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