Bill Text: OR SB1538 | 2012 | Regular Session | Enrolled
Bill Title: Relating to education; and declaring an emergency.
Spectrum: Unknown
Status: (Passed) 2012-04-12 - Effective date, April 11, 2012. [SB1538 Detail]
Download: Oregon-2012-SB1538-Enrolled.html
76th OREGON LEGISLATIVE ASSEMBLY--2012 Regular Session
Enrolled
Senate Bill 1538
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Senate Interim Committee on
Education and Workforce Development for the Senate Bill 242
Work Group)
CHAPTER ................
AN ACT
Relating to education; creating new provisions; amending ORS
340.310, 341.430, 341.455, 345.010, 345.015, 345.017, 345.020,
345.030, 345.040, 345.060, 345.070, 345.080, 345.110, 345.115,
345.117, 345.120, 345.325, 345.330, 345.340, 345.400, 345.430,
345.450, 345.995, 348.040, 348.070, 351.052, 351.086, 351.735,
418.658, 471.580, 690.225 and 696.182 and section 292, chapter
637, Oregon Laws 2011; repealing sections 22 and 22a, chapter
637, Oregon Laws 2011; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 351.735 is amended to read:
351.735. { + (1) + }The Higher Education Coordinating
Commission shall { - : - }
{ - (1) Develop - } { + advise the Oregon Education
Investment Board on + } state goals and associated
{ - accountability measures - } { + achievement compacts + }
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) Under the direction and control of the Oregon
Education Investment Board, the Higher Education Coordinating
Commission shall: + }
{ - (2) - } { + (a) + } 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) - } { + (A) + } Increasing the educational
attainment of the population;
{ - (b) - } { + (B) + } Increasing this state's global
economic competitiveness and the quality of life of its citizens;
{ - (c) - } { + (C) + } Ensuring affordable access for
qualified Oregon students at each college or public university;
and
{ - (d) - } { + (D) + } Ensuring that public higher
education in this state is provided in a cost-effective manner.
Enrolled Senate Bill 1538 (SB 1538-B) Page 1
{ - (3) - } { + (b) + } 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) - } { + (c) + } Develop a finance model for higher
education aligned with the goals in the system strategic plan,
including:
{ - (a) - } { + (A) + } Recommended biennial appropriations
to institutions, including a component specifically tied to
institutional contributions to state educational priorities;
{ - (b) - } { + (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, with the goal of encouraging tuition
affordability for students;
{ - (c) - } { + (C) + } Tuition rates set by each community
college governing board for community colleges in this state;
{ - (d) - } { + (D) + } Recommended biennial appropriations
for student financial aid; and
{ - (e) - } { + (E) + } Recommended biennial appropriations
for any future statewide higher education initiatives.
{ - (5) - } { + (d) + } Each biennium, recommend to the
{ - Governor and the Legislative Assembly - } { + Oregon
Education Investment Board + } a consolidated higher education
budget request consistent with the finance model, including
appropriations for:
{ - (a) - } { + (A) + } Ongoing operations of the Oregon
Student Access Commission;
{ - (b) - } { + (B) + } Ongoing operations for the Oregon
University System;
{ - (c) - } { + (C) + } Ongoing operations for community
colleges;
{ - (d) - } { + (D) + } Needed new facilities or programs;
and
{ - (e) - } { + (E) + } Capital improvements.
{ - (6) Design and Maintain a statewide educational data
system, in collaboration with the State Board of Education - } .
{ - (7) - } { + (e) + } 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) - } { + (f) + } Approve and authorize degrees for
the Oregon University System.
{ - (9) - } { + (g) + } 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.
{ + (3) In addition to the duties described in subsections
(1) and (2) of this section, the Higher Education Coordinating
Commission shall:
(a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
(b) Recommend and encourage student success and completion
initiatives.
(c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
(A) Transfers and other movements throughout the higher
education system;
Enrolled Senate Bill 1538 (SB 1538-B) Page 2
(B) Accelerated college credit programs for high school
students;
(C) Applied baccalaureate and other transfer degrees; and
(D) Reciprocity agreements with other states.
(d) Review research efforts among the public universities of
this state to improve economic development in this state.
(e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education. + }
SECTION 2. { + The amendments to ORS 351.735 by section 1 of
this 2012 Act become operative on July 1, 2012. + }
SECTION 3. ORS 351.735, as amended by section 1 of this 2012
Act, is amended to read:
351.735. (1) The Higher Education Coordinating Commission shall
advise the Oregon Education Investment Board on state goals and
associated achievement compacts 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) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
(a) 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.
(b) 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.
(c) 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, 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.
Enrolled Senate Bill 1538 (SB 1538-B) Page 3
(d) Each biennium, recommend to the Oregon Education Investment
Board 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.
(e) 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.
(f) Approve and authorize degrees for the Oregon University
System.
(g) 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.
(3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
(a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
(b) Recommend and encourage student success and completion
initiatives.
(c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
(A) Transfers and other movements throughout the higher
education system;
(B) Accelerated college credit programs for high school
students;
(C) Applied baccalaureate and other transfer degrees; and
(D) Reciprocity agreements with other states.
(d) Review research efforts among the public universities of
this state to improve economic development in this state.
(e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education.
{ + (f) Oversee the licensing of career schools under ORS
345.010 to 345.450. + }
SECTION 4. { + The amendments to ORS 351.735 by section 3 of
this 2012 Act become operative on July 1, 2013. + }
SECTION 5. ORS 351.735, as amended by sections 1 and 3 of this
2012 Act, is amended to read:
351.735. { - (1) - } The Higher Education Coordinating
Commission shall { - advise the Oregon Education Investment
Board on - } { + :
(1) Develop + } state goals and associated achievement compacts
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) Under the direction and control of the Oregon
Education Investment Board, the Higher Education Coordinating
Commission shall: - }
{ - (a) - } { + (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
Enrolled Senate Bill 1538 (SB 1538-B) Page 4
organizations dedicated to helping Oregonians reach state goals.
Goals should include, but need not be limited to:
{ - (A) - } { + (a) + } Increasing the educational
attainment of the population;
{ - (B) - } { + (b) + } Increasing this state's global
economic competitiveness and the quality of life of its citizens;
{ - (C) - } { + (c) + } Ensuring affordable access for
qualified Oregon students at each college or public university;
and
{ - (D) - } { + (d) + } Ensuring that public higher
education in this state is provided in a cost-effective manner.
{ - (b) - } { + (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.
{ - (c) - } { + (4) + } Develop a finance model for higher
education aligned with the goals in the system strategic plan,
including:
{ - (A) - } { + (a) + } Recommended biennial appropriations
to institutions, including a component specifically tied to
institutional contributions to state educational priorities;
{ - (B) - } { + (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, with the goal of encouraging tuition
affordability for students;
{ - (C) - } { + (c) + } Tuition rates set by each community
college governing board for community colleges in this state;
{ - (D) - } { + (d) + } Recommended biennial appropriations
for student financial aid; and
{ - (E) - } { + (e) + } Recommended biennial appropriations
for any future statewide higher education initiatives.
{ - (d) - } { + (5) + } Each biennium, recommend to the
{ - Oregon Education Investment Board - } { + Governor and the
Legislative Assembly + } a consolidated higher education budget
request consistent with the finance model, including
appropriations for:
{ - (A) - } { + (a) + } Ongoing operations of the Oregon
Student Access Commission;
{ - (B) - } { + (b) + } Ongoing operations for the Oregon
University System;
{ - (C) - } { + (c) + } Ongoing operations for community
colleges;
{ - (D) - } { + (d) + } Needed new facilities or programs;
and
{ - (E) - } { + (e) + } Capital improvements.
{ - (e) - } { + (6) + } 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.
{ - (f) - } { + (7) + } Approve and authorize degrees for
the Oregon University System.
{ - (g) - } { + (8) + } 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.
Enrolled Senate Bill 1538 (SB 1538-B) Page 5
{ - (3) In addition to the duties described in subsections
(1) and (2) of this section, the Higher Education Coordinating
Commission shall: - }
{ - (a) - } { + (9) + } Develop and recommend policies to
ensure or improve access to higher education by underserved
populations.
{ - (b) - } { + (10) + } Recommend and encourage student
success and completion initiatives.
{ - (c) - } { + (11) + } Develop and recommend policies to
improve the coordination of the provision of educational
services, including:
{ - (A) - } { + (a) + } Transfers and other movements
throughout the higher education system;
{ - (B) - } { + (b) + } Accelerated college credit programs
for high school students;
{ - (C) - } { + (c) + } Applied baccalaureate and other
transfer degrees; and
{ - (D) - } { + (d) + } Reciprocity agreements with other
states.
{ - (d) - } { + (12) + } Review research efforts among the
public universities of this state to improve economic development
in this state.
{ - (e) - } { + (13) + } Coordinate education initiatives
with the State Workforce Investment Board, the Department of
Community Colleges and Workforce Development, local workforce
investment boards, the Oregon Health and Science University and
independent institutions of post-secondary education.
{ - (f) - } { + (14) + } Oversee the licensing of career
schools under ORS 345.010 to 345.450.
SECTION 6. { + The amendments to ORS 351.735 by section 5 of
this 2012 Act become operative on March 15, 2016. + }
SECTION 7. 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 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 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 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, the commission shall give specific direction to the
board regarding the changes necessary to earn commission
approval. - }
Enrolled Senate Bill 1538 (SB 1538-B) Page 6
{ - (3) - } { + (2) + } On or before September 1 of each
even-numbered year, the State Board of Higher Education shall
submit the funding request and performance compact to the Oregon
Department of Administrative Services for the Oregon University
System.
{ - (4) - } { + (3) + } The Governor's biennial budget
submitted to the Legislative Assembly may include the State Board
of Higher Education'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) - } { + (4) + } The funding request must include,
in addition to the performance compact, a report on performance
from the previous biennium's performance compact.
{ - (6) - } { + (5) + } The State Board of Higher Education
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 8. Section 292, chapter 637, Oregon Laws 2011, is
amended to read:
{ + Sec. 292. + } { + (1) + } { - Sections 1 to 16, 20a,
21, 21a, 23a, 29a and 36a of this 2011 Act - } { + ORS 351.049,
351.064, 351.096, 351.284, 351.715, 351.718, 351.722, 351.725,
351.728, 351.732, 351.735 and 351.738, sections 2 and 9 to 16,
chapter 637, Oregon Laws 2011 + }, the amendments to statutes by
sections 81a, 121 to 123, 131a, 132, 133, 171a, 179 to 189, 205a,
206a, 207a, 216, 229, 231, 256a, 259 and 283 { - of this 2011
Act - } { + , chapter 637, Oregon Laws 2011, + } and the repeal
of ORS 348.599 by section 291a { - of this 2011 Act - } { + ,
chapter 637, Oregon Laws 2011, + } become operative on July 1,
2012.
{ + (2) ORS 351.052 and 351.054 become operative on the
effective date of this 2012 Act. + }
SECTION 9. { + Sections 22 and 22a, chapter 637, Oregon Laws
2011, are repealed. + }
SECTION 10. ORS 340.310 is amended to read:
340.310. (1) The { - Joint Boards of Education - }
{ + Higher Education Coordinating Commission + } shall develop
statewide standards for dual credit programs to be implemented by
public high schools, community colleges and state institutions of
higher education within the Oregon University System. The
standards must establish the manner by which:
(a) A student may, upon completion of a course, earn course
credit both for high school and for a community college or state
institution of higher education within the Oregon University
System; and
(b) Teachers of courses that are part of a dual credit program
will work together to determine the quality of the program and to
ensure the alignment of the content, objectives and outcomes of
individual courses.
(2) Each public high school, community college and state
institution of higher education within the Oregon University
System that provides a dual credit program must implement the
statewide standards developed under subsection (1) of this
section.
Enrolled Senate Bill 1538 (SB 1538-B) Page 7
(3) Each school district, community college and state
institution of higher education within the Oregon University
System that provides a dual credit program shall submit an annual
report to the { - Joint Boards of Education - } { + Higher
Education Coordinating Commission + } on the academic performance
of students enrolled in a dual credit program. The { - Joint
Boards of Education - } { + Higher Education Coordinating
Commission + } shall establish the required contents of the
report, which must provide sufficient information to allow the
{ - Joint Boards of Education - } { + commission + } to
determine the quality of the dual credit program.
SECTION 11. ORS 341.430 is amended to read:
341.430. (1) As used in this section:
(a) 'Associate transfer degree' means an associate degree that
is awarded by a community college and that is intended to allow a
student to apply the credits earned for the degree towards a
baccalaureate degree.
(b) 'Community college' means a community college operated
under ORS chapter 341.
(c) 'State institution of higher education' means a state
institution of higher education listed in ORS 352.002.
(d) 'Transfer program' means a one-year program that is
designed to allow a student to apply the credits earned through
the program towards a baccalaureate degree.
(2) The { - Joint Boards of Education - } { + Higher
Education Coordinating Commission + } shall develop standards
related to the ability of students to apply credits earned
through courses of study at community colleges to baccalaureate
degrees awarded by state institutions of higher education. The
standards shall be known as the 'Transfer Student Bill of Rights
and Responsibilities. '
(3) The standards developed under this section may include:
(a) Admission standards to state institutions of higher
education for students who have earned an associate transfer
degree.
(b) The maximum number of credits that students who have earned
an associate transfer degree would need to complete prior to
receiving various types of baccalaureate degrees at state
institutions of higher education.
(c) The maximum number of credits that students who have
completed a transfer program would need to complete prior to
receiving various types of baccalaureate degrees at state
institutions of higher education.
(d) A process by which a community college would award an
associate degree to a student upon completion of necessary
credits, regardless of whether the student applied to receive the
degree or whether the student earned the credits for the degree
at a community college or a state institution of higher
education.
(e) Any other issues identified by the { - Joint Boards of
Education - } { + Higher Education Coordinating Commission + }
that relate to courses of study at community colleges and the
ability of a student to transfer credits to a community college
or a state institution of higher education, to be admitted to a
state institution of higher education or to earn a degree at a
community college or a state institution of higher education.
(f) Requirements that students must meet in order to benefit
from the standards described in paragraphs (a) to (e) of this
subsection.
Enrolled Senate Bill 1538 (SB 1538-B) Page 8
(4) Each community college and state institution of higher
education shall submit annual reports to the { - Joint Boards
of Education - } { + Higher Education Coordinating
Commission + } related to:
(a) The number of students who attend a community college and
then a state institution of higher education, or a state
institution of higher education and then a community college.
(b) The number of students who attend one community college and
then a different community college.
(c) The number of students who transfer from a community
college to a state institution of higher education and who have
an associate transfer degree or have completed a transfer
program.
(d) The average number of credits students have when they
transfer from a community college to a state institution of
higher education.
(e) The average number of credits students have when they
attend one community college and then a different community
college.
(f) The average number of credits that a student earning an
associate transfer degree completed at a community college.
(g) The average number of credits students who have transferred
from a community college to a state institution of higher
education must earn prior to receiving a baccalaureate degree
compared to the average number of credits students who did not
transfer from a community college must earn prior to receiving a
baccalaureate degree.
SECTION 12. { + The amendments to ORS 340.310 and 341.430 by
sections 10 and 11 of this 2012 Act become operative on July 1,
2012. + }
SECTION 13. { + The duties, functions and powers of the State
Board of Education, Department of Education and Superintendent of
Public Instruction relating to career schools are imposed upon,
transferred to and vested in the Higher Education Coordinating
Commission. + }
SECTION 14. { + (1) The Superintendent of Public Instruction
shall:
(a) Deliver to the Higher Education Coordinating Commission all
records and property within the jurisdiction of the
superintendent that relate to the duties, functions and powers
transferred by section 13 of this 2012 Act; and
(b) Transfer to the Higher Education Coordinating Commission
those employees engaged primarily in the exercise of the duties,
functions and powers transferred by section 13 of this 2012 Act.
(2) The executive officer of the Higher Education Coordinating
Commission 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 13 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 Education, Department of Education, Superintendent of
Public Instruction and the Higher Education Coordinating
Commission relating to transfers of records, property and
employees under this section, and the Governor's decision is
final. + }
{ + NOTE: + } Section 15 was deleted by amendment. Subsequent
sections were not renumbered.
Enrolled Senate Bill 1538 (SB 1538-B) Page 9
SECTION 16. { + The transfer of duties, functions and powers
to the Higher Education Coordinating Commission by section 13 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 Higher Education Coordinating Commission is
substituted for the State Board of Education, Department of
Education or Superintendent of Public Instruction in the action,
proceeding or prosecution. + }
SECTION 17. { + (1) Nothing in sections 13 to 16 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 section 13 of this 2012 Act. The Higher Education
Coordinating Commission may undertake the collection or
enforcement of any such liability, duty or obligation.
(2) The rights and obligations of the Department of Education
legally incurred under contracts, leases and business
transactions executed, entered into or begun before the operative
date of section 13 of this 2012 Act accruing under or with
respect to the duties, functions and powers transferred by
section 13 of this 2012 Act are transferred to the Higher
Education Coordinating Commission. For the purpose of succession
to these rights and obligations, the Higher Education
Coordinating Commission is a continuation of the Department of
Education and not a new authority. + }
SECTION 18. { + Notwithstanding the transfer of duties,
functions and powers by section 13 of this 2012 Act, the rules of
the State Board of Education with respect to such duties,
functions or powers that are in effect on the operative date of
section 13 of this 2012 Act continue in effect until superseded
or repealed by rules of the Higher Education Coordinating
Commission. References in such rules of the State Board of
Education to the Department of Education or to an officer or
employee of the department are considered to be references to the
Higher Education Coordinating Commission or an officer or
employee of the Higher Education Coordinating Commission. + }
SECTION 19. { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, in the context
of the duties, functions and powers transferred by section 13 of
this 2012 Act, reference is made to the rulemaking authority of
the State Board of Education or to the administrative authority
of the Department of Education, or an officer or employee of the
State Board of Education or Department of Education, whose
duties, functions or powers are transferred by section 13 of this
2012 Act, the reference is considered to be a reference to the
Higher Education Coordinating Commission or an officer or
employee of the Higher Education Coordinating Commission who, by
this 2012 Act, is charged with carrying out such duties,
functions and powers. + }
SECTION 20. ORS 345.010 is amended to read:
345.010. As used in ORS 345.010 to 345.450 and 345.992 to
345.997:
(1) 'Agent' means a person employed by or for a career school
for the purpose of procuring students, enrollees or subscribers
by solicitation in any form, made at a place or places other than
the school office or place of business of such school.
(2) 'Barbering' has the meaning given that term in ORS 690.005.
{ - (3) 'Board' means the State Board of Education. - }
Enrolled Senate Bill 1538 (SB 1538-B) Page 10
{ - (4) - } { + (3) + } 'Career school' or 'school' means
any private proprietary professional, technical, home study,
correspondence, business or other school instruction,
organization or person that offers any instruction or training
for the purpose or purported purpose of instructing, training or
preparing persons for any profession.
{ - (5) - } { + (4) + } 'Esthetics' has the meaning given
in ORS 690.005.
{ - (6) - } { + (5) + } 'Hair design' has the meaning given
in ORS 690.005.
{ - (7) - } { + (6) + } 'License' means the authority the
career school has been granted to operate under ORS 345.010 to
345.450.
{ - (8) - } { + (7) + } 'Nail technology' has the meaning
given in ORS 690.005.
{ - (9) - } { + (8) + } 'Registration' means the approval
by the
{ - Superintendent of Public Instruction - } { + Higher
Education Coordinating Commission + } of a teacher or agent to
instruct in or to represent the school.
{ - (10) 'Superintendent' means Superintendent of Public
Instruction. - }
SECTION 21. ORS 345.015 is amended to read:
345.015. ORS 345.010 to 345.450 do not apply to:
(1) Instruction or training solely avocational or recreational
in nature or to institutions offering such education exclusively.
(2) Instruction or training sponsored or offered by a bona fide
trade, business, professional or fraternal organization or by a
business solely for the organization's membership or the
business's employees.
(3) Instruction or training sponsored, offered or contracted by
organizations, institutions or agencies, if the instruction or
training is advertised or promoted to be in the nature of
professional self-improvement or personal self-improvement and
the instruction or training is not:
(a) Advertised or promoted as leading to or fulfilling the
requirements for licensing, certification, accreditation or
education credentials; or
(b) Leading to an occupation, employment or other activity for
which a person may reasonably expect financial compensation.
(4) Courses offered in hospitals that meet standards prescribed
by the American Medical Association or national accrediting
associations for nursing.
(5) Courses, instruction or training offered for a limited
number of hours, as defined by rule of the { - State Board of
Education - } { + Higher Education Coordinating Commission + }.
(6) Schools offering only courses of an advanced training or
continuing educational nature when offered solely to licensed
practitioners and people previously qualified or employed in the
profession for which a course is being offered.
(7) Schools that the { - Superintendent of Public
Instruction - } { + Higher Education Coordinating Commission + }
determines are adequately regulated by other means that guarantee
the school meets the standards of ORS 345.325.
(8) Schools offering only review instruction to prepare a
student to take an examination to enter a profession, where the
student has completed prior training related to the profession.
(9) Schools described in ORS 348.597 and, except as provided in
ORS 345.017, schools approved by the Higher Education
Enrolled Senate Bill 1538 (SB 1538-B) Page 11
Coordinating Commission to confer or offer to confer academic
degrees under ORS 348.606.
(10) Any parochial or denominational institution providing
instruction or training relating solely to religion and that does
not grant degrees.
SECTION 22. ORS 345.017 is amended to read:
345.017. When a school that is licensed under ORS 345.010 to
345.450 is approved by the Higher Education Coordinating
Commission to confer or offer to confer an academic degree under
ORS 348.606 and the school continues to offer a course or program
that does not lead to an academic degree:
(1) The school must continue to be licensed as a career school
and meet the requirements of ORS 345.010 to 345.450 until:
(a) All courses or programs offered by the school are approved
by the commission; and
(b) All students who were first enrolled in the school when the
school was licensed as a career school have:
(A) Completed the course or program for which the student
contracted with the career school; or
(B) Terminated enrollment in the career school for any reason.
(2) A student who is enrolled in a course or program for which
a school must be licensed under ORS 345.010 to 345.450 is
eligible for moneys from the Tuition Protection Fund established
under ORS 345.110 if the student:
(a) Qualifies for moneys under rules adopted by the { - State
Board of Education - } { + Higher Education Coordinating
Commission + } under ORS 345.110; and
(b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450.
(3) When a course or program that did not lead to an academic
degree is approved by the Higher Education Coordinating
Commission to lead to an academic degree, the regulatory
authority for that course or program transfers to the commission
upon the approval.
SECTION 23. ORS 345.020 is amended to read:
345.020. (1) The { - Superintendent of Public Instruction - }
{ + Higher Education Coordinating Commission + } shall
administer ORS 345.010 to 345.450 and 345.992 to 345.997 and
shall enforce all laws and rules relating to the licensing of
career schools and agents.
(2) The { - superintendent - } { + commission + } may
establish procedures whereby schools become eligible to
participate in federal student assistance programs if approved by
the United States Department of Education.
(3) { - The superintendent and the employees of the
Department of Education shall - } { + Members and employees of
the commission may + } not have financial interests in any career
school and { - shall - } { + may + } not act as agents or
employees thereof.
SECTION 24. ORS 345.030 is amended to read:
345.030. (1) A person may not open, conduct or do business as a
career school in this state without obtaining a license under ORS
345.010 to 345.450.
(2) Except as provided in subsection (8) of this section, the
{ - Superintendent of Public Instruction - } { + Higher
Education Coordinating Commission + } may issue a license to
conduct a career school only after the applicant has presented
proof satisfactory to the { - superintendent or the
representative of the superintendent - } { + commission + }
that the applicant complies with applicable standards adopted
Enrolled Senate Bill 1538 (SB 1538-B) Page 12
under ORS 345.325 and 670.280. For the purpose of this
subsection, ORS 670.280 applies to individuals who hold positions
of authority or control in the operation of the school and to its
faculty members and agents.
(3) A career school licensed in any other state must be
licensed in this state before establishing a physical presence in
this state such as offices or agents, or both, for the purpose of
solicitation of students.
(4) In determining whether to issue a license to a career
school, the { - superintendent - } { + commission + } may
consider the prior history of the applicant in operating other
career schools. The prior history of operating other career
schools includes, but is not limited to:
(a) Conduct by the applicant that is cause for probation of a
licensee or for suspension or revocation of a license as provided
in ORS 345.120 (2);
(b) Failure to comply with ORS 345.010 to 345.450 or rules
adopted under ORS 345.010 to 345.450; and
(c) The history of the applicant in operating career schools in
other states.
(5) The { - superintendent - } { + commission + } may not
issue a license to or renew the license of a career school until
the applicant provides all of the following to the
{ - superintendent - } { + commission + }:
(a) A financial statement, certified true and accurate and
signed by the owner of the school;
(b) Proof of compliance with the tuition protection policy
established by the { - State Board of Education - }
{ + commission + } pursuant to ORS 345.110; and
(c) Fingerprints of individuals as described in subsection (6)
of this section.
(6)(a) Except as provided in paragraph (c) of this subsection,
an applicant for an initial issuance of a license or a renewal of
a license must provide to the { - superintendent - } { +
commission + } the fingerprints of faculty members and agents of
the school and individuals who hold positions of authority or
control in the operation of the school if the career school will
be enrolling or does enroll persons under 18 years of age.
(b) In addition to requirements provided under paragraph (a) of
this subsection, the { - superintendent - }
{ + commission + } may require a career school to provide the
fingerprints of any agents of the school who will have contact
with persons under 18 years of age on behalf of the career
school.
(c) An applicant is not required to provide fingerprints under
paragraph (a) or (b) of this subsection if the { - Department
of Education - } { + commission + } has conducted a state or
nationwide criminal records check on the person within the three
years preceding the date of the application.
(d) Fingerprints acquired under this subsection may be used
only for the purpose of requesting a state or nationwide criminal
records check under ORS 181.534.
(7) Notwithstanding ORS 345.325 (10), the
{ - superintendent - } { + commission + } may place a school on
probation or deny, suspend or revoke a license if the
{ - superintendent - } { + commission + } finds that an
individual who holds a position of authority or control in the
operation of the school was convicted of a crime listed in ORS
342.143.
Enrolled Senate Bill 1538 (SB 1538-B) Page 13
(8) The { - superintendent - } { + commission + } may issue
a conditional license to a career school that meets the
requirements of subsection (5) of this section but that does not
comply with the applicable standards adopted by rule under ORS
345.325. A conditional license issued under this subsection is
effective for a period prescribed by the { - department - }
{ + commission + }, which may not exceed 90 days.
(9)(a) Except as provided in paragraph (b) of this subsection,
a career school license is nontransferable. The licensee must
give 30 days of notice to the { - Department of Education - }
{ + commission + } when transferring ownership of a career
school.
(b) The { - department - } { + commission + } may transfer
a career school license or allow the ownership of a career school
to transfer with less than 30 days of notice if:
(A) The owner of the school dies, is incapacitated or is
incarcerated; or
(B) Other circumstances render the owner unable to operate the
career school.
(10) Each career school shall display its license in a
prominent place.
SECTION 25. ORS 345.040 is amended to read:
345.040. (1) { - No person shall - } { + A person may
not + } act in this state as an agent for a career school
domiciled within or outside this state, unless the
{ - Superintendent of Public Instruction - } { + Higher
Education Coordinating Commission + } has approved the agent's
registration as a part of the school's license under ORS 345.010
to 345.450. No person shall act as an agent for a career school
unless and until the career school has obtained a license.
(2) For the purposes of licensing and student protection,
persons acting as agents for a career school domiciled within or
outside this state are employees of the school and shall be
included under the school's bonding or student protection policy,
or both. Agents shall perform their duties and conduct their
business in accordance with ORS 345.010 to 345.450.
(3) An agent shall be a person who has attained the age of 18
years, is of good moral character and is otherwise competent and
qualified to safeguard and protect the interests of the public.
SECTION 26. ORS 345.060 is amended to read:
345.060. (1) Every agent for a career school not domiciled in
this state shall be held to have appointed the
{ - Superintendent of Public Instruction - } { + executive
officer of the Higher Education Coordinating Commission + } as
agent to accept service of all summonses, pleadings, writs and
processes in all actions or proceedings brought against the
applicant in this state. Service upon the
{ - superintendent - } { + executive officer + } shall be
taken and held in all courts to be as valid and binding as if
personal service thereof had been made upon the applicant within
this state.
(2) When any summons, pleading, writ or process is served on
the { - superintendent - } { + executive officer + }, service
shall be by duplicate copies. One of the duplicates shall be
filed in the office of the { - superintendent - }
{ + executive officer + } and the other immediately forwarded by
certified mail to the agent thereby affected or therein named, at
the agent's last-known post-office address. If service is of a
summons, the plaintiff therein also shall cause the agent to be
served therewith in a manner provided by ORCP 7.
Enrolled Senate Bill 1538 (SB 1538-B) Page 14
SECTION 27. ORS 345.070 is amended to read:
345.070. The employing school shall issue an identification
credential to each agent registered under ORS 345.010 to 345.450
in the form and size prescribed by the { - Superintendent of
Public Instruction - } { + Higher Education Coordinating
Commission + }. Each agent shall carry the credential at all
times while engaged as an agent of the school.
SECTION 28. ORS 345.080 is amended to read:
345.080. (1) Before issuing any licenses under ORS 345.010 to
345.450, the { - Superintendent of Public Instruction - }
{ + Higher Education Coordinating Commission + } shall collect
the following nonrefundable, annual license fees:
_________________________________________________________________
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
In-State Schools
Tuition Income Range Fee
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
$ 0 -15,000 $ 450
15,001 -50,000 600
50,001 -125,000 750
125,001 -250,000 1,050
250,001 -500,000 1,350
500,001 -750,000 1,650
750,001 -1,000,000 1,950
Over 1,000,000 2,250
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
Out-of-State Schools
Tuition Income Range Fee
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
$ 0 -50,000 $1,350
50,001 -250,000 1,650
250,001 -500,000 1,950
500,001 -750,000 2,250
750,001 -1,000,000 2,550
Over 1,000,000 2,850
_________________________________________________________________
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
Enrolled Senate Bill 1538 (SB 1538-B) Page 15
____________________________________________________________
(2) The { - State Board of Education - } { + commission + }
may adopt, by rule, fees for teacher registration and fees for
providing copies of student transcripts maintained { - at the
Department of Education - } { + by the commission + }.
(3) The { - board - } { + commission + } may adopt, by
rule, fees for conducting a state or nationwide criminal
background check under ORS 181.534 and may collect fees for each
criminal records check. Fees collected as provided by this
subsection are in addition to any other fees collected by the
{ - department - } { + commission + }.
(4) All fees collected under this section shall be paid to the
credit of the { - department - } { + commission + }. Such
moneys are continuously appropriated to the { - department - }
{ + commission + } and shall be used for the administration of
the licensing program under ORS 345.010 to 345.450.
SECTION 29. ORS 345.110 is amended to read:
345.110. (1) The Tuition Protection Fund is established
separate and distinct from the General Fund. Interest earned by
the fund shall be credited to the fund. Proceeds of the fund are
continuously appropriated to the { - Department of
Education - } { + Higher Education Coordinating Commission + }
to protect students when a career school ceases to provide
educational services and for administrative expenses incurred
under subsection (5) of this section.
(2) The { - Superintendent of Public Instruction - }
{ + commission + } shall maintain and administer the fund { - ,
and the State Board of Education - } { + and + } shall adopt by
rule procedures governing the administration and maintenance of
the fund, including requirements relating to contributions to and
claims against the fund.
(3) Each career school shall pay to the Tuition Protection Fund
an initial capitalization deposit in amounts and within time
limits established by rule of the { - board - } { +
commission + }. Thereafter, each school shall make installment
payments based on a matrix adopted by rule of the { - board - }
{ + commission + }. In establishing the amount and frequency of
payments, the { - board - } { + commission + } may consider
the enrollment and financial condition of each school and such
other factors as the { - board - } { + commission + }
considers appropriate. The { - superintendent - }
{ + commission + } may deny, suspend or revoke the license of a
school which fails to make payments or fails to conform to other
requirements of this section or rules adopted by the
{ - board - } { + commission + } under this section.
(4) The { - superintendent - } { + commission + } shall
deposit moneys received under this section with the State
Treasurer in the Tuition Protection Fund.
(5) The { - superintendent - } { + commission + } may
disburse moneys from the fund by checks or orders drawn upon the
State Treasurer in conformance with rules of the { - board - }
{ + commission + } and only for tuition protection purposes,
including the { - superintendent's - } { + commission's + }
costs in administering and maintaining the fund.
(6) The { - superintendent - } { + commission + } may enter
into contracts to carry out the purposes of the fund. The
provisions of ORS 279.835 to 279.855 and ORS chapters 279A and
279B do not apply to contracts entered into under this
subsection.
SECTION 30. ORS 345.115 is amended to read:
Enrolled Senate Bill 1538 (SB 1538-B) Page 16
345.115. (1) The enrollment agreement entered into between a
person and a career school for the purpose of obtaining
instruction or training shall contain a schedule for the refund
of tuition, deposits and fees when the person does not complete
the course or program of instruction or training which was the
subject of the contract. No action or suit may be brought by a
career school or its assigns if the enrollment agreement does not
contain this refund schedule. This provision shall not limit the
career school's right to defend any action or suit brought by any
person on a contract which does not contain such a schedule.
(2) The refund schedule required by subsection (1) of this
section shall be established by the { - Superintendent of
Public Instruction - } { + Higher Education Coordinating
Commission + } in consultation with the advisory committee
appointed under ORS 345.330. In establishing the refund schedule,
the { - superintendent - } { + commission + } shall consider:
(a) The reasonable, obligated and fixed costs of the career
school, including but not limited to rent, personnel and
nonreturnable supplies.
(b) The method of instruction.
(c) The reasonable value of services performed prior to
cancellation of the course or program.
(3) The { - superintendent - } { + commission + } may
establish varying refund schedules when the difference in
services performed necessitates separate schedules.
(4) Nothing in this section is intended to prevent a career
school from requiring an advance deposit of tuition on behalf of
the person intending to enroll in a course or program offered by
or through the career school. However, the advance deposit shall
be limited to 20 percent of the total tuition and fees, excluding
federal and state financial aid, unless the { - State Board of
Education - } { + commission + } determines by rule that larger
advance deposits are appropriate.
(5) A school shall be considered in default of the enrollment
agreement when a course or program is discontinued or canceled or
the school closes prior to completion of contracted services.
When a school is in default, student tuition may be refunded on a
pro rata basis if the { - superintendent - }
{ + commission + } determines that the school has made provision
for students enrolled at the time of default to complete a
comparable program at another institution at no additional
tuition cost to the student beyond the original contract with the
defaulting school. If the school does not make such provision, a
total refund of all tuition and fees shall be made to the
students.
SECTION 31. ORS 345.117 is amended to read:
345.117. Any enrollment agreement used within this state as a
contract for instruction between a career school and a student
shall have printed or stamped upon it: 'Any inquiry a student may
have regarding this contract may be made in writing to the school
(name and address), or to the { - Superintendent of Public
Instruction, Department of Education, (current address), Salem,
Oregon (current zip code) - } { + Higher Education Coordinating
Commission (current address) + }. '
SECTION 32. ORS 345.120 is amended to read:
345.120. (1) On the written complaint of any person, the
{ - Superintendent of Public Instruction - } { + Higher
Education Coordinating Commission + } shall, and on the
{ - superintendent's - } { + commission's + } own motion may,
Enrolled Senate Bill 1538 (SB 1538-B) Page 17
investigate the actions of any career school or agent, or any
person who assumes to act in either capacity within this state.
(2) As a result of the investigation, and in addition to any
penalty that may be imposed under ORS 345.992, the
{ - superintendent - } { + commission + } may place a
licensee on probation or may suspend or revoke any license issued
under ORS 345.010 to 345.450 when the licensee has:
(a) Obtained a license by misrepresentation.
(b) Violated ORS 345.010 to 345.450 or any applicable rule.
(c) Ceased to engage in the business authorized by the license.
(d) Willfully used or employed any method, act or practice
declared unlawful by ORS 646.608.
(3) When notice of suspension or revocation is issued, the
licensee shall be notified and, upon request, shall be granted a
contested case hearing under ORS 183.310 (2).
(4) A licensee placed on probation must be formally notified by
the { - superintendent - } { + commission + } that it has
deficiencies that must be corrected within a time specified in
the notice.
(5) A licensee whose license is suspended is prohibited from
advertising, recruiting or enrolling students but may remain in
operation to complete training of students enrolled on the
effective date of the suspension.
(6) A licensee whose license has been revoked is not authorized
to continue in operation on and after the effective date of the
revocation.
SECTION 33. ORS 345.325 is amended to read:
345.325. The { - State Board of Education - } { + Higher
Education Coordinating Commission + } shall adopt by rule minimum
standards for the licensing of career schools under ORS 345.010
to 345.450 that are reasonably calculated to ensure that:
(1) The quality and content of each course or program of
instruction can achieve its stated objective;
(2) The facilities, instructional equipment and materials are
sufficient to enable students to achieve the program goals and
are adequate for the purposes of the program;
(3) The directors, administrators and instructors are properly
qualified;
(4) Prior to an applicant signing an enrollment agreement, the
school provides the applicant with a catalog or brochure that
includes an accurate description of the program for which the
applicant is enrolling, total costs of tuition and fees and other
information specified by rule;
(5) Upon satisfactory completion of instruction and training,
the student is given appropriate educational credentials;
(6) Adequate records and standard transcripts are maintained;
(7) The career school is maintained and operated in compliance
with all applicable ordinances and laws;
(8) The career school is financially sound and capable of
fulfilling its commitments to students;
(9) Neither the career school nor its agents engage in
advertising, sales, collection, credit or other practices of any
type which are unlawful under ORS 646.608;
(10) The directors, administrators, supervisors and instructors
of the school are of good reputation and character, except that a
school shall not be placed on probation or a license shall not be
denied, suspended or revoked because a faculty member has been
convicted of a crime except as authorized under ORS 670.280;
(11) Any student housing owned, maintained or approved by the
career school is appropriate, safe and adequate;
Enrolled Senate Bill 1538 (SB 1538-B) Page 18
(12) The school has a written placement assistance plan; and
(13) A license application from a new school or an application
for approval of a new program from an existing school shall
include labor market information that identifies the need for the
new school or program.
SECTION 34. ORS 345.330 is amended to read:
345.330. (1) The { - Superintendent of Public Instruction - }
{ + Higher Education Coordinating Commission + } shall appoint
a representative advisory committee consisting of 11 members who
shall serve for terms of three years ending June 30. Of the
membership of the committee:
(a) Seven members shall be persons affiliated with career
schools as owners, directors, administrators, instructors or
representatives, but not more than one member shall represent an
out-of-state career school.
(b) Four members shall be persons who are not eligible under
paragraph (a) of this subsection. At least one of these members
shall have graduated from a career school.
(2) The advisory committee appointed under subsection (1) of
this section shall:
(a) Make recommendations to the { - superintendent and State
Board of Education - } { + commission + } concerning the need
for professional and technical instructional and training
facilities, the types of instruction and training needed and by
whom these can best be provided.
(b) Recommend standards for career schools as provided in ORS
345.325 which are consistent with the purposes of such schools.
(c) Investigate and present findings to the { - State Board
of Education - } { + commission + } on the administration and
operation of laws relating to career schools. However, the
investigations and findings of the advisory committee do not
affect the authority of the { - superintendent - }
{ + commission + } to issue, deny, suspend or revoke the license
of any career school.
(d) Consult with the { - superintendent - }
{ + commission + } in determining the refund schedule under ORS
345.115.
(e) Make recommendations to the { - superintendent - }
{ + commission + } concerning rule development for ORS 345.010
to 345.450 and 345.992 to 345.997.
(3) Members of the advisory committee are entitled to
compensation and expenses as provided in ORS 292.495 from funds
appropriated to the { - Department of Education - }
{ + commission + } for purposes of administering ORS 345.010 to
345.450.
SECTION 35. ORS 345.340 is amended to read:
345.340. Consistent with the requirements of ORS 345.325, the
advisory committee shall recommend to the { - State Board of
Education - } { + Higher Education Coordinating Commission + }
minimum standards for the operation of career schools. In making
its recommendations, the committee shall consider changes in
technological, economic and social conditions which affect
employment needs, opportunities and skills.
SECTION 36. ORS 345.400 is amended to read:
345.400. In addition to the other requirements of ORS 345.010
to 345.450, the rules adopted by the { - State Board of
Education - } { + Higher Education Coordinating Commission + }
to regulate schools teaching hair design, barbering, esthetics or
nail technology:
Enrolled Senate Bill 1538 (SB 1538-B) Page 19
(1) May include rules the { - board - } { + commission + }
considers necessary to protect the economic or physical health
and safety of the public and of the students attending the school
including compliance with ORS 345.110.
(2) Shall include rules that set standards for teachers
teaching in schools licensed to teach hair design, barbering,
esthetics or nail technology pursuant to ORS 345.010 to 345.450.
(3) Shall require the schools to teach, and require for
graduation from the school, courses that meet the following
minimum standards:
(a)(A) A minimum hourly training requirement for:
(i) Hair design, 1,450 hours;
(ii) Barbering, 1,100 hours;
(iii) Esthetics, 250 hours; and
(iv) Nail technology, 350 hours; and
(B) In addition to the programs listed in this subsection, a
student is also required to successfully complete the following
requirements once:
(i) Safety and sanitation, 150 hours; and
(ii) Career development, 100 hours.
(b) A student competency-based training requirement for hair
design, barbering, esthetics or nail technology, if the school
has developed written requirements for graduation that are
approved by the { - Superintendent of Public Instruction - }
{ + commission + }.
SECTION 37. ORS 345.430 is amended to read:
345.430. At the request of the Board of Cosmetology, the
{ - Superintendent of Public Instruction - } { + Higher
Education Coordinating Commission + } shall determine whether a
person from out-of-state or out-of-country seeking a certificate
in hair design, barbering, esthetics or nail technology is
qualified to take the test of the Board of Cosmetology. A
determination shall be made by an evaluation of academic
transcripts, apprenticeship records and work experience
documentation. If documentation is not available, the
{ - superintendent - } { + commission + } may refer the person
to a career school for evaluation and recommendation.
SECTION 38. ORS 345.450 is amended to read:
345.450. (1) In addition to the fees required by ORS 345.080,
before issuing any license under ORS 345.010 to 345.450 to a
school teaching hair design, barbering, esthetics or nail
technology, and annually thereafter, the { - Department of
Education - } { + Higher Education Coordinating Commission + }
shall collect a nonrefundable annual inspection fee of $100.
(2) The inspection fee collected under subsection (1) of this
section shall be transferred to the Oregon Health Licensing
Agency for inspections performed under ORS 345.440.
SECTION 39. ORS 345.995 is amended to read:
345.995. (1) After consultation with the advisory committee
established under ORS 345.330, the { - State Board of
Education - } { + Higher Education Coordinating Commission + }
shall adopt by rule a schedule or schedules establishing the
amount of civil penalty that may be imposed for a particular
violation of ORS 345.010 to 345.450. No civil penalty shall
exceed $500 per violation. The
{ - board - } { + commission + } shall consult with the
Attorney General before adopting the schedule of penalties for
violations of ORS 345.120 (2)(d).
(2) In imposing a penalty for violation of ORS 345.010 to
345.450 pursuant to the schedule or schedules authorized by this
Enrolled Senate Bill 1538 (SB 1538-B) Page 20
section, the { - Superintendent of Public Instruction - }
{ + commission + } shall consider the following factors:
(a) The past history of the person incurring a penalty in
taking all feasible steps or procedures necessary or appropriate
to correct any violation.
(b) Any prior violations of ORS 345.010 to 345.450 or rules
adopted pursuant thereto.
(c) The economic and financial conditions of the person
incurring a penalty.
(3) The penalty imposed under this section may be remitted or
mitigated upon such terms and conditions as the
{ - superintendent - } { + commission + } considers proper and
consistent with the public welfare.
(4) The { - superintendent - } { + commission + } may
impose penalties which may be remitted or mitigated on condition
that a particular violation not continue or occur after a certain
period not to exceed 15 days.
SECTION 40. ORS 341.455 is amended to read:
341.455. (1) A community college may give credit for courses or
programs taken in a career school. The courses or programs for
which credit may be given must meet the standards adopted by the
{ - State Board of Education - } { + Higher Education
Coordinating Commission + } under ORS 345.325, must be taken at a
career school domiciled in this state and must be approved for
credit by the Commissioner for Community College Services.
(2) A community college may charge a transcripting fee to a
student for courses taken at a career school and accepted by the
community college under subsection (1) of this section. Such a
fee is to be set by the { - board - } { + commission + } and
is to be consistent with other student fees.
(3) Time spent by students on such courses shall not be
considered as clock hours of instruction in determining full-time
equivalency for purposes of ORS 341.626.
SECTION 41. ORS 348.040 is amended to read:
348.040. As used in ORS 348.040 to 348.070, unless the context
requires otherwise:
(1) 'Eligible student' means a person who is a resident of this
state, as determined by the Oregon Student Access Commission, at
the time of application for a loan under ORS 348.040 to 348.070:
(a) Who is enrolled in or has applied for enrollment in a
qualified school;
(b) Who has demonstrated a satisfactory level of achievement in
the high school or other school on the record of which the
application for enrollment is based or in which the applicant is
enrolled; and
(c) Who can show the necessity for financial assistance in
order to continue the applicant's education.
(2) 'Qualified school' means a school within this state that is
a:
(a) Four-year, nonprofit, generally accredited institution of
higher education;
(b) Accredited public or private community college or education
center, or one recognized by a state educational agency;
(c) Career school that is approved by the { - Superintendent
of Public Instruction - } { + Higher Education Coordinating
Commission + };
(d) Medical or dental program offered by the Oregon Health and
Science University;
(e) Veterinary program offered by Oregon State University; or
Enrolled Senate Bill 1538 (SB 1538-B) Page 21
(f) Institution that is, in the opinion of the commission,
comparable to such institutions, colleges, centers or schools.
(3) 'Qualified school' may include an institution, college,
center or school not located in this state if the commission
certifies that the course is not available in this state.
SECTION 42. ORS 348.070 is amended to read:
348.070. To assist the Oregon Student Access Commission and the
Department of State Lands in determining the qualification of
schools, the { - Superintendent of Public Instruction - }
{ + Higher Education Coordinating Commission + } shall maintain
a listing of career schools offering professional and technical
training that meets the occupational needs of the student.
SECTION 43. ORS 418.658 is amended to read:
418.658. (1) The program director of the Oregon Youth
Conservation Corps shall establish a separate program known as
the Oregon Community Stewardship Corps. In addition to the
established purposes of the Oregon Youth Conservation Corps, the
purpose of the Oregon Community Stewardship Corps is to promote
community service activities throughout the state for a broad
cross section of Oregon disadvantaged and at-risk youth through
programs that also include appropriate educational and job
training opportunities for participants.
(2) In addition to projects submitted under ORS 418.660 (1),
projects of the Oregon Community Stewardship Corps may include,
but shall not be limited to:
(a) Child care services.
(b) Elderly and disabled care services.
(c) Literacy education programs.
(d) Recycling and other waste reduction services.
(3) The Oregon Community Stewardship Corps shall offer
employment and educational opportunities of at least three but
not more than 12 months' duration for selected participants.
(4) Under rules adopted by the { - State Board of
Education - } { + Higher Education Coordinating Commission + },
participants who successfully complete any 12-month program under
this section shall be eligible for $1,500 in tuition vouchers
that can be used at any career school or post-secondary
educational institution that is qualified to receive assistance
through the Oregon Student Access Commission.
(5) All Oregonians who are at least 13 years of age and under
25 years of age are eligible to participate in the program. To
ensure that Oregon Community Stewardship Corps participants
represent a broad cross section of Oregonians, special emphasis
shall be given to recruiting school dropouts and other
disadvantaged and at-risk youth, according to criteria
established by the Oregon Youth Conservation Corps Advisory
Committee.
(6) To the extent practicable, the program director shall
enlist state and federal agencies, local government, nonprofit
organizations and private businesses, and any combination of such
entities, to act as sponsors for programs administered under this
section. Selection of sponsors shall be based on criteria that
include the following:
(a) The availability of other resources on a matching basis,
including contributions from private sources, other federal,
state and local agencies, and moneys available through the
federal Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.);
(b) The provision of related educational and job training
programs to participants, including but not limited to school and
Enrolled Senate Bill 1538 (SB 1538-B) Page 22
college coursework, General Educational Development (GED) tests
equivalency training, project-related education and professional
training;
(c) Assurances that proposed projects will not displace
existing employees or duplicate existing private or government
programs; and
(d) Assurances that proposed projects are devoted to the
enhancement of the community and are not based in maintenance
activities and that these projects meet an identified need.
(7) In consultation with the advisory committee and the
Commissioner for Community College Services, the program director
shall make grants for programs administered under this section.
SECTION 44. 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 Commission or the { - State Board of Education - }
{ + Higher Education Coordinating Commission + };
(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; 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;
Enrolled Senate Bill 1538 (SB 1538-B) Page 23
(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 45. ORS 690.225 is amended to read:
690.225. (1) In addition to any other duties prescribed by law,
the Oregon Health Licensing Agency shall provide for the
inspection of facilities and schools licensed to teach
practitioner skills under ORS 345.010 to 345.450.
Enrolled Senate Bill 1538 (SB 1538-B) Page 24
(2) Inspections conducted under this section shall determine
whether the facilities comply with the health, safety, infection
control and licensing rules of the Board of Cosmetology and
whether the schools comply with the health, safety and infection
control requirements under ORS 345.010 to 345.450 and rules of
the agency. A report of the results of the inspection shall be
submitted to the { - Department of Education - } { + Higher
Education Coordinating Commission + }.
SECTION 46. ORS 696.182 is amended to read:
696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
(2) The agency shall include in the rules that an applicant for
certification under this section must be:
(a) A main or branch office, with a registered business name as
provided under ORS 696.026, of a licensed real estate property
manager or principal real estate broker;
(b) A licensed title or escrow company conducting business in
this state;
(c) A real estate trade association or a trade association in a
related field;
(d) A real estate multiple listing service;
(e) An attorney admitted to practice in this state;
(f) A private career school licensed by the { - Department of
Education - } { + Higher Education Coordinating Commission + }
and approved by the agency to provide the basic real estate
broker's or property manager's educational courses required under
ORS 696.022;
(g) An accredited community college, an accredited public
university listed in ORS 352.002 or a private and independent
institution of higher education as defined in ORS 352.720;
(h) A distance learning provider as provided by rule of the
agency; or
(i) Another provider approved by the Real Estate Board.
(3) The Real Estate Agency may provide continuing education
without being certified under this section.
(4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
(a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
(b) Learning objectives for each course topic.
(5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
(6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
SECTION 47. { + Sections 13 to 19 of this 2012 Act and the
amendments to ORS 341.455, 345.010, 345.015, 345.017, 345.020,
345.030, 345.040, 345.060, 345.070, 345.080, 345.110, 345.115,
345.117, 345.120, 345.325, 345.330, 345.340, 345.400, 345.430,
345.450, 345.995, 348.040, 348.070, 418.658, 471.580, 690.225 and
696.182 by sections 20 to 46 of this 2012 Act become operative on
July 1, 2013. + }
SECTION 48. 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.
Enrolled Senate Bill 1538 (SB 1538-B) Page 25
(2) Notwithstanding subsection (1) of this section, { + the
provisions of + }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 chapter 286A and + } 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) { + (a) Except as provided by paragraph (b) of this
subsection, + } 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.
{ + (b) To the same extent as state agencies that borrow
through the State Treasurer or that have moneys held in the State
Treasury, the Oregon University System is subject to any
provision of law enacted after January 1, 2011, that relates to
or affects the borrowings of the Oregon University System through
the State Treasurer or the deposit, payment or investment of
moneys held in the Oregon University System Fund or any other
moneys held for the Oregon University System in the State
Treasury. + }
(7) In carrying out the duties, functions and powers imposed by
law upon the Oregon University System, the State Board of Higher
Education or the Chancellor of the Oregon University System may
contract with any public agency for the performance of such
Enrolled Senate Bill 1538 (SB 1538-B) Page 26
duties, functions and powers as the board or chancellor considers
appropriate.
SECTION 49. { + 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. + }
----------
Passed by Senate February 29, 2012
.............................................................
Robert Taylor, Secretary of Senate
.............................................................
Peter Courtney, President of Senate
Passed by House March 1, 2012
.............................................................
Bruce Hanna, Speaker of House
.............................................................
Arnie Roblan, Speaker of House
Enrolled Senate Bill 1538 (SB 1538-B) Page 27
Received by Governor:
......M.,............., 2012
Approved:
......M.,............., 2012
.............................................................
John Kitzhaber, Governor
Filed in Office of Secretary of State:
......M.,............., 2012
.............................................................
Kate Brown, Secretary of State
Enrolled Senate Bill 1538 (SB 1538-B) Page 28
