) The Coordinator of the State Historical Records Advisory
Board or a designee of the coordinator; and
  (i) The State Historic Preservation Officer or a designee of
the officer.
  SECTION 187. ORS 366.785 is amended to read:
  366.785. As used in ORS 366.785 to 366.820, unless the context
requires otherwise:
  (1) 'Year' means a calendar year.
  (2) 'City' means only cities of this state which are regularly
operating as such through elected governmental officers.
  (3) 'Population' means population as given in the latest
determination of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, except that for a
city of more than 100,000 population according to the latest such
determination, the term means 74 percent of the number of
population given for the city in the determination for
computation of its share for 1964, 78 percent for computation of
its share for 1965, 82 percent for 1966, 86 percent for 1967, 90
percent for 1968, 94 percent for 1969, 98 percent for 1970; and
for 1971 and subsequent years computation shall be made on the
basis of full number of population.
  SECTION 188. ORS 390.235 is amended to read:
  390.235. (1)(a) A person may not excavate or alter an
archaeological site on public lands, make an exploratory
excavation on public lands to determine the presence of an
archaeological site or remove from public lands any material of
an archaeological, historical, prehistorical or anthropological
nature without first obtaining a permit issued by the State Parks
and Recreation Department.
  (b) If a person who obtains a permit under this section intends
to curate or arrange for alternate curation of an archaeological
object that is uncovered during an archaeological investigation,
the person must submit evidence to the State Historic
Preservation Officer that the Oregon State Museum of Anthropology
and the appropriate Indian tribe have approved the applicant's
curatorial facilities.
  (c) No permit shall be effective without the approval of the
state agency or local governing body charged with management of
the public land on which the excavation is to be made, and
without the approval of the appropriate Indian tribe.
  (d) The State Parks and Recreation Director, with the advice of
the Oregon Indian tribes and Executive Officer of the Commission
on Indian Services, shall adopt rules governing the issuance of
permits.
  (e) Disputes under paragraphs (b) and (c) of this subsection
shall be resolved in accordance with ORS 390.240.
  (f) Before issuing a permit, the State Parks and Recreation
Director shall consult with:
  (A) The landowning or land managing agency; and
  (B) If the archaeological site in question is associated with a
prehistoric or historic native Indian culture:
  (i) The Commission on Indian Services; and
  (ii) The most appropriate Indian tribe.
  (2) The State Parks and Recreation Department may issue a
permit under subsection (1) of this section under the following
circumstances:
  (a) To a person conducting an excavation, examination or
gathering of such material for the benefit of a recognized
scientific or educational institution with a view to promoting
the knowledge of archaeology or anthropology;
  (b) To a qualified archaeologist to salvage such material from
unavoidable destruction; or
  (c) To a qualified archaeologist sponsored by a recognized
institution of higher learning, private firm or an Indian tribe
as defined in ORS 97.740.
  (3) Any archaeological materials, with the exception of Indian
human remains, funerary objects, sacred objects and objects of
cultural patrimony, recovered by a person granted a permit under
subsection (2) of this section shall be under the stewardship of
the State of Oregon to be curated by the Oregon State Museum of
Anthropology unless:
  (a) The Oregon State Museum of Anthropology with the approval
from the appropriate Indian tribe approves the alternate
curatorial facilities selected by the permittee;
  (b) The materials are made available for nondestructive
research by scholars; and
  (c)(A) The material is retained by a recognized scientific,
educational or Indian tribal institution for whose benefit a
permit was issued under subsection (2)(a) of this section;
  (B) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } with the concurrence of the
appropriate Indian tribe grants approval for material to be
curated by an educational facility other than the institution
that collected the material pursuant to a permit issued under
subsection (2)(a) of this section; or
  (C) The sponsoring institution or firm under subsection (2)(c)
of this section furnishes the Oregon State Museum of Anthropology
with a complete catalog of the material within six months after
the material is collected.
  (4) The Oregon State Museum of Anthropology shall have the
authority to transfer permanent possessory rights in subject
material to an appropriate Indian tribe.
  (5) Except for sites containing human remains, funerary objects
and objects of cultural patrimony as defined in ORS 358.905, or
objects associated with a prehistoric Indian tribal culture, the
permit required by subsection (1) of this section or by ORS
358.920 shall not be required for forestry operations on private
lands for which notice has been filed with the State Forester
under ORS 527.670.
  (6) As used in this section:
  (a) 'Private firm' means any legal entity that:
  (A) Has as a member of its staff a qualified archaeologist; or
  (B) Contracts with a qualified archaeologist who acts as a
consultant to the entity and provides the entity with
archaeological expertise.
  (b) 'Qualified archaeologist' means a person who has the
following qualifications:
  (A) A post-graduate degree in archaeology, anthropology,
history, classics or other germane discipline with a
specialization in archaeology, or a documented equivalency of
such a degree;
  (B) Twelve weeks of supervised experience in basic
archaeological field research, including both survey and
excavation and four weeks of laboratory analysis or curating; and
  (C) Has designed and executed an archaeological study, as
evidenced by a Master of Arts or Master of Science thesis, or
report equivalent in scope and quality, dealing with
archaeological field research.
  (7) Violation of the provisions of subsection (1)(a) of this
section is a Class B misdemeanor.
  SECTION 189. ORS 461.543 is amended to read:
  461.543. (1) Except as otherwise specified in subsection (5) of
this section, the Sports Lottery Account is continuously
appropriated to and shall be used by the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
to fund sports programs at public universities listed in ORS
352.002. Seventy percent of the revenues in the fund shall be
used to fund nonrevenue producing sports and 30 percent shall be
used for revenue producing sports. Of the total amount available
in the fund, at least 50 percent shall be made available for
women's athletics.
  (2) The board shall allocate moneys in the Sports Lottery
Account among the public universities, giving due consideration
to:
  (a) The athletic conference to which the public university
belongs and the relative costs of competing in that conference.
  (b) The level of effort being made by the public university to
generate funds and support from private sources.
  (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season.
  (4) An amount equal to one percent of the moneys transferred to
the Administrative Services Economic Development Fund from the
State Lottery Fund shall be allocated from the Administrative
Services Economic Development Fund to the Sports Lottery Account.
  (5) The amounts received by the Sports Lottery Account shall be
allocated as follows:
  (a) Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section, but not to exceed $8
million annually, adjusted annually pursuant to the Consumer
Price Index, as defined in ORS 327.006.
  (b) Twelve percent for the purpose of scholarships, to be
distributed equally between scholarships based on academic merit
and scholarships based on need, as determined by rule of the
board, but not to exceed $1,090,909 annually.
  (c) All additional money to the Oregon Student Access
Commission for the Oregon Opportunity Grant program under ORS
348.260.
  SECTION 190. ORS 468A.245 is amended to read:
  468A.245. The Oregon Global Warming Commission shall develop an
outreach strategy to educate Oregonians about the scientific
aspects and economic impacts of global warming and to inform
Oregonians of ways to reduce greenhouse gas emissions and ways to
prepare for the effects of global warming. The commission, at a
minimum, shall work with state and local governments, the State
Department of Energy, the Department of Education, the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } and businesses to implement the outreach
strategy.
  SECTION 191. ORS 471.580 is amended to read:
  471.580. (1) As used in this section:
  (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  (b) 'Education provider' means:
  (A) A community college, as defined in ORS 341.005, offering a
food or beverage career program approved by the State Board of
Education;
  (B) A career school, as defined in ORS 345.010, offering a food
or beverage career program approved by the Oregon Student
  { - Assistance - }   { + Access + } Commission or the State
Board of Education;
  (C) An institution of higher education listed in ORS 352.002
offering a food or beverage career program approved by the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }; or
  (D) A private and independent institution of higher education,
as defined in ORS 352.720, offering a food or beverage career
program that qualifies for payment under ORS 352.740.
  (c) 'Food or beverage career program' means a course of study
designed to qualify a person for a career in the food service
industry or alcoholic beverage industry, including but not
limited to a course of study in culinary arts, viticulture,
winemaking, enology, brewing or restaurant management.
  (2) The charging or payment of tuition or a special fee for
enrollment in a class that is part of a food or beverage career
program or in a workshop or seminar concerning matters related to
food or beverage industry workforce training, offered by an
education provider, that includes the consumption of alcoholic
beverages for educational purposes, is not a sale or purchase of,
or other exchange of consideration for, alcoholic beverages.
  (3) Notwithstanding ORS 471.130, 471.406, 471.410 and 471.475,
an education provider may serve alcoholic beverages to a person
who is 18, 19 or 20 years of age and may allow the person to
possess and consume alcoholic beverages on a licensed or
unlicensed premises that the education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and possessed and
consumed by, the person for educational purposes as part of the
class curriculum or a workshop or seminar concerning food or
beverage workforce training;
  (c) The service, possession and consumption of the alcoholic
beverages are supervised by a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class, workshop or seminar period does not
exceed two ounces of alcohol equivalence.
  (4) Notwithstanding ORS 471.130 or 471.410, a person may serve
alcoholic beverages to another person who is 18, 19 or 20 years
of age on premises that an education provider uses for
educational purposes if:
  (a) The person served is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and consumed by, the
person for educational purposes as part of the class curriculum
or, with the approval of the education provider, as part of a
workshop or seminar concerning food or beverage workforce
training;
  (c) The service and consumption of the alcoholic beverages are
supervised by a faculty or staff member of the education provider
who is 21 years of age or older;
  (d) The person served does not purchase the alcoholic
beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class period does not exceed two ounces of
alcohol equivalence.
  (5) Notwithstanding ORS 471.130 or 471.410 or the prohibitions
in ORS 471.430, a person who is 18, 19 or 20 years of age may
possess and consume alcoholic beverages on a licensed or
unlicensed premises that an education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The person possesses and consumes the alcoholic beverages
for educational purposes as part of the class curriculum or, with
the approval of the education provider, as part of a workshop or
seminar concerning food or beverage workforce training;

  (c) The person possesses and consumes the alcoholic beverages
under the supervision of a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount consumed by the person during any two-hour
class, workshop or seminar period does not exceed two ounces of
alcohol equivalence.
  (6) Notwithstanding ORS 471.410, a person who exercises control
over private real property may allow a person who is 18, 19 or 20
years of age to remain on the property after the person who is
18, 19 or 20 years of age consumes an alcoholic beverage on the
property in accordance with this section.
  (7) Subsections (3) to (5) of this section do not affect the
ability of an education provider, a licensee or a permittee to
make alcoholic beverages available to a person 21 years of age or
older in accordance with this chapter or the ability of a person
21 years of age or older to possess or consume alcoholic
beverages in accordance with this chapter.
  SECTION 192. ORS 471.810 is amended to read:
  471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of moneys available
for distribution in the Oregon Liquor Control Commission Account
and, after withholding such moneys as it may deem necessary to
pay its outstanding obligations, shall within 35 days of the
month for which a distribution is made direct the State Treasurer
to pay the amounts due, upon warrants drawn by the Oregon
Department of Administrative Services, as follows:
  (a) Fifty-six percent, or the amount remaining after the
distribution under subsection (4) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
  (b) Twenty percent to the cities of the state in such shares as
the population of each city bears to the population of the cities
of the state, as determined by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } last
preceding such apportionment, under ORS 190.510 to 190.610;
  (c) Ten percent to counties in such shares as their respective
populations bear to the total population of the state, as
estimated from time to time by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }; and
  (d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
  (2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030 and 473.035 to the Mental
Health Alcoholism and Drug Services Account in the General Fund
to be paid monthly as provided in ORS 430.380.
  (3) If the amount of revenues received from the taxes imposed
by ORS 473.030 for the preceding month was reduced as a result of
credits claimed under ORS 473.047, the commission shall compute
the difference between the amounts paid or transferred as
described in subsections (1)(b), (c) and (d) and (2) of this
section and the amounts that would have been paid or transferred
under subsections (1)(b), (c) and (d) and (2) of this section if
no credits had been claimed. The commission shall direct the
Oregon Department of Administrative Services to pay or transfer
amounts equal to the differences computed for subsections (1)(b),
(c) and (d) and (2) of this section from the General Fund to the
recipients or accounts described in subsections (1)(b), (c) and
(d) and (2) of this section.
  (4) Notwithstanding subsection (1) of this section, no city or
county shall receive for any fiscal year an amount less than the
amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.
  SECTION 193. ORS 526.215 is amended to read:
  526.215. To aid in the economic development of the State of
Oregon, the   { - State Board of Higher Education - }
 { + Oregon Education Investment Board + } shall institute and
carry on research and experimentation to develop the maximum
yield from the forestlands of Oregon, to obtain the fullest
utilization of the forest resource, and to study air and water
pollution as it relates to the forest products industries.
  SECTION 194. ORS 526.225 is amended to read:
  526.225. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } shall establish a
Forest Research Laboratory at Oregon State University and shall
cooperate with individuals, corporations, associations and public
agencies wherever and whenever advisable to further the purposes
of ORS 526.215, and may enter into any necessary agreements
therefor.
  (2) In order that there may be close coordination between the
research and experimentation programs and the wise management and
use of Oregon's forests for the production of goods and services
that benefit all its citizens, the   { - State Board of Higher
Education - }  { +  board + } shall appoint a Forest Research
Laboratory Advisory Committee composed of 15 members. Nine
members shall be individuals who are actively and principally
engaged in timber management on forestlands, harvesting or the
processing of forest products, one of whom shall be from a small
woodland owner's association, three members shall be individuals
who are the heads of state and federal public forestry agencies
and three members shall be individuals from the public at large.
No individual who is a public member may have any relationship or
pecuniary interest that would interfere with that individual
representing the public interest. The advisory committee shall
render practical counsel in the fields of forest management and
use and forest harvest and utilization as they relate to the
economic and social well-being of the people of Oregon.
  SECTION 195. ORS 542.710 is amended to read:
  542.710. (1) The Oregon University System, under the direction
of the   { - State Board of Higher Education - }   { + Oregon
Education Investment Board + } acting through the Agricultural
Experiment Station of Oregon State University, is authorized to
conduct a test stream and watershed study in order to ascertain
in a scientific manner the interrelation between all factors
operating in watersheds upon maximum resource productivity of the
area for the greatest public benefit.
  (2) In conducting the study the Oregon University System, under
the direction of the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } acting through the
Agricultural Experiment Station of Oregon State University, may:
  (a) Enlist the cooperation of other state agencies concerned
with fields under study and may reimburse such agencies for use
made of facilities and personnel.
  (b) Acquire the services of other persons as necessary for the
purposes of this section.
  SECTION 196. ORS 542.720 is amended to read:
  542.720. For purposes of ORS 542.710, the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
may accept assistance and grants in the form of real or personal
property, money, labor, equipment or technical assistance from
the United States or any of its agencies, political subdivisions
or from other persons subject to the conditions imposed thereon
regardless of conflicting state law and may, unless enjoined by
the terms of the grant or donation, convert the same into money
to be used for the purposes of ORS 542.710.
  SECTION 197. ORS 561.364 is amended to read:
  561.364. (1) In order to eliminate unnecessary duplication of
effort and expense, there shall be the fullest cooperation
between Oregon State University and the State Department of
Agriculture, including the interchange of statistical information
between the university and the department.
  (2) If, in the interest of economy and efficiency, either
temporary or permanent, it appears advisable to have any of the
laboratory or statistical work of the department performed by
Oregon State University, the Director of Agriculture and the
director of the experiment station shall work out a cooperative
plan of operation and shall agree upon such a division of the
funds available for such work as may meet with the approval of
the Governor and the   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }.
  SECTION 198. ORS 566.210 is amended to read:
  566.210. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + } may hold institutes
for the instruction of citizens of this state in the various
branches of agriculture at such times and at such places as the
board may direct. The board shall make such rules and regulations
as it deems proper for organizing and conducting the institutes,
and shall employ an agent or agents to perform such work in
connection therewith as it deems best.
  (2) The course of instruction at the institutes shall be so
arranged as to present to those in attendance results of the most
recent investigations in theoretical and practical agriculture.
  SECTION 199. ORS 567.025 is amended to read:
  567.025. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }, acting through the Oregon
agricultural experiment station, shall use moneys in the Gorse
Control Account established in ORS 567.030 to defray the expenses
of research, including salaries of investigators, supplies and
apparatus, traveling expenses, and other expenses necessary in
conducting the research, and publication of reports and bulletins
upon results of the research for investigating problems relating
to gorse with special reference to determining methods of
controlling gorse.
  SECTION 200. ORS 567.030 is amended to read:
  567.030. There is established a Gorse Control Account in the
General Fund for the purposes described in ORS 567.025. All funds
made available for the purposes of ORS 567.025 shall be credited
to the Gorse Control Account and are continuously appropriated to
the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } for the purposes of ORS 567.025.
  SECTION 201. ORS 567.035 is amended to read:
  567.035. (1) The   { - State Board of Higher Education - }
 { +  Oregon Education Investment Board + }, acting through the
Oregon agricultural experiment station, shall take the action
necessary to eradicate and control anacharis densa and other
algae, including all detrimental weeds and grasses which are
found growing in the waters, lakes and streams of this state.
  (2) In administering this section the board, acting through the
Oregon agricultural experiment station, may cooperate with the
United States Government, and may utilize the services of, and
cooperate with any state or private agency or agencies, and may
accept and expend funds therefrom in carrying out its duties
imposed by this section.
  SECTION 202. ORS 567.205 is amended to read:
  567.205. (1) In order to investigate and demonstrate the
conditions under which useful plants may be grown on dry, arid or
nonirrigated lands of this state and to determine the kinds of
plants best adapted for growth on these lands, there is
established in the manner provided for in ORS 567.205 to 567.240,
an experiment station in this state for such purpose.
  (2) The experiment station shall be located on such part of
dry, arid or nonirrigated lands of this state as shall be
selected by the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } acting in cooperation with
a representative of the United States Department of Agriculture.
  SECTION 203. ORS 567.210 is amended to read:
  567.210. The station shall be under the management and control
of the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } as a branch station of Oregon
State University.
  SECTION 204. ORS 567.220 is amended to read:
  567.220. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published full and complete annual reports of the work
undertaken and accomplished by the station, and an edition of
such number of copies as the board shall determine shall be
published annually and distributed free of charge. The cost of
such publication and distribution shall be deemed a part of the
general expense of the station.
  SECTION 205. ORS 567.230 is amended to read:
  567.230. The county court of the county in which the
experimental station may be located may acquire by purchase or
lease sufficient suitable land to be selected by the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }, acting in cooperation with a representative of the
United States Department of Agriculture. In case the land is
acquired by purchase, the purchase price shall be paid from the
general funds of the county upon the order of the county court by
a warrant, in the manner in which other claims against the county
are paid. In case the site for the station is acquired by lease,
the lease shall be made in favor of the State of Oregon for such
term of years and upon such conditions as shall be required by
the   { - State Board of Higher Education - }  { +  board + },
and the rent shall be paid out of the county treasury of the
county in which the station is located by warrant drawn upon the
county treasury by an order of the county court.
  SECTION 206. ORS 567.235 is amended to read:
  567.235. The county court of the county in which the station is
located is authorized and directed to place upon the land
acquired as provided in ORS 567.230 such buildings and other
improvements, including a well, as may be required by the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }. The expenses incurred thereby shall be paid
in the manner provided by ORS 567.230 for payment of the purchase
price or rent of the land.
  SECTION 207. ORS 567.255 is amended to read:
  567.255. In order to investigate and demonstrate the conditions
under which useful plants, grains and fruits may be grown on
submersible lands, reclaimed swamp lands and logged-off lands in
this state and to determine the kinds of plants, grains and
fruits best adapted for growth on such lands, there is
established an agricultural experimental station in Clatsop
County in such place as may be selected by the   { - State Board
of Higher Education - }  { +  Oregon Education Investment
Board + }. The station shall be known as the John Jacob Astor
Agricultural Experiment Station.
  SECTION 208. ORS 567.260 is amended to read:
  567.260. The Astor experiment station shall be under the
control and management of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } as a
branch of Oregon State University.
  SECTION 209. ORS 567.270 is amended to read:
  567.270. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published at least once every two years a full and complete
report of the work undertaken and accomplished by the Astor
experiment station. The reports shall be distributed free of
charge. The cost of the publication and distribution shall be
deemed a part of the general expense of the station.
  SECTION 210. ORS 567.275 is amended to read:
  567.275. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may cooperate in the
special work of the Astor experiment station with the United
States Department of Agriculture, or of any bureau or officer
thereof, and may enter into any necessary agreement therefor with
said department, or any bureau or office thereof.
  SECTION 211. ORS 567.325 is amended to read:
  567.325. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may cooperate in work in
any special field of the experiment station with the federal
government or any department, bureau, or office thereof, and may
enter into any necessary agreement therefor with said government,
department, bureau or office.
  SECTION 212. ORS 567.330 is amended to read:
  567.330. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published at least once every two years, full and complete
reports of the work undertaken and accomplished by the station.
The reports shall be distributed free of charge. The cost of such
publication and distribution shall be deemed part of the general
expenses of the station.
  SECTION 213. ORS 567.405 is amended to read:
  567.405. In order to investigate and demonstrate methods for
improving agricultural and livestock conditions in the range
areas in southeastern Oregon, an agricultural experiment station
is established and shall be located in Harney County in such
place as may be selected by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + }.
  SECTION 214. ORS 567.410 is amended to read:
  567.410. The station shall be under the control and management
of the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } through its director of the Oregon
agricultural experiment station, as a branch station of the
Oregon agricultural experiment station.
  SECTION 215. ORS 567.430 is amended to read:
  567.430. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published at least once every two years a full and completed
report of the work undertaken and accomplished by the Harney
County station. The reports shall be distributed free of charge
and the cost of such publication and distribution shall be deemed
a part of the general expense of the station.
  SECTION 216. ORS 567.455 is amended to read:
  567.455. To study and carry on investigations in horticultural,
pathological and other agricultural problems as affects the
interests of this state, there is established an agricultural
experimental area in Hood River and Wasco Counties to be operated
as the Mid-Columbia Experiment Station under the control and
management of the   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } through the Agricultural
Experiment Station of Oregon State University.
  SECTION 217. ORS 567.475 is amended to read:
  567.475. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published once every two years a full and complete report of
the work accomplished by the station. The report shall be
distributed free of charge. The cost of such publication and
distribution shall be deemed a part of the general expense of the
station.
  SECTION 218. ORS 567.480 is amended to read:
  567.480. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may cooperate in the
special work of the station with the United States Department of
Agriculture or any office or bureau thereof, and may enter into
any agreement therefor with said department, bureau or office.
  SECTION 219. ORS 567.505 is amended to read:
  567.505. There is established a branch agricultural experiment
station of Oregon State University in southern Oregon, located in
such part of southern Oregon as may be determined by the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }.
  SECTION 220. ORS 567.510 is amended to read:
  567.510. The station shall be under the management and control
of the   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } as a branch station of Oregon
State University.
  SECTION 221. ORS 567.515 is amended to read:
  567.515. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } shall cause to be prepared
and published at least once every two years a full and complete
report of the work undertaken and accomplished by the station.
The reports shall be distributed free of charge. The cost of such
publication and distribution shall be deemed a part of the
general expenses of the station.
  SECTION 222. ORS 567.520 is amended to read:
  567.520. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } may cooperate in work in
any special field of the station with the federal government or
any department, bureau or office thereof, and may enter into any
necessary agreement therefor with said government, department,
bureau or office.
  SECTION 223. ORS 567.575 is amended to read:
  567.575. All revenues derived from the land and experiment
station not necessarily used in connection with the experiment
station may be used by the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } in the
improvement of the property referred to in this section and ORS
567.580 in repairing structures thereon, for the use and benefit
of the experiment station generally and for conducting
agricultural experiments in eastern Oregon and not otherwise.
  SECTION 224. ORS 567.580 is amended to read:
  567.580. The station shall at all times be under the exclusive
management and control of the   { - State Board of Higher
Education - }  { +  Oregon Education Investment Board + } and
shall be deemed a branch of the experiment station of Oregon
State University.
  SECTION 225. ORS 576.035 is amended to read:
  576.035. The   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + }, acting through the Federal
Cooperative Extension Service of Oregon State University, shall
cooperate with the Agriculture Marketing Service of the United
States Department of Agriculture and with the appropriate offices
of adjoining states to establish and maintain a food product
market news service in the Klamath Basin and provide such
services for the central Oregon and Malheur areas.
  SECTION 226. ORS 659.850 is amended to read:
  659.850. (1) As used in this section, 'discrimination ' means
any act that unreasonably differentiates treatment, intended or
unintended, or any act that is fair in form but discriminatory in
operation, either of which is based on race, color, religion,
sex, sexual orientation, national origin, marital status, age or
disability. 'Discrimination' does not include enforcement of an
otherwise valid dress code or policy, as long as the code or
policy provides, on a case-by-case basis, for reasonable
accommodation of an individual based on the health and safety
needs of the individual.
  (2) A person may not be subjected to discrimination in any
public elementary, secondary or community college education
program or service, school or interschool activity or in any
higher education program or service, school or interschool
activity where the program, service, school or activity is
financed in whole or in part by moneys appropriated by the
Legislative Assembly.
  (3) The State Board of Education and the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
shall establish rules necessary to ensure compliance with
subsection (2) of this section in the manner required by ORS
chapter 183.
  SECTION 227. ORS 659.855 is amended to read:
  659.855. (1) Any public elementary or secondary school
determined by the Superintendent of Public Instruction or any
community college determined by the Commissioner for Community
College Services to be in noncompliance with provisions of ORS
659.850 and this section shall be subject to appropriate
sanctions, which may include withholding of all or part of state
funding, as established by rule of the State Board of Education.
  (2) Any public university listed in ORS 352.002 determined by
the   { - Chancellor of the Oregon University System - }  { +
Chief Education Officer + } to be in noncompliance with
provisions of ORS 659.850 and this section shall be subject to
appropriate sanctions, which may include withholding of all or
part of state funding, as established by rule of the   { - State
Board of Higher Education - }  { +  Oregon Education Investment
Board + }.
  (3) Any public charter school determined by the sponsor of the
school or the superintendent to be in noncompliance with the
provisions of ORS 659.850 and this section shall be subject to
appropriate sanctions, which may include the withholding of all
or part of state funding by the sponsor or superintendent, as
established by rule of the State Board of Education.
  SECTION 228. ORS 659.860 is amended to read:
  659.860. (1) Any person claiming to be aggrieved by unlawful
discrimination as prohibited by ORS 659.850 may file a civil
action in circuit court for equitable relief or, subject to the
terms and conditions of ORS 30.265 to 30.300, damages, or both.
The court may order such other relief as may be appropriate.
Damages shall be $200 or actual damages, whichever is greater.
  (2) The action authorized by this section shall be filed within
one year of the filing of a grievance.
  (3) No action shall be filed unless, within 180 days of the
alleged discrimination, a grievance has been filed with the
school district board, public charter school governing body,
community college board of education or   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }.
  (4) No action may be filed until 90 days after filing a
grievance unless only injunctive relief is sought pursuant to
ORCP 79. The right to temporary or preliminary injunctive relief
shall be independent of the right to pursue any administrative
remedy available to complainants pursuant to ORS 659.850.
  (5) No action may be filed if the school district board, public
charter school governing body, community college board of
education or   { - State Board of Higher Education - }  { +
Oregon Education Investment Board + } has obtained a conciliation
agreement with the person filing the grievance or if a final
determination of a grievance has been made except as provided in
ORS 183.480.
  (6) Notwithstanding the filing of a grievance, pursuant to
subsection (3) of this section, any person seeking to maintain an
action under this section shall also file a notice of claim
within 180 days of the alleged discrimination as required by ORS
30.275.

  (7) The court shall award reasonable attorney fees to a
prevailing plaintiff in any action under this section. The court
may award reasonable attorney fees and expert witness fees
incurred by a defendant who prevails in the action if the court
determines that the plaintiff had no objectively reasonable basis
for asserting a claim or no objectively reasonable basis for
appealing an adverse decision of a trial court.
  (8) Nothing in this section is intended to reduce the
obligations of the education agencies under this section and ORS
659.850 and 659.855.
  SECTION 229. ORS 815.080 is amended to read:
  815.080. (1) A person commits the offense of providing a safety
belt, harness equipment or a child safety system that does not
comply with standards if the person does any of the following:
  (a) Sells or offers for sale a new motor vehicle that is not
equipped with safety belts, safety harnesses or child safety
systems that comply with and are installed in compliance with the
rules adopted by the Department of Transportation under ORS
815.055. This paragraph applies only to motor vehicles that are
primarily designed for transportation of individuals and that
have seating for one or more passengers side-by-side with the
operator.  This paragraph requires only that the vehicle be
equipped with one seat belt or harness for the operator and one
for at least one of the passengers seated beside the operator.
  (b) Sells or offers for sale any safety belt, safety harness,
child safety system, anchor or other device for attaching or
securing safety belts, safety harnesses or child safety system if
the belt, harness, child safety system, anchor or device does not
comply with the rules adopted by the department under ORS
815.055.  This paragraph applies only to belts, harnesses, child
safety systems, anchors or devices for use or installation on a
vehicle that is primarily designed for transportation of
individuals.
  (c) Sells or offers for sale any safety belt, safety harness,
child safety system, anchor or other device for attaching or
securing safety belts, safety harnesses or child safety systems
if the belt, harness, child safety system, anchor or device is
not marked as required under federal safety standards and if the
mark is not legible when the belt, harness, child safety system,
anchor or other device is used or installed on a vehicle. This
paragraph applies only to belts, harnesses, child safety systems,
anchors or devices for use or installation on a vehicle that is
primarily designed for transportation of individuals.
  (d) Installs any safety belt, safety harness, child safety
system, anchor or other device for attaching or securing safety
belts, safety harnesses or child safety systems on a vehicle that
is primarily designed for the transportation of individuals
except in compliance with rules adopted by the department under
ORS 815.055.
  (2) This section does not apply to school buses or school
activity vehicles that are subject to equipment standards adopted
by the State Board of Education or the   { - State Board of
Higher Education - }  { +  Oregon Education Investment Board + }
under ORS 820.100.
  (3) The offense described in this section, providing a safety
belt, harness equipment or a child safety system that does not
comply with standards, is a Class C traffic violation.
  SECTION 230. ORS 820.100 is amended to read:
  820.100. (1) The State Board of Education shall adopt and
enforce such reasonable standards relating to school bus and
school activity vehicle construction and school bus and school
activity vehicle equipment as the  { + State + } Board  { + of
Education + } deems necessary for safe and economical operation,
except that the board may not authorize the use of school buses
manufactured before April 1, 1977.

  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may adopt and enforce separate
rules of the type described under this section for school buses
and school activity vehicles that are under the  { + Oregon
Education Investment  + }Board's jurisdiction, except that the
board may not authorize the use of school buses manufactured
before April 1, 1977.
  (3) The State Board of Education shall adopt and enforce
standards for school bus stop arms authorized by ORS 820.105.
  (4) Rules adopted under this section:
  (a) Must be consistent with requirements established by statute
or by rule adopted under statutory authority that relate to the
same subject.
  (b) Shall be consistent with minimum uniform national
standards, if such standards exist.
  (c) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (d) May include any exemptions determined appropriate under ORS
820.150.
  SECTION 231. ORS 820.110 is amended to read:
  820.110. (1) The State Board of Education shall adopt and
enforce rules to establish requirements of operation,
qualifications or special training of drivers and special
accident reports for school buses and school activity vehicles.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may adopt and enforce separate
rules of the type described under this section for school buses
and school activity vehicles that are under its jurisdiction.
  (3) The rules adopted under this section:
  (a) Are subject to ORS 820.190 and 820.200 and to any other
statute or regulation relating to the operation of vehicles,
qualifications of drivers and accident reports.
  (b) Must be consistent with requirements established by statute
or by rule adopted under statutory authority that relate to the
same subject.
  (c) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (d) May include any exemptions determined appropriate under ORS
820.150.
  (4) If the Department of Transportation suspends, cancels or
revokes any driving privileges of a person who holds a school bus
endorsement under ORS 807.035 (5), the Department of
Transportation shall notify the Department of Education of the
suspension, cancellation or revocation.
  SECTION 232. ORS 820.120 is amended to read:
  820.120. (1) The State Board of Education shall adopt and
enforce rules to provide for the inspection of school buses and
school activity vehicles to assure that the vehicles are in
compliance with requirements under rules established under ORS
820.100 and 820.110, as applicable, and that the vehicles are
safe for operation. The rules may include intervals of
inspections.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may adopt and enforce separate
rules of the type described under this section for school buses
and school activity vehicles that are under its jurisdiction.
  (3) The rules adopted under this section:
  (a) Are subject to any other statute or regulation relating to
the safety of vehicles for operation and the inspection of
vehicles.
  (b) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (c) May include any exemptions determined appropriate under ORS
820.150.
  SECTION 233. ORS 820.130 is amended to read:

  820.130. The Department of Transportation shall issue
registration for a school bus when notified that the vehicle
conforms to applicable rules under ORS 820.100 to 820.120 and
that the vehicle is safe for operation on the highways.
Notification required by this section shall be from:
  (1) The State Board of Education or its authorized
representative regarding vehicles under its regulatory authority.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } or its authorized representative
regarding vehicles under its jurisdiction.
  SECTION 234. ORS 820.150 is amended to read:
  820.150. (1) The State Board of Education, by rule, may
establish classes or types of vehicles that are not considered
school buses or school activity vehicles for purposes of the
Oregon Vehicle Code or classes of school buses or school activity
vehicles that are not subject to regulation under the Oregon
Vehicle Code either partially or completely.
  (2) The   { - State Board of Higher Education - }  { +  Oregon
Education Investment Board + } may adopt separate rules of the
type described under this section for vehicles that are under its
jurisdiction.
  (3) Rules adopted under this section are subject to the
following:
  (a) Any exemption, either partial or total, established under
this section may be based upon passenger capacity, on limited use
or on any other basis the State Board of Education or the
 { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + } considers appropriate.
  (b) No exemption, either partial or total, shall be established
under this section for any vehicle that is marked with or
displays the words 'school bus.  '
  (c) Any vehicle determined not to be a school bus under this
section is not a school bus within the definition established
under ORS 801.460. Partial exemptions established for vehicles
under this section may include removal of the vehicle from any
provisions relating to school buses under the vehicle code.
  (d) Any vehicle determined not to be a school activity vehicle
under this section is not a school activity vehicle within the
definition established under ORS 801.455. Partial exemptions
established for vehicles under this section may include removal
of the vehicle from any provisions relating to school activity
vehicles under the vehicle code.
  (e) In considering any rules under this section, the boards
shall consider the need to assure student safety.
  SECTION 235. ORS 825.017 is amended to read:
  825.017. Except as provided in ORS 825.026 and 825.030, this
chapter does not apply to the persons or vehicles described in
this section. The exemption under this section applies to the
following persons and vehicles:
  (1) Vehicles being used by, or under contract with, any school
board, district or person responsible for the administration of
elementary or secondary school activities, and engaged
exclusively in transporting students or combinations of students
and other persons to or from school, to or from authorized school
activities or other activities sponsored by the
  { - State Board of Higher Education - }  { +  Oregon Education
Investment Board + }, or for purposes provided under ORS 332.427.
This exemption shall not be affected by the charging of a fee to
cover the costs of the transportation.
  (2) Vehicles being used in a taxicab operation if the vehicle:
  (a) Is a passenger vehicle with a passenger seating capacity
that does not exceed five;
  (b) Carries passengers for hire where the destination and route
traveled may be controlled by a passenger and the fare is
calculated on the basis of any combination of an initial fee,
distance traveled or waiting time; and
  (c) Is transporting persons or property, or both, between
points in Oregon.
  (3) Vehicles being used for the transportation of property by
private carrier by means of a single vehicle or combination of
vehicles with a combined weight that does not exceed 8,000
pounds.
  (4) Vehicles being used in operating implements of husbandry.
  (5) Vehicles being used as a hearse or ambulance.
  (6) Vehicles being used over any private road or thoroughfare.
  (7) Vehicles being used on any road, thoroughfare or property,
other than a state highway, county road or city street, for the
removal of forest products as defined in ORS 321.005, or the
product of forest products converted to a form other than logs at
or near the harvesting site, or when used for the construction or
maintenance of the road, thoroughfare or property, pursuant to a
written agreement or permit authorizing the use, construction or
maintenance of the road, thoroughfare or property, with:
  (a) An agency of the United States;
  (b) The State Board of Forestry;
  (c) The State Forester; or
  (d) A licensee of an agency named in this subsection.
  (8) Vehicles being used on any county road for the removal of
forest products as defined in ORS 321.005, or the products of
forest products converted to a form other than logs at or near
the harvesting site, if:
  (a) The use is pursuant to a written agreement entered into
with the State Board of Forestry, the State Forester or an agency
of the United States, authorizing the owner of the motor vehicle
to use the road and requiring the owner to pay for or to perform
the construction or maintenance of the county road, including any
operator of a motor vehicle retained to transport logs, poles and
piling for the owners who are exempt under this section;
  (b) The board, officer or agency that entered into the
agreement or granted the permit, by contract with the county
court or board of county commissioners, has assumed the
responsibility for the construction or maintenance of the county
road; and
  (c) Copies of the agreements or permits required by this
subsection are filed with the Director of Transportation.
  (9) Vehicles being used in the transportation of persons for
hire if the operation:
  (a) Is performed by a nonprofit entity;
  (b) Is not in competition with a regular route full-service
scheduled carrier of persons that is subject to the provisions of
this chapter or a service provided by a mass transit district
formed under ORS chapter 267;
  (c) Is performed by use of vehicles operating in compliance
with ORS 820.020 to 820.070; and
  (d) Is approved by the Department of Transportation as
complying with paragraphs (a) to (c) of this subsection.
  (10) Vehicles being used in transporting persons with
disabilities, with or without their supervisors or assistants, to
or from rehabilitation facilities or child care services if the
motor vehicle is a passenger motor vehicle with a seating
capacity of not more than 12 passengers. The exemption provided
by this subsection applies only when the motor vehicle is
operated by or under contract with any person responsible for the
administration of rehabilitation facilities as defined in ORS
344.710 to 344.730 or child care services provided by a facility
licensed under ORS 657A.030 and 657A.250 to 657A.450.
  (11) Vehicles owned or operated by the United States or by any
governmental jurisdiction within the United States except when
owned or operated as a carrier of property for hire.
  (12) Vehicles owned or operated by a mass transit district
created under ORS chapter 267.

  (13) Vehicles owned or operated by, or under contract with, a
person responsible for the construction or reconstruction of a
highway under contract with the Department of Transportation or
with an agency of the United States when operated within the
immediate construction project as described in the governmental
agency contract during the construction period.
  (14) Vehicles owned or operated by, or under contract with, a
charitable organization when exclusively engaged in performing
transportation, either one way or round trip, necessary to the
operation of the charitable organization. As used in this
subsection, 'charitable organization' means an organization that
has no capital stock and no provision for making dividends or
profits, but derives its funds principally from public and
private charity and holds them in trust for the promotion of the
welfare of others and not for profit. Any organization claiming
an exemption under this subsection shall file an affidavit with
the department stating that it is organized and operated in
accordance with the requirements of this subsection.
  (15) Vehicles with a maximum speed that does not exceed 35
miles per hour that are designed for off-road use and that are
operated on the public highways in any one calendar year a number
of miles that does not exceed 15 percent of the total number of
miles the vehicle is operated for that calendar year.
  (16) Passenger vehicles with a passenger seating capacity that
does not exceed five when used in the transportation of new
telephone books.
  (17) A vehicle that is used in a limousine service operation in
which the destination and route traveled may be controlled by the
passenger and the fare is calculated on the basis of any
combination of initial fee, distance traveled and waiting time if
the vehicle:
  (a) Is a passenger vehicle with a passenger seating capacity
that does not exceed eight;
  (b) Carries passengers for hire between points in Oregon; and
  (c) Operates on an irregular route basis.
  (18) Fire trucks and rescue vehicles that are designated as
emergency vehicles by the Department of Transportation under ORS
801.260, while involved in emergency and related operations.
  (19) A person who provides services related to the packing or
loading of household goods if the person does not:
  (a) Provide or operate a motor vehicle for the movement of the
household goods; and
  (b) Act as an agent for any person who does provide or operate
a motor vehicle for the movement of the household goods.

                               { +
REPEALS + }

  SECTION 236.  { + ORS 351.020, 351.040, 351.045 and 351.075 and
sections 10 and 11, chapter 519, Oregon Laws 2011, and section
33, chapter 637, Oregon Laws 2011, are repealed. + }

                               { +
OPERATIVE DATE + }

  SECTION 237.  { + Sections 1 to 8, 13 and 14 of this 2012 Act,
the amendments to statutes and session laws by sections 9 to 12
and 15 to 235 of this 2012 Act and the repeal of ORS 351.020,
351.040, 351.045 and 351.075 and sections 10 and 11, chapter 519,
Oregon Laws 2011, and section 33, chapter 637, Oregon Laws 2011,
by section 236 of this 2012 Act become operative July 1,
2012. + }
  SECTION 238.  { + The State Board of Higher Education, the
Oregon Education Investment Board, the Chancellor of the Oregon
University System and the Chief Education Officer may take any
action before the operative date specified in section 237 of this
2012 Act that is necessary for the boards, the chancellor and the
Chief Education Officer to exercise, on and after the operative
date specified in section 237 of this 2012 Act, all of the
duties, functions and powers conferred on the boards, the
chancellor and the Chief Education Officer by this 2012 Act. + }

                               { +
CAPTIONS + }

  SECTION 239.  { + The unit captions used in this 2012 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2012 Act. + }

                               { +
EMERGENCY CLAUSE + }

  SECTION 240.  { + This 2012 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2012 Act takes effect on
its passage. + }
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