Bill Text: OR SB242 | 2011 | Regular Session | Enrolled


Bill Title: Relating to education; appropriating money; and declaring an emergency.

Spectrum: Unknown

Status: (Passed) 2011-08-01 - Effective date, July 20, 2011. [SB242 Detail]

Download: Oregon-2011-SB242-Enrolled.html


     76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session

                            Enrolled

                         Senate Bill 242

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 General Government for Higher Education
  Workgroup)

                     CHAPTER ................

                             AN ACT

Relating to education; creating new provisions; amending ORS
  30.264, 131.594, 182.122, 182.415, 183.635, 184.475, 184.477,
  190.610, 192.501, 205.450, 205.455, 238.005, 238.148, 238.300,
  238.350, 238.580, 238.608, 238A.005, 238A.140, 243.105,
  243.107, 243.778, 243.910, 243.956, 244.050, 270.100, 273.155,
  273.785, 276.227, 276.229, 276.612, 279A.025, 283.305, 283.310,
  284.633, 284.701, 285B.168, 285B.174, 286A.615, 286A.700,
  291.038, 291.055, 292.043, 292.044, 310.155, 315.237, 326.075,
  326.543, 326.587, 329.757, 329.765, 329.775, 329.780, 329.822,
  329.840, 332.114, 332.155, 336.057, 337.500, 337.511, 338.115,
  339.885, 340.005, 340.085, 341.009, 341.527, 341.531, 342.144,
  342.147, 342.360, 342.390, 342.443, 344.259, 344.557, 345.015,
  345.017, 348.005, 348.040, 348.050, 348.070, 348.095, 348.115,
  348.117, 348.180, 348.183, 348.186, 348.205, 348.210, 348.230,
  348.250, 348.260, 348.265, 348.270, 348.280, 348.282, 348.283,
  348.290, 348.310, 348.320, 348.330, 348.340, 348.350, 348.360,
  348.370, 348.390, 348.394, 348.427, 348.429, 348.436, 348.444,
  348.448, 348.500, 348.505, 348.510, 348.520, 348.530, 348.540,
  348.550, 348.560, 348.563, 348.570, 348.580, 348.590, 348.592,
  348.597, 348.601, 348.603, 348.604, 348.605, 348.606, 348.607,
  348.608, 348.609, 348.611, 348.612, 348.615, 348.616, 348.618,
  348.621, 348.625, 348.630, 348.635, 348.640, 348.655, 348.660,
  348.665, 348.670, 348.675, 348.685, 348.690, 348.696, 348.890,
  348.900, 348.910, 351.001, 351.010, 351.020, 351.050, 351.060,
  351.062, 351.065, 351.067, 351.070, 351.072, 351.075, 351.077,
  351.085, 351.086, 351.088, 351.094, 351.097, 351.110, 351.117,
  351.130, 351.140, 351.150, 351.155, 351.203, 351.205, 351.210,
  351.230, 351.240, 351.300, 351.310, 351.317, 351.320, 351.340,
  351.450, 351.460, 351.506, 351.590, 351.628, 351.638, 351.642,
  351.643, 351.644, 351.646, 351.647, 351.649, 351.653, 351.656,
  351.658, 351.700, 351.704, 351.840, 351.870, 351.885, 352.002,
  352.004, 352.008, 352.010, 352.015, 352.017, 352.021, 352.223,
  352.360, 352.370, 352.375, 352.380, 352.385, 352.390, 352.510,
  352.669, 352.720, 352.730, 352.740, 352.750, 353.080, 353.200,
  353.260, 353.440, 353.600, 353.603, 357.004, 399.245, 399.255,
  399.265, 399.275, 408.095, 411.894, 418.658, 431.690, 433.090,
  442.535, 442.540, 442.545, 461.543, 541.375, 634.660, 657.665,
  659.855, 660.312, 660.315, 660.358, 678.425, 679.020, 680.515,
  684.040, 685.060, 696.182, 743.550 and 759.445 and section 9,

Enrolled Senate Bill 242 (SB 242-C)                        Page 1

  chapter 802, Oregon Laws 2007; repealing ORS 348.599, 351.005,
  351.007, 351.090, 351.200 and 351.315; appropriating money; and
  declaring an emergency.
  Whereas the Legislative Assembly declares its intent to promote
a system of higher education in which:
  (1) Institutions of higher education have the flexibility to
make effective and efficient use of human, physical and financial
resources;
  (2) Education beyond high school is accessible, regardless of
each student's geographic or socioeconomic position;
  (3) High-quality research and scholarship by faculty and
students is coordinated;
  (4) Funding and metrics of accountability are aligned and
measured against statewide goals and benchmarks; and
  (5) Citizens of all ages, backgrounds and income levels are
enabled to participate in the search for knowledge and individual
development.

Be It Enacted by the People of the State of Oregon:

                               { +
HIGHER EDUCATION COORDINATING COMMISSION + }

  SECTION 1.  { + (1) There is established a Higher Education
Coordinating Commission, consisting of 15 members appointed by
the Governor.
  (2) The Governor shall appoint:
  (a) One student at a public university listed in ORS 352.002;
  (b) One student at a community college in this state;
  (c) At least one member from each congressional district in
this state;
  (d) At least four members who represent employers in Oregon, at
least two of whom represent small employers and at least two of
whom represent large employers; and
  (e) At least one member who serves on a district school board
as defined in ORS 332.002.
  (3) The Governor shall solicit recommendations from the Speaker
of the House of Representatives for at least three members and
from the President of the Senate for at least three members.
  (4) The Governor may appoint members who satisfy more than one
of the qualifications for membership listed in subsection (2) of
this section.
  (5) The term of office of each member is four years, except
that the term of office for the two student members is two years.
A member serves at the pleasure of the Governor. Before the
expiration of the term of a member, the Governor shall appoint a
successor whose term begins on July 1 next following. A member is
eligible for reappointment. If there is a vacancy for any cause,
the Governor shall make an appointment to become immediately
effective for the unexpired term.
  (6) The appointment of the commission is subject to
confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565.
  (7) A member of the commission is entitled to compensation and
expenses as provided in ORS 292.495. + }
  SECTION 2.  { + Notwithstanding the term of office specified by
section 1 of this 2011 Act, of the members first appointed to the
Higher Education Coordinating Commission:

Enrolled Senate Bill 242 (SB 242-C)                        Page 2

  (1) Five, including the two student members, shall serve for a
term ending June 30, 2014.
  (2) Five shall serve for a term ending June 30, 2015.
  (3) Five shall serve for a term ending June 30, 2016. + }
  SECTION 3.  { + (1) The members of the Higher Education
Coordinating Commission must be residents of this state who are
well informed on the principles of higher education.
  (2) A member of the State Board of Higher Education, Oregon
Health and Science University Board of Directors or the governing
board of a community college district may not serve as a member
of the Higher Education Coordinating Commission. + }
  SECTION 4.  { + (1) The Higher Education Coordinating
Commission shall select one of its members as chairperson and
another as vice chairperson, for such terms and with duties and
powers necessary for the performance of the functions of such
offices as the commission determines.
  (2) A majority of the members of the commission constitutes a
quorum for the transaction of business.
  (3) The commission shall meet at least once every three months
at a place, day and hour determined by the chairperson. The
commission may also meet at other times and places specified by
the call of the chairperson or of a majority of the members of
the commission. + }
  SECTION 5.  { + (1) The Higher Education Coordinating
Commission shall appoint an executive officer to serve at the
pleasure of the commission.
  (2) The appointment of the executive officer must be by written
order, filed with the Secretary of State.
  (3) Subject to any applicable provisions of ORS chapter 240,
the executive officer shall appoint all subordinate officers and
employees of the commission, prescribe their duties and fix their
compensation. + }
  SECTION 6.  { + In accordance with applicable provisions of ORS
chapter 183, the Higher Education Coordinating Commission may
adopt rules necessary for the administration of the laws that the
commission is charged with administering. + }
  SECTION 7.  { + (1) The Higher Education Coordinating
Commission may establish such advisory and technical committees
as it considers necessary to aid and advise the commission in the
performance of its functions. These committees may be continuing
or temporary committees. The commission shall determine the
representation, membership, terms and organization of the
committees and shall appoint their members.
  (2) Members of the committees are not entitled to compensation,
but at the discretion of the commission may be reimbursed from
funds available to the commission for actual and necessary travel
and other expenses incurred by them in the performance of their
official duties in the manner and amount provided in ORS
292.495. + }
  SECTION 8.  { + The Higher Education Coordinating Commission
shall:
  (1) Develop state goals and associated accountability measures
for the state post-secondary education system, including
community colleges and public universities listed in ORS 352.002,
and for the Oregon Student Access Commission.
  (2) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to

Enrolled Senate Bill 242 (SB 242-C)                        Page 3

helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (a) Increasing the educational attainment of the population;
  (b) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (c) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (d) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (3) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (4) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (a) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (b) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of Higher Education, with the
goal of encouraging tuition affordability for students;
  (c) Tuition rates set by each community college governing board
for community colleges in this state;
  (d) Recommended biennial appropriations for student financial
aid; and
  (e) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (5) Each biennium, recommend to the Governor and the
Legislative Assembly a consolidated higher education budget
request consistent with the finance model, including
appropriations for:
  (a) Ongoing operations of the Oregon Student Access Commission;
  (b) Ongoing operations for the Oregon University System;
  (c) Ongoing operations for community colleges;
  (d) Needed new facilities or programs; and
  (e) Capital improvements.
  (6) Design and maintain a statewide educational data system, in
collaboration with the State Board of Education.
  (7) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (8) Approve and authorize degrees for the Oregon University
System.
  (9) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority. + }
  SECTION 8a.  { + The Higher Education Coordinating Commission
may delegate any of the actions listed in section 8 of this 2011
Act to its executive director. + }

                               { +
ABOLITION OF OFFICE OF DEGREE AUTHORIZATION + }

  SECTION 9.  { + (1) The Office of Degree Authorization within
the Oregon Student Assistance Commission is abolished.

Enrolled Senate Bill 242 (SB 242-C)                        Page 4

  (2) All the duties, functions and powers of the Office of
Degree Authorization are imposed upon, transferred to and vested
in the Higher Education Coordinating Commission. + }
  SECTION 10.  { + (1) The Office of Degree Authorization shall:
  (a) Deliver to the Higher Education Coordinating Commission all
records and property within the jurisdiction of the Office of
Degree Authorization that relate to the duties, functions and
powers transferred by section 9 of this 2011 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 9 of this 2011 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 9 of this 2011 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 Office
of Degree Authorization and the Higher Education Coordinating
Commission relating to transfers of records, property and
employees under this section, and the Governor's decision is
final. + }
  SECTION 11.  { + (1) The unexpended balances of amounts
authorized to be expended by the Office of Degree Authorization
for the biennium beginning July 1, 2011, from revenues dedicated,
continuously appropriated, appropriated or otherwise made
available for the purpose of administering and enforcing the
duties, functions and powers transferred by section 9 of this
2011 Act are transferred to and are available for expenditure by
the Higher Education Coordinating Commission for the biennium
beginning July 1, 2011, for the purpose of administering and
enforcing the duties, functions and powers transferred by section
9 of this 2011 Act.
  (2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the Office of Degree
Authorization remain applicable to expenditures by the Higher
Education Coordinating Commission under this section. + }
  SECTION 12.  { + The transfer of duties, functions and powers
to the Higher Education Coordinating Commission by section 9 of
this 2011 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 Office of Degree Authorization in the action,
proceeding or prosecution. + }
  SECTION 13.  { + (1) Nothing in sections 9 to 16 of this 2011
Act or the repeal of ORS 348.599 by section 291 of this 2011 Act
relieves a person of a liability, duty or obligation accruing
under or with respect to the duties, functions and powers
transferred by section 9 of this 2011 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 Office of Degree
Authorization, or the Oregon Student Assistance Commission on
behalf of the Office of Degree Authorization, legally incurred
under contracts, leases and business transactions executed,
entered into or begun before the operative date specified in
section 292 of this 2011 Act are transferred to the Higher
Education Coordinating Commission. For the purpose of succession

Enrolled Senate Bill 242 (SB 242-C)                        Page 5

to these rights and obligations, the Higher Education
Coordinating Commission is a continuation of the Office of Degree
Authorization and not a new authority. + }
  SECTION 14.  { + Notwithstanding the transfer of duties,
functions and powers by section 9 of this 2011 Act, the rules of
the Office of Degree Authorization in effect on the operative
date specified in section 292 of this 2011 Act continue in effect
until superseded or repealed by rules of the Higher Education
Coordinating Commission. References in rules of the Office of
Degree Authorization, or an officer or employee of that office,
are considered to be references to the Higher Education
Coordinating Commission or an officer or employee of the Higher
Education Coordinating Commission. + }
  SECTION 15.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Office of Degree Authorization or an officer or
employee of that office, 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. + }
  SECTION 16.  { + (1) For the purpose of harmonizing and
clarifying statutory law, the Legislative Counsel may substitute
for words designating the 'Office of Degree Authorization' or its
officers or employees, wherever they occur in statutory law,
words designating the 'Higher Education Coordinating Commission'
or its officers or employees.
  (2)(a) The amendments to ORS 348.601 by section 179 of this
2011 Act are intended to change the name of the Office of Degree
Authorization Account to the Degree Authorization Account.
  (b) For the purpose of harmonizing and clarifying statutory
law, the Legislative Counsel may substitute for words designating
the 'Office of Degree Authorization Account,' wherever they occur
in statutory law, words designating the 'Degree Authorization
Account.' + }

                               { +
OREGON UNIVERSITY SYSTEM + }

  SECTION 17.  { + The Legislative Assembly finds that public
higher education is necessary to accomplish the findings in ORS
351.001 and recognizes the following as fundamental goals of
public higher education in this state:
  (1) Creating an educated citizenry to support responsible roles
in a democratic society and provide a globally competitive
workforce to drive this state's economy, while ensuring access
for all qualified Oregonians to a high-quality post-secondary
education;
  (2) Ensuring a high-quality learning environment that allows
students to succeed;
  (3) Creating original knowledge and advancing innovation; and
  (4) Contributing positively to the economic, civic and cultural
life of communities in all regions of Oregon. + }
  SECTION 18.  { + Sections 19 to 21b and 23 of this 2011 Act are
added to and made a part of ORS 351.010 to 351.070. + }
  SECTION 19.  { + The Oregon University System is established as
a public university system, consisting of the office of the
Chancellor of the Oregon University System, the public
universities listed in ORS 352.002 and any related offices,
departments or activities. The State Board of Higher Education,

Enrolled Senate Bill 242 (SB 242-C)                        Page 6

on behalf of the Oregon University System, shall exercise and
carry out all of the powers, rights and duties that are expressly
conferred upon the board or that are implied by law or incident
to such powers, rights and duties. The Oregon University System
is an instrumentality of the state and a government entity
performing governmental functions and exercising governmental
powers.  Notwithstanding the status of the Oregon University
System as an instrumentality of the state, the Oregon University
System is not eligible to request or receive legal services from
the Attorney General and the Department of Justice pursuant to
ORS chapter 180, except as otherwise expressly provided by law.
The Oregon University System is not considered a unit of local or
municipal government. + }
  SECTION 20.  { + (1) The State Board of Higher Education shall
set enrollment fees for each public university listed in ORS
352.002.  Enrollment fees include tuition for education and
services and any other charges found by the State Board of Higher
Education to be necessary to carry out the educational program of
the Oregon University System.
  (2) The State Board of Higher Education shall, by rule,
establish a process under which each public university may
develop and submit proposed enrollment fees for board
consideration. The process must provide for participation of
enrolled students and the recognized student government of the
public university.
  (3) Each public university listed in ORS 352.002 is authorized
to offer fee remissions to its students, including remissions
offered on the basis of need, from any authorized source of
revenue. Moneys appropriated from the General Fund may not be
used to fund fee remissions to students of the public
university. + }
  SECTION 20a.  { + The Higher Education Coordinating Commission
may set limits on the enrollment fees established by the State
Board of Higher Education under section 20 (1) of this 2011
Act. + }
  SECTION 21.  { + (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

Enrolled Senate Bill 242 (SB 242-C)                        Page 7

commission shall give specific direction to the board regarding
the changes necessary to earn commission approval.
  (3) On or before September 1 of each even-numbered year, the
State Board of Higher Education shall submit the funding request
and performance compact to the Oregon Department of
Administrative Services for the Oregon University System.
  (4) The Governor's biennial budget submitted to the Legislative
Assembly may include the State Board of Higher Education's
funding request submitted to the Oregon Department of
Administrative Services for the Oregon University System. Any
funding request approved by the Legislative Assembly must specify
that the moneys be appropriated to the Oregon Department of
Administrative Services for allocation to the Oregon University
System.
  (5) The funding request must include, in addition to the
performance compact, a report on performance from the previous
biennium's performance compact.
  (6) The State Board of Higher Education 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 21a.  { + The State Board of Higher Education is
authorized to:
  (1) Request, as part of the funding request under section 21 of
this 2011 Act, appropriations for budgetary items, including but
not limited to education and general operations, statewide public
services, state funded debt service, capital improvements and
other special initiatives and investments; and
  (2) Allocate moneys, from funds appropriated to the board and
other available moneys, among the office of the Chancellor of the
Oregon University System, public universities listed in ORS
352.002 and offices, departments and activities under the control
of the board. + }
  SECTION 21b.  { + The State Board of Higher Education is not
required to seek expenditure limitation approval from the
Legislative Assembly to spend any available moneys, including but
not limited to moneys from enrollment fees collected pursuant to
section 20 of this 2011 Act. + }
  SECTION 22.  { + Sections 21 and 21a of this 2011 Act apply to
biennia beginning on or after July 1, 2015. + }
  SECTION 22a.  { + (1) On or before September 1, 2012, the State
Board of Higher Education shall submit a funding request and
performance compact for the biennium beginning July 1, 2013, to
the Oregon Department of Administrative Services for the Oregon
University System.
  (2) The Governor's biennial budget submitted to the Legislative
Assembly for the biennium beginning July 1, 2013, 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.
  (3) The State Board of Higher Education shall, by rule,
establish a framework for the development of the performance
compact that must accompany the funding request to the Oregon
Department of Administrative Services for the biennium beginning

Enrolled Senate Bill 242 (SB 242-C)                        Page 8

July 1, 2013. The framework must address, among other issues, the
issue of tuition affordability for students.
  (4) The State Board of Higher Education is authorized to:
  (a) Request, as part of the funding request under subsection
(1) of this section, appropriations for budgetary items,
including but not limited to education and general operations,
statewide public services, state funded debt service, capital
improvements and other special initiatives and investments; and
  (b) Allocate moneys, from funds appropriated to the board and
other available moneys, among the office of the Chancellor of the
Oregon University System, public universities listed in ORS
352.002 and offices, departments and activities under the control
of the board. + }
  SECTION 23.  { + The State Board of Higher Education shall:
  (1) Review all mission statements of the public universities
listed in ORS 352.002; and
  (2) Approve all academic programs offered at the public
universities, and shall ensure that the academic programs:
  (a) Are consistent with the mission statement of the respective
public university;
  (b) Do not unnecessarily duplicate academic programs offered by
other public universities listed in ORS 352.002; and
  (c) Are allocated among the public universities in the Oregon
University System to maximize the achievement of statewide needs
and requirements. + }
  SECTION 23a.  { + The State Board of Higher Education shall
forward all mission statements of the public universities listed
in ORS 352.002 to the Higher Education Coordinating Commission
for approval. + }
  SECTION 24.  { + As used in sections 24 to 28 of this 2011 Act:
  (1) 'Bond-related costs' means:
  (a) The costs and expenses of issuing, administering and
maintaining higher education revenue bonds including, but not
limited to, the costs of:
  (A) Paying or redeeming higher education revenue bonds.
  (B) Paying amounts due in connection with credit enhancement
devices or agreements for exchange of interest rates.
  (C) Paying the fees, administrative costs and expenses of the
State Treasurer and the Oregon University System, including the
costs of consultants or advisers retained by the State Treasurer
or the Chancellor of the Oregon University System, for the higher
education revenue bonds.
  (b) The costs of funding reserves for the higher education
revenue bonds.
  (c) Capitalized interest for the higher education revenue
bonds.
  (d) Rebates or penalties due to the United States in connection
with the higher education revenue bonds.
  (e) Any other costs or expenses that the State Treasurer or the
chancellor determines are necessary or desirable in connection
with issuing and maintaining the higher education revenue bonds.
  (2) 'Higher education revenue bonds' means revenue bonds issued
pursuant to section 25 of this 2011 Act.
  (3) 'Higher education revenues' includes:
  (a) Tuition, fees and charges imposed or collected by the
Oregon University System, or by one of the public universities in
the system; and
  (b) Moneys appropriated, allocated or otherwise made available
to the Oregon University System, or to one of its universities,
by the Legislative Assembly, if those moneys are lawfully

Enrolled Senate Bill 242 (SB 242-C)                        Page 9

available to pay the bond-related costs of higher education
revenue bonds. + }
  SECTION 25.  { + (1) At the request of the Chancellor of the
Oregon University System, the State Treasurer may issue, as
provided in ORS chapter 286A, higher education revenue bonds from
time to time, the net proceeds of which must be used to:
  (a) Finance projects that the State Board of Higher Education
determines will assist the Oregon University System in carrying
out its statutory powers;
  (b) Refund bonds issued for the projects; and
  (c) Pay bond-related costs.
  (2)(a) Before pledging all or a portion of higher education
revenues, pursuant to ORS 286A.102, to secure higher education
revenue bonds, higher education credit enhancement devices or
agreements for exchange of interest rates related to such revenue
bonds or credit enhancement devices, the chancellor shall reserve
sufficient funds each biennium to satisfy any payment or reserve
requirements relating to:
  (A) General obligation bonds or certificates of participation
issued for the benefit of the Oregon University System;
  (B) Credit enhancement devices or agreements for exchange of
interest rates entered into in connection with obligations
related to general obligation bonds or certificates of
participation issued for the benefit of the Oregon University
System; and
  (C) Loans to the Oregon University System funded by state
general obligation bonds.
  (b) Pursuant to ORS 286A.010, the Oregon University System
shall provide cash flow projections and other information
requested by the State Treasurer to determine the sufficiency of
higher education revenues to satisfy the requirements of
paragraph (a) of this subsection and any proposed revenue bonds.
  (c) For purposes of the issuance of bonds and ORS chapter 286A,
the Oregon University System shall be considered a related agency
as defined in ORS 286A.001 (9).
  (d) The chancellor shall identify the specific higher education
revenues that will be pledged to secure each series of higher
education revenue bonds and specify the status of the lien of
each pledge.
  (3) The chancellor may enter into covenants, pursuant to ORS
286A.025 (4)(c), on behalf of the State of Oregon for the benefit
of holders of higher education revenue bonds, providers of credit
enhancement for higher education revenue bonds and counterparties
to agreements for exchange of interest rates to:
  (a) Adjust the rates, charges or fees that produce higher
education revenues so that higher education revenues equal or
exceed specified levels during specified periods.
  (b) Create only those pledges or liens on higher education
revenues that are permitted by the covenants authorized by this
section.
  (c) Budget and apply higher education revenues, or otherwise
allow higher education revenues to be applied, in amounts that,
when added to other moneys lawfully available for the purpose,
will be sufficient:
  (A) To pay in full and when due the principal, interest and
premium on outstanding higher education revenue bonds;
  (B) To pay amounts due in connection with agreements for
exchange of interest rates and credit enhancement devices for
higher education revenue bonds; and

Enrolled Senate Bill 242 (SB 242-C)                       Page 10

  (C) To maintain the balance required by covenants in any debt
service reserves established for the higher education revenue
bonds.
  (4) The chancellor shall operate the properties of the Oregon
University System in compliance with the higher education revenue
bond covenants until all higher education revenue bonds are paid
or defeased.
  (5) Higher education revenue bonds are not a general obligation
of the State of Oregon, and neither the full faith and credit nor
the taxing power of the State of Oregon may be pledged to secure
or pay the higher education revenue bonds.
  (6) The State Treasurer and the Oregon University System do not
have an obligation to pay bond-related costs except as provided
in sections 24 to 28 of this 2011 Act. A holder of higher
education revenue bonds issued under this section does not have
the right to compel the exercise of the taxing power of the State
of Oregon to pay bond-related costs.
  (7) As long as any higher education revenue bonds issued under
this section are outstanding, covenants related to the higher
education revenue bonds are deemed to be contracts between the
State of Oregon and holders of the higher education revenue
bonds. The State of Oregon may not give force or effect to a
statute or initiative or referendum measure approved by the
electors of this state if doing so would unconstitutionally
impair existing covenants made with the holders of existing
higher education revenue bonds or would unconstitutionally impair
other obligations or agreements regarding the security of higher
education revenue bonds to which the moneys deposited in the
accounts established by sections 26, 27 and 28 of this 2011 Act
are pledged and assigned.
  (8) The principal, interest and any premium and any issuance
costs on a financing agreement under ORS 283.085 to 283.092, any
general obligation bond, any revenue bond and any related credit
enhancement device or interest rate exchange agreement shall be
paid from the sources specified in the laws and documents
authorizing the financing agreement, bond, credit enhancement
device or interest rate exchange agreement. The Oregon University
System shall pay any other expenses and liabilities, including
but not limited to legal expenses, costs of settling claims,
judgments, federal arbitrage rebates and penalties and expenses
arising from an inquiry, audit or other action by a federal or
state regulatory body, unless the expense or liability results
solely from the negligence or willful misconduct of a state
agency.
  (9) Pursuant to ORS chapter 180, on behalf of the State
Treasurer or any other state agency, the Attorney General shall
appear, commence, prosecute or defend any action, suit, matter,
cause or proceeding arising from any financing agreement under
ORS 283.085 to 283.092, any bond issued for the benefit of the
Oregon University System and any related credit enhancement
device or interest rate exchange agreement. + }
  SECTION 26.  { + An account in the Oregon University System
Fund established by ORS 351.506 is designated for the purposes
described in section 25 (1) of this 2011 Act. The account
consists of net proceeds of higher education revenue bonds issued
under section 25 of this 2011 Act and other moneys made available
for the purposes described in section 25 (1) of this 2011 Act.
Moneys in the account may be invested as provided in ORS 293.701
to 293.820, and interest earned by the account must be credited
to the account. Moneys in the account are continuously

Enrolled Senate Bill 242 (SB 242-C)                       Page 11

appropriated to the Oregon University System for the purposes
described in section 25 (1) of this 2011 Act. + }
  SECTION 27.  { + (1) An account in the Oregon University System
Fund established by ORS 351.506 is designated for the purposes of
paying, when due, the principal of, the interest on and the
premium, if any, on outstanding higher education revenue bonds.
Moneys in the account may be invested as provided in ORS 293.701
to 293.820, and interest earned by the account must be credited
to the account. Moneys in the account are continuously
appropriated to the Oregon University System for the purposes
described in this section.
  (2) The Oregon University System shall deposit in the account:
  (a) Capitalized or accrued interest on higher education revenue
bonds;
  (b) Amounts appropriated or otherwise made available by the
Legislative Assembly for deposit in the account; and
  (c) Reserves established for the payment of higher education
revenue bonds. + }
  SECTION 28.  { + (1) An account in the Oregon University System
Fund established by ORS 351.506 is designated for the purpose of
paying bond-related costs under sections 24 to 28 of this 2011
Act. Moneys in the account may be invested as provided in ORS
293.701 to 293.820, and interest earned by the account must be
credited to the account. Moneys in the account are continuously
appropriated to the Oregon University System for payment of
bond-related costs under sections 24 to 28 of this 2011 Act.
  (2) The Oregon University System shall deposit in the account:
  (a) Proceeds of higher education revenue bonds that were issued
to pay bond-related costs; and
  (b) Amounts appropriated or otherwise made available by the
Legislative Assembly for deposit in the account. + }
  SECTION 29.  { + Except for risk management and insurance
functions, the State Board of Higher Education and the Oregon
University System shall assume responsibility, in accordance with
agreements entered into with the Department of Justice and the
State Treasurer, for the indemnity and defense of their officers,
agents and employees or other persons designated by the board or
the system to carry out or further their missions with regard to
claims asserted and actions commenced as of the operative date of
this section. + }
  SECTION 29a.  { + For risk management and insurance functions,
the State Board of Higher Education and the Oregon University
System shall assume responsibility, in accordance with agreements
entered into with the Oregon Department of Administrative
Services regarding its risk management function and the manager
of the Insurance Fund established in ORS 278.425, for the
indemnity and defense of their officers, agents and employees or
other persons designated by the board or the system to carry out
or further their missions with regard to claims asserted and
actions commenced as of the operative date of this section. + }
  SECTION 29b.  { + Before the operative date of section 29 of
this 2011 Act or the operative date of section 29a of this 2011
Act, the State Board of Higher Education and the Oregon
University System shall enter into an agreement, as applicable,
with the Department of Justice, the Oregon Department of
Administrative Services regarding its risk management function,
the State Treasurer and the manager of the Insurance Fund
established in ORS 278.425 with regard to:
  (1) The transfer of duties and responsibilities concerning
legal actions and liabilities in existence before the operative

Enrolled Senate Bill 242 (SB 242-C)                       Page 12

date of section 29 of this 2011 Act or the operative date of
section 29a of this 2011 Act, as applicable;
  (2) The reimbursement of reasonable costs and expenses
associated with the legal representation of the State Treasurer
for bonds issued for the board and the system on and after the
operative date of section 29 of this 2011 Act or the operative
date of section 29a of this 2011 Act, as applicable; and
  (3) Any other topic necessary for the orderly transfer of
duties and responsibilities incident to the previous statutory
duty of the Department of Justice to provide legal representation
to the board and the system and the responsibility of the
Department of Administrative Services to insure the board and the
system. + }
  SECTION 30.  { + Except as otherwise provided by law, all
liabilities, known and unknown, of the State Board of Higher
Education and the Oregon University System existing on or arising
after the operative date of this section or, for liabilities
related to risk management or insurance functions, arising after
the operative date of section 29a of this 2011 Act, are the sole
responsibility of the board and system. Damages, costs and other
expenses arising out of and related to liabilities of the board
and the system after the operative date of this section shall be
payable from the Oregon University System Fund or from insurance
purchased, a self-insurance program established or another
insurance equivalent arranged for under section 36a of this 2011
Act. + }
  SECTION 30a.  { + The State Board of Higher Education is a
continuation of the former State Board of Higher Education with
respect to its duties, liabilities, functions and powers, and is
not a new authority, for the purpose of succession to all rights
and obligations of the former State Board of Higher Education as
constituted as of the effective date of this 2011 Act, except as
otherwise provided by law. + }
  SECTION 31. ORS 351.001 is amended to read:
  351.001. The Legislative Assembly finds that:
  (1) For its  { + survival and + } political well-being, Oregon
needs wise and effective leadership and an informed citizenry.
  (2) For its  { + survival and + } economic well-being, Oregon
needs able and imaginative men and women for the direction and
operation of all its institutions, for the production of goods
and services and for the management of its fiscal affairs. Oregon
also needs alert and informed consumers.
  (3) For its cultural advancement, Oregon needs creative talent
as well as appreciative and discriminating readers, viewers and
listeners. Oregon also needs people who understand the diverse
patterns of behavior, communication and belief that make up the
common cultures of the various communities in which we all must
function.
  (4) For its survival, Oregon needs citizens who understand the
interdependence of human beings and our shared dependence on the
resources provided by our natural environment.
  (5) Oregon needs people who, in the roles of parents and
teachers and in other capacities, are able to transmit the
state's and the nation's ideals and heritage to future
generations.
  (6) For their personal well-being, individual Oregonians need
to cultivate an advanced literacy essential to leading productive
and rewarding lives. This includes the capacity to think
logically and critically; to internalize and exemplify humane
values; to write, speak and figure clearly and accurately; to

Enrolled Senate Bill 242 (SB 242-C)                       Page 13

understand, in some depth, a variety of psychological,
historical, cultural, aesthetic and scientific concepts and
theories; and to master a range of occupational, professional,
avocational, social and personal skills.
  SECTION 32. ORS 351.010 is amended to read:
  351.010. The Oregon University System   { - is established and
is organized as described in ORS 352.002. The system - }  shall
be conducted under the control of a board of   { - 12 - }  { +
15 + } directors, to be known as the State Board of Higher
Education.  { + Except as otherwise provided by law, the board
has sole authority to govern, set policy and otherwise manage the
affairs of the public universities listed in ORS 352.002. + } The
board shall consist of:
  (1) Two students  { - , - }  who at the time of their
appointment to the board  { - , - }  are   { - admitted at - }
 { +  attending + } different public
  { - institutions of higher education in Oregon - }  { +
universities + } listed in ORS 352.002.
  (2) One member of the faculty at Oregon State University,
Portland State University or University of Oregon.
  (3) One member of the faculty at Eastern Oregon University,
Oregon Institute of Technology, Southern Oregon University or
Western Oregon University.
  (4)   { - Eight - }  { +  Eleven + } members of the general
public who are not students or faculty  { + members + } at the
time of   { - their - }  appointment.
  SECTION 33.  { + (1) The directors added to the State Board of
Higher Education by the amendments to ORS 351.010 in section 32
of this 2011 Act shall be appointed for terms beginning July 1,
2012.
  (2) Notwithstanding the term of office specified in ORS
351.040, of the directors added to the board by the amendments to
ORS 351.010 in section 32 of this 2011 Act:
  (a) One shall serve for a term ending June 30, 2014;
  (b) One shall serve for a term ending June 30, 2015; and
  (c) One shall serve for a term ending June 30, 2016. + }
  SECTION 34. ORS 351.020 is amended to read:
  351.020. (1) The directors of the State Board of Higher
Education   { - shall - }  { +  must + } be residents of Oregon
and   { - shall be - }  { +  are + } appointed by the Governor.
The   { - appointment is - }  { +  appointments are + } subject
to the confirmation of the Senate in the manner provided by ORS
171.562 and 171.565. No director who is not a student or faculty
member at the time of appointment may be an employee of any of
the   { - institutions or departments - }  { +  public
universities or offices, departments or activities + } under the
control of the State Board of Higher Education  { - , nor shall
more than seven graduates of or students admitted at these
institutions, nor more than three graduates of or students
admitted at any one of these institutions or departments, be
members of the board at any time - } . The faculty members
appointed under this section may not participate in any
discussions or action by the board or attend any executive
session of the board involving collective bargaining issues that
affect faculty at any public   { - institution of higher
education - }  { +  university listed in ORS 352.002 + }.
  (2) To assist the Governor in making appointments of the
student members as provided in ORS 351.010, the duly organized
and recognized entities of student government at each   { - state
institution of higher education - }  { +  public university

Enrolled Senate Bill 242 (SB 242-C)                       Page 14

 + }shall submit a list of nominees to the Governor. The entities
are entitled to no more than three nominees per   { - school - }
 { +  public university + }. The Governor shall consider these
lists in the selection of the student members to be appointed to
the State Board of Higher Education.
  (3) To assist the Governor in making appointments of the
faculty members as provided in ORS 351.010, a duly organized and
recognized association of faculty members may submit a list of
nominees to the Governor. The Governor shall consider any
submitted list in the selection of the faculty members to be
appointed to the State Board of Higher Education.
  (4) When making an appointment of the faculty  { + or
student + } members as provided in ORS 351.010, the Governor
shall rotate the appointments among representatives from various
public
  { - institutions of higher education - }  { +  universities
 + }to ensure equal representation among the
 { - institutions - }  { +  public universities + }.
  SECTION 35. ORS 351.050 is amended to read:
  351.050. The board shall elect one of its members as president
who shall serve for the fiscal year for which the president is
elected. The board shall meet   { - regularly once every three
months - }  { +  at least four times each fiscal year + } at such
times and places as the president may determine.   { - Special
meetings may be called by the president upon the written request
of any six members of the board. Six - }  { +  Eight + } members
shall constitute a quorum for the transaction of business.
  SECTION 36. ORS 351.060 is amended to read:
  351.060. The State Board of Higher Education may:
  (1) Control and provide for, subject to the conditions of this
section, the custody and occupation of the grounds, buildings,
books, papers and documents belonging to each and all  { +
of + } the   { - institutions - }  { +  public universities and
offices + }, departments or activities under the control of the
State Board of Higher Education.
  (2) Manage, control and apply all property of whatever nature
given to or appropriated for the use, support or benefit of any
or all of the   { - institutions - }  { +  public universities or
offices + }, departments or activities under the control of the
State Board of Higher Education, according to the terms and
conditions of such gift or appropriation. Moneys received under
this section shall be deposited in a designated account in the
Oregon University System Fund established by ORS 351.506.
Interest earned by the account shall be credited to the account.
  (3)  { + Design, acquire, + } erect, improve, repair, maintain,
 { + lease, renovate, demolish, + } equip { + , + }   { - and - }
furnish { +  and dispose of + } buildings, structures and lands
 { - for higher education - }  { +  necessary for carrying out
its powers, rights and duties + }.
  (4) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lend,  { + license, + } improve and develop any
and all property, real or personal:
  (a) Given to any of the   { - institutions - }  { +  public
universities or offices + }, departments or activities under the
control of the State Board of Higher Education by private donors,
whether such gifts are made to the State Board of Higher
Education or to the State of Oregon; or
  (b) Acquired by any other method or from any source by the
State Board of Higher Education for the benefit of any of the

Enrolled Senate Bill 242 (SB 242-C)                       Page 15

  { - institutions - }  { +  public universities or offices + },
departments or activities under the control of the board, except
for any structure, equipment or asset encumbered by a certificate
of participation.
    { - (5) Manage mineral and geothermal resource rights and
proceeds therefrom acquired or held for the state by the board
pursuant to this chapter and ORS chapter 567. This includes
leasing mineral and geothermal resource rights consistent with
ORS 273.785. - }
   { +  (5) Exercise the power of eminent domain for the
condemnation of property of any kind and all water rights,
easements and appurtenances thereto that the State Board of
Higher Education considers necessary for carrying out the powers,
rights and duties of the board. + }
  (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers,  { + rights and + } duties
 { - and authority given to the board by this section, ORS
351.070 and 351.150 - }  { +  of the State Board of Higher
Education + }.
  (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of such mortgages or for the purpose
of carrying into effect any and all of the powers,  { + rights
and + } duties   { - and authority given to the State Board of
Higher Education by this section and ORS 351.070 and 351.150. - }
 { +  of the State Board of Higher Education. Except as otherwise
provided by ORS 30.260 to 30.300, the board has the authority to
defend and indemnify its employees, officers and agents when they
are acting in good faith within the course and scope of their
duties for public purposes. + }
  (8) Acquire, receive, hold, control, sell, manage, operate,
lease { + , license + } or lend any goods, supplies, materials,
equipment, services and information technology, for the use,
support or benefit of any of the   { - institutions - }  { +
public universities or offices + }, departments or activities
under the control of the  { + State + } Board { +  of Higher
Education + }.
    { - (9) Delegate any of the powers, duties or functions
granted to the board under this section to any state institution
of higher education within the Oregon University System. - }
   { +  (9) With the approval of the State Treasurer, request
that the Oregon Department of Administrative Services enter into
financing agreements in accordance with ORS 283.085 to 283.092 on
behalf of the Oregon University System. The Oregon University
System shall be considered a state agency for purposes of ORS
286A.730.
  (10) Own, control and operate Oregon University System motor
vehicles for use by public universities and offices, departments
and activities under the control of the State Board of Higher
Education. The board shall, by rule, establish requirements
governing the use and operation of Oregon University System motor
vehicles.
  (11) Hire or retain attorneys for the provision of legal
services, including but not limited to general advice,
representation in litigation and representation in appellate
matters. The State Board of Higher Education shall reimburse the
State Treasurer for legal fees incurred in connection with
borrowings done at the request of the Oregon University
System. + }

Enrolled Senate Bill 242 (SB 242-C)                       Page 16

  SECTION 36a.  { + The State Board of Higher Education may
purchase any insurance, operate a self-insurance program or
otherwise arrange for the equivalent of insurance coverage of any
nature. + }
  SECTION 37. ORS 351.062 is amended to read:
  351.062. Except for the power to prescribe enrollment fees
under   { - ORS 351.070 (3)(c) - }  { +  section 20 of this 2011
Act + } and the power to adopt rules, the State Board of Higher
Education may delegate any of the powers, duties or functions of
the board to a committee of the board { + , the Chancellor of the
Oregon University System or a president of a public university
listed in ORS 352.002 + }.
  SECTION 38. ORS 351.070 is amended to read:
  351.070. (1) The   { - Oregon University System, in accordance
with rules adopted by the - }  State Board of Higher Education
 { - , - } shall { + , by rule, + } implement a personnel system
 { + for the Oregon University System  + }and may engage in
collective bargaining with
  { - its - }   { + the + } employees. All collective bargaining
with any certified or recognized exclusive employee
representative shall be under the direction and supervision of
the Chancellor of the Oregon University System.  { + The board
and + } the Oregon University System shall have payroll authority
 { - pursuant to ORS 292.043 to 292.180 - } .
  (2)(a) The board shall establish competitive procedures for the
purchasing, procurement and contracting of goods, services and
information technology, for the benefit of the Oregon University
System and all the   { - institutions, departments and activities
therein - }  { +  public universities and offices, departments
and activities under the control of the board + }. The board may
also establish exemptions from the competitive procedures when
appropriate.
  (b) The board shall ensure that the hourly rate of wage paid by
any contractor upon all public improvements contracts undertaken
for the board shall not be less than the same rate of wage as
determined by the Bureau of Labor and Industries for an hour's
work in the same trade or occupation in the locality where such
labor is performed. Claims or disputes arising under this
subsection shall be decided by the Commissioner of the Bureau of
Labor and Industries.
  (c) The board shall adopt policies and procedures that achieve
results equal to or better than the standards existing on July
17, 1995, regarding affirmative action, pay equity for comparable
work, recycling, the provision of workers' compensation insurance
to workers on contract and the participation of emerging small
businesses and businesses owned by minorities and women.
  (3) The board may, for each   { - institution - }  { +  public
university listed in ORS 352.002 + }   { - under its control - }
:
  (a) Appoint and employ a president and the requisite number of
 { - professors, teachers and - }  employees  { - , - }  and
prescribe their compensation and tenure of office or employment.
  (b) Demand and receive the interest mentioned in ORS 352.510
and all sums due and accruing   { - to the institutions of higher
education - }  for admission and tuition   { - therein - } , and
apply the same, or so much thereof as is necessary, to the
payment of the compensation referred to in paragraph (a) of this
subsection and the other current expenses   { - of the
institutions - } .

Enrolled Senate Bill 242 (SB 242-C)                       Page 17

    { - (c) Prescribe fees for enrollment into the institutions.
Such enrollment fees shall include tuition for education and
general services and such other charges found by the board to be
necessary to carry out its educational programs. The board may
award student aid from any fund other than the General Fund. - }
    { - (d) - }  { +  (c) + } Prescribe incidental fees for
programs under the supervision or control of the board found by
the board, upon its own motion or upon recommendation of the
recognized student government   { - of the institution
concerned - } , to be advantageous to the cultural or physical
development of students. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students by the
 { - institution - }  president upon the recommendation of the
recognized student government   { - at the institution
concerned - } .
    { - (e) - }  { +  (d) + } Upon recommendation of the
recognized student government, collect optional fees
 { - authorized by the institution executive, - }  for student
activities not included in paragraph (c)
  { - or (d) - }  of this subsection { +  or section 20 of this
2011 Act as authorized by the president + }. The payment of such
optional fees
  { - shall be - }  { +  is + } at the option and selection of
the student and
  { - shall not be - }   { + is not + } a prerequisite of
enrollment.
    { - (f) - }  { +  (e) + } Confer,  { + consistent with the
mission and programs of each public university and + } on the
recommendation of the faculty of
  { - any such institution - }   { + the public university + },
such degrees as usually are conferred by   { - such
institutions - }  { +  public universities + }, or as   { - they
deem - }   { + the faculty deems + } appropriate.
    { - (g) - }  { +  (f) + } Prescribe the qualifications for
admission   { - into such institutions - } .
  (4) Subject to such delegation as the board may decide to make
to the   { - institutions, divisions and departments - }
 { + public universities and offices, departments and
activities + } under its control, the board, for each
 { - institution, division and department - }  { +  public
university, office, department or activity + } under its control:
  (a) Shall supervise the general course of instruction therein,
and the research, extension, educational and other activities
thereof.
  (b) Shall adopt rules and bylaws for the government thereof,
including the faculty, teachers, students and employees therein.
  (c) Shall maintain cultural and physical development services
and facilities therefor and, in connection therewith, may
cooperate and enter into agreements with any person or
governmental agency.
  (d) May contract to provide health services at student health
centers.
  (e) Shall provide health services at student health centers to
students.
  (f) May provide health services at student health centers to
any of the following:
  (A) Dependents of students.

Enrolled Senate Bill 242 (SB 242-C)                       Page 18

  (B) Staff.
  (C) Faculty.
  (g) Shall prescribe and collect charges.
  (h) Shall adopt rules relating to the creation, use, custody
and disclosure, including access, of student education records
 { - of the institutions - }  that are consistent with the
requirements of applicable state and federal law. Whenever a
student has attained 18 years of age or is attending   { - an
institution of post-secondary education - }  { +  a public
university listed in ORS 352.002 + }, the permission or consent
required of and the rights accorded to a parent of the student
regarding education records shall thereafter be required of and
accorded to only the student.
  (5) For each   { - institution under its jurisdiction - }  { +
public university listed in ORS 352.002 + }, the board shall
provide opportunities for part-time students to obtain complete
undergraduate degrees at unconventional times, which include but
are not limited to early morning and noon hours, evenings and
weekends. In administering these degree programs, the
  { - institution - }  { +  public university + } may use any
educational facility available for the use of the
 { - institution - }  { +  public university + }.
  (6) For all   { - institutions of higher education - }  { +
public universities + } listed in ORS 352.002, the board shall,
 { - no later than October 1, 2010, and - }  to the extent
feasible and cost beneficial, develop and   { - begin
implementation of - }   { + implement + } a common admissions
process that permits applicants to be considered for admission to
more than one   { - institution - }  { +  public university + }.
  SECTION 39. ORS 351.075 is amended to read:
  351.075.   { - (1) - }  The State Board of Higher Education
shall appoint a chief executive officer who shall be known as the
Chancellor of the Oregon University System and who shall serve at
the pleasure of the board.   { - The board may appoint one or
more assistants as may be necessary. - }
    { - (2) The chancellor and the assistants of the chancellor
shall be persons who by training and experience are well
qualified to perform the duties of their offices and to assist in
carrying out the functions of the board under ORS 351.010 to
351.070, 351.075 to 351.260, 351.310 to 351.615, 351.770 to
351.840, 352.002 to 352.006, 352.010 to 352.053, 352.230,
352.360, 352.370, 352.390, 352.400 and 352.510 to 352.760. - }
    { - (3) The State Board of Higher Education shall fix the
compensation of the chancellor and the assistants of the
chancellor. - }
  SECTION 40. ORS 351.085 is amended to read:
  351.085. The Chancellor of the Oregon University System shall
exercise, under the direction of the State Board of Higher
Education, the administrative  { + and management + } authority
necessary to carry out the policies  { + and directives + } of
the board with respect to the   { - institutions, departments or
activities - }   { + public universities and offices, departments
and activities + } under the control of the board. In carrying
out the duties of the chancellor, the chancellor shall:
  (1)   { - Act as - }  { +  Serve as chief executive officer of
the Oregon University System and + } administrative officer of
the State Board of Higher Education.
   { +  (2) Supervise the presidents of the public universities
listed in ORS 352.002 and recommend the terms and conditions of

Enrolled Senate Bill 242 (SB 242-C)                       Page 19

their employment to the board, including but not limited to
appointment, compensation and termination. + }
    { - (2) - }  { +  (3) + } Maintain a centralized service
program for all
  { - institutions, departments - }   { + public universities and
offices, departments + } and activities { +  under the control of
the board + }, including but not limited to  { - , - }
accounting, statistical services, capital construction,
management analysis, legal services, academic affairs and
educational research.
    { - (3) - }  { +  (4) + } Collect and compile information and
statistics relative to the operation of the   { - institutions,
departments - }  { +  public universities and offices,
departments + } and activities  { + under the control + } of the
 { - State - }  board   { - of Higher Education - } .
    { - (4) - }  { +  (5) + } Prepare and submit to the
 { - State - }  board   { - of Higher Education - }  an annual
operating budget for all   { - institutions, departments - }
 { + public universities and offices, departments  + }and
activities  { + under the control + } of the board { + ,
including but not limited to budget allocations to the public
universities and offices, departments and activities + }.
    { - (5) - }  { +  (6) + } Oversee the preparation and
submission to the
  { - State Board of Higher Education of the biennial budget
requests of the institutions, departments and activities - }
 { +  board of the funding request for the Oregon University
System + } for consideration by the board as the   { - budget - }
 { +  funding + } request   { - to the Governor - } under
 { - ORS 351.090 - }  { +  section 21 of this 2011 Act + }.
 { - The chancellor shall provide analyses of the budget requests
of the institutions, departments and activities, including in
such analyses alternative considerations as may be necessary or
desirable for the board in the adoption of its budget
request. - }
    { - (6) - }  { +  (7) + } Appoint  { - , subject to the State
Personnel Relations Law, and with the approval of the State Board
of Higher Education, - }  such personnel as may be necessary for
the performance of the duties of the chancellor.
    { - (7) - }  { +  (8) + } Designate, if the chancellor
wishes, one or more suitable persons to sign or countersign
warrants, vouchers, certificates  { - , - }  or other papers and
documents requiring the signature of the chancellor.
    { - (8) - }  { +  (9) + } Prepare the agendas for
 { - State - }  board   { - of Higher Education - }  meetings and
provide an analysis of proposals made to the board, including
such alternatives as may be necessary or desirable for their
consideration, and make recommendations thereon.
    { - (9) - }  { +  (10) + } Prepare and submit to the
 { - State - }  board   { - of Higher Education - }  on or about
December 31 of each year an annual report in which the chancellor
describes the principal activities of the Oregon University
System during the fiscal year ending June 30.
  { - The report shall include a statement of all funds received,
the source or sources from which received, the expenditure and
disbursement of all funds and the purposes for which they were
expended. The report shall contain a statement of the number of
students enrolled in each institution, department or activity,
the number of degrees conferred, the improvements made and new
courses of instruction added, together with a statement showing

Enrolled Senate Bill 242 (SB 242-C)                       Page 20

in a general way the status of all activities and functions of
the State Board of Higher Education. - }
    { - (10) - }  { +  (11) + } Keep a record of the transactions
of the   { - State - } board   { - of Higher Education - } .
    { - (11) - }  { +  (12) + } Have the custody of all books,
papers, documents and other property belonging to the
 { - State - }  board   { - of Higher Education - } .
    { - (12) - }  { +  (13) + } Give such instructions as may be
necessary to carry out the directives of the   { - State - }
board   { - of Higher Education - }  and forward them to the
various institution presidents and heads of  { + offices, + }
departments and activities.
    { - (13) - }  { +  (14) + } Provide for meetings of the
presidents and principal executives of the   { - institutions,
departments - }   { + public universities and offices,
departments + } and activities { +  under the control of the
board + }, at such times as the   { - State - }  board   { - of
Higher Education - }  may direct  { - , such meetings to - }
 { + . The meetings shall + } be open to any member of the board.
 { - At such meetings, the executives of the Oregon University
System may propose policies or policy changes or statements for
consideration by the board and develop recommendations concerning
allocations of funds. - }
    { - (14) - }  { +  (15) + } Perform such other administrative
 { + or management + } assistance and consider other
administrative  { + or management + } matters as the
 { - State - }  board   { - of Higher Education - }  may require.
  SECTION 41. ORS 351.086 is amended to read:
  351.086. (1) Except as otherwise provided in this chapter and
ORS chapter 352, the provisions of ORS chapters  { + 182, + }
240,  { + 270, 273, 276, 278, + } 279A, 279B, 279C, 282 { + ,
283, 291 + } and 292  { + and ORS 180.060, 180.160, 180.210,
180.220, 180.225 and 180.230 + } do not apply to the Oregon
University System.
  (2) Notwithstanding subsection (1) of this section, ORS
  { - 240.167, 240.185 - }  { +  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, + }   { - and - }  292.043 { +  and 292.044 + }
apply to the Oregon University System.
    { - (3) Notwithstanding any other law, the following
provisions do not apply to the Oregon University System: - }
    { - (a) ORS 182.310 to 182.400; - }
    { - (b) ORS 273.413 to 273.456; - }
    { - (c) ORS 276.071 and 276.072; and - }
    { - (d) ORS 291.038. - }
    { - (4) - }  { +  (3) + } Notwithstanding subsection
 { - (3)(b) - }  { +  (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

Enrolled Senate Bill 242 (SB 242-C)                       Page 21

243.782, 243.800, 243.820, 243.830, 243.850, 243.910 to 243.945,
307.090 and 307.112 apply to the Oregon University System under
the same terms as they apply to other public bodies other than
the State of Oregon.
  (b) The provisions of ORS 293.115, 293.117, 293.130, 293.169,
293.171, 293.205 to 293.225, 293.250, 293.265 to 293.280,
293.285, 293.295, 293.321, 293.353, 293.375, 293.406, 293.465 to
293.485, 293.490, 293.495, 293.525, 293.701 to 293.820, 293.875,
293.880 and 293.990 apply to the Oregon University System under
the same terms as they apply to state agencies with moneys held
by the State Treasurer, to the Oregon University System Fund
established in ORS 351.506 and to any other moneys deposited with
or held by the State Treasurer for the Oregon University System.
  (5) Notwithstanding subsections (1) and (6) of this section,
the Oregon University System and its agents and employees remain
subject to all statutes and administrative rules of this state
that create rights, benefits or protections in favor of military
veterans, service members and families of service members to the
same extent as an agency of this state would be subject to such
statutes and administrative rules.
  (6) The Oregon University System, as a distinct governmental
entity, is not subject to any provision of law enacted after
January 1, 2011, with respect to any governmental entity, that is
unique to governmental entities, unless the provision
specifically provides that it applies to the Oregon University
System. + }
    { - (5) - }  { +  (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 duties, functions and powers as the
 { - Oregon University System - }   { + board or chancellor + }
considers appropriate.
  SECTION 41a.  { + Notwithstanding ORS 351.086 (1) as amended by
section 41 of this 2011 Act, ORS chapter 278 and ORS 283.100,
283.110, 283.120, 283.130, 283.140, 283.143, 283.305 to 283.350,
283.415 to 283.425, 283.500 to 283.520 and 283.524 apply to the
Oregon University System prior to July 1, 2012. + }
  SECTION 42. ORS 351.094 is amended to read:
  351.094. (1)   { - Notwithstanding any other provision of law,
the Oregon University System - }  { +  The State Board of Higher
Education + } shall provide group insurance to   { - its - }
employees  { + of the Oregon University System + } through the
Public Employees' Benefit Board  { - , but - }  { +  or + } may
elect  { - , at the discretion of the State Board of Higher
Education, - }  to provide alternative  { + group health and
welfare insurance + } benefit plans to   { - its - }  employees
 { - , should - }  { +  of the Oregon University System if + }
the same level of benefits   { - be - }  { +  is + } available at
a lower cost than through the Public Employees' Benefit Board.
  (2) For the purposes of ORS 243.555 to 243.575, if the State
Board of Higher Education chooses not to participate in the
benefit plans offered through the Public Employees' Benefit
Board, the State Board of Higher Education may have the authority
granted to the Public Employees' Benefit Board under ORS 243.555
to 243.575 for the administration of an appropriate expense
reimbursement plan.
  (3) The   { - Oregon University System - }  { +  State Board of
Higher Education + } shall offer   { - a - }  { +  one or
more + } deferred compensation   { - plan for its - }  { +  plans

Enrolled Senate Bill 242 (SB 242-C)                       Page 22

to + } employees { +  of the Oregon University System + }. The
Oregon University System shall, at the discretion of the board,
choose whether to offer its employees the state deferred
compensation plan established under ORS 243.401 to 243.507 or
another deferred compensation plan that the board elects to make
available to the employees of the Oregon University System.
  SECTION 43.  { + (1) The State Board of Higher Education shall
establish a committee consisting of representatives of public
university management and of employees, both represented and
unrepresented, to evaluate options for:
  (a) An optional retirement plan as described in ORS 243.800;
and
  (b) Continued participation in the Public Employees' Benefit
Board, transfer of employee participation to the Oregon Educators
Benefit Board or participation in other, alternative group health
and welfare insurance benefit plans.
  (2) The State Board of Higher Education shall make a report
based upon the recommendations of the committee to the
Legislative Assembly prior to October 1, 2012. The State Board of
Higher Education may not make any changes to retirement plans
based on the report until July 1, 2013. The State Board of Higher
Education must make any changes to group health and welfare
insurance benefit plans between January 1, 2013, and May 1, 2013,
to become effective on January 1, 2014. + }
  SECTION 44. ORS 351.110 is amended to read:
  351.110. All relationships and negotiations between the
Legislative Assembly and its various committees and   { - the
institutions of higher education shall - }  { +  a public
university listed in ORS 352.002 must + } be carried on through
the  { + office of the Chancellor of the + } Oregon University
System.   { - A subordinate official - }  { +  An employee + }
representing any of the   { - separate institutions - }  { +
public universities + } may not appear before the Legislative
Assembly or any committee except upon the written authority of
the State Board of Higher Education { +  or the chancellor + }.
  SECTION 45. ORS 351.130 is amended to read:
  351.130. (1) The State Board of Higher Education shall
encourage gifts and donations to   { - institutions of higher
education within the Oregon University System by faithfully
devoting - }  { +  the board and the Oregon University System.
For purposes of the public universities listed in ORS 352.002,
the board, to encourage gifts and donations, shall faithfully
devote + } the gifts or donations to the   { - institution - }
 { + public university + } for which the gift or donation is
intended.
  (2) The Higher Education Donation Fund is established in the
State Treasury, separate and distinct from the General Fund.
Moneys in the Higher Education Donation Fund are continuously
appropriated to the State Board of Higher Education for the
purpose for which the moneys were donated. Moneys in the fund may
be invested as provided in ORS 293.701 to 293.820, subject to the
terms or restrictions of any gifts or donations. Any interest or
other income derived from the investment of the fund shall be
credited to the fund.
  (3) All gifts and donations received shall be used in
accordance with the terms of the gift or donation. Gifts or
donations may be deposited in the Oregon University System Fund
established by ORS 351.506 or in the Higher Education Donation
Fund. The board shall consider the amount, nature and purpose of,
and any restriction placed on, gifts and donations, and determine

Enrolled Senate Bill 242 (SB 242-C)                       Page 23

whether to deposit the gift or donation in the Oregon University
System Fund or the Higher Education Donation Fund. Gifts and
donations may be split or transferred between the Oregon
University System Fund and the Higher Education Donation Fund.
  (4) The interest, income, dividends or profits received on any
property or funds of the State Board of Higher Education or the
Oregon University System derived from gifts and donations,
including legacies, devises, bequests or endowments, are
continuously appropriated to the use, maintenance and support of
the Oregon University System in the same manner as the principal
or corpus of each such gift or donation in accordance with the
terms of the gift or donation.
  (5) As used in this section, 'gifts or donations' includes
funds donated to the State Board of Higher Education or the
Oregon University System to which by agreement the donor receives
consideration in return for the gift or donation or retains a
reversionary interest but does not include grant or contract
funds received from government sources.
  SECTION 46. ORS 351.140 is amended to read:
  351.140. (1) The State Board of Higher Education may purchase
such real property as in its sole discretion may be necessary for
the present or future development of any of the   { - schools or
institutions under its jurisdiction - }   { + public universities
and offices, departments and activities under its control + }.
The board may enter into contracts of purchase or agreements
 { - which it - }   { + that the board + } deems necessary in
carrying out this authorization.
  (2) The board may apply any funds coming into its hands, and
applicable thereto, toward the purchase of property authorized
under this section. The board may also mortgage or pledge any
property so purchased, or its contracts to purchase, or in
relation thereto, together with the income from such property, to
secure the payment of the purchase price thereof.
   { +  (3) The State Board of Higher Education is authorized,
without seeking specific approval from the Legislative Assembly,
to purchase real property or undertake capital construction
projects that do not require the use of moneys appropriated from
state funds or obtained through general obligation bonds, for
purposes consistent with the promotion and enhancement of public
higher education. + }
  SECTION 47. ORS 351.150 is amended to read:
  351.150.  { + (1) As used in this section, 'university lands '
means lands granted to this state under the Act of February 14,
1859 (11 Stat. 383), for the support and maintenance of the
University of Oregon.
  (2) + } Legal title to all real property acquired by any of the
  { - institutions - }  { +  public universities + } under the
control of the State Board of Higher Education shall be taken and
held in the name of the State of Oregon. Legal title to all real
property heretofore or hereafter conveyed to any   { - such
institutions shall be - }  { +  of the public universities is + }
deemed to be conveyed to and vested in the State of Oregon.
Authorized conveyances of all real property { + , other than
university lands, + } acquired by or vested in the State of
Oregon for the use or benefit of any   { - such institutions,
other than the university lands referred to in ORS 273.251, - }
 { + of the public universities + } shall be executed in the name
of the State of Oregon by the president and secretary of the
board   { - of higher education - } . Nothing in this section or

Enrolled Senate Bill 242 (SB 242-C)                       Page 24

in ORS 351.060 shall be considered as exempting such property
from taxation.
   { +  (3) The Oregon University System shall have custody and
control of and shall care for all real property used for public
university purposes. Management, maintenance and preservation of
all real property used for public university purposes is the
responsibility of the Oregon University System. + }
  SECTION 48. ORS 351.155 is amended to read:
  351.155. Notwithstanding the applicable provisions of ORS
279.835 to 279.855, 279A.140 to 279A.155, 279A.250 to 279A.290,
279A.990, 279B.200 to 279B.240, 279B.270, 279B.275, 279B.280,
279C.360, 279C.365, 279C.370, 279C.375, 279C.380, 279C.385,
279C.500 to 279C.530, 279C.540, 279C.545, 279C.600 to 279C.625,
279C.650 to 279C.670 and 279C.800 to 279C.870, the State Board of
Higher Education may, in the management of all forestlands under
its control and supervision, sell the forest products on such
lands in the same manner as is provided in ORS 530.059, and for
that purpose the   { - State - }  board   { - of Higher
Education - }  shall have the same powers with respect to
experimental or research projects in the field of forestland
management or for forest product utilization on forestlands under
its control as the State Forester has pursuant to the provisions
of ORS 530.050 and 530.059.   { - In the management of its
forestlands, the State Board of Higher Education may lease
mineral and geothermal resource rights as provided in ORS 351.060
(5) - } .
  SECTION 49. ORS 351.210 is amended to read:
  351.210. (1) The State Board of Higher Education may sell or
otherwise dispose of any worn out, obsolete or otherwise
unsuitable equipment, goods, supplies, material or information
technology, the disposal of which would in the board's judgment
be to the financial benefit of the   { - institutions - }  { +
public universities + } under the board's control. This section
does not apply to any equipment, goods, supplies, material or
information technology encumbered by a certificate of
participation.
    { - (2) The board may delegate any of its duties, functions
or powers granted to the board under this section to the
Chancellor of the Oregon University System or any state
institution of higher education within the Oregon University
System. - }
    { - (3) - }  { +  (2) + } The proceeds from any sales or
disposals made pursuant to authority granted in this section
shall be deposited in a designated account in the Oregon
University System Fund established by ORS 351.506 and may be
expended by the board for any purpose authorized by law in the
same manner as the board is authorized to make other
expenditures.
  SECTION 50. ORS 351.240 is amended to read:
  351.240.   { - (1) - }  The State Board of Higher Education may
determine the terms and conditions of any transaction authorized
by ORS 351.220 to 351.250 and need not require competitive bids
in connection therewith. No formal publicity or advertising is
required regarding property for the development of which the
board wishes to contract, but the board shall make reasonable
efforts to disseminate such information in appropriate research
and industrial circles.
    { - (2) The board may delegate any of the duties, functions
and powers granted to the board under ORS 351.220 to 351.250 to

Enrolled Senate Bill 242 (SB 242-C)                       Page 25

any state institution of higher education within the Oregon
University System. - }
  SECTION 51. ORS 351.317 is amended to read:
  351.317. An obligation incurred under ORS 351.140   { - or
351.315 - }  is not an indebtedness of the State of Oregon and
does not create a general indebtedness of the   { - State Board
of Higher Education. A bond issued by the State Treasurer at the
request of the board may be paid only from the property, income
or revenues pledged to secure its payment - }  { +  Oregon
University System + }.
  SECTION 52. ORS 351.450, as amended by section 6, chapter 2,
Oregon Laws 2011 (Enrolled House Bill 3338), is amended to read:
  351.450. (1) Except as provided in ORS 351.460, the
 { - moneys - }  { + net proceeds + } realized from sales of
bonds authorized by Article XI-F(1) and Article XI-G of the
Oregon Constitution for the Oregon University System shall be
credited to a designated account in the Oregon University System
Fund established by ORS 351.506.
  (2) The account designated by this section shall have:
  (a) A separate subaccount for the credit of   { - moneys - }
 { + net proceeds + } realized from sales of bonds issued
pursuant to Article XI-F(1) of the Oregon Constitution and ORS
351.350;  { + and + }
  (b) A separate subaccount for the credit of   { - moneys - }
 { + net proceeds + } realized from sales of bonds issued
pursuant to Article XI-G of the Oregon Constitution and ORS
351.345 { + . + }  { - ; and - }
    { - (c) A separate subaccount for the credit of moneys
realized from the sales of revenue bonds issued pursuant to ORS
chapter 286A. - }
  (3) The moneys in the account designated by this section shall
be invested as provided in ORS 286A.025.
   { +  NOTE: + } Section 53 was deleted by amendment. Subsequent
sections were not renumbered.
  SECTION 54. ORS 351.460, as amended by section 8, chapter 2,
Oregon Laws 2011 (Enrolled House Bill 3338), is amended to read:
  351.460. (1) The State Board of Higher Education shall maintain
an account within the Oregon University System Fund established
by ORS 351.506 to provide for the payment of the principal of and
the interest upon:
  (a) The bonds issued under authority of Article XI-F(1) of the
Oregon Constitution and ORS 351.350;
  (b) The bonds issued under authority of Article XI-G of the
Oregon Constitution and ORS 351.345; { +  and + }
    { - (c) Revenue bonds authorized by ORS 351.315; and - }
    { - (d) - }   { + (c) + } Amounts due under financial
agreements entered into under ORS 351.356.
  (2) The account maintained under this section comprises one
subaccount for each of the purposes of the account identified in
subsection (1) of this section.
  (3) Income and interest derived from moneys in the subaccounts
of the account maintained under this section are credited to the
appropriate subaccount.
  (4) The sources of moneys for the account maintained under this
section are:
  (a) All moneys received from ad valorem taxes levied pursuant
to ORS 291.445;
  (b) All moneys that the Legislative Assembly may provide in
lieu of   { - such - }   { + ad valorem + } taxes;

Enrolled Senate Bill 242 (SB 242-C)                       Page 26

  (c) The revenues transferred to the account maintained under
this section pursuant to subsection (6) of this section;
  (d) All moneys received as accrued interest upon bonds sold;
  (e) All earnings from investments of the account;
  (f) Net proceeds of the sale of refunding bonds; and
  (g) All moneys that the State of Oregon has agreed to hold in
the account to pay amounts due under financial agreements entered
into under ORS 351.356.
  (5) The board may credit the account maintained under this
section with moneys received from either a sale or interfund
transfer of buildings, structures, land or other projects. When
the buildings, structures, land or other projects are sold or the
use of the buildings, structures, land or other projects is
rededicated so that a transfer from one subaccount to another
subaccount is appropriate, the moneys received shall be credited
to the appropriate subaccount.
  (6)(a) The board shall transfer revenues to the account
maintained under this section in amounts sufficient to pay, when
due, the principal of and the interest and any premium upon the
bonds issued under authority of Article XI-F(1) of the Oregon
Constitution   { - and upon revenue bonds authorized by ORS
351.315 - } .  Revenues not required for the account as described
in this subsection shall be transferred to other accounts and
subaccounts within the Oregon University System Fund that are
designated by the Chancellor of the Oregon University System. The
portion of student building fees that are imposed under ORS
351.170 to provide the funds with which to amortize the principal
of and pay the interest on bonds issued under Article XI-F(1) of
the Oregon Constitution shall be applied only to pay those bonds.
  (b) For purposes of this subsection, 'revenues' includes all
funds available to the board except:
  (A) Amounts appropriated by the Legislative Assembly from the
General Fund; and
  (B) Lottery funds allocated for debt service.
  (7)(a) The board may not use the account maintained under this
section for any purpose other than the purposes for which the
account was created.
  (b) Notwithstanding paragraph (a) of this subsection, if the
balance in any subaccount exceeds the amount required to pay debt
service during a fiscal period, the board may transfer the
surplus in the subaccount to other accounts in the Oregon
University System Fund. This paragraph does not apply to any
surplus consisting of General Fund moneys appropriated for debt
service or lottery funds allocated for debt service. Any surplus
consisting of General Fund moneys appropriated for debt service
shall revert to the General Fund as provided in ORS 293.190.
  SECTION 55. ORS 351.506 is amended to read:
  351.506. (1) The Oregon University System Fund is established
in the State Treasury, separate and distinct from the General
Fund. Any interest or other investment income derived from moneys
in the Oregon University System Fund is credited to the fund.
  { - Except when otherwise specified by a statute establishing
an account, the interest or other investment income credited to
the Oregon University System Fund that was derived from tuition
and fees, facility and administrative cost recoveries, sales and
services revenues, housing fees, food service fees, parking fees
and General Fund appropriations shall be transferred to the
General Fund by the State Board of Higher Education. - }
  (2) Except for moneys otherwise designated by statute or
federal law, all moneys received by the State Board of Higher

Enrolled Senate Bill 242 (SB 242-C)                       Page 27

Education or the Oregon University System shall be paid into the
State Treasury and credited to the Oregon University System Fund.
All moneys in the fund are continuously appropriated to the State
Board of Higher Education for purposes authorized by law.
  (3) The moneys in the Oregon University System Fund may be
invested as provided in ORS 293.701 to 293.820.
  (4) The board may establish accounts and subaccounts within the
Oregon University System Fund when the board determines that
accounts or subaccounts are necessary or desirable. Except when
otherwise specified by a statute establishing an account, the
board may credit any interest or income derived from moneys in
the fund to any account or subaccount within the fund.
  (5) The board shall keep a record of all moneys deposited into
the  { + Oregon University System + } Fund. The record shall
indicate by separate cumulative accounts and subaccounts the
sources from which the moneys are derived and the individual
activity or program against which each withdrawal is charged.
  SECTION 56. ORS 351.638 is amended to read:
  351.638. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
attracting new, outstanding faculty members to the
 { - institutions in the Oregon University System - }  { +
public universities listed in ORS 352.002 + }. This purpose
includes payment of costs incurred in relocating new faculty,
retraining necessary teaching assistants for new faculty,
acquisition of equipment such as laboratory equipment and
facilities to support research by new faculty, payment of other
costs incurred in recruiting new faculty and payment of costs
associated with committing salary supplements to newly recruited
faculty over a period of more than one year.
  (2) The State Board  { + of Higher Education + } shall seek
funds from private sources for deposit to the credit of the
account designated by this section.   { - Funds from other
sources may not be transferred or credited to the account without
prior authorization of the appropriate legislative review agency
as described in ORS 291.375 (1) - } .
  SECTION 57. ORS 351.704 is amended to read:
  351.704. (1)  { + Subject to ORS 351.094 and any group health
and welfare insurance benefit plan developed under ORS
351.094, + } a part-time faculty member at a public institution
of higher education is eligible for the same health care benefits
as full-time faculty members if the part-time faculty member is
eligible for membership in the Public Employees Retirement System
 { +  or another plan authorized under ORS chapter 238 or 238A
 + }by teaching either at a single public institution of higher
education or in aggregate at multiple public institutions of
higher education during the prior year.
  (2) A part-time faculty member at a public institution of
higher education shall pay all insurance premiums for health care
benefits unless otherwise provided for by the policy of the
institution or by collective bargaining at the institution.
    { - (3) The Oregon Educators Benefit Board and the Public
Employees' Benefit Board shall each adopt rules to implement
subsections (1) and (2) of this section. - }
  SECTION 58. ORS 352.002 is amended to read:
  352.002. The Oregon University System  { + established in
section 19 of this 2011 Act + } consists of the   { - programs,
activities and institutions of higher education - }  { +
following public universities + } under the jurisdiction of the
State Board of Higher Education

Enrolled Senate Bill 242 (SB 242-C)                       Page 28

  { - including the following - } :
  (1) University of Oregon.
  (2) Oregon State University.
  (3) Portland State University.
  (4) Oregon Institute of Technology.
  (5) Western Oregon University.
  (6) Southern Oregon University.
  (7) Eastern Oregon University.
  SECTION 59. ORS 352.010 is amended to read:
  352.010. The president and professors constitute the faculty of
each of the   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + } and as such
have the immediate government and discipline of   { - it - }
 { + the public university + } and the students therein { + ,
except as otherwise provided by statute or action of the State
Board of Higher Education + }. The faculty may, subject to the
supervision of the   { - State - }  board   { - of Higher
Education - }  under ORS 351.070, prescribe the course of study
to be pursued in the   { - institution - }   { + public
university + } and the textbooks to be used.

                               { +
MISCELLANEOUS PROVISIONS + }

  SECTION 60. ORS 30.264 is amended to read:
  30.264. (1) The State Board of Higher Education may authorize
  { - higher education institutions under the control of the
board - }  { + public universities listed in ORS 352.002 + } to
provide liability insurance coverage for students involved in
off-campus experiential activities, including, but not limited
to, student teaching, internships, clinical experiences, capstone
projects and related activities.
  (2) If commercial liability insurance coverage is not available
to   { - higher education institutions - }  { +  the public
universities + }, students participating in the activities
described in subsection (1) of this section shall be considered
to be acting within the course and scope of state employment
duties for purposes of ORS 30.260 to 30.300.
  SECTION 61. ORS 131.594 is amended to read:
  131.594. (1) After the seizing agency distributes property
under ORS 131.588, and when the seizing agency is not the state,
the seizing agency shall dispose of and distribute property as
follows:
  (a) The seizing agency shall pay costs first from the property
or its proceeds. As used in this subsection, 'costs ' includes
the expenses of publication, service of notices, towing, storage
and servicing or maintaining the seized property under ORS
131.564.
  (b) After costs have been paid, the seizing agency shall
distribute to the victim any amount the seizing agency was
ordered to distribute under ORS 131.588 (4).
  (c) After costs have been paid and distributions under
paragraph (b) of this subsection have been made, the seizing
agency shall distribute the rest of the property to the general
fund of the political subdivision that operates the seizing
agency.
  (2) Of the property distributed under subsection (1)(c) of this
section, the political subdivision shall distribute:
  (a) Three percent to the Asset Forfeiture Oversight Account
established in ORS 131A.460;

Enrolled Senate Bill 242 (SB 242-C)                       Page 29

  (b) Seven percent to the Illegal Drug Cleanup Fund established
in ORS 475.495 for the purposes specified in ORS 475.495 (5) and
(6); and
  (c) Ten percent to the state General Fund.
  (3) Of the property distributed under subsection (1)(c) of this
section that remains in the general fund of the political
subdivision after the distributions required by subsection (2) of
this section have been made:
  (a) Fifty percent must be for official law enforcement use; and
  (b) Fifty percent must be used for substance abuse treatment
pursuant to a plan developed under ORS 430.420.
  (4) Except as otherwise provided by intergovernmental
agreement, the seizing agency may:
  (a) Sell, lease, lend or transfer the property or proceeds to
any federal, state or local law enforcement agency or district
attorney.
  (b) Sell the forfeited property by public or other commercially
reasonable sale and pay from the proceeds the expenses of keeping
and selling the property.
  (c) Retain the property.
  (d) With written authorization from the district attorney for
the seizing agency's jurisdiction, destroy any firearms or
controlled substances.
  (5) A political subdivision may sell as much property as may be
needed to make the distributions required by subsections (1) and
(2) of this section. A political subdivision shall make
distributions to the Asset Forfeiture Oversight Account, the
Illegal Drug Cleanup Fund and the state General Fund that are
required by subsection (2) of this section once every three
months. The distributions are due within 20 days of the end of
each quarter. Interest does not accrue on amounts that are paid
within the period specified by this subsection.
  (6) A seizing agency may donate growing equipment and
laboratory equipment that was used, or intended for use, in
manufacturing of controlled substances to a public school,
community college or   { - state institution of higher
education - }  { + public university listed in ORS 352.002 + }.
  (7) This section applies only to criminal forfeiture proceeds
arising out of prohibited conduct.
  SECTION 62. ORS 182.122 is amended to read:
  182.122. (1) As used in this section:
  (a) 'Executive department' has the meaning given that term in
ORS 174.112.
  (b) 'Information systems' means computers, hardware, software,
storage media, networks, operational procedures and processes
used in the collection, processing, storage, sharing or
distribution of information within, or with any access beyond
ordinary public access to, the state's shared computing and
network infrastructure.
  (2) The Oregon Department of Administrative Services has
responsibility for and authority over information systems
security in the executive department, including taking all
measures reasonably necessary to protect the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The Oregon Department
of Administrative Services shall, after consultation and
collaborative development with agencies, establish a state
information systems security plan and associated standards,
policies and procedures.

Enrolled Senate Bill 242 (SB 242-C)                       Page 30

  (3) The Oregon Department of Administrative Services, in its
sole discretion, shall:
  (a) Review and verify the security of information systems
operated by or on behalf of agencies;
  (b) Monitor state network traffic to identify and react to
security threats; and
  (c) Conduct vulnerability assessments of agency information
systems for the purpose of evaluating and responding to the
susceptibility of information systems to attack, disruption or
any other event that threatens the availability, integrity or
confidentiality of information systems or the information stored
in information systems.
  (4) The Oregon Department of Administrative Services shall
contract with qualified, independent consultants for the purpose
of conducting vulnerability assessments under subsection (3) of
this section.
  (5) In collaboration with agencies, the Oregon Department of
Administrative Services shall develop and implement policies for
responding to events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems, whether those systems
are within, interoperable with or outside the state's shared
computing and network infrastructure. In the policies, the
department shall prescribe actions reasonably necessary to:
  (a) Promptly assemble and deploy in a coordinated manner the
expertise, tools and methodologies required to prevent or
mitigate the damage caused or threatened by an event;
  (b) Promptly alert other persons of the event and of the
actions reasonably necessary to prevent or mitigate the damage
caused or threatened by the event;
  (c) Implement forensic techniques and controls developed under
subsection (6) of this section;
  (d) Evaluate the event for the purpose of possible improvements
to the security of information systems; and
  (e) Communicate and share information with agencies, using
preexisting incident response capabilities.
  (6) After consultation and collaborative development with
agencies, the Oregon Department of Administrative Services shall
implement forensic techniques and controls for the security of
information systems, whether those systems are within,
interoperable with or outside the state's shared computing and
network infrastructure. The techniques and controls must include
the use of specialized expertise, tools and methodologies, to
investigate events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The department shall
consult with the Oregon State Police, the Office of Emergency
Management, the Governor and others as necessary in developing
forensic techniques and controls under this section.
  (7) The Oregon Department of Administrative Services shall
ensure that reasonably appropriate remedial actions are
undertaken when the department finds that such actions are
reasonably necessary by reason of vulnerability assessments of
information systems under subsection (3) of this section,
evaluation of events under subsection (5) of this section and
other evaluations and audits.
  (8)(a) Agencies are responsible for the security of computers,
hardware, software, storage media, networks, operational
procedures and processes used in the collection, processing,
storage, sharing or distribution of information outside the

Enrolled Senate Bill 242 (SB 242-C)                       Page 31

state's shared computing and network infrastructure following
information security standards, policies and procedures
established by the Oregon Department of Administrative Services
and developed collaboratively with agencies. Agencies may
establish plans, standards and measures that are more stringent
than the standards established by the department to address
specific agency needs if those plans, standards and measures do
not contradict or contravene the state information systems
security plan. Independent agency security plans shall be
developed within the framework of the state information systems
security plan.
  (b) An agency shall report the results of any vulnerability
assessment, evaluation or audit conducted by the agency to the
department for the purposes of consolidating statewide security
reporting and, when appropriate, to prompt a state incident
response.
  (9) This section does not apply to:
  (a) Research and student computer systems used by or in
conjunction with the State Board of Higher Education or any
 { - state institution of higher education within the Oregon
University System - }  { +  public university listed in ORS
352.002 + }; and
  (b)(A) Gaming systems and networks operated by the Oregon State
Lottery or its contractors; or
  (B) The results of Oregon State Lottery reviews, evaluations
and vulnerability assessments of computer systems outside the
state's shared computing and network infrastructure.
  (10) The Oregon Department of Administrative Services shall
adopt rules to carry out its responsibilities under this section.
  SECTION 63. ORS 182.415 is amended to read:
  182.415. As used in ORS 182.415 to 182.435 unless the context
requires otherwise:
  (1) 'Furnishings' includes furniture usually used in connection
with occupancy of a household but does not include rugs,
draperies, ranges, refrigerators, washers, dryers or any item of
furnishings received by the state or one of its agencies as a
gift, nor does it include any furniture purchased for the
state-owned residence required in relation to the official duties
of an institutional executive or the Chancellor of the Oregon
University System prior to September 9, 1971.
  (2) 'Housing' includes single and multiple family dwellings,
apartments, and manufactured dwellings and manufactured dwelling
pads, available on a monthly tenancy but does not include guard
stations maintained by the State Forestry Department or dormitory
facilities at any state institution or at any   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + }.
  (3) 'Dormitory' includes any facility that houses students and
those facilities used primarily for sleeping purposes by the
employees of the Department of Human Services or the Oregon
Health Authority.
  (4) 'State agency' has the meaning given that term in ORS
291.002.
  SECTION 64. ORS 183.635 is amended to read:
  183.635. (1) Except as provided in this section, all agencies
must use administrative law judges assigned from the Office of
Administrative Hearings established under ORS 183.605 to conduct
contested case hearings, without regard to whether those hearings
are subject to the procedural requirements for contested case
hearings.

Enrolled Senate Bill 242 (SB 242-C)                       Page 32

  (2) The following agencies need not use administrative law
judges assigned from the office:
  (a) Attorney General.
  (b) Boards of stewards appointed by the Oregon Racing
Commission.
  (c) Bureau of Labor and Industries and the Commissioner of the
Bureau of Labor and Industries.
  (d) Department of Corrections.
  (e) Department of Education, State Board of Education and
Superintendent of Public Instruction.
  (f) Department of Human Services for vocational rehabilitation
services cases under 29 U.S.C. 722(c) and disability
determination cases under 42 U.S.C. 405.
  (g) Department of Revenue.
  (h) Department of State Police.
  (i) Employment Appeals Board.
  (j) Employment Relations Board.
  (k) Energy Facility Siting Council.
  (L) Fair Dismissal Appeals Board.
  (m) Governor.
  (n) Land Conservation and Development Commission.
  (o) Land Use Board of Appeals.
  (p) Local government boundary commissions created pursuant to
ORS 199.430.
  (q) Oregon University System and   { - institutions of higher
education - }  { +  public universities + } listed in ORS
352.002.
  (r) Oregon Youth Authority.
  (s) Psychiatric Security Review Board.
  (t) Public Utility Commission.
  (u) State Accident Insurance Fund Corporation.
  (v) State Apprenticeship and Training Council.
  (w) State Board of Parole and Post-Prison Supervision.
  (x) State Land Board.
  (y) State Treasurer.
  (z) Wage and Hour Commission.
  (3) The Workers' Compensation Board is exempt from using
administrative law judges assigned from the office for any
hearing conducted by the board under ORS chapters 147, 654 and
656. Except as specifically provided in this subsection, the
Department of Consumer and Business Services must use
administrative law judges assigned from the office only for
contested cases arising out of the department's powers and duties
under:
  (a) ORS 86A.095 to 86A.198, 86A.990 and 86A.992 and ORS chapter
59;
  (b) ORS chapter 455;
  (c) ORS chapter 674;
  (d) ORS chapters 706 to 716;
  (e) ORS chapter 717;
  (f) ORS chapters 723, 725 and 726; and
  (g) ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 743A,
744, 746, 748 and 750.
  (4) Notwithstanding any other provision of law, in any
proceeding in which an agency is required to use an
administrative law judge assigned from the office, an officer or
employee of the agency may not conduct the hearing on behalf of
the agency.

Enrolled Senate Bill 242 (SB 242-C)                       Page 33

  (5) Notwithstanding any other provision of ORS 183.605 to
183.690, an agency is not required to use an administrative law
judge assigned from the office if:
  (a) Federal law requires that a different administrative law
judge or hearing officer be used; or
  (b) Use of an administrative law judge from the office could
result in a loss of federal funds.
  (6) Notwithstanding any other provision of this section, the
Department of Environmental Quality must use administrative law
judges assigned from the office only for contested case hearings
conducted under the provisions of ORS 183.413 to 183.470.
  SECTION 65. ORS 184.475 is amended to read:
  184.475. (1) The purposes of information technology
portfolio-based management are to:
  (a) Ensure that state agencies link their information
technology investments with business plans;
  (b) Facilitate risk assessment of information technology
projects and investments;
  (c) Ensure that state agencies justify information technology
investments on the basis of sound business cases;
  (d) Ensure that state agencies facilitate development and
review of information technology performance related to business
operations;
  (e) Identify projects that can cross agency and program lines
to leverage resources; and
  (f) Assist in state government-wide planning for common, shared
information technology infrastructure.
  (2) The Oregon Department of Administrative Services shall
integrate state agency strategic and business planning,
technology planning and budgeting and project expenditure
processes into the department's information technology
portfolio-based management.
  (3) In cooperation with state agencies, the department shall
conduct and maintain a continuous inventory of each state
agency's current and planned investments in information
technology, a compilation of information about those assets and
the total life cycle cost of those assets. The department shall
develop and implement state government-wide standards, processes
and procedures for the required inventory and for the management
of the state government-wide information technology portfolio.
State agencies shall participate in the information technology
portfolio-based management and shall comply with the standards,
processes and procedures established by the department under this
subsection. The provisions of this subsection do not relieve any
state agency from accountability for equipment, materials,
supplies and tangible and intangible personal property under its
control.
  (4) The department shall ensure that state agencies implement
portfolio-based management of information technology resources in
accordance with this section and with rules adopted by the
Director of the Oregon Department of Administrative Services.
  (5) This section does not apply to competitive research grants
and contracts at   { - institutions of higher education - }  { +
public universities + } listed in ORS 352.002.
  (6) In implementing the provisions of this section, the
department shall submit state government-wide policies for review
to the Joint Legislative Committee on Information Management and
Technology.
  SECTION 66. ORS 184.477 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                       Page 34

  184.477. (1) The purpose of enterprise management is to create
a plan and implement a state government-wide approach for
managing distributed information technology assets to minimize
total ownership costs from acquisition through retirement, while
realizing maximum benefits for transacting the state's business
and delivering services to its citizens.
  (2) With input and recommendations from state agencies, the
Oregon Department of Administrative Services shall develop a plan
for the state government-wide management of distributed
information technology assets. The plan shall prescribe the state
government-wide infrastructure and services for managing these
assets. The plan shall be submitted to the Joint Legislative
Committee on Information Management and Technology for review.
  (3) Following review by the Joint Legislative Committee on
Information Management and Technology, the department shall
ensure state agency implementation of the plan, including the
development of appropriate standards, processes and procedures.
  (4) State agencies shall participate in the enterprise
management of information technology assets and shall comply with
the standards, processes and procedures of the department.
  (5) This section does not apply to competitive research grants
and contracts at   { - institutions of higher education - }  { +
public universities + } listed in ORS 352.002.
  SECTION 67. ORS 190.610 is amended to read:
  190.610. The State Board of Higher Education shall establish a
program at one or more of the   { - institutions - }  { +  public
universities + } under its control, designed to perform the
duties imposed upon it by ORS 190.510 to 190.610.
  SECTION 68. ORS 192.501 is amended to read:
  192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  (1) Records of a public body pertaining to litigation to which
the public body is a party if the complaint has been filed, or if
the complaint has not been filed, if the public body shows that
such litigation is reasonably likely to occur. This exemption
does not apply to litigation which has been concluded, and
nothing in this subsection shall limit any right or opportunity
granted by discovery or deposition statutes to a party to
litigation or potential litigation.
  (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it.
  (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:

Enrolled Senate Bill 242 (SB 242-C)                       Page 35

  (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  (b) The offense with which the arrested person is charged;
  (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  (d) The identity of and biographical information concerning
both complaining party and victim;
  (e) The identity of the investigating and arresting agency and
the length of the investigation;
  (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  (6) Information relating to the appraisal of real estate prior
to its acquisition.
  (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.
  (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  (12) A personnel discipline action, or materials or documents
supporting that action.

Enrolled Senate Bill 242 (SB 242-C)                       Page 36

  (13) Information developed pursuant to ORS 496.004, 496.172 and
498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  (14) Writings prepared by or under the direction of faculty of
public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection, '
computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  (16) Data and information provided by participants to mediation
under ORS 36.256.
  (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:

Enrolled Senate Bill 242 (SB 242-C)                       Page 37

  (a) Personal and corporate financial statements and
information, including tax returns;
  (b) Credit reports;
  (c) Project appraisals;
  (d) Market studies and analyses;
  (e) Articles of incorporation, partnership agreements and
operating agreements;
  (f) Commitment letters;
  (g) Project pro forma statements;
  (h) Project cost certifications and cost data;
  (i) Audits;
  (j) Project tenant correspondence requested to be confidential;
  (k) Tenant files relating to certification; and
  (L) Housing assistance payment requests.
  (22) Records or information that, if disclosed, would allow a
person to:
  (a) Gain unauthorized access to buildings or other property;
  (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  (a) An individual;
  (b) Buildings or other property;
  (c) Information processing, communication or telecommunication
systems, including the information contained in the systems; or
  (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  (24) Personal information held by or under the direction of
officials of the Oregon Health and Science University or the
Oregon University System about a person who has or who is
interested in donating money or property to the university, the
system or a   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + }, if the information
is related to the family of the person, personal assets of the
person or is incidental information not related to the donation.
  (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System.
  (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  (28) Social Security numbers as provided in ORS 107.840.
  (29) The electronic mail address of a student who attends a

Enrolled Senate Bill 242 (SB 242-C)                       Page 38

  { - state institution of higher education - }  { +  public
university + } listed in ORS 352.002 or Oregon Health and Science
University.
  (30) The name, home address, professional address or location
of a person that is engaged in, or that provides goods or
services for, medical research at Oregon Health and Science
University that is conducted using animals other than rodents.
This subsection does not apply to Oregon Health and Science
University press releases, websites or other publications
circulated to the general public.
  (31) If requested by a public safety officer, as defined in ORS
181.610:
  (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.
  (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  (C) Applies until the public safety officer requests
termination of the exemption;
  (D) Does not apply to disclosure of records among public bodies
as defined in ORS 174.109 for governmental purposes; and
  (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  (32) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, 86A.990 and 86A.992
and ORS chapter 59, or title company for business purposes,
records described in paragraph (a) of this subsection, if the
exemption from disclosure of the records is sought by an
individual described in paragraph (b) of this subsection using
the procedure described in paragraph (c) of this subsection:
  (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  (B) Any public record of a public body other than the county
clerk.
  (b) The individual claiming the exemption from disclosure must
be a district attorney, a deputy district attorney, the Attorney
General or an assistant attorney general, the United States
Attorney for the District of Oregon or an assistant United States
attorney for the District of Oregon, a city attorney who engages
in the prosecution of criminal matters or a deputy city attorney
who engages in the prosecution of criminal matters.

Enrolled Senate Bill 242 (SB 242-C)                       Page 39

  (c) The individual claiming the exemption from disclosure must
do so by filing the claim in writing with the public body for
which the exemption from disclosure is being claimed on a form
prescribed by the public body. Unless the claim is filed with the
county clerk, the claim form shall list the public records in the
possession of the public body to which the exemption applies. The
exemption applies until the individual claiming the exemption
requests termination of the exemption or ceases to qualify for
the exemption.
  (33) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.
  (34) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  (a) Apply to the formulas for determining dividends to be paid
to employers insured by the State Accident Insurance Fund
Corporation;
  (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  (c) Apply to group insurance contracts or to documents relating
to the formation of such contracts, except that employer account
records shall remain exempt from disclosure as provided in ORS
192.502 (35); or
  (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  (35) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  (36) A medical examiner's report, autopsy report or laboratory
test report ordered by a medical examiner under ORS 146.117.
  SECTION 69. ORS 192.501, as amended by section 3, chapter 455,
Oregon Laws 2005, section 7, chapter 608, Oregon Laws 2007,
section 2, chapter 687, Oregon Laws 2007, section 2, chapter 48,
Oregon Laws 2008, section 3, chapter 57, Oregon Laws 2009,
section 2, chapter 135, Oregon Laws 2009, section 4, chapter 222,
Oregon Laws 2009, and section 2, chapter 769, Oregon Laws 2009,
is amended to read:
  192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  (1) Records of a public body pertaining to litigation to which
the public body is a party if the complaint has been filed, or if
the complaint has not been filed, if the public body shows that
such litigation is reasonably likely to occur. This exemption
does not apply to litigation which has been concluded, and
nothing in this subsection shall limit any right or opportunity
granted by discovery or deposition statutes to a party to
litigation or potential litigation.
  (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an

Enrolled Senate Bill 242 (SB 242-C)                       Page 40

opportunity to obtain a business advantage over competitors who
do not know or use it.
  (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  (b) The offense with which the arrested person is charged;
  (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  (d) The identity of and biographical information concerning
both complaining party and victim;
  (e) The identity of the investigating and arresting agency and
the length of the investigation;
  (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  (6) Information relating to the appraisal of real estate prior
to its acquisition.
  (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.

Enrolled Senate Bill 242 (SB 242-C)                       Page 41

  (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  (12) A personnel discipline action, or materials or documents
supporting that action.
  (13) Information developed pursuant to ORS 496.004, 496.172 and
498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  (14) Writings prepared by or under the direction of faculty of
public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection, '
computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  (16) Data and information provided by participants to mediation
under ORS 36.256.
  (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a

Enrolled Senate Bill 242 (SB 242-C)                       Page 42

contested case proceeding and that is not subject to a protective
order; and
  (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:
  (a) Personal and corporate financial statements and
information, including tax returns;
  (b) Credit reports;
  (c) Project appraisals;
  (d) Market studies and analyses;
  (e) Articles of incorporation, partnership agreements and
operating agreements;
  (f) Commitment letters;
  (g) Project pro forma statements;
  (h) Project cost certifications and cost data;
  (i) Audits;
  (j) Project tenant correspondence requested to be confidential;
  (k) Tenant files relating to certification; and
  (L) Housing assistance payment requests.
  (22) Records or information that, if disclosed, would allow a
person to:
  (a) Gain unauthorized access to buildings or other property;
  (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  (a) An individual;
  (b) Buildings or other property;
  (c) Information processing, communication or telecommunication
systems, including the information contained in the systems; or
  (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  (24) Personal information held by or under the direction of
officials of the Oregon Health and Science University or the
Oregon University System about a person who has or who is
interested in donating money or property to the university, the
system or a   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + }, if the information
is related to the family of the person, personal assets of the
person or is incidental information not related to the donation.
  (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System.

Enrolled Senate Bill 242 (SB 242-C)                       Page 43

  (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  (28) Social Security numbers as provided in ORS 107.840.
  (29) The electronic mail address of a student who attends a
  { - state institution of higher education - }  { +  public
university + } listed in ORS 352.002 or Oregon Health and Science
University.
  (30) If requested by a public safety officer, as defined in ORS
181.610:
  (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.
  (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  (C) Applies until the public safety officer requests
termination of the exemption;
  (D) Does not apply to disclosure of records among public bodies
as defined in ORS 174.109 for governmental purposes; and
  (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  (31) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, 86A.990 and 86A.992
and ORS chapter 59, or title company for business purposes,
records described in paragraph (a) of this subsection, if the
exemption from disclosure of the records is sought by an
individual described in paragraph (b) of this subsection using
the procedure described in paragraph (c) of this subsection:
  (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  (B) Any public record of a public body other than the county
clerk.
  (b) The individual claiming the exemption from disclosure must
be a district attorney, a deputy district attorney, the Attorney
General or an assistant attorney general, the United States

Enrolled Senate Bill 242 (SB 242-C)                       Page 44

Attorney for the District of Oregon or an assistant United States
attorney for the District of Oregon, a city attorney who engages
in the prosecution of criminal matters or a deputy city attorney
who engages in the prosecution of criminal matters.
  (c) The individual claiming the exemption from disclosure must
do so by filing the claim in writing with the public body for
which the exemption from disclosure is being claimed on a form
prescribed by the public body. Unless the claim is filed with the
county clerk, the claim form shall list the public records in the
possession of the public body to which the exemption applies. The
exemption applies until the individual claiming the exemption
requests termination of the exemption or ceases to qualify for
the exemption.
  (32) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.
  (33) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  (a) Apply to the formulas for determining dividends to be paid
to employers insured by the State Accident Insurance Fund
Corporation;
  (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  (c) Apply to group insurance contracts or to documents relating
to the formation of such contracts, except that employer account
records shall remain exempt from disclosure as provided in ORS
192.502 (35); or
  (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  (34) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  (35) A medical examiner's report, autopsy report or laboratory
test report ordered by a medical examiner under ORS 146.117.
  SECTION 70. ORS 205.450 is amended to read:
  205.450. As used in ORS 205.450 to 205.470:
  (1) 'Encumbrance' means a claim, lien, charge or liability
attached to and binding property.
  (2) 'Encumbrance claimant' means a person who purportedly
benefits from the filing of an encumbrance.
  (3) 'Federal official or employee' has the meaning given the
term 'employee of the government' in the Federal Tort Claims Act
(28 U.S.C. 2671).
  (4) 'Filing' includes filing or recording.
  (5) 'Invalid claim of encumbrance' means a claim of encumbrance
that is not a valid claim of encumbrance.
  (6) 'Property' includes, but is not limited to, real and
personal property.
  (7) 'State or local official or employee' means an appointed or
elected official, employee or agent of:
  (a) A branch of government of this state or a state agency,
board, commission or department of a branch of government of this
state;
  (b) A   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + };
  (c) A community college or local school district in this state;

Enrolled Senate Bill 242 (SB 242-C)                       Page 45

  (d) A city, county or other political subdivision in this
state; or
  (e) A public corporation in this state.
  (8) 'Valid claim of encumbrance' is an encumbrance that:
  (a) Is an encumbrance authorized by statute;
  (b) Is a consensual encumbrance recognized under the laws of
this state; or
  (c) Is an equitable, constructive or other encumbrance imposed
by a court of competent jurisdiction.
  SECTION 71. ORS 205.455 is amended to read:
  205.455. (1) No person or county shall accept for filing an
invalid claim of encumbrance.
  (2) No person or county shall accept for filing a claim of
encumbrance against the property of a federal official or
employee or a state or local official or employee based on the
performance or nonperformance of the official duties of the
official or employee unless accompanied by an order from a court
of competent jurisdiction authorizing the filing of the
encumbrance.
  (3) A claim of encumbrance against the property of a federal
official or employee or a state or local official or employee
based on the performance or nonperformance of the official duties
of the official or employee that is not accompanied by an order
from a court of competent jurisdiction is an invalid claim of
encumbrance and has no legal effect.
  (4) If an invalid claim of encumbrance against the property of
a federal official or employee or against the property of a state
or local official or employee is accepted for filing, the filing
officer shall accept for filing a notice of invalid encumbrance
signed and submitted by:
  (a) The assistant United States attorney representing the
federal agency of which the individual is an official or
employee;
  (b) The assistant attorney general representing the state
official, employee or agent, or the state agency, board,
commission, department or   { - state institution of higher
education - }  { +  public university listed in ORS 352.002 + }
of which the individual is an official, employee or agent; or
  (c) The attorney representing the community college or local
school district, political subdivision or public corporation of
which the individual is an official, employee or agent.
  (5) A notice of invalid encumbrance shall be in substantially
the following form:
_________________________________________________________________

                  NOTICE OF INVALID ENCUMBRANCE
                          FILED AGAINST
                             ______
 (Insert name)
                          (ORS 205.455)

____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________

______
             IS A   ______
(Name)              (Title)
____________________________________________________________

Enrolled Senate Bill 242 (SB 242-C)                       Page 46

END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
  NOTICE is hereby given that the document entitled ______,
purporting to create an obligation against or an interest in the
real or personal property of the person named above, filed and/or
signed by ______ (insert name), and filed or recorded in
book/reel/volume No. ___ on page ___ or document/fee/file/
instrument/microfilm No. ___ in the ______ (insert name of office
where document was filed or recorded), is an invalid claim of
encumbrance under ORS 205.450 and 205.455.
  No order from a court of competent jurisdiction authorizing the
filing of such encumbrance accompanied the filing and, pursuant
to ORS 205.455, the encumbrance has no legal effect and is
invalid.
  A copy of this Notice of Invalid Encumbrance has been mailed
this day by depositing a true copy of the notice in the United
States mail, addressed to ______ (name and address of encumbrance
claimant), the last-known address of ______ (insert name of
encumbrance claimant).
  DATED this __ day of ____, __.
                                                  _______________
                                              Attorney for ______

SUBSCRIBED AND SWORN to before me this __ day of ______, __.
                                                _______________ .
                                         NOTARY PUBLIC FOR OREGON
                                      My commission expires: ____
_________________________________________________________________

  (6) A copy of the notice of invalid encumbrance filed under
this section shall be posted at the county courthouse and mailed
by the attorney to the encumbrance claimant at the encumbrance
claimant's last-known address, if available.
  (7) No person or county shall be liable under this section for
accepting for filing an invalid claim of encumbrance or for
accepting for filing a notice of invalid encumbrance.
  (8) Filing a notice of invalid encumbrance under this section
shall clear title to all property that is affected by the claim
of encumbrance that is the subject of the notice of invalid
encumbrance from all claims, liens, charges or liabilities
attached to the property under the claim of encumbrance.
  SECTION 72. ORS 238.005, as amended by section 8, chapter 1,
Oregon Laws 2010, is amended to read:
  238.005. For purposes of this chapter:
  (1) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
  (2) 'Board' means the Public Employees Retirement Board.
  (3) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
  (4) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
  (a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
  (b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and

Enrolled Senate Bill 242 (SB 242-C)                       Page 47

remained in that employment until having established membership
in the Public Employees Retirement System.
  (5) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years.  ' Creditable service'
includes all retirement credit received by a member.
  (6) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
  (7) 'Employee' includes, in addition to employees, public
officers, but does not include:
  (a) Persons engaged as independent contractors.
  (b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
  (c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
  (d) Persons employed and paid from federal funds received under
the Emergency Job and Unemployment Assistance Act of 1974 (Public
Law 93-567) or any other federal program intended primarily to
alleviate unemployment. However, any such person shall be
considered an 'employee' if not otherwise excluded by paragraphs
(a) to (c) of this subsection and the public employer elects to
have the person so considered by an irrevocable written notice to
the board.
  (e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
  (8) 'Final average salary' means whichever of the following is
greater:
  (a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
  (b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
  (9) 'Firefighter' does not include a volunteer firefighter, but
does include:
  (a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and

Enrolled Senate Bill 242 (SB 242-C)                       Page 48

  (b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  (10) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
  (11) 'Fund' means the Public Employees Retirement Fund.
   { +  (12) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University and a community college, as defined in ORS
341.005. + }
    { - (12)(a) - }   { + (13)(a) + } 'Member' means a person who
has established membership in the system and whose membership has
not been terminated as described in ORS 238.095. 'Member'
includes active, inactive and retired members.
  (b) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
has completed the six-month period of service required by ORS
238.015.
  (c) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095, and who is not retired for
service or disability.
  (d) 'Retired member' means a member who is retired for service
or disability.
    { - (13)(a) - }   { + (14)(a) + } 'Member account' means the
regular account and the variable account.
  (b) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  (c) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
    { - (14) - }   { + (15) + } 'Normal retirement age' means:
  (a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
    { - (15) - }   { + (16) + } 'Pension' means annual payments
for life derived from contributions by one or more public
employers.
    { - (16) - }   { + (17) + } 'Police officer' includes:
  (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
  (b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.

Enrolled Senate Bill 242 (SB 242-C)                       Page 49

  (c) Employees of the Oregon Liquor Control Commission who are
classified as enforcement officers by the administrator of the
commission.
  (d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
  (e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
  (f) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
  (g) Police officers appointed under ORS 276.021 or 276.023.
  (h) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  (i) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  (j) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
  (k) Investigators of the Criminal Justice Division of the
Department of Justice.
  (L) Corrections officers as defined in ORS 181.610.
  (m) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
  (n) The Director of the Department of Corrections.
  (o) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
  (p) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
  (q) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
  (r) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.

Enrolled Senate Bill 242 (SB 242-C)                       Page 50

  (s) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  (t) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
    { - (17) - }   { + (18) + } 'Public employer' means the
state, one of its agencies, any city, county, or municipal or
public corporation, any political subdivision of the state or any
instrumentality thereof, or an agency created by one or more such
governmental organizations to provide governmental services. For
purposes of this chapter, such agency created by one or more
governmental organizations is a governmental instrumentality and
a legal entity with power to enter into contracts, hold property
and sue and be sued.
    { - (18) - }   { + (19) + } 'Prior service credit' means
credit provided under ORS 238.442 or under ORS 238.225 (2) to (6)
(1999 Edition).
    { - (19) - }   { + (20) + } 'Qualifying position' means one
or more jobs with one or more participating public employers in
which an employee performs 600 or more hours of service in a
calendar year, excluding any service in a job for which a
participating public employer does not provide benefits under
this chapter pursuant to an application made under ORS 238.035.
    { - (20) - }   { + (21) + } 'Retirement credit' means a
period of time that is treated as creditable service for the
purposes of this chapter.
    { - (21)(a) - }   { + (22)(a) + } 'Salary' means the
remuneration paid an employee in cash out of the funds of a
public employer in return for services to the employer, plus the
monetary value, as determined by the Public Employees Retirement
Board, of whatever living quarters, board, lodging, fuel, laundry
and other advantages the employer furnishes the employee in
return for services.
  (b) 'Salary' includes but is not limited to:
  (A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
  (B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
  (C) Retroactive payments described in section 7, chapter 1,
Oregon Laws 2010; and
  (D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' or 'other advantages' does not include:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
  (B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
  (C) Payments made on account of an employee's death;
  (D) Any lump sum payment for accumulated unused sick leave;
  (E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
  (F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
  (G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services

Enrolled Senate Bill 242 (SB 242-C)                       Page 51

qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
  (H) Payments for instructional services rendered to
  { - institutions - }   { + public universities + } of the
Oregon University System or the Oregon Health and Science
University when such services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months to which the contract pertains; or
  (I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
    { - (22) - }   { + (23) + } 'School year' means the period
beginning July 1 and ending June 30 next following.
    { - (23) - }   { + (24) + } 'System' means the Public
Employees Retirement System.
    { - (24) - }   { + (25) + } 'Vested' means being an active
member of the system in each of five calendar years.
    { - (25) - }   { + (26) + } 'Volunteer firefighter' means a
firefighter whose position normally requires less than 600 hours
of service per year.
  SECTION 72a. ORS 238.148 is amended to read:
  238.148. (1) A member of the Public Employees Retirement System
who is a police officer is entitled to receive retirement credit
as provided in subsection (2) of this section if:
  (a) The member was employed as a public safety officer by
another state, or political subdivision of another state, before
being employed in a position that entitled the member to credit
in the system; and
  (b) The member makes the payment required by subsection (2) of
this section within the time specified by that subsection.
  (2) Except as provided in subsection (3) of this section, a
member of the system employed as a police officer who meets the
requirements of subsection (1) of this section is entitled to
receive retirement credit for the period of the member's service
with another state, or political subdivision of another state,
not to exceed a maximum of four years, if the member within 90
days of the member's effective date of retirement:
  (a) Applies in writing to the Public Employees Retirement Board
for such retirement credit;
  (b) Provides written verification to the board from the other
state, or political subdivision of the other state, that employed
the member, verifying the period of time that the member served
as a public safety officer in the other state; and
  (c) Pays to the board, in a lump sum, for each year of
retirement credit applied for under this section, an amount
determined by the board to represent the full cost to the system
of providing the retirement credit to the member, including all
administrative costs incurred by the system in processing the
application for acquisition of the retirement credit.
  (3) A member may not receive retirement credit under the
provisions of this section for any period of service with another
state, or political subdivision of another state, if the member
is entitled to a pension or retirement allowance by reason of
that service under a public plan or system offered by the other
state or by a political subdivision of the other state.
  (4) For the purposes of this section, 'public safety officer'
means a person who serves in a position with another state, or
political subdivision of another state, that is the other state's
equivalent of a position described in ORS 238.005
  { - (16) - }  { +  (17) + }.

Enrolled Senate Bill 242 (SB 242-C)                       Page 52

  SECTION 73. ORS 238.300 is amended to read:
  238.300. Upon retiring from service at normal retirement age or
thereafter, a member of the system shall receive a service
retirement allowance which shall consist of the following annuity
and pensions:
  (1) A refund annuity which shall be the actuarial equivalent of
accumulated contributions, if any, by the member and interest
thereon credited at the time of retirement, which annuity shall
provide an allowance payable during the life of the member and at
death a lump sum equal in amount to the difference between
accumulated contributions at the time of retirement and the sum
of the annuity payments actually made to the member during life
shall be paid to such person, if any, as the member nominates by
written designation duly acknowledged and filed with the board or
shall otherwise be paid according to the provisions of this
chapter for disposal of an amount credited to the member account
of a member at the time of death in the event the member
designates no beneficiary to receive the amount or no such
beneficiary is able to receive the amount. If death of the member
occurs before the first payment is due, the member account of the
member shall be treated as though death had occurred before
retirement.
  (2)(a) A life pension (nonrefund) for current service provided
by the contributions of employers, which pension, subject to
paragraph (b) of this subsection, shall be an amount which, when
added to the sum of the annuity, if any, under subsection (1) of
this section and the annuity, if any, provided on the same basis
and payable from the Variable Annuity Account, both annuities
considered on a refund basis, results in a total of:
  (A) For service as a police officer or firefighter, two percent
of final average salary multiplied by the number of years of
membership in the system as a police officer or firefighter
before the effective date of retirement.
  (B) For service as other than a police officer or firefighter,
including service as a member of the Legislative Assembly, 1.67
percent of final average salary multiplied by the number of years
of membership in the system as other than a police officer or
firefighter before the effective date of retirement.
  (b) A pension under this subsection shall be at least:
  (A) For a member who first establishes membership in the system
before July 1, 2003, the actuarial equivalent of the annuity
provided by the accumulated contributions of the member. A person
establishes membership in the system before July 1, 2003, for the
purposes of this subparagraph if:
  (i) The person is a member of the system, or a judge member of
the system, on the day immediately before July 1, 2003; or
  (ii) The person performed any period of service for a
participating public employer before July 1, 2003, that is
credited to the six-month period of employment required of an
employee under ORS 238.015 before an employee may become a member
of the system.
  (B) For a member who made contributions before August 21, 1981,
the equivalent of a pension computed pursuant to this subsection
as it existed immediately before that date.
  (c) As used in this subsection, 'number of years of membership'
means the number of full years of creditable service plus any
remaining fraction of a year of creditable service.  Except as
otherwise provided in this paragraph, in determining a remaining
fraction a full month shall be considered as one-twelfth of a
year and a major fraction of a month shall be considered as a

Enrolled Senate Bill 242 (SB 242-C)                       Page 53

full month. Membership of a school district employee, an employee
of   { - the State Board of Higher Education - }   { + an
institution of higher education + } engaged in teaching or other
school activity   { - at an institution of higher education - }
or an employee of the Department of Human Services, the Oregon
Youth Authority, the Department of Corrections or the State Board
of Education engaged in teaching or other school activity at an
institution supervised by the authority, board or department, for
all portions of a school year in a calendar year in which the
district school, institution of higher education or school
activity at an institution so supervised in which the member is
employed is normally in session shall be considered as a full
one-half year of membership. The number of years of membership of
a member who received a refund of contributions as provided in
ORS 237.976 (2) is limited to the number of years after the day
before the date on which the refund was received. The number of
years of membership of a member who is separated, for any reason
other than death or disability, from all service entitling the
member to membership in the system, who withdraws the amount
credited to the member account of the member in the fund during
absence from such service and who thereafter reenters the service
of an employer participating in the system but does not repay the
amount so withdrawn as provided in this chapter, is limited to
the number of years after the day before the date of so
reentering.
  (3) An additional life pension (nonrefund) for prior service
credit, including military service, credited to the member at the
time of first becoming a member of the system, as elsewhere
provided in this chapter, which pension shall be provided by the
contributions of the employer.
  SECTION 74. ORS 238.350 is amended to read:
  238.350. (1)(a) Upon the request by a public employer that its
employees be compensated for accumulated unused sick leave with
pay in the form of increased retirement benefits upon service or
disability retirement, the board shall establish a procedure for
adding to the gross amount of salary used in determining final
average salary the monetary value of one-half of the accumulated
unused sick leave with pay of each retiring employee of the
requesting public employer and shall establish benefits of the
retiring employee on the basis of a final average salary
reflecting that addition.
  (b) For employees of a common school district, a union high
school district, an education service district or   { - a
community college, or employees of the State Board of Higher
Education - }   { + an institution of higher education + }
engaged in teaching or other school activity   { - at an
institution of higher education - } , or employees of the school
operated under ORS 346.010 engaged in teaching or other school
activity, who are employed under contract for a period of less
than 12 consecutive months and who are entitled to sick leave
with pay of less than 96 hours for a year, each hour of
accumulated unused sick leave with pay shall be valued on the
basis of the actual number of contract hours of employment during
the last year of contributing membership of an employee before
retiring and the salary of the employee during the same period.
This paragraph does not apply to any employee who is employed
under contract for 12 consecutive months in any of the three or
less years used in determining the final average salary of the
employee.

Enrolled Senate Bill 242 (SB 242-C)                       Page 54

  (c) For the purpose of this subsection, accumulated unused sick
leave with pay includes unused sick leave with pay accumulated by
an active member of the system while in the service of any public
employer participating in the system that has the request
described in paragraph (a) of this subsection in effect at the
time of the member's separation from the service of the employer,
whether that employer is or is not the employer of the member at
the time of the member's retirement.
  (d) The board shall establish rules requiring all public
employers participating in the system to transmit to the board
reports of unused sick leave with pay accumulated by their
employees who are members of the system and to provide timely
notification to each of those employees of unused sick leave with
pay accumulated by the employee and reported to the board.
  (2) Accumulated unused sick leave with pay may be considered
for the purpose of subsection (1) of this section only in
accordance with the following requirements:
  (a) Sick leave not credited at the rate actually provided by
the public employer may not be considered. The amount of sick
leave exceeding an amount credited at the lowest rate in effect
for any employee of the public employer who is normally entitled
to sick leave, and in any event exceeding an amount credited at a
rate of eight hours for each full month worked, may not be
considered.
  (b) Sick leave credited for periods when an employee was absent
from employment on sabbatical leave, educational leave or any
leave without pay may not be considered.
  (c) Any period during which an employee was absent from
employment for illness or injury that was charged against sick
leave not qualified for consideration shall be deducted from sick
leave qualified for consideration.
  (d) Sick leave for any period for which the public employer
provides no sick leave with pay for its employees may not be
considered.
  (e) Sick leave accumulated on and after July 1, 1973, may be
considered only to the extent it is supported by records of
accumulation and use pursuant to a plan adopted formally by the
public employer.
  (f) Accumulated unused sick leave for periods before July 1,
1973, may be considered as follows:
  (A) If any department, bureau or other organizational unit of a
public employer maintained formal records of accumulation and use
even though the public employer did not require that those
records be maintained, the accumulated unused sick leave shall be
considered according to those records.
  (B) Where the public employer provided sick leave before July
1, 1973, but formal records of accumulation and use were not
required or if required, are unavailable or incomplete, or the
sick leave was subject to administrative limitations on total
accumulation or transfer between public employers, accumulated
unused sick leave for periods before July 1, 1973, may be
considered as equal to 2.675 hours for each full month worked or
an amount per month equal to the average monthly accumulation by
an employee during the period beginning July 1, 1973, and ending
at the time of retirement, whichever amount is greater, but
reduced by the amount of any accumulated unused sick leave
credited to the employee on July 1, 1973.
  (g) The written certification of a member or former member of
the Legislative Assembly shall constitute a formal record of
accumulation and use in determining the amount of accumulated

Enrolled Senate Bill 242 (SB 242-C)                       Page 55

unused sick leave of an employee of the Legislative Assembly,
either of its houses or any of its committees or officers for
periods of employment before July 1, 1981. Sick leave accumulated
on and after July 1, 1981, by employees of the Legislative
Assembly, either of its houses or any of its committees or
officers may be considered only to the extent it is supported by
records of accumulation and use maintained by the Legislative
Administration Committee, or any statutory, standing, special or
interim committee of the Legislative Assembly or either house
thereof, or any constitutional or statutory office of the
Legislative Assembly or either house thereof, pursuant to a plan
adopted formally by the committee or officer.
  (3)(a) As used in this subsection, 'legislative employee '
means any person employed by the Legislative Assembly, either of
its houses or any of its committees or officers, but does not
include a regular employee of a statutory committee or statutory
office of the Legislative Assembly described in ORS 173.005 (1).
  (b) Upon the request of a retiring legislative employee who is
a member of the system, and the request of the public employer of
the legislative employee, that the legislative employee be
compensated for accumulated unused vacation with pay for periods
of legislative employment in the form of increased retirement
benefits upon service or disability retirement, the board shall
add to the gross amount of salary used in determining final
average salary of the legislative employee the monetary value of
one-half of the accumulated unused vacation with pay of the
legislative employee and shall establish the benefits of the
legislative employee on the basis of a final average salary
reflecting that addition.
  (c) Accumulated unused vacation with pay may be considered for
the purposes of paragraph (b) of this subsection only in
accordance with the following requirements:
  (A) Vacation not credited at the rate actually provided by the
public employer may not be considered.
  (B) Amounts of vacation exceeding amounts creditable to
employees in the classified service of the state service pursuant
to ORS 240.515 (1), and rules adopted pursuant thereto, in effect
on June 30, 1981, shall not be considered.
  (C) Vacation accumulated before, on and after July 1, 1981, may
be considered only to the extent it is supported by records of
accumulation and use pursuant to a plan adopted formally by the
public employer. However, the written certification of a member
or former member of the Legislative Assembly shall constitute a
formal record of accumulation and use in determining the amount
of accumulated unused vacation of a legislative employee for
periods of legislative employment before July 1, 1981.
  (4) Employers with plans providing payments on account of
sickness in lieu of sick leave with pay may request the board to
consider the monetary value of accumulated unused payments on
account of sickness as if such payments were an equivalent amount
of accumulated unused sick leave with pay under the same terms
and conditions specified in subsections (1) and (2) of this
section.
  SECTION 74a. ORS 238.580 is amended to read:
  238.580. (1) ORS 238.005 (3) and   { - (21) - }  { +  (22) + },
238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250,
238.255, 238.260, 238.350, 238.380, 238.410, 238.415, 238.420,
238.445, 238.458, 238.460, 238.465, 238.475, 238.600, 238.605,
238.610, 238.618, 238.630, 238.635, 238.645, 238.650, 238.655,
238.660, 238.665, 238.670 and 238.705 and the increases provided

Enrolled Senate Bill 242 (SB 242-C)                       Page 56

by ORS 238.385 for members of the system who are serving as other
than police officers or firefighters apply in respect to service
as a judge member.
  (2) This chapter applies in respect to persons described in ORS
238.505 (1) and in respect to service as a judge member only as
specifically provided in ORS 238.500 to 238.585.
  SECTION 74b. ORS 238.608 is amended to read:
  238.608. (1) The Public Employees Retirement Board shall
conduct a study of the life expectancy of members of the Public
Employees Retirement System in the categories described in
subsection (2) of this section. If the board determines that
members in the categories described in subsection (2) of this
section have a life expectancy that is substantially shorter than
the life expectancy of members of the system generally, the board
shall adopt and use separate actuarial equivalency factor tables
under ORS 238.607 for the purpose of computing the payments to be
made to members in the categories described in subsection (2) of
this section and to the beneficiaries and alternate payees of
those members. Any actuarial equivalency factor tables adopted
under this section shall first become effective January 1, 2005.
  (2) The provisions of this section apply to members of the
system who are defined as firefighters under ORS 238.005 (9) or
as police officers under ORS 238.005   { - (16)(a) - }  { +
(17)(a) + }, (b), (d), (e), (f), (k), (L), (n), (o) or (p).
  SECTION 75. ORS 238A.005, as amended by section 9, chapter 1,
Oregon Laws 2010, and section 1, chapter 82, Oregon Laws 2010, is
amended to read:
  238A.005. For the purposes of this chapter:
  (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
  (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
  (3) 'Board' means the Public Employees Retirement Board.
  (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
  (a) Persons engaged as independent contractors;
  (b) Aliens working under a training or educational visa;
  (c) Persons, other than workers in the Industries for the Blind
Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
  (d) Persons categorized by a participating public employer as
student employees;
  (e) Any person who is an inmate of a state institution;
  (f) Employees of foreign trade offices of the Oregon Business
Development Department who live and perform services in foreign
countries under the provisions of ORS 285A.075 (1)(g);
  (g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
  (h) Employees of the Oregon University System who are actively
participating in an optional retirement plan offered under ORS
243.800;
  (i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;

Enrolled Senate Bill 242 (SB 242-C)                       Page 57

  (j) Any person who belongs to a class of employees who are not
eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
  (k) Any person who is retired under ORS 238A.100 to 238A.245 or
ORS chapter 238 and who continues to receive retirement benefits
while employed; and
  (L) Judges.
  (5) 'Firefighter' means:
  (a) A person employed by a local government, as defined in ORS
174.116, whose primary job duties include the fighting of fires;
  (b) The State Fire Marshal, the chief deputy state fire marshal
and deputy state fire marshals; and
  (c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  (6) 'Fund' means the Public Employees Retirement Fund.
  (7)(a) 'Hour of service' means:
  (A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
  (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
  (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
  (8) 'Inactive member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
  (9) 'Individual account program' means the defined contribution
individual account program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
   { +  (10) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University or a community college, as defined in ORS 341.005. + }
    { - (10) - }   { + (11) + } 'Member' means an eligible
employee who has established membership in the pension program or
the individual account program of the Oregon Public Service
Retirement Plan and whose membership has not been terminated
under ORS 238A.110 or 238A.310.
    { - (11) - }   { + (12) + } 'Participating public employer'
means a public employer as defined in ORS 238.005 that provides
retirement benefits for employees of the public employer under
the system.
    { - (12) - }   { + (13) + } 'Pension program' means the
defined benefit pension program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
    { - (13) - }   { + (14) + } 'Police officer' means a police
officer as described in ORS 238.005.

Enrolled Senate Bill 242 (SB 242-C)                       Page 58

    { - (14) - }   { + (15) + } 'Qualifying position' means one
or more jobs with one or more participating public employers in
which an eligible employee performs 600 or more hours of service
in a calendar year, excluding any service in a job for which
benefits are not provided under the Oregon Public Service
Retirement Plan pursuant to ORS 238A.070 (2).
    { - (15) - }   { + (16) + } 'Retired member' means a pension
program member who is receiving a pension as provided in ORS
238A.180 to 238A.195.
    { - (16)(a) - }   { + (17)(a) + } 'Salary' means the
remuneration paid to an active member in return for services to
the participating public employer, including remuneration in the
form of living quarters, board or other items of value, to the
extent the remuneration is includable in the employee's taxable
income under Oregon law. Salary includes the additional amounts
specified in paragraph (b) of this subsection, but does not
include the amounts specified in paragraph (c) of this
subsection, regardless of whether those amounts are includable in
taxable income.
  (b) 'Salary' includes the following amounts:
  (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on December 31, 2009.
  (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on December 31, 2009.
  (E) Retroactive payments described in section 7, chapter 1,
Oregon Laws 2010.
  (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
  (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
  (H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' does not include the following amounts:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
  (B) Payments made on account of an employee's death.
  (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
  (D) Any severance payment, accelerated payment of an employment
contract for a future period or advance against future wages.
  (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
  (F) Payment for a leave of absence after the date the employer
and employee have agreed that no future services in a qualifying
position will be performed.
  (G) Payments for instructional services rendered to
  { - institutions - }   { + public universities + } of the
Oregon University System or the Oregon Health and Science

Enrolled Senate Bill 242 (SB 242-C)                       Page 59

University when those services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months covered by the contract.
  (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
  (I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
    { - (17) - }   { + (18) + } 'System' means the Public
Employees Retirement System.
  SECTION 75a. ORS 238A.140 is amended to read:
  238A.140. (1) An active member of the pension program accrues
one year of retirement credit for each complete year of service
and one-twelfth of a year of retirement credit for each full
month and each major fraction of a month of service.
  (2) An active member who is a school employee shall be credited
with at least six months of retirement credit if the member
performs service for a major fraction of each month of a school
year that falls between January 1 and June 30, and at least six
months of retirement credit if the member performs service for a
major fraction of each month of a school year that falls between
July 1 and December 31.
  (3) When an eligible employee becomes a member under ORS
238A.100, the board shall credit the eligible employee with
retirement credit for the period of employment required of the
employee under ORS 238A.100.
  (4) A member may not accrue more than one full year of
retirement credit in any calendar year.
  (5) For purposes of this section, 'school employee' means:
  (a) A person who is employed by a common school district, a
union high school district or an education service district;
  (b) An employee of   { - the State Board of Higher Education or
the Oregon Health and Science University - }  { +  an institution
of higher education + } who is engaged in teaching or other
school activity   { - at an institution of higher education - }
; { +  and + }
  (c) An employee of the Department of Human Services, the Oregon
Youth Authority, the Department of Corrections or the State Board
of Education who is engaged in teaching or other school activity
at an institution supervised by the authority, board or
department  { - ; and - }
    { - (d) An employee of a community college district other
than an academic employee - } .
  SECTION 76. ORS 243.105 is amended to read:
  243.105. As used in ORS 243.105 to 243.285, unless the context
requires otherwise:
  (1) 'Benefit plan' includes, but is not limited to:
  (a) Contracts for insurance or other benefits, including
medical, dental, vision, life, disability and other health care
recognized by state law, and related services and supplies;
  (b) Comparable benefits for employees who rely on spiritual
means of healing; and

Enrolled Senate Bill 242 (SB 242-C)                       Page 60

  (c) Self-insurance programs managed by the Public Employees'
Benefit Board.
  (2) 'Board' means the Public Employees' Benefit Board.
  (3) 'Carrier' means an insurance company or health care service
contractor holding a valid certificate of authority from the
Director of the Department of Consumer and Business Services, or
two or more companies or contractors acting together pursuant to
a joint venture, partnership or other joint means of operation,
or a board-approved guarantor of benefit plan coverage and
compensation.
  (4)(a) 'Eligible employee' means an officer or employee of a
state agency who elects to participate in one of the group
benefit plans described in ORS 243.135. The term includes state
officers and employees in the exempt, unclassified and classified
service, and state officers and employees, whether or not
retired, who:
  (A) Are receiving a service retirement allowance, a disability
retirement allowance or a pension under the Public Employees
Retirement System or are receiving a service retirement
allowance, a disability retirement allowance or a pension under
any other retirement or disability benefit plan or system offered
by the State of Oregon for its officers and employees;
  (B) Are eligible to receive a service retirement allowance
under the Public Employees Retirement System and have reached
earliest retirement age under ORS chapter 238;
  (C) Are eligible to receive a pension under ORS 238A.100 to
238A.245, and have reached earliest retirement age as described
in ORS 238A.165; or
  (D) Are eligible to receive a service retirement allowance or
pension under another retirement benefit plan or system offered
by the State of Oregon and have attained earliest retirement age
under the plan or system.
  (b) 'Eligible employee' does not include individuals:
  (A) Engaged as independent contractors;
  (B) Whose periods of employment in emergency work are on an
intermittent or irregular basis;
  (C) Who are employed on less than half-time basis unless the
individuals are employed in positions classified as job-sharing
positions, unless the individuals are defined as eligible under
rules of the board;
  (D) Appointed under ORS 240.309;
  (E) Provided sheltered employment or make-work by the state in
an employment or industries program maintained for the benefit of
such individuals; or
  (F) Provided student health care services in conjunction with
their enrollment as students at   { - the state institutions of
higher education - }  { +  a public university listed in ORS
352.002 + }.
  (5) 'Family member' means an eligible employee's spouse and any
unmarried child or stepchild within age limits and other
conditions imposed by the board with regard to unmarried children
or stepchildren.
  (6) 'Payroll disbursing officer' means the officer or official
authorized to disburse moneys in payment of salaries and wages of
employees of a state agency.
  (7) 'Premium' means the monthly or other periodic charge for a
benefit plan.
  (8) 'State agency' means every state officer, board,
commission, department or other activity of state government.
  SECTION 77. ORS 243.107 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                       Page 61

  243.107. A person employed by a   { - state institution of
higher education - }  { +  public university listed in ORS
352.002 + } or the Oregon Health and Science University may be
considered an eligible employee for participation in one of the
group benefit plans described in ORS 243.135 if the State Board
of Higher Education, or the Oregon Health and Science University
Board of Directors for Oregon Health and Science University
employees, determines that funds are available therefor and if:
  (1) Notwithstanding ORS 243.105 (4)(b)(F), the person is a
student enrolled in an institution of higher education and is
employed as a graduate teaching assistant, graduate research
assistant or a fellow at the institution and elects to
participate; or
  (2) Notwithstanding ORS 243.105 (4)(b)(B) or (C), the person is
employed on a less than half-time basis in an unclassified
instructional or research support capacity and elects to
participate.
  SECTION 78. ORS 243.778 is amended to read:
  243.778. (1) When an appropriate bargaining unit includes
members of the faculty of   { - an institution of higher
education - }  { +  a public university listed in ORS
352.002 + }, the duly organized and recognized entity of student
government at that   { - institution - }  { +  university + } may
designate three representatives to meet and confer with the
public employer of those members of the faculty and the exclusive
representative of that appropriate bargaining unit prior to
collective bargaining.
  (2) During the course of collective bargaining between the
public employer and the exclusive representative described in
subsection (1) of this section, the representatives of student
government designated under subsection (1) of this section shall:
  (a) Be allowed to attend and observe all meetings between the
public employer and the exclusive representative at which
collective bargaining occurs;
  (b) Have access to all written documents pertaining to the
collective bargaining negotiations exchanged by the public
employer and the exclusive representative, including copies of
any prepared written transcripts of the bargaining session;
  (c) Be allowed to comment in good faith during the bargaining
sessions upon matters under consideration; and
  (d) Be allowed to meet and confer with the exclusive
representative and the public employer regarding the terms of an
agreement between them prior to the execution of a written
contract incorporating that agreement.
  (3) Rules regarding confidentiality and release of information
shall apply to student representatives in the same manner as
employer and employee bargaining unit representatives.
  (4) As used in this section { + , + }  { - : - }
    { - (a) 'Institution of higher education' means an
institution under the control of the State Board of Higher
Education. - }
    { - (b) - }  'meet and confer' means the performance of the
mutual obligation of the representatives of student government
designated under subsection (1) of this section, the exclusive
representative and the public employer, or any two of them, to
meet at the request of one of them at reasonable times at a place
convenient to all to conduct in good faith an interchange of
views concerning the duties of each under this section,
employment relations of the faculty, the negotiation of an
agreement and the execution of a written agreement.

Enrolled Senate Bill 242 (SB 242-C)                       Page 62

  SECTION 79. ORS 243.910 is amended to read:
  243.910. As used in ORS 243.910 to 243.945:
  (1) 'Board' means the State Board of Higher Education for all
 { - institutions under the jurisdiction of that board as set
forth - }  { +  public universities listed + } in ORS 352.002,
and for the Oregon Health and Science University means the Oregon
Health and Science University Board of Directors.
  (2) 'Employees' means the persons appointed or employed by or
under the authority of the board who hold academic rank as
determined by the board.
  (3) 'System' means the Public Employees Retirement System
established by ORS 238.600.
  SECTION 80. ORS 243.956 is amended to read:
  243.956. (1) A person is eligible for an award of benefits from
the Public Safety Memorial Fund if the person:
  (a)(A) Is a family member, parent or designee of a public
safety officer who has suffered a qualifying death or disability;
or
  (B) Is a public safety officer who has suffered a qualifying
disability; and
  (b) Has submitted an initial application for an award of
benefits under ORS 243.958.
  (2) Notwithstanding subsection (1) of this section, a person is
not eligible for an award of benefits if:
  (a) The person's actions were a substantial contributing factor
to the qualifying death or disability of the public safety
officer;
  (b) The public safety officer's intentional misconduct caused
the qualifying death or disability;
  (c) The public safety officer intended to bring about the
officer's qualifying death or disability;
  (d) The public safety officer was voluntarily intoxicated at
the time of the injury that caused the qualifying death or
disability; or
  (e) The public safety officer was performing the officer's
duties in a grossly negligent manner at the time of the injury
that caused the qualifying death or disability.
  (3) If a person who is eligible for an award of benefits under
subsection (1) of this section is younger than 18 years of age or
is incompetent, another person may file the application for an
award of benefits on behalf of the eligible person.
  (4) Within 14 days after receipt of a notice under ORS 243.974
or entry of an order under ORS 243.964 awarding benefits based on
an initial application, whichever occurs later, the Public Safety
Memorial Fund Board shall pay a lump sum amount of $25,000:
  (a) If a designation of beneficiary form has been completed
under ORS 243.974 (1), to the designee of a public safety officer
who suffered a qualifying death;
  (b) If a designation of beneficiary form has not been
completed, in the manner described under ORS 243.969, to a family
member or parent of a public safety officer who suffered a
qualifying death; or
  (c) To the public safety officer who suffered a qualifying
disability.
  (5) If alternative coverage is not provided, the board may
award benefits to the family members of a public safety officer
or, if a designation of beneficiary form has been completed under
ORS 243.974 (1), to the designee, children and dependents of a
public safety officer who has suffered a qualifying death or
disability in an amount sufficient to allow the recipients to

Enrolled Senate Bill 242 (SB 242-C)                       Page 63

purchase health and dental insurance comparable to that provided
by the public safety officer:
  (a) For five years or until the spouse remarries, whichever
occurs first;
  (b) Until a child or a dependent attains 18 years of age or, if
the child or the dependent is attending school, 23 years of age;
and
  (c) For five years for a designee who is not a person described
in paragraph (a) or (b) of this subsection, or until the designee
marries, whichever occurs first.
  (6) If alternative coverage is not provided, the board may
award benefits for five years to a public safety officer who has
suffered a qualifying disability in an amount sufficient to allow
the public safety officer to purchase health and dental insurance
comparable to the health and dental insurance coverage that the
public safety officer had immediately prior to the qualifying
disability.
  (7) The board may award benefits to an eligible spouse or
designee of a public safety officer who has suffered a qualifying
death or to a public safety officer who has suffered a qualifying
disability in an amount up to the equivalent of 12 monthly
mortgage payments on the residence of the public safety officer
or the spouse or designee of the public safety officer if there
is no mortgage insurance to cover the cost.
  (8)(a) The board may award scholarships for a graduate program
of higher education to:
  (A) A family member of a public safety officer who has suffered
a qualifying death or disability;
  (B) If a designation of beneficiary form has been completed
under ORS 243.974 (1), to the designee, children and dependents
of a public safety officer who suffered a qualifying death or
disability; or
  (C) To a public safety officer who has suffered a qualifying
disability.
  (b) In determining the amount of a scholarship, the board shall
consider the person's financial need, the funds available in the
Public Safety Memorial Fund and the anticipated demands on the
fund. The board may not grant a scholarship in an amount
exceeding the highest tuition charged by a   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + } for a graduate program.
  (9) A family member, a designee or a public safety officer is
eligible to apply for a scholarship under subsection (8) of this
section only if the family member, designee or public safety
officer:
  (a) Has exhausted the education benefits available under 28
C.F.R., Part 32, subpart B;
  (b) Applies for the scholarship within one year from the date
of exhaustion of the education benefits under paragraph (a) of
this subsection; and
  (c) Has applied for other available public education benefits.
  (10) If a person described in subsection (8) of this section is
ineligible to receive education benefits under 28 C.F.R., Part
32, subpart B, if funds for education benefits are unavailable
under those provisions or if the education benefit program under
those provisions no longer exists, the person may apply to the
board for a scholarship for an undergraduate program.
Scholarships for only undergraduate degrees may be awarded to a
person under this subsection. The board may not grant a

Enrolled Senate Bill 242 (SB 242-C)                       Page 64

scholarship under this subsection in an amount exceeding the
highest tuition charged by a
  { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } for an undergraduate
program.
  (11)(a) A person may apply for a scholarship under subsection
(10) of this section at any time up to:
  (A) Five years after the date on which the applicant graduated
from high school if:
  (i) The applicant was a minor at the time the public safety
officer suffered a qualifying death or disability; and
  (ii) An application for an award of some type of benefits was
filed by a person described in subsection (8) of this section;
  (B) The date the applicant remarries, if the applicant is the
surviving spouse of a public safety officer who suffered a
qualifying death, or the date the applicant divorces the public
safety officer, if the applicant is the spouse of a public safety
officer who suffered a qualifying disability; or
  (C) Five years after the date of the injury that caused the
disability, if the applicant is a public safety officer who
suffered a qualifying disability or is a designee who is not a
family member.
  (b) The board may extend the time period for applying for a
scholarship under subsection (10) of this section.
  (12) If the family member, designee or public safety officer
who is awarded a scholarship under this section is receiving
other public education benefits, the amount of the scholarship
awarded to the family member, designee or public safety officer
shall be reduced by the amount of the other public education
benefits.
  SECTION 81. ORS 244.050 is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
Superintendent of Public Instruction, district attorneys and
members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor and Vice Chancellors of the Oregon
University System and the president and vice presidents, or their
administrative equivalents, in each   { - institution under the
jurisdiction of the State Board of Higher Education - }  { +
public university listed in ORS 352.002 + }.
  (g) The following state officers:
  (A) Adjutant General.
  (B) Director of Agriculture.
  (C) Manager of State Accident Insurance Fund Corporation.
  (D) Water Resources Director.
  (E) Director of Department of Environmental Quality.
  (F) Director of Oregon Department of Administrative Services.

Enrolled Senate Bill 242 (SB 242-C)                       Page 65

  (G) State Fish and Wildlife Director.
  (H) State Forester.
  (I) State Geologist.
  (J) Director of Human Services.
  (K) Director of the Department of Consumer and Business
Services.
  (L) Director of the Department of State Lands.
  (M) State Librarian.
  (N) Administrator of Oregon Liquor Control Commission.
  (O) Superintendent of State Police.
  (P) Director of the Public Employees Retirement System.
  (Q) Director of Department of Revenue.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
    { - (PP) Chairperson of the Oregon Student Assistance
Commission. - }
   { +  (PP) Chairperson of the Oregon Student Access
Commission. + }
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.

Enrolled Senate Bill 242 (SB 242-C)                       Page 66

  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I) State Board of Higher Education.
  (J) Oregon Investment Council.
  (K) Land Conservation and Development Commission.
  (L) Oregon Liquor Control Commission.
  (M) Oregon Short Term Fund Board.
  (N) State Marine Board.
  (O) Mass transit district boards.
  (P) Energy Facility Siting Council.
  (Q) Board of Commissioners of the Port of Portland.
  (R) Employment Relations Board.
  (S) Public Employees Retirement Board.
  (T) Oregon Racing Commission.
  (U) Oregon Transportation Commission.
  (V) Wage and Hour Commission.
  (W) Water Resources Commission.
  (X) Workers' Compensation Board.
  (Y) Oregon Facilities Authority.
  (Z) Oregon State Lottery Commission.
  (AA) Pacific Northwest Electric Power and Conservation Planning
Council.
  (BB) Columbia River Gorge Commission.
  (CC) Oregon Health and Science University Board of Directors.
  (DD) Capitol Planning Commission.
  (q) The following officers of the State Treasurer:
  (A) Chief Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in

Enrolled Senate Bill 242 (SB 242-C)                       Page 67

subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 81a. ORS 244.050, as amended by section 81 of this 2011
Act, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
Superintendent of Public Instruction, district attorneys and
members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor and Vice Chancellors of the Oregon
University System and the president and vice presidents, or their
administrative equivalents, in each public university listed in
ORS 352.002.
  (g) The following state officers:
  (A) Adjutant General.
  (B) Director of Agriculture.
  (C) Manager of State Accident Insurance Fund Corporation.
  (D) Water Resources Director.
  (E) Director of Department of Environmental Quality.
  (F) Director of Oregon Department of Administrative Services.
  (G) State Fish and Wildlife Director.
  (H) State Forester.
  (I) State Geologist.
  (J) Director of Human Services.
  (K) Director of the Department of Consumer and Business
Services.
  (L) Director of the Department of State Lands.
  (M) State Librarian.
  (N) Administrator of Oregon Liquor Control Commission.
  (O) Superintendent of State Police.
  (P) Director of the Public Employees Retirement System.
  (Q) Director of Department of Revenue.

Enrolled Senate Bill 242 (SB 242-C)                       Page 68

  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.

Enrolled Senate Bill 242 (SB 242-C)                       Page 69

  (I) State Board of Higher Education.
  (J) Oregon Investment Council.
  (K) Land Conservation and Development Commission.
  (L) Oregon Liquor Control Commission.
  (M) Oregon Short Term Fund Board.
  (N) State Marine Board.
  (O) Mass transit district boards.
  (P) Energy Facility Siting Council.
  (Q) Board of Commissioners of the Port of Portland.
  (R) Employment Relations Board.
  (S) Public Employees Retirement Board.
  (T) Oregon Racing Commission.
  (U) Oregon Transportation Commission.
  (V) Wage and Hour Commission.
  (W) Water Resources Commission.
  (X) Workers' Compensation Board.
  (Y) Oregon Facilities Authority.
  (Z) Oregon State Lottery Commission.
  (AA) Pacific Northwest Electric Power and Conservation Planning
Council.
  (BB) Columbia River Gorge Commission.
  (CC) Oregon Health and Science University Board of Directors.
  (DD) Capitol Planning Commission.   { +
  (EE) Higher Education Coordinating Commission. + }
  (q) The following officers of the State Treasurer:
  (A) Chief Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this

Enrolled Senate Bill 242 (SB 242-C)                       Page 70

section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 82. ORS 270.100 is amended to read:
  270.100. (1)(a) Before offering for sale any real property or
equitable interest therein owned by the state, the state agency
acting for the state in such transaction shall report its intent
of sale or transfer to the Oregon Department of Administrative
Services. The department, or the agency specifically designated
by the department, shall notify other state agencies authorized
to own real property of the intended sale or transfer to
determine whether acquisition of the real property or interest
therein would be advantageous to another state agency.
  (b) The department shall give political subdivisions, as
defined in ORS 271.005, the first opportunity after other state
agencies to acquire, purchase, exchange or lease real property to
be sold or disposed of by the State of Oregon. The state agency
responsible for selling or transferring the property may require
at the time of the sale or transfer that any state real property
sold or transferred to a political subdivision, as defined in ORS
271.005, shall be for use for a public purpose or benefit, and
not be for resale to a private purchaser.
  (c) If property is not disposed of under paragraph (a) or (b)
of this subsection, in accordance with rules adopted by the
department, the state agency desiring to sell or transfer the
property shall cause it to be appraised by one or more competent
and experienced appraisers. Except as provided in ORS 273.825, if
such property has an appraised value exceeding $5,000 it shall
not be sold to any private person except after notice calling for
such proposals as set forth in ORS 270.130.
  (d) The department shall adopt rules to carry out the
provisions of this section.
  (2) Before acquisition of any real property or interest therein
by any state agency, except for highway right of way acquired by
the Department of Transportation and park properties acquired by
the State Parks and Recreation Department and property within the
approved projected campus boundaries for   { - institutions - }
 { +  public universities + } of the Oregon University System,
the state agency shall report its intent of acquisition to the
Oregon Department of Administrative Services. The department
shall notify other state agencies owning land of the intended
acquisition to determine whether another state agency desires to
sell or transfer property which would meet the needs of the
purchasing agency. In accordance with rules adopted by the Oregon
Department of Administrative Services, if no other state agency
desires to sell or transfer property which would meet the needs
of the agency, the agency may acquire the real property or
interest therein, consistent with applicable provisions of law.
  (3) Before any terminal disposition of real property or an
interest in real property, the state agency acting for the state
in the transaction must secure approval of the transaction from
the Oregon Department of Administrative Services.
  (4) Subsection (3) of this section does not apply to terminal
disposition of the following real property:
  (a) Property controlled by the State Department of Fish and
Wildlife;
  (b) State forestlands controlled by the State Forestry
Department;
  (c) Property controlled by the Department of Transportation;
  (d) Property controlled by the Department of State Lands;

Enrolled Senate Bill 242 (SB 242-C)                       Page 71

  (e) Property controlled by the Oregon University System;
  (f) Property controlled by the legislative or judicial branches
of state government; and
  (g) Property controlled by the State Parks and Recreation
Department.
  (5) Notwithstanding the provisions of subsection (4) of this
section, prior approval by the Oregon Department of
Administrative Services is required for the terminal disposition
of public land for less than the fair market value of that land.
  (6) The provisions of ORS 184.634, 270.005 to 270.015, 270.100
to 270.190, 273.416, 273.426 to 273.436, 273.551 and 308A.709 (1)
to (4) do not apply to a home or farm acquired, sold, or both, by
the Department of Veterans' Affairs under ORS 88.720, 273.388,
406.050, 407.135, 407.145, 407.375 and 407.377.
  SECTION 83. ORS 273.155 is amended to read:
  273.155. The Department of State Lands, in carrying out its
duties, may call upon all related state and county agencies,
including   { - Oregon State University - }   { + the Oregon
University System + } and any state or county officers  { + or
Oregon University System employees + } through whom necessary
information and aid may be received. Such agencies,
 { - institution and - }  officers  { + and employees + } shall
cooperate with the department without additional compensation.
  SECTION 84. ORS 273.785 is amended to read:
  273.785. ORS 273.551 and 273.775 to 273.790 do not apply to:
  (1) Soil, clay, stone, sand and gravel acquired or used by
state agencies for the purpose of constructing or repairing roads
or other state facilities, or the proceeds from those materials.
  (2) Mineral or geothermal resource rights or proceeds from
those rights acquired by the State Fish and Wildlife Commission
pursuant to an agreement with the federal government under 16
U.S.C. 669 to 669i (P.L. 75-415).
  (3) Mineral or geothermal resource rights or proceeds from
those rights if other disposition is required by federal rules or
regulations or any agreement entered into at the time of
acquisition of the mineral or geothermal resource rights by the
state.
  (4) Proceeds of mineral and geothermal resource rights acquired
by the state pursuant to ORS 530.010 and 530.030, other than
those distributed under ORS 530.110 (1)(c).
  (5) Mineral or geothermal resource rights or proceeds from
those rights acquired after January 1, 1974, for the state by the
Department of Veterans' Affairs pursuant to ORS 88.720, 406.050
(2), 407.135 or 407.145. After consultation, the Department of
State Lands and the Department of Veterans' Affairs shall enter
into an interagency agreement governing consultation between them
concerning mineral and geothermal resource values on properties
acquired for the state by the Department of Veterans' Affairs.
The Department of Veterans' Affairs shall adopt rules relating to
the release of mineral and geothermal rights on such properties.
  (6) Mineral or geothermal resource rights or proceeds from
those rights given by a donor to any   { - institution, - }
 { + public university or office, + } department or activity
under the control of the State Board of Higher Education that are
acquired or held for the state by the State Board of Higher
Education pursuant to ORS chapters 351 and 567. In managing
mineral or geothermal resource leases, the State Board of Higher
Education shall consult with the Department of State Lands in
accordance with an interagency agreement established by the
department and the State Board of Higher Education governing

Enrolled Senate Bill 242 (SB 242-C)                       Page 72

consultation between the department and the State Board of Higher
Education and governing management of the mineral or geothermal
resources.
  (7) Mineral or geothermal resource rights or proceeds from
those rights acquired and held by the Department of
Transportation. In managing mineral or geothermal resource
leases, the Department of Transportation shall enter into an
intergovernmental agreement with the Department of State Lands
governing consultation between the departments and governing
management of the mineral or geothermal resources.
  SECTION 85. ORS 276.227 is amended to read:
  276.227. (1) The State of Oregon recognizes that providing and
operating state government facilities is a significant capital
investment in public infrastructure. Accordingly, it is the
policy of the State of Oregon to plan, finance, acquire,
construct, manage and maintain state government facilities in a
manner that maximizes and protects this investment.
  (2) The Oregon Department of Administrative Services shall
establish a statewide planning process that evaluates the needs
of the state's facilities, provides comparative information on
the condition of the state's facilities, establishes guidelines
and standards for acquiring, managing and maintaining state
facilities and provides financing and budgeting strategies to
allocate resources to facilities' needs.
  (3)(a) The Director of the Oregon Department of Administrative
Services shall establish a public review process for the proposed
capital projects of all state agencies. To assist in this review,
the director shall establish a Capital Projects Advisory Board
consisting of seven members. Five members shall be public members
knowledgeable about construction, facilities management and
maintenance issues. Two members may be state employees. The
director shall appoint the chairperson of the board.
  (b) The director, in consultation with the board, may request
that agencies submit updated long-range facility plans and
funding strategies that reflect changes in technology and
priorities. The director may ask the board to report on and make
recommendations related to long-range plans, the condition of
facilities, maintenance schedules, funding strategies and options
for new facilities. The director may seek recommendations from
the board regarding the needs of existing facilities, funding
strategies and long-term facility goals.
  (c) The review process may be applicable to capital projects
meeting the definition of major construction/acquisition in the
Governor's budget and to significant leases.
  (d) For each state agency proposing a capital project, the
review process may include an examination of the following:
  (A) The effectiveness of asset protection, including
maintenance, repair and other activities;
  (B) The effectiveness of space utilization, including an
inventory of existing occupied and unoccupied building space;
  (C) The advisability of lease, purchase or other funding
strategies;
  (D) The condition of existing occupied and unoccupied building
space;
  (E) Appropriate technology;
  (F) The agency's mission and long-range facilities plans; and
  (G) For new facilities, expansions and additions, the ability
of the agency to maintain and operate all of the agency's
facilities in a cost-effective manner.

Enrolled Senate Bill 242 (SB 242-C)                       Page 73

  (e) The review process shall ensure that capital project
decisions are approached in a cost-effective manner after
considering all reasonable alternatives.
  (f) With assistance from the board, the department shall
provide recommendations and information to the Governor and the
Legislative Assembly on the construction, leasing and facilities
management issues of state government.
  (4) The department shall establish and maintain a central
database of information on state-owned property of all state
agencies, including land, buildings, infrastructure, improvements
and leases. This database shall include an inventory of
state-owned facilities as well as descriptive and technical
information.
  (5) State agencies shall establish and implement long-range
maintenance and management plans for facilities for which this
state is responsible to ensure that facilities are maintained in
good repair and that the useful lives of facilities are
maximized.  For each new facility, a maintenance and management
plan appropriate to the use and useful life of the facility shall
be developed and implemented.
  (6) The department may engage in cooperative projects with
local government.
  (7) The provisions of this section   { - shall - }   { + do + }
not apply to
  { - institutions of higher education as described - }  { +
public universities listed + } in ORS 352.002, the Oregon Health
and Science University or a community college as defined in ORS
341.005.
  SECTION 86. ORS 276.229 is amended to read:
  276.229. (1) State agencies shall develop four-year major
construction budgets. Projects included in these budgets may be
accelerated or deferred upon approval of the Emergency Board.
  (2) State agencies shall include the biennial costs associated
with maintenance, major repairs or building alterations in their
regular budget presentation to the Legislative Assembly.
Agencies shall include in their budget presentations short-term
and long-term plans to reduce or eliminate any existing backlog
of deferred maintenance.
  (3) The provisions of this section   { - shall - }   { + do + }
not apply to
  { - an institution of higher education as described - }  { +
public universities listed + } in ORS 352.002, the Oregon Health
and Science University, or a community college as defined in ORS
341.005.
  SECTION 87. ORS 276.612 is amended to read:
  276.612. The Department of Corrections, the Department of Human
Services, the Oregon Health Authority and the State Board of
Education each shall determine the buildings to be constructed,
altered, repaired, furnished and equipped for the use of
institutions and activities under their respective jurisdictions.
The State Board of Higher Education shall determine the buildings
to be constructed, altered, repaired, furnished and equipped for
the use of   { - institutions - }   { + public universities or
offices, departments + } or activities under its jurisdiction.
  SECTION 88. ORS 279A.025 is amended to read:
  279A.025. (1) Except as provided in subsections (2) to (4) of
this section, the Public Contracting Code applies to all public
contracting.
  (2) The Public Contracting Code does not apply to:
  (a) Contracts between a contracting agency and:

Enrolled Senate Bill 242 (SB 242-C)                       Page 74

  (A) Another contracting agency;
  (B) The Oregon Health and Science University;
  (C) The Oregon State Bar;
  (D) A governmental body of another state;
  (E) The federal government;
  (F) An American Indian tribe or an agency of an American Indian
tribe;
  (G) A nation, or a governmental body in a nation, other than
the United States; or
  (H) An intergovernmental entity formed between or among:
  (i) Governmental bodies of this or another state;
  (ii) The federal government;
  (iii) An American Indian tribe or an agency of an American
Indian tribe;
  (iv) A nation other than the United States; or
  (v) A governmental body in a nation other than the United
States;
  (b) Agreements authorized by ORS chapter 190 or by a statute,
charter provision, ordinance or other authority for establishing
agreements between or among governmental bodies or agencies or
tribal governing bodies or agencies;
  (c) Insurance and service contracts as provided for under ORS
414.115, 414.125, 414.135 and 414.145 for purposes of source
selection;
  (d) Grants;
  (e) Contracts for professional or expert witnesses or
consultants to provide services or testimony relating to existing
or potential litigation or legal matters in which a public body
is or may become interested;
  (f) Acquisitions or disposals of real property or interest in
real property;
  (g) Sole-source expenditures when rates are set by law or
ordinance for purposes of source selection;
  (h) Contracts for the procurement or distribution of textbooks;
  (i) Procurements by a contracting agency from an Oregon
Corrections Enterprises program;
  (j) The procurement, transportation or distribution of
distilled liquor, as defined in ORS 471.001, or the appointment
of agents under ORS 471.750 by the Oregon Liquor Control
Commission;
  (k) Contracts entered into under ORS chapter 180 between the
Attorney General and private counsel or special legal assistants;
  (L) Contracts for the sale of timber from lands owned or
managed by the State Board of Forestry and the State Forestry
Department;
  (m) Contracts for forest protection or forest related
activities, as described in ORS 477.406, by the State Forester or
the State Board of Forestry;
  (n) Sponsorship agreements entered into by the State Parks and
Recreation Director in accordance with ORS 565.080 (4);
  (o) Contracts entered into by the Housing and Community
Services Department in exercising the department's duties
prescribed in ORS chapters 456 and 458, except that the
department's public contracting for goods and services is subject
to ORS chapter 279B;
  (p) Contracts entered into by the State Treasurer in exercising
the powers of that office prescribed in ORS chapters 178, 286A,
287A, 289, 293, 294 and 295, including but not limited to
investment contracts and agreements, banking services, clearing
house services and collateralization agreements, bond documents,

Enrolled Senate Bill 242 (SB 242-C)                       Page 75

certificates of participation and other debt repayment
agreements, and any associated contracts, agreements and
documents, regardless of whether the obligations that the
contracts, agreements or documents establish are general, special
or limited, except that the State Treasurer's public contracting
for goods and services is subject to ORS chapter 279B;
  (q) Contracts, agreements or other documents entered into,
issued or established in connection with:
  (A) The issuance of obligations, as defined in ORS 286A.100 and
287A.310, of a public body;
  (B) The making of program loans and similar extensions or
advances of funds, aid or assistance by a public body to a public
or private body for the purpose of carrying out, promoting or
sustaining activities or programs authorized by law; or
  (C) The investment of funds by a public body as authorized by
law, and other financial transactions of a public body that by
their character cannot practically be established under the
competitive contractor selection procedures of ORS 279B.050 to
279B.085;
  (r) Contracts for employee benefit plans as provided in ORS
243.105 (1), 243.125 (4), 243.221, 243.275, 243.291, 243.303 and
243.565;
  (s) Contracts for employee benefit plans as provided in ORS
243.860 to 243.886; or
  (t) Any other public contracting of a public body specifically
exempted from the code by another provision of law.
  (3) The Public Contracting Code does not apply to the
contracting activities of:
  (a) The Oregon State Lottery Commission;
  (b) The Oregon University System and member
 { - institutions - }  { +  public universities + }, except as
provided in ORS 351.086;
  (c) The legislative department;
  (d) The judicial department;
  (e) Semi-independent state agencies listed in ORS 182.454,
except as provided in ORS 279.835 to 279.855 and 279A.250 to
279A.290;
  (f) Oregon Corrections Enterprises;
  (g) The Oregon Film and Video Office, except as provided in ORS
279A.100 and 279A.250 to 279A.290;
  (h) The Travel Information Council, except as provided in ORS
279A.250 to 279A.290;
  (i) The Oregon 529 College Savings Network and the Oregon 529
College Savings Board;
  (j) The Oregon Innovation Council;
  (k) The Oregon Utility Notification Center; or
  (L) Any other public body specifically exempted from the code
by another provision of law.
  (4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not
apply to contracts made with qualified nonprofit agencies
providing employment opportunities for individuals with
disabilities under ORS 279.835 to 279.855.
  SECTION 89. ORS 283.305 is amended to read:
  283.305. As used in ORS 283.305 to 283.350:
  (1) 'Alternative fuel' means natural gas, liquefied petroleum
gas, methanol, ethanol, any fuel mixture containing at least 85
percent methanol or ethanol and electricity.
  (2) 'Authorized driver' means any of the following who has a
valid driver license and an acceptable driving record:
  (a) A salaried state employee, including an agent of the state;

Enrolled Senate Bill 242 (SB 242-C)                       Page 76

  (b) A volunteer, appointed in writing, whose written
description of duties includes driving motor vehicles;
  (c) An agency client required to drive motor vehicles as part
of a rehabilitation or treatment program authorized by law;
  (d) Any personnel of any unit of government whose use of motor
vehicles is permitted by an authorized intergovernmental
agreement; { +  and + }
    { - (e) Any student enrolled at any state institution of
higher education and whose use of motor vehicles meets the
requirements of ORS 283.310; and - }
    { - (f) - }  { +  (e) + } An inmate of a correctional
institution with specific Department of Corrections approval who
is accompanied by a supervising correctional institution employee
or who is performing a specific work assignment driving a special
purpose vehicle required for that assignment and within the
visual range of a supervising correctional institution employee
who is at the work assignment site or who is part of the
transport caravan.
  (3) 'Motor vehicles' includes state-owned, leased or otherwise
controlled motor vehicles and the supplies, parts and equipment
for the operation, maintenance or repair of such motor vehicles.
  (4) 'Official state business' means activity conducted by a
state agency that advances the lawful policies of the agency as
specified by the Oregon Department of Administrative Services by
rule.
  (5) 'Standard passenger vehicle' means a motor vehicle that is
commonly known as a sedan or a station wagon and that is not
equipped with special or unusual equipment.
  (6) 'State agency' or 'agency' includes the Legislative
Assembly, at its option, or any of its statutory, standing,
special or interim committees, at the option of such committee.
  SECTION 90. ORS 283.310 is amended to read:
  283.310. (1) The Oregon Department of Administrative Services
shall control and regulate the acquisition, operation, use,
maintenance and disposal of and access to motor vehicles used
for:
  (a) State business by state agencies of this state; or
  (b) Official public business by a unit of local government or a
state agency of another state, by an agency created by an
interstate compact between this state and another state or
states, by a United States governmental agency, or by an American
Indian tribe or an agency of an American Indian tribe, pursuant
to an intergovernmental agreement between the agency or agencies
and the department, entered into in accordance with ORS chapter
190, for the provision of motor pool vehicles, supplies and
services, or any of them.
  (2) The state agency on whose behalf a motor vehicle is used
must state in writing in advance of such use that the particular
activity for which the vehicle is to be used advances the lawful
policies of the agency.
  (3) The State Board of Higher Education   { - shall - }
 { + may + } not authorize or allow the use of any motor vehicle
to transport students to an event or activity not directly
related to an officially sanctioned program { + , + } as
established under ORS 351.277
  { - of an institution in the Oregon University System - }
 { + , of a public university listed in ORS 352.002 + }.
  (4) The State Board of Higher Education, in conjunction with
the Oregon Department of Administrative Services, shall establish
by rule vehicle operation standards and training to promote safe

Enrolled Senate Bill 242 (SB 242-C)                       Page 77

vehicular travel practices in the conduct of all travel by
employees, students and official volunteers at all
 { - institutions - }  { + public universities + } in the Oregon
University System.
  SECTION 91. ORS 284.633 is amended to read:
  284.633. (1) The Oregon Progress Board may enter into an
agreement with:
  (a) Any state agency for the provision of clerical, technical
and management personnel to the board to serve as the board's
staff and for the provision of other administrative, operational
or overhead expenses necessary to accomplish the public purposes
of the board.
  (b) A nongovernmental entity for the provision of
administrative, operational or overhead expenses necessary to
accomplish the public purposes of the board.
  (2) As used in this section:
  (a) 'Public institution of higher education' means a community
college or a   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002.
  (b) 'State agency' means any officer, board, commission,
department, division or institution in the executive or
administrative branch of state government or a public institution
of higher education.
  SECTION 92. ORS 284.701 is amended to read:
  284.701. As used in ORS 284.701 to 284.740:
  (1) 'Oregon emerging business' means an emerging growth
business as defined in ORS 348.701 that has:
  (a) Fewer than 100 employees; and
  (b) At least 51 percent of its employees employed in Oregon.
  (2) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (c) The Oregon Health and Science University public corporation
created under ORS 353.020;
  (d) An Oregon-based, generally accredited, not-for-profit
private institution of higher education;
  (e) A federal research laboratory conducting research in
Oregon; or
  (f) A private not-for-profit research institution located in
Oregon.
  (3) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 93. ORS 285B.168 is amended to read:
  285B.168. (1) The Oregon Business Development Department may
make grants available to a community college district, a
community college service district or, with the concurrence of
the Commissioner for Community College Services and the
Chancellor of the Oregon University System, a   { - state
university - }  { +  public university listed in ORS 352.002 + }
to assist in the formation, improvement and operation of small
business development centers.  If a community college district, a
community college service district or a   { - state
university - }  { +  public university + } is unable to
adequately provide services in a specific geographic area, the
department may make grants available to other service providers
as determined by the department. The grant application shall
include:

Enrolled Senate Bill 242 (SB 242-C)                       Page 78

  (a) Plans for providing small business owners and managers
individual counseling, to the greatest extent practicable, in
subject areas critical to small business success;
  (b) A budget for the year for which a grant is requested,
including cost apportionment among the department, small business
clients, the community college,   { - state university - }  { +
the public university + } or other service providers and other
sources;
  (c) A plan for evaluating the effect of the program on small
business clients served; and
  (d) A plan for providing collaboration with other state
agencies, state-supported organizations and private sector
entities that provide services to small businesses.
  (2) The grants made under subsection (1) of this section are to
be used by the grant recipient to provide:
  (a) Small business development center staff and support staff;
  (b) Expert resource persons from the business community;
  (c) Other training and business resources as approved by the
department in skill areas for which, or areas of the state where,
the grant recipient can demonstrate it does not otherwise have
the capacity or expertise to provide the resources; and
  (d) Other costs related to providing training, counseling and
business resources to small business clients.
  (3) To be eligible for a grant under subsection (1) of this
section, the recipient shall be required to provide funds,
in-kind contributions or some combination of funds and
contributions, in accordance with rules adopted by the
department.
  (4) Subject to the approval of the department, a grant
recipient may subcontract funds received under this section to
any other entity that is eligible to receive funding under this
section.
  (5) The grant recipient shall submit a final report to the
department after the distribution of grant funds and the delivery
of services to the proposed business clients. The report shall
state whether the plan and related budget have met the applicable
criteria as described in the recipient's application for the
grant period.
    { - (6) As used in this section, 'state university' means a
state institution of higher education listed in ORS 352.002. - }
  SECTION 94. ORS 285B.174 is amended to read:
  285B.174. In cooperation with other state agencies and private
organizations,   { - state universities as defined in ORS
285B.168 - }   { + public universities listed in ORS 352.002 + }
and community colleges may develop programs to assist Oregon
businesses with the procurement of government contracts and
grants. Small business development centers established under ORS
285B.165 to 285B.171 may assist with these programs.
  SECTION 95. ORS 286A.615 is amended to read:
  286A.615. (1) The Private Activity Bond Committee is
established. It shall consist of the State Treasurer or the
designee of the State Treasurer, one representative from the
Oregon Department of Administrative Services and one public
representative appointed to serve at the pleasure of the
Governor.
  (2) The State Treasurer, or the State Treasurer's designee,
shall serve as chair of the committee.
  (3) The purpose of private activity bonding in this state is to
maximize the economic benefits of private activity bonding to the
citizens of this state. The committee shall adopt by rule

Enrolled Senate Bill 242 (SB 242-C)                       Page 79

standards for amounts allocated to the committee for further
allocation for economic development, housing, education,
redevelopment, public works, energy, waste management, waste and
recycling collection, transportation and other activities that
the committee determines will benefit the citizens of this state.
In developing standards, the committee shall:
  (a) Survey the expected need for private activity bond
allocations at least once each year;
  (b) Develop strategies for reserving and allocating the limit
that are designed to maximize the availability of tax exempt
financing among competing sectors of the Oregon economy; and
  (c) Ensure that the standards include but are not limited to
standards that:
  (A) Support projects that increase the number of family wage
jobs in this state.
  (B) Promote economic recovery in small cities heavily dependent
on a single industry.
  (C) Emphasize development in underdeveloped rural areas of this
state.
  (D) Utilize educational resources available at
 { - institutions of higher education - }  { +  public
universities listed in ORS 352.002 + }.
  (E) Support development of the state's small businesses,
especially businesses owned by women and members of minority
groups.
  (F) Encourage use of Oregon's human and natural resources in
endeavors that harness Oregon's economic comparative advantages.
  (4) The state private activity bond volume cap allocated to the
Private Activity Bond Committee as provided in ORS 286A.620 shall
be allocated and reallocated among issuers by the Private
Activity Bond Committee as follows:
  (a) Any amounts not reserved to an issuer or a class of issuers
under the authorization adopted by the Legislative Assembly under
ORS 286A.035 shall be allocated or reallocated by the committee
under rules adopted under subsection (3) of this section.
  (b) Any amounts provided for in the authorization adopted by
the Legislative Assembly under ORS 286A.035 that are unused shall
be carried forward for use as provided by rules adopted under
subsection (3) of this section.
  (c) The rules adopted by the committee shall limit the period
of time for which an allocation of private activity bonding
authority is effective. The rules shall ensure that allocations
made during a calendar year are used during that calendar year or
that the unused amount of the allocation is reallocated or
carried forward.
  (5) Unused allocations are not transferable among issuers but
are available for reallocation.
  SECTION 96. ORS 286A.700 is amended to read:
  286A.700. (1) As used in this section:
  (a) 'Oregon Baccalaureate Bonds' means bonds of the State of
Oregon issued by the State Treasurer at the request of the Oregon
University System that are designated as baccalaureate bonds.
  (b) 'Post-secondary education' means training and instruction
provided by fully accredited public  { + universities + } or
private institutions of higher learning, community colleges and
post-high-school career schools.
  (2) The Legislative Assembly encourages citizens of the State
of Oregon to avail themselves of post-secondary education
opportunities.
  (3) The Legislative Assembly finds:

Enrolled Senate Bill 242 (SB 242-C)                       Page 80

  (a) For the benefit of its citizens, the state supports a
system of common schools,   { - institutions of higher
education - }  { +  public universities + } and community
colleges.
  (b) A post-secondary education advances a citizen's ability to
pursue life, liberty and happiness through a wide range of
employment opportunities.
  (c) A well-educated citizenry contributes to the economic
well-being of the state and nation.
  (d) A well-trained and skilled citizenry enhances economic
development of the state.
  (e) While students have just begun their education upon
completion of a formal education, a lifetime pursuit of learning
contributes to a well-informed citizenry and to Oregon's
cherished quality of life.
  (f) Citizens educated in Oregon are more likely to pursue
careers in Oregon.
  (g) It is in the interest of this state to encourage its
citizens to plan and save for a post-secondary education.
  (h) An Oregon Baccalaureate Bond program that provides citizens
an opportunity to save for a post-secondary education for their
children, themselves or any citizen is in the social and economic
interest of the State of Oregon.
  (i) A systematic way to save for post-secondary education can
assist all of Oregon's higher education, community college and
career schools to better project enrollments, thereby permitting
the prudent allocation of scarce resources.
  (4) At the request of the Oregon University System, the State
Treasurer may:
  (a) Issue bonds as Oregon Baccalaureate Bonds, to encourage
investors to save for post-secondary education opportunities.
  (b) Investigate and implement the means and procedures to
facilitate the participation by the broadest practical range of
investors in the Oregon Baccalaureate Bond program. The means and
procedures may include, but are not limited to, adjustments in
the denominations in which the bonds are issued and the frequency
with which the bonds are issued.
  (5) The purchase of an Oregon Baccalaureate Bond does not
guarantee the purchaser, owner or beneficiary of the bond
admittance to a public  { + university + } or private
post-secondary institution.
  SECTION 97. ORS 291.038 is amended to read:
  291.038. (1) The planning, acquisition, installation and use of
all information and telecommunications technology by state
government and agencies of state government shall be coordinated
so that statewide plans and activities, as well as those of
individual agencies, are addressed in the most integrated,
economic and efficient manner. To provide policy direction for
and coordination of information technology for state government,
the Director of the Oregon Department of Administrative Services
shall chair and appoint not fewer than five agency executives to
an Information Resources Management Council. The council
membership shall include at least two members who represent the
private sector and political subdivisions of the state.
  (2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of
Administrative Services shall adopt rules, policies and standards
to plan for, acquire, implement and manage the state's
information resources. In developing rules, policies and
standards, the department shall consult with state agencies that

Enrolled Senate Bill 242 (SB 242-C)                       Page 81

have needs that information resources may satisfy. State agencies
shall cooperate with the department in preparing and complying
with rules, policies and standards. The rules, policies and
standards must be formulated to promote electronic communication
and information sharing among state agencies and programs,
between state and local governments and with the public where
appropriate.
  (3) Rules, policies, plans, standards and specifications must
be formulated to ensure that information resources fit together
in a statewide system capable of providing ready access to
information, computing or telecommunication resources. Plans and
specifications the department adopts must be based on industry
standards for open systems to the greatest extent possible.
Before adopting rules described in subsection (2) of this
section, the department shall present the proposed rules to the
appropriate legislative committee. The department has the
responsibility to review, oversee and ensure that state agencies'
planning, acquisition and implementation activities align with
and support the statewide information resources management plan.
The department is responsible for procuring information
technology fairly, competitively and in a manner that is
consistent with the department's rules.
  (4)(a) The policy of the State of Oregon is that state
government telecommunications networks should be designed to
provide state-of-the-art services where economically and
technically feasible, using shared, rather than dedicated, lines
and facilities.
  (b) The department shall, when procuring telecommunications
network services, consider achieving the economic development and
quality of life outcomes set forth in the Oregon benchmarks.
  (5)(a) The department, upon request, may furnish and deliver
statewide integrated videoconferencing and statewide online
access service to a public or private entity that primarily
conducts activities for the direct good or benefit of the public
or community at large in providing educational, economic
development, health care, human services, public safety, library
or other public services. The department shall adopt rules with
respect to furnishing the service.
  (b) The department shall establish the statewide integrated
videoconferencing and statewide online access user fees,
services, delivery, rates and long range plans in consultation
with the Stakeholders Advisory Committee created pursuant to this
section.  The rates shall reflect the department's cost in
providing the service.
  (c) The department by rule shall restrict the department's
furnishing or delivery of Internet access service to private
entities when the service would directly compete with two or more
local established providers of Internet access services within
the local exchange telecommunications service area.
  (d) The rates and services established and provided under this
section are not subject to the Public Utility Commission's
regulation or authority.
  (6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director
of the Oregon Department of Administrative Services. In making
appointments, the director shall give consideration to geographic
balance and adequate representation of the department's users and
providers and the general public.
  (b) The committee must consist of members who represent
elementary or secondary education, higher education, community

Enrolled Senate Bill 242 (SB 242-C)                       Page 82

colleges, economic development, health care, human services and
public safety. At least four members must reside in areas east of
the Cascade Mountains.
  (c) The term of office of each member is three years, but a
member serves at the sole discretion of the director. The
director shall appoint a successor to a member before the
member's term expires. A member is eligible for reappointment. If
a position on the committee is vacant for any cause, the director
shall make an appointment to the position that is immediately
effective for the unexpired term.
  (d) A member of the committee is entitled to travel expenses
pursuant to ORS 292.495. Members of the committee are not
entitled to compensation.
  (e) The director may establish additional advisory and
technical committees as the director considers necessary to aid
and advise the Stakeholders Advisory Committee in the performance
of the committee's functions.
  (f) The director may delegate to the State Chief Information
Officer a duty, function or power that this subsection imposes
upon the director.
  (7) An organization or organizations recognized as tax exempt
under section 501(c)(3) of the Internal Revenue Code that
primarily conduct activities for the direct good or benefit of
the public or community at large in providing educational,
economic development, health care, human services, public safety,
library or other public services and have formed an affiliation
with one or more federal, state or local governmental units
within this state may apply to the department for designation as
a community of interest. The application must be in the form
prescribed by the department and contain information regarding
the governmental affiliation relationship, the tax exempt status
of each organization and the public benefit services to be
provided. The department shall establish an application review
and appeal process to ensure that designating the organizations
as a community of interest for the purposes of including the
organization in telecommunications contracts under ORS 283.520
will result in providing educational, medical, library or other
services for public benefit.
  (8) This section does not apply to the State Board of Higher
Education or any   { - state institution of higher education
within the Oregon University System - }  { +  public university
listed in ORS 352.002 + }.
  (9) As used in this section:
  (a) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  (b) 'Information technology' includes, but is not limited to,
present and future forms of hardware, software and services for
data processing, office automation and telecommunications.
  (c) 'Internet access service' means electronic connectivity to
the Internet and the services of the Internet.
  (d) 'Open systems' means systems that allow state agencies
freedom of choice by providing a vendor-neutral operating
environment where different computers, applications, system
software and networks operate together easily and reliably.
  (e) 'State-of-the-art services' includes equipment, facilities
and the capability to distribute digital communication signals
that transmit voice, data, video and images over a distance.
  (f) 'Telecommunications' means hardware, software and services
for transmitting voice, data, video and images over a distance.

Enrolled Senate Bill 242 (SB 242-C)                       Page 83

  (g) 'Statewide integrated videoconferencing' means a statewide
electronic system capable of transmitting video, voice and data
communications.
  (h) 'Statewide online access' means electronic connectivity to
information resources such as computer conferencing, electronic
mail, databases and Internet access.
  SECTION 98. ORS 291.055 is amended to read:
  291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted after July 1 of any
odd-numbered year:
  (a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
  (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  (e) Are rescinded on July 1 of the next following odd-numbered
year, or on adjournment sine die of the regular session of the
Legislative Assembly meeting in that year, whichever is later,
unless otherwise authorized by enabling legislation setting forth
the approved fees.
  (2) This section does not apply to:
  (a) Any tuition or fees charged by the State Board of Higher
Education and   { - state institutions of higher education - }
 { +  the public universities listed in ORS 352.002 + }.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.
  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.

Enrolled Senate Bill 242 (SB 242-C)                       Page 84

  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Insurance Division
of the Department of Consumer and Business Services pursuant to
ORS 731.804 or fees charged by the Division of Finance and
Corporate Securities of the Department of Consumer and Business
Services to banks, trusts and credit unions pursuant to ORS
706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget for the agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 99. ORS 292.043 is amended to read:
  292.043. (1) As used in this section:
  (a) 'Foundation' means:
  (A) A tax exempt organization designated by a rule adopted by a
state agency; or
  (B) A tax exempt organization designated by the State Board of
Higher Education to solicit contributions for the support of
  { - an institution of higher education under the jurisdiction
of the board - }  { +  a public university listed in ORS
352.002 + }.
  (b) 'Salary and wages' has the meaning given that term in ORS
292.014.
  (2) Any state official authorized to disburse funds in payment
of salaries or wages of the officers and employees of a state
agency, or of the officers, teachers, instructors and other
employees of the Oregon University System, is authorized, upon
written request of the individual, to deduct each month from the
salary or wages of the individual the amount of money designated
by the individual for payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.

Enrolled Senate Bill 242 (SB 242-C)                       Page 85

  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency or the State Board of Higher
Education, the state official authorized to disburse the funds in
payment of salaries and wages may prescribe any procedures
necessary to carry out this section.
  SECTION 100. ORS 292.044 is amended to read:
  292.044. (1) As used in this section:
  (a) 'Employee' means officers, faculty, teachers, instructors
and other employees of the Oregon University System as described
in ORS 352.002.
  (b) 'Nonprofit organization' means an organization described in
section 501(c)(3) of the Internal Revenue Code that is exempt
from income tax under section 501(a) of the Internal Revenue
Code.
  (2) The Chancellor of the Oregon University System or a
designee of the chancellor may approve a written request made by
a
  { - state institution of higher education listed in ORS
352.002, or by another program - }   { + public university or
office, department + } or activity under the jurisdiction of the
State Board of Higher Education, in which an employee of the
 { - institution - }  { +  public university + } or   { - another
program - }   { + office, department + } or activity may
designate an amount from the salary or wages of the employee for
payment to a qualifying nonprofit organization. A request made to
the chancellor under this section must identify the nonprofit
organization to whom payments would be made.
  (3) Upon written approval of the chancellor or of a designee of
the chancellor and a written request of an employee of the
  { - institution, program - }  { +  public university or office,
department  + }or activity to which the approval applies, the
state official within the Oregon University System authorized to
disburse funds in payment of salaries or wages shall deduct from
the salary or wages of the employee the amount of money
designated by the employee for payment to the nonprofit
organization.
  (4) The moneys deducted from the salaries or wages under
subsection (3) of this section shall be paid over promptly to the
nonprofit organization.
  (5) The Chancellor of the Oregon University System or a
designee of the chancellor shall prescribe procedures for
determining whether an organization qualifies as a nonprofit
organization under this section.
  SECTION 101. ORS 310.155 is amended to read:
  310.155. (1) For purposes of ORS 310.150, taxes are levied or
imposed to fund the public school system if the taxes will be
used exclusively for educational services, including support
services, provided by any unit of government, at any level from
prekindergarten through post-graduate training.
  (2) Taxes on property levied or imposed by a unit of government
whose principal function is to provide educational services shall
be considered to be dedicated to fund the public school system
unless the sole purpose of a particular, voter approved levy is
for other than educational services or support services as
defined in this section.
  (3) Taxes on property levied or imposed by a unit of government
whose principal function is to perform government operations
other than educational services shall be considered to be
dedicated to fund the public school system only if the sole

Enrolled Senate Bill 242 (SB 242-C)                       Page 86

purpose of a particular, voter approved levy is for educational
services or support services as defined in this section.
  (4) As used in this section, 'educational services ' includes:
  (a) Establishment and maintenance of preschools, kindergartens,
elementary schools, high schools, community colleges and
 { - institutions of higher education - }  { +  the public
universities listed in ORS 352.002 + }.
  (b) Establishment and maintenance of career schools, adult
education programs, evening school programs and schools or
facilities for persons with physical, mental or emotional
disabilities.
  (5) As used in this section, 'support services' includes
clerical, administrative, professional and managerial services,
property maintenance, transportation, counseling, training and
other services customarily performed in connection with the
delivery of educational services.
  (6) 'Educational services' does not include community
recreation programs, civic activities, public libraries, programs
for custody or care of children or community welfare activities
if those programs or activities are provided to the general
public and not for the benefit of students or other participants
in the programs and activities described in subsection (4) of
this section.
  SECTION 102. ORS 315.237 is amended to read:
  315.237. (1) As used in this section, 'qualified scholarship'
means a scholarship that meets the criteria set forth or
incorporated into the letter of employee and dependent
scholarship program certification issued by the   { - Oregon
Student Assistance Commission - }   { + Oregon Student Access
Commission + } under ORS 348.618.
  (2) A credit against the taxes otherwise due under ORS chapter
316 is allowed to a resident employer (or, if the taxpayer is a
corporation that is an employer, under ORS chapter 317 or 318)
that has received:
  (a) Program certification from the   { - Oregon Student
Assistance - }  commission under ORS 348.618; and
  (b) Tax credit certification under ORS 348.621 for the calendar
year in which the tax year of the taxpayer begins.
  (3) The amount of the credit allowed to a taxpayer under this
section shall equal 50 percent of the amount of qualified
scholarship funds actually paid to or on behalf of qualified
scholarship recipients during the tax year.
  (4) The credit allowed under this section may not exceed the
tax liability of the taxpayer for the tax year.
  (5) The credit allowed to a taxpayer for a tax year under this
section may not exceed $50,000.
  (6) Any tax credit otherwise allowable under this section that
is not used by the taxpayer in a particular year may be carried
forward and offset against the taxpayer's tax liability for the
next succeeding tax year. Any credit remaining unused in the next
succeeding tax year may be carried forward and used in the second
succeeding tax year, and likewise any credit not used in that
second succeeding tax year may be carried forward and used in the
third succeeding tax year, and any credit not used in that third
succeeding tax year may be carried forward and used in the fourth
succeeding tax year, and any credit not used in that fourth
succeeding tax year may be carried forward and used in the fifth
succeeding tax year, but may not be carried forward for any tax
year thereafter.

Enrolled Senate Bill 242 (SB 242-C)                       Page 87

  (7) In the case of a credit allowed under this section for
purposes of ORS chapter 316:
  (a) A nonresident shall be allowed the credit under this
section in the proportion provided in ORS 316.117.
  (b) If a change in the status of a taxpayer from resident to
nonresident or from nonresident to resident occurs, the credit
allowed by this section shall be determined in a manner
consistent with ORS 316.117.
  (c) If a change in the taxable year of a taxpayer occurs as
described in ORS 314.085, or if the Department of Revenue
terminates the taxpayer's taxable year under ORS 314.440, the
credit allowed under this section shall be prorated or computed
in a manner consistent with ORS 314.085.
  (8) The credit shall be claimed on the form and in the time and
manner in which the department shall prescribe. If the taxpayer
is required to do so by the department, the taxpayer shall file a
copy of the letter of tax credit certification issued by the
commission with the taxpayer's return for the tax year in which a
credit under this section is claimed.
  SECTION 103. ORS 326.075 is amended to read:
  326.075. (1) The State Board of Education shall cooperate with
the Education and Workforce Policy Advisor in the development of
a state comprehensive education plan including elementary,
secondary and community college education and in review of the
board's programs and budget. The board shall submit in timely
fashion to the advisor such data as is appropriate in a form
prescribed by the advisor.
  (2) The board shall cooperate with the mediation process
administered by the Oregon Student   { - Assistance - }  { +
Access + } Commission pursuant to ORS 348.603 and, if a
negotiated resolution cannot be reached by mediation, comply with
the decisions of the commission regarding proposed new
post-secondary programs and proposed new post-secondary
locations.
  SECTION 104. ORS 326.543 is amended to read:
  326.543. (1) As used in this section:
  (a) 'Education service district' has the meaning given that
term in ORS 334.003.
  (b) 'Facility' means the school operated under ORS 346.010.
  (c) 'Post-secondary institution' means:
  (A) A community college as defined in ORS 341.005;
  (B) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (C) The Oregon Health and Science University.
  (d) 'School district' has the meaning given that term in ORS
330.005.
  (2) The interest or estate of an education service district, a
facility, a post-secondary institution or a school district in
any real property may not be extinguished or diminished by
adverse possession.
  SECTION 105. ORS 326.587 is amended to read:
  326.587. (1) A   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + } may not
disclose the Social Security number of a student who is attending
the   { - institution - }  { +  public university + }.
  (2) Subsection (1) of this section does not apply if the
  { - institution - }  { +  public university + } discloses the
Social Security number:
  (a) At the request of a law enforcement agency or an agency
providing support enforcement services under ORS 25.080;

Enrolled Senate Bill 242 (SB 242-C)                       Page 88

  (b) After obtaining written permission for the disclosure from
the student to whom the number refers;
  (c) In the payment of wages or benefits;
  (d) In the payment or collection of taxes or of a debt owed by
the student to whom the number refers; or
  (e) For purposes of statistical analysis.
  SECTION 106. ORS 329.757 is amended to read:
  329.757. (1) There is hereby created an Oregon Teacher Corps
program within the Oregon Student   { - Assistance - }  { +
Access + } Commission to encourage the entry of certain qualified
persons into the teaching profession through the use of
forgivable student loans for those who complete three years of
successful teaching in a public school in this state.
  (2) All programs in ORS 329.757 to 329.780 are subject to the
availability of funds appropriated therefor.
  SECTION 107. ORS 329.765 is amended to read:
  329.765. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission shall administer the Oregon Teacher Corps
program insofar as practicable in the same manner as the loan
program under ORS 348.050 is administered and make rules for the
selection of qualified applicants.
  (2) Eligibility for the Oregon Teacher Corps is limited to
those prospective teachers whom the Oregon Student
 { - Assistance - }  { +  Access + } Commission determines to
have graduated, or currently rank, in the top 20 percent of their
high school or college class. The commission shall assess each
applicant's potential for teaching through such means as essays
written by the applicant, letters of recommendations from
teachers and others, descriptions of relevant teaching
experiences  { - , - }  and other appropriate measures. Allowance
shall be given for those applicants whom the commission
determines to be in at least one of the following categories:
  (a) Minority individuals as defined in ORS 200.005;
  (b) Prospective teachers in scarce endorsement areas, as
defined by the Teacher Standards and Practices Commission; or
  (c) Prospective teachers who agree to teach in remote and
difficult to serve school districts in this state.
  (3) Recipients of loans under ORS 329.757 to 329.780 shall be
enrolled at least half-time in an approved teacher education
program at an Oregon institution of higher education.
  SECTION 108. ORS 329.775 is amended to read:
  329.775. (1) Upon approval of the loan application of an
eligible student by the Oregon Student   { - Assistance - }  { +
Access + } Commission, the commission may lend an amount from the
Oregon Teacher Corps Account to the student in compliance with
this section. The loan shall be evidenced by a written obligation
but no additional security shall be required. Notwithstanding any
provision in this section, the commission may require cosigners
on the loans.
  (2) Loans granted under this section to eligible students by
the commission shall:
  (a) Not exceed $2,000 in a single academic year to an
undergraduate student enrolled in a teacher education program
leading to a basic or initial license.
  (b) Not exceed $4,000 in a single academic year to a graduate
student enrolled in a teacher education program leading to a
basic or initial license.
  (c) Not exceed $8,000 for all loans made to a student under
this section.

Enrolled Senate Bill 242 (SB 242-C)                       Page 89

  (3) Borrowers are required to pay at least seven percent
interest per annum on the unpaid balance from the date of the
loan as provided in subsection (4) of this section.
  (4)(a) Repayment of the principal and accruing and deferred
interest on loans shall be commenced not later than 12 months
after the student's completion of the teacher education program
or other termination of the student's education. Repayment of
loans under ORS 329.765 shall be delayed for the period of time
the student is teaching at least half-time in a public school in
this state but becomes payable under the usual terms if the
student ceases teaching before completing three full years.
Repayment of loans shall be delayed up to three years upon
application of the borrower showing inability to locate suitable
employment.
  (b) Repayment shall be completed in a maximum of 120 months
from the time repayment is commenced. However, nothing in this
section is intended to prevent repayment without penalty at an
earlier date than provided in this section or to prohibit the
commission from extending the repayment period to a date other
than permitted by this subsection.
  (5)(a) An eligible student who receives a loan under this
section, preparing to be an elementary or secondary school
teacher in this state, is not required to repay a loan made under
this section if the student completes:
  (A) At least three years of equivalent full-time teaching in a
public elementary or secondary school within the five-year period
following completion of the teacher education program in this
state; or
  (B) At least three years of teaching under a full-time contract
working at least three-fourths time in classroom teaching and no
more than one-fourth time not in classroom teaching duties during
regular school hours in a public elementary or secondary school
within the five-year period following completion of the teacher
education program in this state, as approved by the
  { - Oregon Student Assistance - }  commission upon written
request of the borrower.
  (b) Repayment of remaining principal and interest shall be
waived upon the death or total and permanent disability of the
borrower.
  SECTION 109. ORS 329.780 is amended to read:
  329.780. (1) There is established in the State Treasury
separate from the General Fund an account to be known as the
Oregon Teacher Corps Account into which shall be deposited all
repayments of loans with interest to the Oregon Student
  { - Assistance - }  { +  Access + } Commission pursuant to ORS
329.775. Any interest accruing to the account shall be credited
thereto.
  (2) Amounts in the account established under subsection (1) of
this section are continuously appropriated to the Oregon Student
 { - Assistance - }   { + Access + } Commission for the purposes
of ORS 329.757 to 329.780 and the Oregon Opportunity Grant
program under ORS 348.260.
  SECTION 110. ORS 329.822 is amended to read:
  329.822. (1) The Oregon Educator Professional Development
Commission is established within the Department of Education for
the purpose of providing statewide collaborative leadership for
prekindergarten through post-secondary education in the areas of
school improvement.
  (2) The commission consists of 16 members appointed as follows:

Enrolled Senate Bill 242 (SB 242-C)                       Page 90

  (a) The President of the Senate shall appoint one member of the
Senate.
  (b) The Speaker of the House of Representatives shall appoint
one member of the House of Representatives.
  (c) The Governor shall appoint 14 members as follows:
  (A) Two members who represent education service districts.
  (B) One member who represents the Department of Education.
  (C) One member who represents a community college.
  (D) One member who represents a public   { - institution of
higher education - }  { +  university listed in ORS 352.002 + }.
  (E) One member who represents a not-for-profit private
institution of higher education.
  (F) One member who represents the Teacher Standards and
Practices Commission.
  (G) One member who represents the Governor's office.
  (H) Six members who represent public schools for kindergarten
through grade 12, including:
  (i) One superintendent of a school district.
  (ii) Two principals of schools.
  (iii) Two teachers licensed or certified by the Teacher
Standards and Practices Commission.
  (iv) One classified employee of a school.
  (3) Members of the Legislative Assembly appointed to the
commission are nonvoting members of the commission and may act in
an advisory capacity only.
  (4)(a) The term of office of each member of the commission is
three years, but a member serves at the pleasure of the
appointing authority.
  (b) Before the expiration of the term of a member, the
appointing authority shall appoint a successor.
  (c) A member is eligible for reappointment.
  (d) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective for the unexpired term.
  (5) Members of the commission who are members of the
Legislative Assembly are entitled to mileage expenses and a per
diem as provided by ORS 171.072. Other members of the commission
are not entitled to compensation but a member may be reimbursed
for actual and necessary travel and other expenses incurred by
the member in the performance of the member's official duties in
the manner and amount provided in ORS 292.495.
  (6) The commission shall select from among its members a
chairperson, vice chairperson and secretary, for such terms and
with such duties and powers necessary for the performance of the
functions of the offices.
  (7) A majority of the voting members of the commission
constitutes a quorum for the transaction of business.
  (8) Official action by the commission requires the approval of
a majority of the voting members of the commission.
  (9) The commission shall meet at least once each calendar
quarter at a place, day and hour determined by the commission.
The commission may also meet at other times and places specified
by the call of the chairperson.
  (10) The Department of Education may accept, on behalf of the
commission, contributions of moneys and assistance from the
United States Government or its agencies or from any other
source, public or private, and agree to conditions placed on the
moneys not inconsistent with the duties of the commission.
  (11) All moneys received by the department under subsection
(10) of this section shall be paid into the Department of

Enrolled Senate Bill 242 (SB 242-C)                       Page 91

Education Account established in ORS 326.115 to the credit of the
commission. The moneys are continuously appropriated to the
commission for the purposes of carrying out the duties of the
commission.
  (12) The Department of Education shall solicit and award a
public contract for services provided by the commission,
including the maintenance of the public website and the provision
of assistance to local school districts. A contract may be
procured only as provided by ORS 279B.060 and may not be procured
as a sole-source procurement under ORS 279B.075, an emergency
procurement under ORS 279B.080 or a special procurement under ORS
279B.085.
  SECTION 111. ORS 329.840 is amended to read:
  329.840. (1) There is created the Oregon Virtual School
District within the Department of Education. The purpose of the
Oregon Virtual School District is to provide online courses to
kindergarten through grade 12 public school students.
  (2) The Oregon Virtual School District shall provide online
courses that meet academic content standards as defined in ORS
329.007 and meet other criteria adopted by the State Board of
Education. Any person who teaches an online course must be
properly licensed or registered as required by ORS 338.135 and
342.173 for a person employed by a school district or public
charter school. All school districts and public charter schools
may allow students to access the online courses offered by the
Oregon Virtual School District.
  (3) The Superintendent of Public Instruction may contract with
education service districts, school districts, public charter
schools, community colleges,   { - state institutions of higher
education - }  { +  public universities listed in ORS 352.002 + }
or any other public entity to provide online courses through the
Oregon Virtual School District.
  (4) Statutes and rules that apply to other school districts do
not apply to the Oregon Virtual School District except as
provided under this section or by rule of the State Board of
Education. The Oregon Virtual School District is not considered a
school district for purposes of apportionment of the State School
Fund and the department may not receive a direct apportionment
under ORS 327.008 from the State School Fund for the Oregon
Virtual School District.
  (5) The board may adopt the rules necessary for the
administration of the Oregon Virtual School District and shall
adopt rules to establish:
  (a) The procedure and criteria to be used for the selection of
online courses to be offered through the Oregon Virtual School
District;
  (b) The qualifications of students who may access online
courses through the Oregon Virtual School District;
  (c) The number of credits for which students may access online
courses through the Oregon Virtual School District; and
  (d) The student-to-teacher ratio for online courses offered
through the Oregon Virtual School District.
  SECTION 112. ORS 332.114 is amended to read:
  332.114. (1) A person who meets the requirements under
subsection (3) of this section may request a school district to
issue the person a high school diploma if the person resides
within the boundaries of the school district or is a resident of
this state and attended a high school of the school district.
  (2) A representative of a deceased person who meets the
requirements under subsection (3) of this section may request a

Enrolled Senate Bill 242 (SB 242-C)                       Page 92

school district to issue a high school diploma on behalf of the
deceased person if the deceased person resided within the
boundaries of the school district at the time of death or was a
resident of this state at the time of death and attended a high
school of the school district.
  (3) Notwithstanding the requirements for a high school diploma
established under ORS 329.451 and by the State Board of Education
and school districts, a school district that receives a request
under subsection (1) or (2) of this section shall issue a high
school diploma to a person if the person:
  (a) Attended a high school before serving in the Armed Forces
of the United States;
  (b) Did not graduate from a high school because the person was
serving in the Armed Forces of the United States;
  (c) Was discharged or released under honorable conditions from
the Armed Forces of the United States;
  (d) Served in the Armed Forces of the United States as
described in subsection (4) of this section; and
  (e)(A) Has received a General Educational Development (GED)
certificate;
  (B) Has received a post-secondary degree from a community
college,   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + } or other generally
accredited institution of higher education; or
  (C) Has received a minimum score on the Armed Services
Vocational Aptitude Battery (ASVAB), as established by the Oregon
Military Department.
  (4) The provisions of subsection (3) of this section apply to a
person who:
  (a) Served in the Armed Forces of the United States at any time
during:
  (A) World War I;
  (B) World War II;
  (C) The Korean Conflict; or
  (D) The Vietnam War;
  (b) Served in the Armed Forces of the United States and was
physically present in:
  (A) Operation Urgent Fury (Grenada);
  (B) Operation Just Cause (Panama);
  (C) Operation Desert Shield/Desert Storm (the Persian Gulf
War);
  (D) Operation Restore Hope (Somalia);
  (E) Operation Enduring Freedom (Afghanistan); or
  (F) Operation Iraqi Freedom (Iraq); or
  (c) Served in the Armed Forces of the United States in an area
designated as a combat zone by the President of the United
States.
  SECTION 113. ORS 332.155 is amended to read:
  332.155. A district school board:
  (1) May furnish, equip, repair, lease, purchase and build
schoolhouses, including high schools, junior high schools, career
and technical education schools, gymnasiums, houses for teachers
and other employees, and like buildings; and locate, buy and
lease lands for all school purposes. Leases authorized by this
section include lease-purchase agreements whereunder the district
may acquire ownership of the leased property at a nominal price.
Such leases and lease-purchase agreements may be for a term of up
to 30 years.
  (2) May contract for the removal or containment of asbestos
substances in school buildings and for repairs made necessary by

Enrolled Senate Bill 242 (SB 242-C)                       Page 93

such removal or containment. Contracts authorized by this section
may be for a term exceeding one year.
  (3) May construct or cooperate in the construction of schools
for training of student teachers on state or district owned
lands, for any   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 that is + } in or
contiguous to the district, and to expend district funds in so
doing.
  (4) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price that is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.
  (5) May lease, sell and convey all property of the district as
may not in the judgment of the district school board be required
for school purposes.
  (6) May sell property of the district in transactions whereby
the district has the right to lease, occupy or reacquire the
property following the sale or have facilities constructed
thereon or furnished to the specifications of the district. The
construction or furnishing of such facilities shall be subject
to:
  (a) ORS chapter 279A, except ORS 279A.125 and 279A.250 to
279A.290;
  (b) ORS chapter 279B, except ORS 279B.235, 279B.240, 279B.270,
279B.275 and 279B.280; and
  (c) ORS chapter 279C.005, 279C.100 to 279C.125 and 279C.300 to
279C.470.
  (7) Shall furnish the schools with supplies, equipment,
apparatus and services essential to meeting the requirements of a
standard school and may furnish such other supplies, equipment,
apparatus and services as the board considers advisable.
  (8) May construct, purchase or lease in cooperation with other
school districts or community college districts facilities for
secondary career and technical education programs for pupils of
more than one district and may furnish or cooperate in furnishing
supplies and equipment for such facilities, to be financed in the
same manner as other school buildings and supplies are financed.
  (9) May purchase real property upon a contractual basis when
the period of time allowed for payment under the contract does
not exceed 30 years.
  (10) May purchase relocatable classrooms and other relocatable
structures in installment transactions in which deferred
installments of the purchase price are payable over not more than
10 years from the date such property is delivered to the district
for occupancy and are secured by a security interest in such
property. Such transactions may take the form of, but are not
limited to, lease-purchase agreements.
  (11) May enter into rental or lease-purchase agreements
covering motor vehicles operated by the district.
  SECTION 114. ORS 336.057 is amended to read:
  336.057. In all public schools courses of instruction shall be
given in the Constitution of the United States and in the history
of the United States. These courses shall:
  (1) Begin not later than the opening of the eighth grade and
shall continue in grades 9 through 12.

Enrolled Senate Bill 242 (SB 242-C)                       Page 94

  (2) Be required in all   { - state institutions of higher
education - }  { +  public universities listed in ORS
352.002 + }, except the Oregon Health and Science University, and
in all state and local institutions that provide education for
patients or inmates to an extent to be determined by the
Superintendent of Public Instruction.
  SECTION 115. ORS 337.500 is amended to read:
  337.500. As used in ORS 337.500 to 337.506:
  (1) 'Adopter' means any faculty member or academic department
or other adopting entity at a higher education institution
responsible for considering and choosing course materials to be
utilized in connection with accredited courses taught at the
institution.
  (2) 'Higher education institution' means:
  (a) A community college, as defined in ORS 341.005;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (c) The Oregon Health and Science University;
  (d) A private institution of higher education located in
Oregon; and
  (e) A bookstore that serves as the primary bookstore for an
entity listed in paragraphs (a) to (d) of this subsection.
  (3) 'Special edition' means a bound book that does not
constitute a traditional textbook and that may or may not be used
for instructional purposes.
  (4)(a) 'Textbook bundle' means a textbook packaged together
with other supplemental course materials, including but not
limited to workbooks, study guides, online technologies, online
course resources, CD-ROMs or other books, to be sold as course
material for one price.
  (b) 'Textbook bundle' does not include a textbook that is
unusable without the supplemental course materials, materials
that cannot be sold separately due to third-party contractual
agreements, custom editions or special editions.
  SECTION 116. ORS 337.511 is amended to read:
  337.511. As used in ORS 337.511 to 337.524:
  (1) 'Alternative format' means any medium or format for the
presentation of instructional materials other than standard print
that is needed by a post-secondary student with a print
disability for a reading accommodation, including but not limited
to Braille, large print texts, audio recordings, digital texts
and digital talking books.
  (2) 'Electronic format' means a medium or format containing
digital text.
  (3) 'Instructional material' means a textbook or other material
if:
  (a) The textbook or other material, including additional prints
or new editions of previously published instructional material,
is published on or after January 1, 2004, and is published
primarily for use by students in a course of study in which a
post-secondary student with a print disability is enrolled;
  (b) The textbook or other material is required for a student's
success in the course, as determined by the course instructor in
consultation with the representative making the request for an
electronic format under ORS 337.517 (2);
  (c) The textbook or other material is required for the course
as stated in the course syllabus or other curriculum documents,
or the use of the materials by the student is necessary for the
completion of course assignments that are used to evaluate the

Enrolled Senate Bill 242 (SB 242-C)                       Page 95

student, such as to determine the student's proficiency level or
assign a grade; and
  (d) Software is commercially available to permit the conversion
of an electronic file of the textbook or other material into a
format that is compatible with assistive technologies such as
speech synthesis software or Braille translation software.
  (4) 'Post-secondary education institution' means:
  (a) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c) The Oregon Health and Science University; or
  (d) An Oregon-based, generally accredited institution of higher
education.
  (5) 'Print disability' means a disability that prevents a
student from effectively utilizing print material and may include
blindness, other serious visual impairments, specific learning
disabilities or the inability to hold a book.
  (6) 'Printed instructional material' means instructional
material in book or other printed form.
  (7) 'Publisher' means any person that publishes or manufactures
instructional material used by students attending a
post-secondary education institution.
  (8) 'Structural integrity' means the inclusion of all of the
information provided in printed instructional material, including
but not limited to the text of the material sidebars, the tables
of contents, the chapter headings and subheadings, the footnotes,
the page numbers, the indexes and the glossaries.
  (9) 'Working day' means a day that is not a Saturday, Sunday or
legal holiday.
  SECTION 117. ORS 338.115, as amended by section 2, chapter 53,
Oregon Laws 2010, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 192.410 to 192.505 (public records law);
  (c) ORS 192.610 to 192.690 (public meetings law);
  (d) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (e) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (f) ORS 337.150 (textbooks);
  (g) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (h) ORS 659.850, 659.855 and 659.860 (discrimination);
  (i) ORS 30.260 to 30.300 (tort claims);
  (j) Health and safety statutes and rules;
  (k) Any statute or rule that is listed in the charter;
  (L) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (m) ORS 329.045 (academic content standards and instruction);
  (n) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (o) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (p) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
child abuse and training on prevention and identification of
child abuse);

Enrolled Senate Bill 242 (SB 242-C)                       Page 96

  (q) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (r) ORS chapter 657 (Employment Department Law);
  (s) ORS 339.326;
  (t) Section 1, chapter 53, Oregon Laws 2010 (consideration for
educational services); and
  (u) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5) A public charter school shall maintain an active enrollment
of at least 25 students.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district,   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + }, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 118. ORS 338.115, as amended by section 7, chapter 839,
Oregon Laws 2007, section 12, chapter 50, Oregon Laws 2008,

Enrolled Senate Bill 242 (SB 242-C)                       Page 97

section 4, chapter 618, Oregon Laws 2009, and section 3, chapter
53, Oregon Laws 2010, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 192.410 to 192.505 (public records law);
  (c) ORS 192.610 to 192.690 (public meetings law);
  (d) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (e) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (f) ORS 337.150 (textbooks);
  (g) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (h) ORS 659.850, 659.855 and 659.860 (discrimination);
  (i) ORS 30.260 to 30.300 (tort claims);
  (j) Health and safety statutes and rules;
  (k) Any statute or rule that is listed in the charter;
  (L) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (m) ORS 329.045 (academic content standards and instruction);
  (n) ORS 329.496 (physical education);
  (o) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (p) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (q) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
child abuse and training on prevention and identification of
child abuse);
  (r) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (s) ORS chapter 657 (Employment Department Law);
  (t) ORS 339.326;
  (u) Section 1, chapter 53, Oregon Laws 2010 (consideration for
educational services); and
  (v) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5) A public charter school shall maintain an active enrollment
of at least 25 students.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.

Enrolled Senate Bill 242 (SB 242-C)                       Page 98

  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district,   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + }, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 119. ORS 339.885 is amended to read:
  339.885. (1) No secret society of any kind, including a
fraternity or sorority, shall be permitted in any public school.
  (2) The district school board may order the suspension or
expulsion of any pupil who belongs to a secret society.
  (3) This section does not apply to any   { - institution of
higher education under the jurisdiction of the State Board of
Higher Education - }  { +  public university listed in ORS
352.002 + }.
  SECTION 120. ORS 340.005 is amended to read:
  340.005. For purposes of this chapter:
  (1) 'Accelerated college credit program' has the meaning given
that term by rules adopted by the State Board of Education.
  (2) 'At-risk student' means:
  (a) A student who qualifies for a free or reduced lunch
program; or
  (b) An at-risk student as defined by rules adopted by the board
if the board has adopted rules to define an at-risk student.
  (3) 'Duplicate course' means a course with a scope that is
identical to the scope of another course.
  (4)(a) 'Eligible post-secondary course' means any nonsectarian
course or program offered through an eligible post-secondary
institution if the course or program may lead to high school
completion, a certificate, professional certification, associate
degree or baccalaureate degree.
  (b) 'Eligible post-secondary course' does not include a
duplicate course offered at the student's resident school.
  (c) 'Eligible post-secondary course' includes:
  (A) Academic courses;
  (B) Career and technical education courses; and
  (C) Distance education courses.

Enrolled Senate Bill 242 (SB 242-C)                       Page 99

  (5) 'Eligible post-secondary institution' means:
  (a) A community college;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (c) The Oregon Health and Science University.
  (6)(a) 'Eligible student' means a student who is enrolled in an
Oregon public school and who:
  (A) Is 16 years of age or older at the time of enrollment in a
course under the Expanded Options Program;
  (B)(i) Is in grade 11 or 12 at the time of enrollment in a
course under the Expanded Options Program; or
  (ii) Is not in grade 11 or 12, because the student has not
completed the required number of credits, but who has been
allowed by the school district to participate in the program;
  (C) Has developed an educational learning plan as described in
ORS 340.025; and
  (D) Has not successfully completed the requirements for a high
school diploma as established by ORS 329.451, the State Board of
Education and the school district board.
  (b) 'Eligible student' does not include a foreign exchange
student enrolled in a school under a cultural exchange program.
  (7) 'Expanded Options Program' means the program created under
this chapter.
  (8) 'Scope' means depth and breadth of course content as
evidenced through a planned course statement including content
outline, applicable state content standards where appropriate,
course goals and student outcomes.
  SECTION 121. ORS 340.085 is amended to read:
  340.085. The Department of Education shall annually report on
the Expanded Options Program to the   { - Joint Boards of
Education - }  { +  Higher Education Coordinating Commission + }
and the House and Senate committees relating to education. The
report shall include:
  (1) The types of accelerated college credit programs offered.
  (2) The number of waivers of requirements granted under the
Expanded Options Program and the reasons for issuance of the
waivers.
  (3) The number of college and high school credits earned under
the Expanded Options Program.
  (4) The estimated college tuition cost savings for students
participating in the Expanded Options Program.
  (5) The number of students who had dropped out of high school
but returned to high school to participate in the Expanded
Options Program and earned a diploma.
  (6) The number of students who participated in the Expanded
Options Program, categorized by ethnicity and financial status.
  (7) The number of talented and gifted students who participated
in the Expanded Options Program.
  (8) The level of participation in the Expanded Options Program
by rural communities, and the number of students living in rural
communities who participated in the program.
  (9) Recommendations for changes to the Expanded Options Program
to better serve students, including changes to the age limit
restrictions for eligible students.
  (10) Recommendations for funding changes to better serve
students who wish to participate in the Expanded Options Program.
  (11) The number of appeals of students under ORS 340.030 to the
Superintendent of Public Instruction or the superintendent's
designee and the disposition of the students' appeals.

Enrolled Senate Bill 242 (SB 242-C)                      Page 100

  (12) The number of small school districts with more eligible
students who wish to participate in the program than are allowed
under the credit hour caps established in ORS 340.080.
  SECTION 122. ORS 341.009 is amended to read:
  341.009. The Legislative Assembly finds that:
  (1) The community college is an educational institution that is
intended to fill the institutional gap in education by offering
broad, comprehensive programs in academic subjects and in career
and technical education subjects. It is primarily designed to
provide associate or certificate degree programs for some, serve
a transitional purpose for others who will continue baccalaureate
or other college work, provide the ability to enter the workforce
immediately and serve to determine future educational needs for
other students. It can provide means for continuation of academic
education, career and technical education or the attainment of
entirely new skills as demands for old skills and old occupations
are supplanted by new technologies. It may also provide the means
to coordinate courses and programs with high schools to
accommodate successful transition to college degree programs.
  (2) Each community college should be so located as to be within
commuting time of a substantial majority of its students.  As an
economical method of providing education close to the student's
home, the community college should remain a commuting
institution.
  (3) The community college should establish its organizational
patterns to maintain a unique quality of flexibility and the
ability to change to meet changing needs.
  (4) The community college is a post-high-school institution
under the general supervision of the State Board of Education. It
should not be a 'starter' institution intended to evolve into a
four-year baccalaureate institution. It should be concerned with
programs terminating before reaching the baccalaureate degree.
  (5) The community college should continue to be prohibited by
law from becoming a baccalaureate degree granting institution.
  (6) Admission to the community college should be open to high
school graduates or to   { - non-high school graduates - }  { +
persons who have not graduated from high school + } who can
profit from the instruction offered.
  (7) There should be close cooperation between those directing
the community college program and those responsible for higher
education, so that lower-division college transfer programs of
the community college will provide adequate preparation for
entering baccalaureate degree granting programs, and so that
students will be able to transfer with a minimum of difficulty.
  (8) The community college should offer as comprehensive a
program as the needs and resources of the area that it serves
dictate. Cost to student and quality of instruction in
established private institutions should be among the factors in
determining necessary duplication of effort.
  (9) It should be the policy of the community college to open
its facilities and make available its resources to the high
schools of its area on a sound contractual basis, for appropriate
secondary or transitional courses, either academic or as part of
career and technical education, when it is within its ability to
provide facilities and it is determined that the high school
cannot or does not offer them.
  (10) Programs designed to meet the needs of the area served
should be based on the actual educational and service needs of
the district. Specific career and technical education courses
should be related not only to the employment opportunities of the

Enrolled Senate Bill 242 (SB 242-C)                      Page 101

area but of the state and nation as well. Such determination
should be made in consultation with representatives of labor,
business, industry, agriculture and other interested groups.
  (11) The State Board of Education should be responsible for
coordinating the community college program of the state and
should have general supervisory responsibilities for that
program.  { + With the advice of the Higher Education
Coordinating Commission, + } the State Board of Education should
prepare estimates and make the requests for legislative
appropriations for a reasonable and consistent basis of support
and establish standards for the distribution of that support.
  (12) The initiative for the establishment of new community
colleges should come from the localities to be served, as a
response to demonstrated educational needs of an area. However,
these localities must not only be willing to assume the
responsibility for the institutions but must be able to provide
resources needed for an adequate educational and service program.
  (13) The governing board of the community college should be
charged with the policy-making function. With respect to
educational programming, the governing board should in
cooperation with the State Board of Education:
  (a) Identify educational needs of the district; and
  (b) Bring together the resources necessary to meet the needs.
  (14) The state should maintain a policy of substantial state
participation in community college building costs and the
maintenance of an adequate level of state support for operation.
However, no state funds should be appropriated for buildings such
as dormitories or athletic facilities for spectator sports. The
district should provide a substantial portion of the funds for
capital improvement as well as for operation of a community
college.
  (15) State appropriations for community colleges shall be made
separately from those for other segments of education.
  (16) The formula for the distribution of funds for operating
costs should reflect the heavier operating costs and capital
outlay for certain career and technical education courses.
Federal funds received for career and technical education, adult
basic education, workforce development or other federal
initiatives should be used for those purposes only and be
distributed separately from funds appropriated by the state and
should be exempted from the computations of the present
distribution formula for operating costs.
  (17) The cost of education to the individual should be
sufficiently low to permit students of low-income families to
attend. This is particularly true of tuition costs. However,
students should pay an amount sufficient to provide an incentive
to profit from the instructional program offered.
  (18) Any eligible Oregon resident should have the right to
attend a community college even though not residing in a district
operating one, subject to the right of the governing board to
limit the size of classes and to give preference to students
residing in the district. Local school districts and education
service districts should have the authority to negotiate the
terms and conditions with the governing boards for the enrollment
of students residing in such areas.
  SECTION 123. ORS 341.527 is amended to read:
  341.527. (1) Community colleges in Oregon shall admit students
from other states at the same tuition rate assessed against
Oregon residents who are residents of the community college
district if:

Enrolled Senate Bill 242 (SB 242-C)                      Page 102

  (a) The state in which the student resides agrees to pay and
pays its per capita state aid for comparable students in the
state to the community college;
  (b) The state in which the students reside agrees to permit and
permits one-for-one full-time enrollment exchange arrangements
that allow an equal number of Oregon residents to be admitted to
community colleges or comparable institutions in the state at the
same tuition rate assessed against residents of the state and
community colleges or comparable institutions in the state in
which the students reside agree to admit and admit approved
Oregon residents without assessing nonresident tuition; or
  (c) The board of the community college determines out-of-state
residents are essential to providing the critical mass to offer
programs that would otherwise be unavailable to Oregon residents.
  (2) The Department of Community Colleges and Workforce
Development shall enter into agreements with such other states as
are willing to agree to the provisions of this section to
establish reimbursement procedures or one-for-one exchange
procedures.
  (3) In cases described in subsection (1)(a) of this section,
the Department of Community Colleges and Workforce Development
shall pay from funds available therefor to the state that agrees
to pay and does pay its per capita state aid to eligible Oregon
community colleges to the credit of the community college or
comparable institution educating the Oregon resident an amount
equal to the amount that would be available under ORS 341.626 if
the Oregon resident were enrolled in a community college in this
state. From these same funds, the Department of Community
Colleges and Workforce Development shall pay to the Oregon
community colleges admitting approved one-for-one exchange
students as provided by subsection (1)(b) of this section, from
other states, an amount equal to the amount that would be
available under ORS 341.626 as if the enrolled one-for-one
students were Oregon residents. The Department of Community
Colleges and Workforce Development shall not reimburse Oregon
community colleges who admit students from other states under
subsection (1)(c) of this section.
  (4) If a state that has entered into the agreement to pay the
per capita state aid to eligible Oregon community colleges as
described in subsections (1) and (2) of this section does not
make any payment agreed to, the agreement terminates after the
affected community college notifies the   { - State Board of
Education - }  { +  Higher Education Coordinating Commission + }
of the lack of payment. The termination is effective 30 days
after the state board notifies the appropriate agency of the
other state that the agreement is terminated if no payment is
received by the end of the academic period for which tuition is
assessed and no payment is received at that time. The agreement
may be reinstated by mutual consent of the parties.
  (5) The   { - State Board of Education - }  { +  Higher
Education Coordinating Commission + } shall adopt rules governing
attendance in community colleges or comparable institutions in
other states for purposes of the reimbursement authorized under
subsections (1) and (2) of this section to assure that Oregon
residents shall not be the object of such reimbursement if they
can obtain the same education within the state without undue
hardship.
  SECTION 124. ORS 341.531 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                      Page 103

  341.531. (1) A student at a community college who is a member
of the military and who is ordered to federal or state active
duty for more than 30 consecutive days has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the community
college's practice for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 341.532 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the community
college, the right to be readmitted and reenrolled at the
community college within one year after release from active duty
without a requirement of redetermination of admission
eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the community college
or the   { - Oregon Student Assistance Commission - }  { +
Oregon Student Access Commission + } before the student was
ordered to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the community college may
not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) Boards of education of community college districts shall
adopt rules for the administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 125. ORS 342.144 is amended to read:
  342.144. (1) As used in this section, 'American Indian tribe'
means an Indian tribe as that term is defined in ORS 97.740.

Enrolled Senate Bill 242 (SB 242-C)                      Page 104

  (2) The Legislative Assembly declares that teaching American
Indian languages is essential to the proper education of American
Indian children.
  (3) The Teacher Standards and Practices Commission shall
establish an American Indian languages teaching license.
  (4) Each American Indian tribe may develop a written and oral
test that must be successfully completed by an applicant for an
American Indian languages teaching license in order to determine
whether the applicant is qualified to teach the tribe's native
language. When developing the test, the tribe shall determine:
  (a) Which dialects will be used on the test;
  (b) Whether the tribe will standardize the tribe's writing
system; and
  (c) How the teaching methods will be evaluated in the
classroom.
  (5) The test shall be administered at an appropriate location
that does not create hardship for the tribal members
administering the test.
  (6) The commission may not require an applicant to hold a
specific academic degree, to complete a specific amount of
education or to complete a teacher education program to receive
an American Indian languages teaching license.
  (7)(a) An American Indian languages teaching license qualifies
the holder to accept a teaching position in a school district,
public charter school, education service district, community
college or   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + }.
  (b) A holder of an American Indian languages teaching license
who does not also have a teaching license issued under ORS
342.125 may not teach in a school district or education service
district any subject other than the American Indian language the
holder of the license is approved to teach by the tribe.
  (c) A holder of an American Indian languages teaching license
who does not also have a teaching license or registration issued
under ORS 342.125 may not teach in a public charter school any
subject other than the American Indian language the holder of the
license is approved to teach by the tribe.
  (8)(a) As used in this subsection, 'technical assistance
program' means a program provided to an American Indian languages
teacher by a licensed teacher with three or more years of
teaching experience. A technical assistance program may include
direct classroom observation and consultation, assistance in
instructional planning and preparation, support in implementation
and delivery of classroom instruction, and other assistance
intended to enhance the professional performance and development
of the American Indian languages teacher.
  (b) The holder of an American Indian languages teaching license
who does not also have an administrative license, teaching
license or registration issued under ORS 342.125 and who is
employed by a school district, public charter school or education
service district shall participate in a technical assistance
program with a person holding a teaching license issued by the
commission under ORS 342.125. The technical assistance program
shall meet the guidelines specified in ORS 329.815 (2) to (4).
  (9) An American Indian languages teaching license shall be
valid for three years and may be renewed upon application from
the holder of the license.
  SECTION 126. ORS 342.147 is amended to read:
  342.147. (1) After considering recommendations of the State
Board of Education, the Teacher Standards and Practices

Enrolled Senate Bill 242 (SB 242-C)                      Page 105

Commission shall establish by rule standards for approval of
teacher education institutions and teacher education programs.
Public teacher education institutions shall be approved for
programs of more than four years' duration only if teacher
education programs which are reasonably attainable in a four-year
period are also available in the system of higher education and
are designed to culminate in a baccalaureate degree that
qualifies its graduates for entry-level teaching licenses.
  (2) The commission shall establish rules that allow teacher
education programs leading to graduate degrees to commence prior
to the student's completion of baccalaureate degree requirements
and that allow the combined use of undergraduate and graduate
level course work in achieving program completion.
  (3) Whenever any teacher education institution or program is
denied approved status or has such status withdrawn { + , + }
such denial or withdrawal must be treated as a contested case
within the meaning of ORS chapter 183.
  (4) Nothing in this section is intended to grant any authority
to the commission relating to granting   { - of - }  degrees or
establishing degree requirements that are within the authority of
the State Board of Higher Education or any   { - institutions
under its jurisdiction - }  { +  of the public universities
listed in ORS 352.002, + } or that are within the authority of
the governing board of any private institution of higher
education.
  SECTION 127. ORS 342.360 is amended to read:
  342.360. (1) The membership of the Teacher Standards and
Practices Commission shall consist of:
  (a) Four elementary teachers;
  (b) Four junior or senior high school teachers;
  (c) One elementary school administrator;
  (d) One junior or senior high school administrator;
  (e) One superintendent of city schools;
  (f) One county superintendent or a superintendent employed by
an education service district board;
  (g) One member from the faculty of an approved private teacher
education institution in Oregon;
  (h) One member from the faculty of a   { - state institution of
higher education - }  { +  public university listed in ORS
352.002 + };
  (i) One member who is also a member of a district school board;
and
  (j) Two members of the general public.
  (2) Except for those members appointed under subsection (1)(i)
and (j) of this section, members must have been actively engaged
in teaching, supervising or administering in the public schools
or in approved teacher education institutions in Oregon for the
period of five years immediately preceding appointment.  Acting
as an elected representative of teachers, supervisors or
administrators shall be considered teaching, supervising or
administering for the purposes of the five-year experience
requirement. In addition, members appointed under subsection
(1)(a) to (f) of this section must hold valid Oregon teaching or
administrative licenses other than restricted teaching or
administrative licenses.
  (3)(a) Throughout the term for which appointed, one of the
members appointed under subsection (1)(a) to (j) of this section
must hold a teaching license with an endorsement in some aspect
of special education or have demonstrated knowledge or experience
in special education.

Enrolled Senate Bill 242 (SB 242-C)                      Page 106

  (b) As used in this subsection, 'special education' means
specially designed education to meet the goals of the individual
education program of a child with a disability including regular
classroom instruction, instruction in physical education, home
instruction, related services and instruction in hospitals,
institutions and special schools.
  SECTION 128. ORS 342.390 is amended to read:
  342.390. (1) The Teacher Standards and Practices Commission
shall meet at least once every six months at a place, day and
hour determined by the commission. The commission shall also meet
at such other times and places as are specified by the call of
the chairperson or of a majority of the members of the
commission.
  (2) A member of the commission who is employed at a public
school or by a private teacher education institution or by a
  { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } shall receive no
compensation for services as a member; but subject to any other
applicable law regulating travel and other expenses for state
officers, the member shall receive actual and necessary travel
and other expenses incurred in the performance of official duties
as provided by ORS 292.495 (2).
  (3) A member of the commission who serves on the commission in
the capacity of a district school board member or as a member of
the general public shall be entitled to compensation and expenses
as provided in ORS 292.495 (1) and (2).
  SECTION 129. ORS 342.443 is amended to read:
  342.443. (1) The Education and Workforce Policy Advisor shall
report biennially to the Legislative Assembly longitudinal data
on the number and percentage of:
  (a) Minority students enrolled in community colleges;
  (b) Minority students applying for admission to public
  { - four-year institutions of higher education - }  { +
universities listed in ORS 352.002 + };
  (c) Minority students accepted in public   { - four-year
institutions of higher education - }  { +  universities + };
  (d) Minority students graduated from public   { - four-year
institutions of higher education - }  { +  universities + };
  (e) Minority candidates seeking to enter public teacher
education programs in this state;
  (f) Minority candidates admitted to public teacher education
programs;
  (g) Minority candidates who have completed approved public
teacher education programs;
  (h) Minority candidates receiving Oregon teaching licenses
based on preparation in this state and preparation in other
states;
  (i) Minority teachers who are newly employed in the public
schools in this state; and
  (j) Minority teachers already employed in the public schools.
  (2) The advisor also shall report comparisons of minorities'
and nonminorities' scores on basic skills, pedagogy and subject
matter tests.
  (3) The Oregon University System, the Department of Education,
the Teacher Standards and Practices Commission, community
colleges and school districts shall cooperate with the advisor in
collecting data and preparing the report.
  SECTION 130. ORS 344.259 is amended to read:
  344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult

Enrolled Senate Bill 242 (SB 242-C)                      Page 107

self-improvement, professional and technical education for
agencies under its regulatory authority. The State Board of
Higher Education shall coordinate continuing education in upper
division and graduate education for   { - institutions - }
 { + public universities + } under its jurisdiction.
  (2) When significantly adverse impact is alleged by one or more
of the agencies listed in this subsection, the affected parties
jointly shall provide for written agreements. These agreements
shall allocate responsibility for planning and providing
continuing education or off-campus instruction in specific areas
or by specific types. The agencies are:
  (a) The State Board of Education.
  (b) The State Board of Higher Education.
  (c) Community college districts.
  (d) Independent colleges.
  (e) Proprietary schools.
  (3) In the event the affected parties fail to reach a written
agreement within 120 days following receipt of written notice of
the allegation, either party may request the Education and
Workforce Policy Advisor to review and to recommend resolution.
  (4) Nothing in this section prohibits the offering of upper
division or graduate programs within 30 miles of the campus of
the Oregon University System   { - institution - }
 { + university + } offering the program, or the offering of
lower division programs within 30 miles of the campus offering
the program in areas outside a community college district. Such
programs are entitled to the same college credit and financial
support as programs offered on the campus of the
 { - institution - }  { +  university + }.
  SECTION 131. ORS 344.557 is amended to read:
  344.557. (1) The Department of Human Services may refer a
person for vocational training only to the following schools or
programs:
  (a) A school that has accreditation recognized by the United
States Department of Education.
  (b) A school that has been approved by the Oregon Student
  { - Assistance - }   { + Access + } Commission through the
Office of Degree Authorization to offer and confer degrees in
Oregon.
  (c) A community college.
  (d) A   { - state institution of higher education within the
Oregon University System - }  { +  public university listed in
ORS 352.002 + }.
  (e) The Oregon Health and Science University.
  (f) A career school licensed under ORS 345.010 to 345.450.
  (g) An apprenticeship program that is registered with the State
Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 131a. ORS 344.557, as amended by section 131 of this
2011 Act, is amended to read:
  344.557. (1) The Department of Human Services may refer a
person for vocational training only to the following schools or
programs:
  (a) A school that has accreditation recognized by the United
States Department of Education.
  (b) A school that has been approved by the   { - Oregon Student
Access Commission through the Office of Degree Authorization - }
 { +  Higher Education Coordinating Commission + } to offer and
confer degrees in Oregon.

Enrolled Senate Bill 242 (SB 242-C)                      Page 108

  (c) A community college.
  (d) A public university listed in ORS 352.002.
  (e) The Oregon Health and Science University.
  (f) A career school licensed under ORS 345.010 to 345.450.
  (g) An apprenticeship program that is registered with the State
Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 132. 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.
  (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
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   { - Oregon Student
Assistance Commission - }   { + Higher Education 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 133. 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   { - Oregon Student Assistance
Commission through the Office of Degree Authorization - }
 { + 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:

Enrolled Senate Bill 242 (SB 242-C)                      Page 109

  (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 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 134. ORS 348.005 is amended to read:
  348.005. (1) The Legislative Assembly finds that:
  (a) The State of Oregon can achieve its full economic and
social potential only if all Oregonians have the opportunity to
contribute to the full extent of their capabilities and only when
financial barriers to their educational goals are removed;
  (b) All Oregonians who meet the appropriate admissions
requirements should be able to attend any community college,
  { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } or independent
not-for-profit institution of post-secondary education regardless
of individual economic or social circumstances;
  (c) The interests of this state are best served when public
subsidies supporting college students are distributed fairly,
equitably and consciously to ensure maximum access and choice for
all Oregonians at the least cost to the taxpayers;
  (d) Need-based student financial aid is an effective, efficient
and essential means of assisting Oregonians who are unable to
afford the full cost of higher education;
  (e) Student financial aid allows Oregonians with limited
resources to select academic programs based on their interests,
aptitudes and career goals;
  (f) Student financial aid encourages and permits capable and
promising Oregonians to persist in their education and training
within this state; and
  (g) By assisting Oregonians in this manner, student financial
aid contributes to the quality of life of each Oregonian and to
the social, cultural and economic well-being of all Oregonians.
  (2) It is the intention of the Legislative Assembly to
establish financial assistance programs to enable qualified
Oregonians who need student aid to obtain post-secondary
education in Oregon's community colleges,   { - state
institutions of higher education - }  { +  public
universities + } or independent not-for-profit institutions of
post-secondary education.
  SECTION 135. ORS 348.040 is amended to read:
  348.040. As used in ORS 348.040 to 348.070, unless the context
requires otherwise:
    { - (1) 'Commission' means the Oregon Student Assistance
Commission. - }

Enrolled Senate Bill 242 (SB 242-C)                      Page 110

    { - (2) - }  { +  (1) + } 'Eligible student' means a person
who is a resident of this state, as determined by the Oregon
Student
  { - Assistance - }  { +  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.
    { - (3) - }  { +  (2) + } 'Qualified school' means a school
within this state   { - which - }   { + 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;
  (d) Medical or dental program offered by the Oregon Health and
Science University;
  (e) Veterinary program offered by Oregon State University; or
  (f) Institution   { - which - }   { + 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. + }
    { - (4) When the commission certifies that the course is not
available within this state, a qualified school may include an
institution, college, center or school not located in this
state. - }
  SECTION 136. ORS 348.050 is amended to read:
  348.050. (1) Upon approval of the loan application of an
eligible student by the Oregon Student   { - Assistance - }  { +
Access + } Commission, the Department of State Lands may loan an
amount from the Common School Fund to the student in compliance
with ORS 348.040 to 348.070. The loan shall be evidenced by a
written obligation but no additional security shall be required.
Notwithstanding any provision in this section, the department may
require cosigners on the loans.
  (2) Loans granted under ORS 348.040 to 348.070 to eligible
students by the department shall:
  (a) Not exceed $1,000 in a single academic year to an
undergraduate student.
  (b) Not exceed $4,000 in a single academic year to a graduate
or professional student.
  (c) Not exceed $16,000 for all loans made to a student under
ORS 348.040 to 348.070.
  (3) Payment of interest shall be as follows:
  (a) Medical and dental student borrowers at the Oregon Health
and Science University and veterinary student borrowers at Oregon
State University shall be assessed at least six percent interest
per annum on the unpaid balance from the date of the note.
Interest payments by these borrowers shall be deferred until they
cease to be enrolled. During the interest deferment period, the
Oregon Student   { - Assistance - }  { +  Access + } Commission

Enrolled Senate Bill 242 (SB 242-C)                      Page 111

shall pay the department the negotiated rate of interest on an
annual basis. The borrower shall reimburse the   { - Oregon
Student Assistance - } commission for these interest payments as
provided in subsection (4) of this section. These borrowers shall
commence direct payment of accruing interest to the department at
the time they cease to be enrolled.
  (b) All other borrowers are required to pay at least seven
percent interest per annum on the unpaid balance from the date of
the loan as provided in subsection (4) of this section.
  (c) The   { - Oregon Student Assistance - }  commission shall
pay annually to the department a maximum of three percent per
annum on the unpaid balance of all medical, dental and veterinary
student borrower loans. The rate of this special payment may vary
annually and will be negotiated by the   { - Oregon Student
Assistance - } commission and the department.
  (d) The interest rates to be charged the borrower for the
school year as stated in paragraphs (a) and (b) of this
subsection shall be negotiated by the department and the
 { - Oregon Student Assistance - }  commission.
  (4)(a) Repayment of the principal and accruing and deferred
interest on loans shall be commenced not later than 12 months
after the student's graduation or other termination of the
student's education.
  (b) Notwithstanding any other provision of this section,
medical, dental and veterinary student borrowers who enter
approved post-graduate study programs shall commence repayment of
the principal and the accruing and deferred interest on loans no
later than 12 months following the completion of the
post-graduate study program or 60 months { +  from when the loan
was originally granted + }, whichever is sooner.
  (c) Repayment shall be completed in a maximum of 120 months
from the time repayment is commenced. However, nothing in this
section is intended to prevent repayment without penalty at an
earlier date than provided in this section or to prohibit the
department, with the consent of the Oregon Student
 { - Assistance - }  { +  Access + } Commission, from extending
the repayment period to a date other than permitted by this
subsection.
  (5) Notwithstanding any other provision of this section, the
department may loan an amount from the Common School Fund to a
student under guaranteed programs authorized by the Higher
Education Act of 1965, as amended, commonly known as the
Guaranteed Student Loan Program and the Parent's Loans for
Undergraduate Students Program. Neither the limitations on
amounts set forth in subsection (2) of this section nor the
subsidies authorized by subsection (3) of this section apply to
such loans.  ORS 327.484 does not apply to such loans.
  SECTION 137. ORS 348.070 is amended to read:
  348.070. To assist the Oregon Student   { - Assistance - }
 { +  Access + } Commission and the Department of State Lands in
determining the qualification of schools, the Superintendent of
Public Instruction shall maintain a listing of career schools
offering professional and technical training that meets the
occupational needs of the student.
  SECTION 138. ORS 348.095 is amended to read:
  348.095. From funds available therefor, the Oregon Student
  { - Assistance - }  { +  Access + } Commission shall reimburse
the Department of State Lands for any loss resulting from default
of a student loan under ORS 348.040 to 348.070. Funds
appropriated under ORS 348.050 to pay interest to the department

Enrolled Senate Bill 242 (SB 242-C)                      Page 112

on loans to medical, dental and veterinary students shall also be
available to reimburse the department for any loss resulting from
default of a student loan under ORS 348.040 to 348.070.
  SECTION 139. ORS 348.115 is amended to read:
  348.115. (1) In addition to any other financial aid provided by
law, the Oregon Student   { - Assistance - }   { + Access + }
Commission, pursuant to rule, may award loans to a qualified
resident of this state upon the resident's acceptance and entry
into a baccalaureate or associate degree nursing program at a
post-secondary institution in Oregon. The loans may be forgiven
upon fulfillment of the requirements of subsection (4) of this
section.
  (2) The loans authorized by subsection (1) of this section:
  (a) Shall be made based on achievement, ability, need and
motivation;
  (b) Shall be made on an annual basis subject to renewal upon
satisfactory performance for the duration of the nursing program;
and
  (c) Shall be made in annual amounts not to exceed 50 percent of
the sum of tuition, fees and room and board for each
participating student.
  (3) Priority in awarding loans shall be given to:
  (a) A resident employed in the health care field at the time of
application; and
  (b) A resident who agrees to practice in an area where there is
a critical shortage of nurses, as determined annually by the
Oregon State Board of Nursing in consultation with the Office of
Rural Health.
  (4) The resident receiving a loan under this section must agree
to practice nursing at least half-time in an area described in
subsection (3)(b) of this section or in an area of specialty that
is underserved for one calendar year for each academic year for
which the loan is received. If the resident does not fulfill the
practice requirement within five years of graduation, the amount
received shall be considered a loan, repayable as provided in ORS
348.117, for each year for which the practice requirement is not
met.
  SECTION 140. ORS 348.117, as amended by section 13, chapter 42,
Oregon Laws 2010, is amended to read:
  348.117. (1) Student borrowers under ORS 348.115 shall be
required to pay at least seven percent interest per annum on the
unpaid balance from the date of the loan as provided in
subsection (5) of this section.
  (2) Repayment of the principal and accruing and deferred
interest on loans shall be commenced not later than 12 months
after the student's completion of the nursing program or other
termination of the student's education.
  (3) Repayment of loans shall be deferred upon application
therefor for up to three years during which:
  (a) The student borrower is enrolled as at least a half-time
student in a subsequent nursing program leading to a nursing
degree higher than that attained in the initial program; or
  (b) The student borrower shows inability to locate suitable
employment.
  (4) Repayment commences under the usual terms if the student
borrower ceases to be employed as a nurse in this state before
completing the practice requirements set forth in ORS 348.115
(4).
  (5) Repayment shall be completed in a maximum of 120 months
from the time repayment is commenced. However, nothing in this

Enrolled Senate Bill 242 (SB 242-C)                      Page 113

subsection is intended to prevent repayment without penalty at an
earlier date than provided in this subsection or to prohibit the
Oregon Student   { - Assistance - }  { +  Access + } Commission
from extending the repayment period to a date other than
specified by this subsection.
  (6) A student who borrows under ORS 348.115 shall have 100
percent of principal and accrued interest on loans under this
section, ORS 348.115, 353.450, 442.470, 442.520 and 656.256
canceled if it can be documented that, within five years of
graduation:
  (a) The student has completed one calendar year of full-time
employment as a nurse in the State of Oregon for each academic
year in which a loan was received; or
  (b) The student has completed two calendar years of half-time
employment as a nurse in the State of Oregon for each academic
year in which a loan was received.
  (7) A student who borrows under this section, ORS 348.115,
353.450, 442.470, 442.520 and 656.256 and completes at least one
calendar year of the practice obligation described in subsection
(6) of this section shall have the amount of principal and
accrued interest on loans under this section, ORS 348.115,
353.450, 442.470, 442.520 and 656.256 canceled for each calendar
year of qualifying practice that is:
  (a) For full-time practice, equal to the principal and accrued
interest on the loan borrowed for the comparable academic year of
award; or
  (b) For half-time practice, equal to half of the principal and
accrued interest on the loan borrowed for the comparable academic
year of the award.
  (8) Repayment of any remaining principal and interest shall be
waived upon the death or total and permanent disability of the
student borrower.
  SECTION 141. ORS 348.180 is amended to read:
  348.180. As used in this section and ORS 348.183, 348.186,
348.205, 348.230, 348.250 and 348.260:
  (1) 'Cost of education' includes but is not limited to,
tuition, fees and living expenses.
  (2) 'Eligible post-secondary institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) The Oregon Health and Science University; or
  (d) An Oregon-based, generally accredited, not-for-profit
institution of higher education.
  (3) 'Qualified student' means any resident student who plans to
attend an eligible post-secondary institution and who:
  (a) Has not achieved a baccalaureate or higher degree from any
post-secondary institution;
  (b) Is enrolled in an eligible program as defined by rule of
the Oregon Student   { - Assistance - }  { +  Access + }
Commission; and
  (c) Is making satisfactory academic progress as defined by rule
of the commission.
  SECTION 142. ORS 348.183 is amended to read:
  348.183. The Legislative Assembly recognizes:
  (1) That an investment in educational opportunities for all
Oregonians is an investment in a strong and stable economy and
greater personal opportunities;

Enrolled Senate Bill 242 (SB 242-C)                      Page 114

  (2) That the single largest barrier to attending an institution
of higher education is lack of finances;
  (3) That keeping higher education affordable requires a shared
effort and partnership by students, family, the federal
government, state government and private philanthropy;
  (4) The broad and diverse range of quality post-secondary
educational services provided by Oregon's institutions of higher
education, including Oregon's community colleges,   { - state
institutions - }  { +  public universities + } and independent
not-for-profit institutions of higher education;   { - and - }
  (5) The positive effects on Oregon's citizens, families and
economy of encouraging talented and hardworking students to stay
in Oregon to pursue a post-secondary education  { - . - }  { + ;
and
  (6) That, in order to maintain affordable tuition at Oregon's
public universities and community colleges, the Legislative
Assembly, through the Joint Committee on Ways and Means, should
review tuition affordability on the basis of standards, including
the Higher Education Price Index, median family income,
enrollment growth and state appropriations made to public
universities and community colleges in this state. This review by
the Legislative Assembly on tuition and fee increases should
occur biennially. + }
  SECTION 143. ORS 348.186 is amended to read:
  348.186. (1) In addition to any other form of student financial
aid authorized by law, the Oregon Student   { - Assistance - }
 { +  Access + } Commission shall award, to the extent funds are
made available, an Oregon Achievement Grant to any qualified
student who:
  (a) Commences at least half-time study toward a degree at the
eligible post-secondary institution within three years of high
school graduation; and
  (b) While a resident of Oregon, has scored at or above a level
 { + determined by the commission + } on a nationally recognized
college admissions test   { - as determined by the Oregon Student
Assistance Commission - } .
  (2) Any qualified student receiving an Oregon Achievement Grant
under subsection (1) of this section must use the grant for the
purpose of study in an eligible program, as defined by rule of
the   { - Oregon Student Assistance - }  commission, at an
eligible post-secondary institution.
  (3) The   { - Oregon Student Assistance - }  commission may not
award an Oregon Achievement Grant to a qualified student who is
enrolled in a course of study required for and leading to a
degree in theology, divinity or religious education.
  (4) Each Oregon Achievement Grant shall be renewed yearly
provided that the recipient has maintained satisfactory
progress { + , as determined by the commission, + } toward a
first associate or baccalaureate degree   { - as determined by
the Oregon Student Assistance Commission - } .
  (5) Notwithstanding subsection (4) of this section, no Oregon
Achievement Grant shall be renewed after a qualified student has
reached the number of credit hours required to graduate with a
baccalaureate degree at the institution the student is attending.
  SECTION 144. ORS 348.205 is amended to read:
  348.205. (1) The Oregon Opportunity Grant program is
established within the Oregon Student   { - Assistance - }  { +
Access + } Commission.

Enrolled Senate Bill 242 (SB 242-C)                      Page 115

  (2) Under the program, the cost of education of a qualified
student shall be shared by the student, the family of the
student, the federal government and the state.
  (3) The commission shall determine the cost of education of a
qualified student based on the type of eligible post-secondary
institution the student is attending. The cost of education
equals:
  (a) For a student attending a community college, the average
cost of education of attending a community college in this state;
  (b) For a student attending   { - an institution - }  { +  a
public university + } under the direction of the State Board of
Higher Education, the average cost of education of attending
 { - an institution - }  { +  a public university + } under the
direction of the board;
  (c) For a student attending a two-year Oregon-based, generally
accredited, not-for-profit institution of higher education, the
average cost of education of attending a community college in
this state; and
  (d) For a student attending the Oregon Health and Science
University or a four-year Oregon-based, generally accredited,
not-for-profit institution of higher education, the average cost
of education of attending an institution under the direction of
the board.
  (4)(a) The commission shall determine the amount of the student
share. The student share shall be based on:
  (A) The type of eligible post-secondary institution the student
is attending;
  (B) The number of hours of work that the commission determines
may be reasonably expected from the student; and
  (C) The amount of loans that the commission determines would
constitute a manageable debt burden for the student.
  (b) The student shall determine how to cover the student share
through income from work, loans, savings and scholarships.
  (c) The student share for a student who attends a community
college may not exceed the amount that the commission determines
a student may earn based on the number of hours of work
reasonably expected from the student under paragraph (a) of this
subsection.
  (d) The student share for a student who attends an eligible
post-secondary institution that is not a community college may
not exceed the sum of the amount that the commission determines a
student may receive as loans plus the amount a student may earn
based on the number of hours of work reasonably expected from the
student under paragraph (a) of this subsection.
  (5) The commission shall determine the amount of the family
share. The family share shall be based on the resources of the
family.
  (6) The commission shall determine the amount of the federal
share based on how much the student or the student's family is
expected to receive from the federal government as grants, loans,
tax credits or other student assistance.
  (7)(a) The commission shall determine the amount of the state
share. The state share shall be equal to the cost of education
reduced by the student share, family share and amount received by
the student from the federal government.
  (b) The commission shall establish a minimum amount that a
student may receive as a state share. If the commission
determines that the amount of the state share of a student is
below the minimum amount, the student may not receive the state
share.

Enrolled Senate Bill 242 (SB 242-C)                      Page 116

  (c) In determining the amount of the state share, the
commission shall consider the total amount available to award as
grants to all qualified students. If the commission must reduce
the amount of the state share under this paragraph, the
commission may not reduce the amount of the state share awarded
to students in the low income range in a greater proportion than
the amount that the state share for students in other income
ranges is reduced.
  SECTION 145. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student   { - Assistance - }  { +  Access + }
Commission may award scholarships at Eastern Oregon University to
resident undergraduate students applying for enrollment in the
university or who are pursuing courses therein. The number of
students who receive scholarships under this subsection may not
exceed two and one-half percent of the number of students who are
enrolled at the university. The scholarships shall be awarded
upon the basis of a record of high intellectual standing and
deportment in the school or institution where the applicant has
received or is receiving preparatory training, the necessity for
financial assistance and other qualifications of such nature that
the awarding of scholarships will operate not only to the
advantage of the applicant but to the people of Oregon. A
scholarship awarded under this subsection may not exceed in value
the amount of the tuition and other fees, including the fees that
are levied against the recipient of the scholarship by the State
Board of Higher Education at the university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
  { - state institutions of higher education - }  { +  public
universities listed in ORS 352.002 + }. A student may not receive
a scholarship under this subsection that exceeds the amount of
tuition and fees owed by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the Oregon University System by students
enrolled in   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + } who were not
Oregon residents.
  SECTION 146. ORS 348.230 is amended to read:
  348.230. (1) In addition to any other financial aid provided by
law, the Oregon Student   { - Assistance - }  { +  Access + }
Commission may award to qualified residents of this state
scholastic grants in any eligible post-secondary institution.
  (2) A qualified applicant is one who has an achievement of high
intellectual standing and deportment in the school or institution
on the records of which the application is based, and who
demonstrates, to the satisfaction of the commission, that the
applicant has superior capacity to profit by post-high-school
education.
  (3) If the recipient of a grant under this section meets the
standards for renewal of that grant, the grant may be renewed,
upon application of the recipient, until the recipient has
received a total of four undergraduate years under this section
or until the recipient has completed an undergraduate course of
study, whichever is less.
  (4) Nothing in subsection (3) of this section shall be
construed to mean that the commission may not increase or reduce
the amount of the grant upon application for renewal.

Enrolled Senate Bill 242 (SB 242-C)                      Page 117

  (5) No grant shall be made to any student enrolled in a course
of study required for and leading to a degree in theology,
divinity or religious education.
  SECTION 147. ORS 348.250, as amended by section 1, chapter 20,
Oregon Laws 2010, is amended to read:
  348.250. (1) Grants established under ORS 348.230 and 348.260
shall be awarded by the Oregon Student   { - Assistance - }  { +
Access + } Commission in the manner provided in this section.
  (2) Persons interested in obtaining a grant established under
ORS 348.230 and 348.260 may apply to the commission for a grant.
  (3) The commission shall screen or cause to be screened the
applications and shall determine for each available grant the
person best qualified to receive that grant. A qualified
applicant is eligible to receive a grant established under ORS
348.230 and 348.260 if:
  (a) The applicant's financial need is such that in the opinion
of the commission financial aid is warranted; and
  (b) The applicant plans to be a student at the eligible
post-secondary institution where the grant is to be used.
  (4) The commission shall not discriminate for or against any
applicant for a grant.
  (5) Nothing in ORS 348.210 to 348.260, 348.505 to 348.615,
348.696 and 348.992 shall be construed to require any institution
to admit a grant recipient or to attempt to control or influence
the policies of the institution.
  (6) Whenever funds are not available to award grants to all
qualified students, the commission may give priority to
applicants who are or plan to be full-time students at the
eligible post-secondary institution where the grant is to be
used. A student shall be considered to be a full-time student if
the combination of credit hours at more than one eligible
post-secondary institution equals full-time attendance, according
to the institution disbursing the grant funds.
  (7) As used in this section, 'discriminate' has the meaning
given 'discrimination' in ORS 659.850.
  SECTION 148. ORS 348.260 is amended to read:
  348.260. (1) In addition to any other form of student financial
aid authorized by law, the Oregon Student   { - Assistance - }
 { +  Access + } Commission may award Oregon Opportunity Grants
to qualified students.
  (2) The amount of a grant shall equal the state share of a
qualified student's cost of education as determined by the
commission under ORS 348.205.
  (3) Grant funds necessary to meet matching requirements for
federal funds under the Leveraging Educational Assistance
Partnership Program and Special Leveraging Educational Assistance
Partnership Program of the United States Department of Education
may also be used to award grants to qualified students in any
eligible post-secondary institution approved by the commission.
  (4) Grants may be awarded under this section to qualified
students enrolled for any term, including summer term. The
commission may prescribe a specific date by which a student must
apply to the commission to qualify for a grant only if the
commission determines that the total amount available to award as
the state share to all qualified students is not sufficient to
cover the total state share amount scheduled to be awarded to all
students.
  (5) If a qualified student receiving a grant under this section
meets the standards for renewal of the grant, the grant may be
renewed upon application until the qualified student has received

Enrolled Senate Bill 242 (SB 242-C)                      Page 118

the equivalent of four full-time undergraduate years of grant
funding for an eligible program as defined by the commission.
  (6) A qualified student who receives a grant under this section
must attend the eligible post-secondary institution upon which
the grant application is based unless the commission authorizes
the grant to be used at a different eligible post-secondary
institution. A qualified student who receives a grant under this
section may attend more than one eligible post-secondary
institution if the grant application was based on the qualified
student attending more than one eligible post-secondary
institution.
  (7) The commission may not make a grant to any qualified
student enrolled in a course of study required for and leading to
a degree in theology, divinity or religious education.
  SECTION 149. ORS 348.265 is amended to read:
  348.265. (1) In addition to any other form of student financial
aid authorized by law, the Oregon Student   { - Assistance - }
 { +  Access + } Commission may award grants to qualified
residents of this state who are enrolled in the professional
medical, nursing or dental programs at the Oregon Health and
Science University.
  (2) A qualified applicant for a grant under this section is one
who plans to attend the Oregon Health and Science University but
whose financial capacity and that of the applicant's family to
contribute to the educational costs are not adequate to meet such
costs, as determined by the   { - Oregon Student Assistance - }
commission.
  (3) Grants may be received by a student each year of attendance
depending on the continuing need of the student for such grant.
  (4) No grant awarded under this section shall exceed the amount
of the difference between the award year tuition and fees
assessed and the tuition and fees assessed for that program in
the academic year 1976-1977.
  SECTION 150. ORS 348.270 is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the   { - Oregon Student Assistance - }  commission shall
award scholarships in any   { - state institution under the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + }, in the Oregon Health and Science University, in
any community college operated under ORS chapter 341, or in any
Oregon-based regionally accredited independent institution, to
any student applying for enrollment or who is enrolled therein,
who is:
  (a) The natural child, adopted child or stepchild of any public
safety officer who, in the line of duty, was killed or so
disabled, as determined by the   { - Oregon Student
Assistance - } commission, that the income of the public safety
officer is less than that earned by public safety officers
performing duties comparable to those performed at the highest
rank or grade attained by the public safety officer; or
  (b) A former foster child who enrolls in an institution of
higher education as an undergraduate student not later than three
years from the date the student was removed from the care of the
Department of Human Services, the date the student graduated from
high school or the date the student received the equivalent of a
high school diploma, whichever date is earliest.
  (2) Scholarships awarded under this section to students who are
dependents of public safety officers or who are former foster
children shall equal the amount of tuition and all fees levied by
the institution against the recipient of the scholarship.

Enrolled Senate Bill 242 (SB 242-C)                      Page 119

However, scholarships awarded to students who attend independent
institutions shall not exceed the amount of tuition and all fees
levied by the University of Oregon.
  (3) If the student who is the dependent of a deceased public
safety officer continues to remain enrolled in a   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + } or a community college or an
independent institution within the State of Oregon, the student
shall be entitled to renewal of the scholarship until the student
has received the equivalent of four years of undergraduate
education and four years of post-graduate education.
  (4) If the student who is a former foster child or who is the
dependent of a public safety officer with a disability continues
to remain enrolled in a   { - state institution of higher
education - }  { +  public university listed in ORS 352.002 + }
or a community college or an independent institution within the
State of Oregon, the student shall be entitled to renewal of the
scholarship until the student has received the equivalent of four
years of undergraduate education.
  (5) The   { - Oregon Student Assistance - }  commission may
require proof of the student's relationship to a public safety
officer described in subsection (1) of this section or proof that
the student is a former foster child.
  (6) As used in this section:
  (a) 'Former foster child' means an individual who, for a total
of 12 or more months while between the ages of 16 and 21, was a
ward of the court pursuant to ORS 419B.100 (1)(b) to (e) and in
the legal custody of the Department of Human Services for
out-of-home placement.
  (b) 'Public safety officer' means:
  (A) A firefighter or police officer as those terms are defined
in ORS 237.610.
  (B) A member of the Oregon State Police.
  SECTION 151. ORS 348.280 is amended to read:
  348.280. The Oregon Student   { - Assistance - }  { +
Access + } Commission shall:
  (1) Determine which students are eligible to receive
scholarships under ORS 348.270.
  (2) Grant the appropriate scholarships under ORS 348.270.
  (3) Make necessary rules for application and distribution of
the benefits available under ORS 348.270 and this section.
  (4) Establish rules and procedures necessary to carry out the
provisions of ORS 348.270 and this section, including but not
limited to the usual and customary rules for analyzing financial
need.
  (5) In awarding scholarships pursuant to its authority under
ORS 348.520, give priority to students who are eligible to
receive scholarships under ORS 348.270.
  SECTION 152. ORS 348.282 is amended to read:
  348.282. As used in this section and ORS 348.283:
  (1) 'Armed Forces of the United States' means:
  (a) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (b) The reserves of the Army, Navy, Air Force, Marine Corps and
Coast Guard of the United States; and
  (c) The Oregon National Guard and a National Guard of any other
state or territory.
  (2) 'Public post-secondary institution' means:
  (a) A   { - state institution - }   { + public university + }
under the direction of the State Board of Higher Education; and

Enrolled Senate Bill 242 (SB 242-C)                      Page 120

  (b) A community college operated under ORS chapter 341.
  (3) 'Veteran' has the meaning given that term in ORS 408.225.
  SECTION 153. ORS 348.283 is amended to read:
  348.283. (1) There is established within the Oregon Student
  { - Assistance - }  { +  Access + } Commission the Oregon
Troops to Teachers program. Through the program, the commission
shall pay for all of the resident tuition charges of a veteran
imposed by a public post-secondary institution, provided the
veteran:
  (a) Was discharged from the Armed Forces of the United States;
  (b) Is a resident of Oregon; and
  (c) Agrees to teach:
  (A) In an Oregon school district or public charter school
classified as serving a high poverty area for not less than three
years; or
  (B) In the area of mathematics, science or special education
for not less than four years.
  (2) An award under subsection (1) of this section shall be used
for the purpose of paying resident tuition. The commission may
not award funds under subsection (1) of this section for the
purpose of paying for books, supplies, housing, food or any other
costs associated with attending a public post-secondary
institution.
  (3) The commission shall adopt rules necessary for the
implementation and administration of this section in consultation
with the Department of Education and the Oregon University
System.
  SECTION 154. ORS 348.290 is amended to read:
  348.290. The Oregon Student   { - Assistance - }  { +
Access + } Commission shall apply the interest on the amount
transferred to the Oregon Student Assistance Fund under section
4, chapter 377, Oregon Laws 1985, to provide financial aid, as
defined in ORS 348.505, to students to study barbering,
hairdressing, manicure and esthetics at eligible post-secondary
schools.
  SECTION 155. ORS 348.310 is amended to read:
  348.310. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission is authorized to make loans to all
qualified applicants, from the fund created in ORS 348.390 (1),
to assist in financing the cost of a program of study leading to
the degree of Doctor of Medicine or to the degree of Doctor of
Osteopathic Medicine.
  (2) The   { - Oregon Student Assistance - }  commission shall:
  (a) Develop criteria for the preparation of applications and
procedures for the submission, evaluation, priority selection and
award of loans provided for in ORS 348.310 to 348.390;
  (b) Determine the number and amount of loans and loan renewals;
and
  (c) Adopt such rules as may be necessary to implement ORS
348.310 to 348.390.
  SECTION 156. ORS 348.320 is amended to read:
  348.320. (1) A person shall be eligible for a loan under ORS
348.310 to 348.390 if the person is:
  (a) A bona fide resident of this state;
  (b) Accepted for enrollment, or is a student in good standing
in the professional medical program at an accredited medical
school located in the United States or in an accredited school of
osteopathic medicine;

Enrolled Senate Bill 242 (SB 242-C)                      Page 121

  (c) As a result of personal financial resources, unable to
pursue a program of study in the absence of a loan or would be
unable to do so without great hardship; and
  (d) Desirous of practicing medicine in a rural community in
this state, and in an area which meets the qualifications of a
medical shortage area.
  (2) The person desiring consideration for a loan under ORS
348.310 to 348.390 shall apply to the Oregon Student
 { - Assistance - }  { +  Access + } Commission.
  (3) The person desiring consideration for a loan under ORS
348.310 to 348.390 shall agree in writing to practice medicine in
a medical shortage area as defined by the Oregon Health
Authority, for a period equal to the period covered by the loan,
but no less than two years.
  SECTION 157. ORS 348.330 is amended to read:
  348.330. In addition to any other financial aid provided by
law, the Oregon Student   { - Assistance - }  { +  Access + }
Commission may grant loans in the following amounts:
  (1) Persons in their first or second year of study, or the
equivalent thereof, are eligible for an amount not to exceed
$5,000 per academic year.
  (2) Persons in their third or fourth year of study, or the
equivalent thereof, are eligible for an amount not to exceed
$7,500 per academic year.
  SECTION 158. ORS 348.340 is amended to read:
  348.340. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission is further authorized to establish and
administer cost-sharing loan fund programs which provide for
assistance, in conjunction with community agencies or
organizations, selected and approved by the commission in a rural
community in the state having a population of fewer than 7,500
persons. Participation in such a program shall be on a matching
funds basis between the Rural Medical Education Loan Fund and the
approved community agency and shall fund the educational costs,
fees and charges of a specific, eligible student, who shall be
approved by the participating community and the   { - Oregon
Student Assistance - } commission.
  (2) Funds provided from the Rural Medical Education Loan Fund
under subsection (1) of this section shall not exceed 75 percent
of the total amount calculated to be necessary to fund one person
for one year, in an approved school as determined by the
 { - Oregon Student Assistance - }  commission.
  (3) The eligibility requirements for persons participating in
the program established in subsection (1) of this section shall
be the same as the requirements for eligibility in the loan
program under ORS 348.320.
  (4) Upon completion of the program of study and training for
licensure, the person receiving funds under this section shall
not be required to repay such funds if the person practices
medicine in the community providing the matching funds. The
person shall practice medicine one year for each year that funds
were provided, but in no event shall the person practice less
than two years.
  SECTION 159. ORS 348.350 is amended to read:
  348.350. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission is authorized to establish and administer a
cost-sharing program to train intern and residency physicians as
may be arranged by contract with an accredited training hospital
within this state. The cost sharing shall be limited to general
practice internships and family practice residencies. The

Enrolled Senate Bill 242 (SB 242-C)                      Page 122

commission may pay up to $18,000 to an institution for each
intern or resident position which is reserved for training
students who are planning to enter medical practice in rural
areas.
  (2) Funds for programs established under subsection (1) of this
section shall be paid from the Rural Medical Education Loan Fund.
  (3) No money appropriated under this section shall be used for
any program at the Oregon Health and Science University. The
center shall be required to give priority admissions to
recipients under ORS 348.310 to 348.390 in its family practice
residency programs.
  SECTION 160. ORS 348.360 is amended to read:
  348.360. Each loan granted under ORS 348.330 and 348.340 is
renewable annually. The Oregon Student   { - Assistance - }  { +
Access + } Commission shall renew the loans upon application by
the recipient when the commission finds that the applicant has
successfully completed the required work for the preceding
academic year and is a student in good standing, is a resident of
this state and is in a financial condition that warrants the
continuation of such aid.
  SECTION 161. ORS 348.370 is amended to read:
  348.370. (1) Persons receiving funds under ORS 348.310 to
348.390 shall not be required to repay the funds if the person
practices medicine in a rural community in this state having a
population of fewer than 7,500 persons and which meets the
qualifications of a medical shortage area.
  (2) The fund recipient shall practice medicine in the area
designated under subsection (1) of this section at the rate of
one year for each year the funds were provided to that recipient,
but in no event shall any recipient practice medicine in an area
less than two years.
  (3) Any person receiving funds under ORS 348.310 to 348.390 who
fails to complete the course of study, shall be required to repay
the amount received to the Rural Medical Education Loan Fund. Ten
percent interest shall be charged on the unpaid balance, accrued
from the date the loan was granted.
  (4) Any person receiving funds under ORS 348.310 to 348.390 who
completes the course of study and requirements for licensure but
fails to fulfill the obligations required by the loan, shall
repay the amount received to the Rural Medical Education Loan
Fund. Ten percent interest shall be charged on the unpaid
balance, accrued from the date the loan was granted.
Additionally, a penalty fee, equal to 25 percent of the total
amount of funds received shall be assessed against the person. No
interest shall accrue on the penalty.
  (5) Any funds received by the Rural Medical Education Loan Fund
under subsections (3) to (6) of this section shall be used by the
Oregon Student   { - Assistance - }  { +  Access + } Commission
for the purpose of carrying out the provisions of ORS 348.310 to
348.390.
  (6) The   { - Oregon Student Assistance - }  commission may
waive any interest or penalty assessed under subsections (3) to
(6) of this section in case of undue hardship.
  SECTION 162. ORS 348.390 is amended to read:
  348.390. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Rural Medical Education Loan Fund, which may be invested in the
same manner as the Oregon Student Assistance Fund. This fund may
receive funds from state and private sources for the purpose of
making loans to student residents of this state who are

Enrolled Senate Bill 242 (SB 242-C)                      Page 123

determined to be eligible to receive funds under ORS 348.310 to
348.390. Interest earned by the fund shall be credited to the
fund.
  (2) All funds for and relating to loans received by the Oregon
Student   { - Assistance - }  { +  Access + } Commission,
including repayments, interest and penalties, for the Rural
Medical Education Loan Fund, except moneys appropriated from the
State Treasury for a specified period of time, are continuously
appropriated to the Rural Medical Education Loan Fund for the
purposes for which the fund was created.
  SECTION 163. ORS 348.394 is amended to read:
  348.394. As used in ORS 348.394 to 348.406:
  (1) 'Eligible post-secondary institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university + } listed
in ORS 352.002;
  (b) A community college as defined in ORS 341.005; or
  (c) A generally accredited, not-for-profit institution of
higher education.
  (2) 'Participant' means a student who receives a grant under
ORS 348.401.
  SECTION 164. ORS 348.427 is amended to read:
  348.427. (1) To encourage community service participation among
students in institutions of higher education, there is
established a higher education community service voucher program
within the Oregon Student   { - Assistance - }  { +  Access + }
Commission. The commission shall allocate the amount available to
it for the purposes under ORS 348.427 to 348.436 by awarding the
institution's share of the amount to each institution of higher
education in this state that is eligible for or whose students
are eligible for financial aid under Title IV, Part B, of the
Higher Education Act of 1965 as amended. The institution's share
shall be based on the proportion of its enrollment of full-time
students to the enrollment of full-time students in all
institutions of higher education in this state.
  (2) An institution of higher education in this state that
receives an amount under subsection (1) of this section shall
award amounts from the institution's share to various academic
departments in the institution. Vouchers awarded to eligible
voucher recipients shall be in $35 denominations for each eight
hours of eligible community service. Priority shall be given to
otherwise eligible applicants who have applied previously but not
been awarded a place in the voucher program.
  (3) In order to be eligible, a voucher recipient must perform
approved services for at least 20 hours per week in one term for
a state or local government entity or a nonprofit social service
agency recognized as tax-exempt under section 501(c)(3) of the
Internal Revenue Code of 1986. However, a voucher recipient shall
not be assigned duties that are performed by a public employee if
the assignment would displace the public employee. A voucher
recipient may be assigned within the institution to assist in
maintaining the program authorized by ORS 348.427 to 348.436.
  (4) A voucher recipient is eligible for the voucher awards for
only one term as an undergraduate student. In addition to the
vouchers, the recipient shall receive graded academic credit to
be determined by the institution. However, participation in the
program does not replace any practicum or internship required for
a degree.
  SECTION 165. ORS 348.429 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                      Page 124

  348.429. (1) In addition to any other student assistance
provided by the law, the Oregon Student   { - Assistance - }
 { +  Access + } Commission shall award vouchers to eligible
students participating in the program.
  (2) The total of all vouchers earned by a student under this
section in one term shall not exceed an amount equal to the
average tuition and associated fees charged annually to full-time
resident undergraduate students by   { - institutions under the
jurisdiction of the State Board of Higher Education - }  { +
public universities listed in ORS 352.002 + }.
  (3) Vouchers shall be provided in $35 denominations for each
eight hours of eligible community service.
  (4) The commission shall:
  (a) Determine and approve which community service organizations
and services within the programs of such organizations are
eligible for participation in the program.
  (b) Accept the students that the institutions consider eligible
for vouchers under ORS 348.427 to 348.436.
  (c) Provide payment for vouchers presented by the program
students at eligible institutions.
  (d) Establish procedures necessary to carry out the provisions
of ORS 348.427 to 348.436, including adopting necessary rules.
  (5) Funds received in redemption of the vouchers granted
pursuant to ORS 348.427 to 348.436 shall not be considered
personal income for the purposes of ORS 316.037.
  (6) The vouchers authorized by ORS 348.427 to 348.436 shall
first become available when funds are available therefor from
sources other than the General Fund, as determined by the
commission.
  SECTION 166. ORS 348.436 is amended to read:
  348.436. There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Community Service Voucher Fund, which may be invested in the same
manner as the Oregon Student Assistance Fund. This fund may
receive moneys from federal, state or private sources for the
purpose of providing payment for the redemption of vouchers
authorized by ORS 348.427 to 348.436 and for the administration
of the community service voucher program. This fund, including
the interest earnings thereon, if any, is continuously
appropriated to the Oregon Student   { - Assistance - }  { +
Access + } Commission for those purposes for which such funds
were provided to or received or collected by the commission.
  SECTION 167. ORS 348.444 is amended to read:
  348.444. (1) There is created the Nursing Faculty Loan
Repayment Program, to be administered by the Oregon Student
  { - Assistance - }  { +  Access + } Commission. The purpose of
the program is to provide loan repayments on behalf of nurse
educators at nursing schools in Oregon who have earned a master's
or doctoral degree from an accredited nursing education program.
  (2) The commission shall by rule adopt, in consultation with
the Oregon State Board of Nursing and the Oregon Center for
Nursing, criteria for participation in the Nursing Faculty Loan
Repayment Program.
  SECTION 168. ORS 348.448 is amended to read:
  348.448. (1) To be eligible to participate in the Nursing
Faculty Loan Repayment Program, a nurse educator or prospective
nurse educator shall submit a letter of interest to the Oregon
Student   { - Assistance - }  { +  Access + } Commission.
  (2) At the end of each school year in which a nurse practices
as a nurse educator in Oregon, the commission shall pay an amount

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not to exceed the lesser of 20 percent of the total of the
nurse's outstanding qualifying loans or $10,000 as adjusted under
subsection (4) of this section.
  (3) The commission may make the annual payments under this
section for up to:
  (a) Three years for a nurse educator who has earned a master's
degree; or
  (b) Five years for a nurse educator who has earned a doctoral
degree.
  (4)(a) The commission shall adjust annually the maximum dollar
amount allowed under subsection (2) of this section by
multiplying that amount by a cost-of-living adjustment as
specified in this subsection.
  (b) The cost-of-living adjustment applied to the maximum dollar
amount allowed under subsection (2) of this section shall be
equal to the ratio of the seasonally adjusted United States City
Average Consumer Price Index for All Urban Consumers as published
by the Bureau of Labor Statistics of the United States Department
of Labor for April of that calendar year divided by the value of
the same index for April 2009.
  (c) If the value of the dollar amount determined under
paragraph (a) of this subsection is not a multiple of $100, the
commission shall round the dollar amount to the next lower
multiple of $100.
  SECTION 169. ORS 348.500 is amended to read:
  348.500. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission may establish Access to Student Assistance
Programs in Reach of Everyone (ASPIRE) to provide information
about financial aid and education and training options beyond
high school to students in Oregon secondary schools. The goals of
the programs are to:
  (a) Provide mentoring and resources to help students access
education and training beyond high school;
  (b) Help high schools build a sustainable community of
volunteer mentors; and
  (c) Educate students and families about the scholarship
application process and other options for paying for
post-secondary education.
  (2) The programs shall bring together students, school staff,
community volunteers and parents to help students overcome
obstacles to their continuing education. The programs may provide
training, technical assistance and other resources to Oregon high
schools on how to establish a volunteer-based program. Adult
volunteers who are trained through the program may provide
mentoring, training and encouragement to students about
post-secondary options and financial aid.
  SECTION 170. ORS 348.505 is amended to read:
  348.505. As used in ORS 348.500 to 348.695:
  (1) 'Commission' means the Oregon Student   { - Assistance - }
 { +  Access + } Commission.
  (2) 'Financial aid' includes loans, grants, scholarships, work
opportunities and other forms of financial aid to assist students
in completing their post-high-school education.
  SECTION 170a. ORS 348.510 is amended to read:
  348.510. (1) There is created an Oregon Student
 { - Assistance - }  { +  Access + } Commission consisting of
seven members, appointed by the Governor.
  (2) The term of office of a member of the commission is four
years, except that the term for a student member shall be two
years, and, after confirmation of the appointment by the Senate,

Enrolled Senate Bill 242 (SB 242-C)                      Page 126

the member shall serve at the pleasure of the Governor. Before
the expiration of the term of a member, the Governor shall
appoint a successor to succeed the member whose term is expiring.
A successor appointed for a full term shall assume commission
member duties on July 1 following the appointment. A member is
eligible for reappointment. A student member is limited to
reappointment to one two-year term. In case of a vacancy on the
commission for any cause, except where the vacancy is caused by
the normal expiration of a member's term, the Governor shall make
an appointment to become immediately effective for the unexpired
term.
  (3) The appointment of a member of the commission is subject to
confirmation by the Senate in the manner provided in ORS 171.562
and 171.565.
  (4) Two members of the commission shall be students at
institutions of higher education or community colleges in Oregon
at the time of appointment, with the duly organized and
recognized entities of student government at each institution of
higher education or community college submitting the name of one
student to the Governor to assist the Governor in making the
appointments.  Other members of the commission shall be
 { - citizens of the - }  { + residents of this + } state chosen
for their knowledge of and interest in education, but these other
members shall not be persons employed by any institution of
higher education or community college located in the state.
  SECTION 170b.  { + The Oregon Student Access Commission
replaces the Oregon Student Assistance Commission. All of the
duties, functions and powers of the Oregon Student Assistance
Commission are imposed upon, transferred to and vested in the
Oregon Student Access Commission. The rights and obligations of
the Oregon Student Assistance Commission legally incurred before
the operative date specified in section 292a of this 2011 Act are
transferred to the Oregon Student Access Commission and for the
purposes of succession of these rights and obligations, in
addition to the statutory duties, functions and powers, the
Oregon Student Access Commission is a continuation of the Oregon
Student Assistance Commission. + }
  SECTION 170c.  { + (1) The amendments to ORS 348.510 by section
170a of this 2011 Act are intended to change the name of the
Oregon Student Assistance Commission to the Oregon Student Access
Commission.
  (2) For the purpose of harmonizing and clarifying statutory
law, the Legislative Counsel may substitute for words designating
the 'Oregon Student Assistance Commission,' wherever they occur
in statutory law, words designating the 'Oregon Student Access
Commission.' + }
  SECTION 171. ORS 348.520 is amended to read:
  348.520. The Oregon Student   { - Assistance - }  { +
Access + } Commission shall:
  (1) Make available to qualified persons financial aid from
financial sources available to the commission.
  (2) Determine qualifications of persons to receive financial
aid.
  (3) Maintain reports and records on persons applying for and
receiving financial aid from the commission.
  (4) Withhold any financial aid if the recipient thereof fails
to maintain the standards established for receipt of that aid.
  (5) Recommend to the Legislative Assembly not less than once
every biennium matters relating to the establishment,

Enrolled Senate Bill 242 (SB 242-C)                      Page 127

administration, modification, transfer, reduction or cancellation
of financial aid.
  (6) Prior to implementing changes to the Oregon Opportunity
Grant program, report to the Legislative Assembly or the
Emergency Board any proposed change:
  (a) That increases or decreases the total amount awarded as
Oregon Opportunity Grants that was approved as part of the budget
enacted by the Legislative Assembly for the commission; and
  (b) To the methodology used to determine the student share,
family share or state share under ORS 348.205.
  (7) Encourage the establishment of financial aid programs by
private agencies.
  (8) Collect and disseminate information pertaining to all types
of available financial aid.
  (9) Review the administrative practices and evaluate the
effectiveness of all public and private post-secondary financial
aid programs in Oregon.
  (10) Disburse state appropriations for financial aid in such a
manner as to maximize its role in cooperative coordination of
financial aid programs.
  SECTION 171a. ORS 348.520, as amended by section 171 of this
2011 Act, is amended to read:
  348.520. The Oregon Student Access Commission shall:
  (1) Make available to qualified persons financial aid from
financial sources available to the commission.
  (2) Determine qualifications of persons to receive financial
aid.
  (3) Maintain reports and records on persons applying for and
receiving financial aid from the commission.
  (4) Withhold any financial aid if the recipient thereof fails
to maintain the standards established for receipt of that aid.
  (5) Recommend to the Legislative Assembly not less than once
every biennium matters relating to the establishment,
administration, modification, transfer, reduction or cancellation
of financial aid.
  (6) Prior to implementing changes to the Oregon Opportunity
Grant program, report to the  { + Higher Education Coordinating
Commission and the + } Legislative Assembly or the Emergency
Board any proposed change:
  (a) That increases or decreases the total amount awarded as
Oregon Opportunity Grants that was approved as part of the budget
enacted by the Legislative Assembly for the  { + Oregon Student
Access + } Commission; and
  (b) To the methodology used to determine the student share,
family share or state share under ORS 348.205.
  (7) Encourage the establishment of financial aid programs by
private agencies.
  (8) Collect and disseminate information pertaining to all types
of available financial aid.
  (9) Review the administrative practices and evaluate the
effectiveness of all public and private post-secondary financial
aid programs in Oregon.
  (10) Disburse state appropriations for financial aid in such a
manner as to maximize its role in cooperative coordination of
financial aid programs.
  SECTION 172. ORS 348.530 is amended to read:
  348.530. The Oregon Student   { - Assistance - }  { +
Access + } Commission may:
  (1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.

Enrolled Senate Bill 242 (SB 242-C)                      Page 128

  (2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
  (3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
  (4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees,   { - which - }
 { + that + } are related to and necessary for making and
protecting guaranteed loans and recovering moneys and loans and
management of property acquired in connection with such loans.
  (5) Sue and be sued.
  (6) Pursuant to ORS chapter 183, adopt such rules as may be
necessary to carry out the provisions of ORS 348.040 to 348.280,
348.500 to 348.695 and 348.992.
  (7) Cooperatively coordinate all types of financial aid
activities.
  (8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
  (9) Guarantee loans by eligible lending institutions to student
residents of the State of Oregon who are enrolled or accepted for
enrollment at any eligible institution, nonresident students
enrolled or accepted for enrollment in an institution of higher
education or community college in Oregon, and parents of those
students, under the provisions of the Higher Education Act of
1965 as amended.
  (10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student.
  (11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605.
  SECTION 172a. ORS 348.540 is amended to read:
  348.540. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission shall select one of its members as
chairperson, and another as vice chairperson, for such terms and
with such powers and duties necessary for the performance of the
functions of such offices as the commission shall determine.
  (2) A majority of the commission constitutes a quorum for the
transaction of business.
  (3) The commission shall meet at the call of the chairperson or
of a majority of the members of the commission.
  SECTION 172b. ORS 348.550 is amended to read:
  348.550. A member of the Oregon Student   { - Assistance - }
 { +  Access + } Commission is entitled to compensation and
expenses as provided in ORS 292.495.
  SECTION 172c. ORS 348.560 is amended to read:
  348.560. Subject to any applicable provisions of the State
Personnel Relations Law, the Oregon Student   { - Assistance - }
 { +  Access + } Commission may employ and fix the compensation
of any employees it deems necessary for the effective conduct of
the work under its charge. The commission may also arrange with
the Oregon University System for use of staff and office space
under the jurisdiction of the Oregon University System.
  SECTION 173. ORS 348.563 is amended to read:
  348.563. For the purpose of requesting a state or nationwide
criminal records check under ORS 181.534, the Oregon Student

Enrolled Senate Bill 242 (SB 242-C)                      Page 129

  { - Assistance - }  { +  Access + } Commission may require the
fingerprints of a person who:
  (1)(a) Is employed or applying for employment by the
commission; or
  (b) Provides services or seeks to provide services to the
commission as a contractor or volunteer; and
  (2) Is, or will be, working or providing services in a
position:
  (a) In which the person has direct access to facilities where
students reside or to persons under 18 years of age, elderly
persons or persons with disabilities;
  (b) In which the person is providing information technology
services and has control over, or access to, information
technology systems that would allow the person to harm the
information technology systems or the information contained in
the systems;
  (c) In which the person has access to information, the
disclosure of which is prohibited by state or federal laws, rules
or regulations or information that is defined as confidential
under state or federal laws, rules or regulations; or
  (d) That has payroll functions or in which the person has
responsibility for receiving, receipting or depositing money or
negotiable instruments, for billing, collections or other
financial transactions or for purchasing or selling property or
has access to property held in trust or to private property in
the temporary custody of the state.
  SECTION 174. ORS 348.570 is amended to read:
  348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student   { - Assistance - }  { +  Access + } Commission
in carrying out the purposes of ORS 348.210 to 348.250, 348.505
to 348.615, 348.696 and 348.992. Interest earned by the fund
shall be credited to the fund.
  (2) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the
Alternative Student Loan Program Fund for investment as provided
by ORS 293.701 to 293.820 and for the payment of expenses of the
commission in carrying out the purposes of ORS 348.625 to
348.695.  This fund, including the interest earnings on the fund,
if any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission.
  (3)(a) There is established in the General Fund an account to
be known as the Nursing Services Account. Funds in the account
shall be used for the payment of expenses of the Nursing Services
Program created in ORS 442.540.
  (b) The account shall consist of:
  (A) Funds appropriated to the Oregon Student
 { - Assistance - }  { +  Access + } Commission for deposit into
the account;
  (B) Collections and penalties received by the commission under
ORS 442.545; and
  (C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
  (c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
subsequent biennia.

Enrolled Senate Bill 242 (SB 242-C)                      Page 130

  (4) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Former
Foster Youth Scholarship Fund. Moneys received from
appropriations, donations and grants shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Oregon Student   { - Assistance - }  { +  Access + } Commission
for the purposes of investment, as provided by ORS 293.701 to
293.820, and for carrying out the provisions of ORS 348.270
(1)(b). Interest earned by the fund shall be credited to the
fund.
  (5) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the ASPIRE
Program Fund. Moneys received from donations and grants shall be
credited to the ASPIRE Program Fund. Moneys in the fund are
continuously appropriated to the Oregon Student
 { - Assistance - }  { +  Access + } Commission for the purposes
of investment, as provided by ORS 293.701 to 293.820, and for
carrying out the provisions of ORS 348.500. Interest earned by
the fund shall be credited to the fund.
  (6)(a) There is established in the State Treasury the Nursing
Faculty Loan Repayment Fund, separate and distinct from the
General Fund. Interest earned on the Nursing Faculty Loan
Repayment Fund shall be credited to the fund. Moneys in the fund
are continuously appropriated to the Oregon Student
 { - Assistance - }  { +  Access + } Commission for carrying out
ORS 348.440 to 348.448. The Nursing Faculty Loan Repayment Fund
consists of:
  (A) Moneys appropriated to the commission for the Nursing
Faculty Loan Repayment Program created in ORS 348.444; and
  (B) Grants, gifts or donations received by the commission for
the program.
  (b) Any unexpended funds in the fund at the end of a biennium
shall be retained in the fund and may be expended in subsequent
biennia.
  SECTION 175. ORS 348.580 is amended to read:
  348.580. (1) Subject to the terms of the governing instruments
and applicable law, the Oregon Student   { - Assistance - }  { +
Access + } Commission may enter into agreements with one or more
community foundations in Oregon to assume the management of the
privately funded student aid programs of the commission. The
commission may transfer to the community foundation any or all
gifts or scholarship grants received by the commission from any
private donor.
  (2) All gifts or scholarship grant funds received by the
commission that are not transferred to community foundations
pursuant to subsection (1) of this section shall be placed in the
hands of the State Treasurer, who is designated as the custodian
thereof and who may hold, in the manner provided by law, the
principal and interest on the gifts and grants. Funds may be
withdrawn periodically by the commission to provide for
administrative expenditures and make payments upon scholarships
awarded by the commission.
  (3) As used in this section, 'community foundation' means an
organization that is:
  (a) A community trust or foundation within the meaning of
section 170 of the Internal Revenue Code of 1986 and section
1.170A-9(e)(10) of the Treasury Regulations thereunder;
  (b) Exempt from federal income tax under section 501(c)(3) of
the Internal Revenue Code of 1986; and

Enrolled Senate Bill 242 (SB 242-C)                      Page 131

  (c) Not a private foundation within the meaning of section 509
of the Internal Revenue Code of 1986.
  SECTION 176. ORS 348.590 is amended to read:
  348.590. All funds for and relating to student aid programs
received by the Oregon Student   { - Assistance - }  { +
Access + } Commission pursuant to federal grant or from any other
source, except moneys appropriated from the State Treasury for a
specified period of time, hereby are continuously appropriated to
the commission for the purposes for which such funds were
provided and received by the commission.
  SECTION 177. ORS 348.592 is amended to read:
  348.592. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission may obtain loan cancellation insurance for
any person holding a loan under this section and ORS 348.505 to
348.530 and 348.570.
  (2) Such insurance shall insure the life of the student who
borrows under this section and ORS 348.505 to 348.530 and 348.570
for the amount of the principal and interest due on the loan and
the State of Oregon shall be named as the beneficiary. If the
borrower dies before repaying the loan, the insurance shall be
used to pay the balance of the loan and the commission shall
issue a satisfaction of the obligation.
  (3) The Oregon Department of Administrative Services shall
procure bids for the purchasing of insurance in compliance with
the laws governing the purchase and furnishing of services to
state agencies.
  SECTION 178. ORS 348.597 is amended to read:
  348.597. (1) Except as provided in subsection (2) of this
section, ORS 348.594 to 348.615 apply to all schools that operate
in this state.
  (2) ORS 348.594 to 348.615 do not apply to:
  (a) An Oregon community college;
  (b) A   { - state institution of higher education within the
Oregon University System - }  { +  public university listed in
ORS 352.002 + };
  (c) The Oregon Health and Science University;
  (d) A school, or a separately accredited campus of a school, if
the school:
  (A) Is a nonprofit school that is exempt from federal income
tax under section 501(c)(3) of the Internal Revenue Code;
  (B) Conferred degrees in this state under the same control for
at least five consecutive years; and
  (C) Is accredited by a regional accrediting association or its
national successor;
  (e) A school that, on the date preceding July 15, 2005, was a
school described in ORS 348.594 (2)(d); or
  (f) A school that is exempt from ORS 348.594 to 348.615 under
ORS 348.604.
  SECTION 179. ORS 348.601 is amended to read:
  348.601. The   { - Office of - }  Degree Authorization Account
is established separate and distinct from the General Fund. All
moneys received by the   { - office, other than appropriations
from the General Fund, - }   { + Higher Education Coordinating
Commission under ORS 348.603, 348.606 and 348.609 + } shall be
deposited into the account and are continuously appropriated to
the   { - Oregon Student Assistance - }   { + Higher Education
Coordinating + } Commission to carry out the duties, functions
and powers of the   { - office - }   { + commission under ORS
348.594 to 348.615 + }.
  SECTION 180. ORS 348.603 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                      Page 132

  348.603. (1) The   { - Oregon Student Assistance Commission,
through the Office of Degree Authorization, - }   { + Higher
Education Coordinating Commission + } shall:
  (a) Authorize approved schools to offer academic degree
programs;
  (b) Authorize approved degree-granting schools to offer
nondegree programs leading to a certificate or diploma;
  (c) Validate claims of degree possession;
  (d) Terminate substandard or fraudulent degree activities;
  (e) Terminate activities of diploma mills operating in or from
Oregon;
  (f) Except as provided in subsection (4) of this section,
terminate the operation in or from Oregon of post-secondary
accrediting bodies that are not recognized by the United States
Department of Education or by the commission; and
  (g) Review proposed new publicly funded post-secondary programs
and locations.
  (2)(a) Following review of a proposed new publicly funded
post-secondary program or location that is not a career pathways
certificate of completion program described in ORS 348.611, the
commission shall recommend resolution to the appropriate
governing boards and mediate between the boards to seek a
negotiated resolution if:
  (A) There is a detrimental duplication of programs; or
  (B) The program or location would have a significantly adverse
impact on one or more other segments of education.
  (b) If the boards do not resolve the issue raised under
paragraph (a) of this subsection within 90 days of the date when
the issue was recommended to the boards for mediation, the
commission shall have final authority for approval or disapproval
of the program or location. If the boards do not resolve the
issue, the commission shall approve or disapprove the program or
location within 180 days of the date when the review began.
  (c) If the boards do not resolve the issue, the commission
shall approve the program or location if the commission finds
that the program or location meets an unmet workforce need in the
state.
  (d) The commission shall establish by rule a fair and neutral
decision-making process in consultation with representatives
designated by the State Board of Education, the State Board of
Higher Education, associations representing Oregon independent
colleges, associations representing Oregon career colleges, and
the governing boards of otherwise unrepresented post-secondary
schools.
  (3) The commission, by rule, may impose a fee on any school or
person requesting information from the commission. The amount of
the fee shall be established to recover designated expenses
incurred by the commission in carrying out the administration of
ORS 348.594 to 348.615. Any fees collected under this subsection
shall be deposited in the   { - Office of - }  Degree
Authorization Account established under ORS 348.601.
  (4) Subsection (1)(f) of this section does not apply to a body
the role of which is to accredit schools that offer only
associate, bachelor's or master's degrees with titles in theology
or religious occupations or, if the schools also offer doctoral
degrees, offer doctoral degrees only in theology or religious
occupations that have been approved by a federally recognized
accrediting organization.
  SECTION 181. ORS 348.604 is amended to read:

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  348.604. Upon application from a school, as defined in ORS
348.594, the   { - Oregon Student Assistance Commission, through
the Office of Degree Authorization, - }   { + Higher Education
Coordinating Commission + } shall grant an exemption from ORS
348.594 to 348.615 to the school if the school:
  (1) Is, or is operated by, a nonprofit corporation;
  (2) Offers only associate, bachelor's or master's degrees with
titles in theology or religious occupations, or, if the school
also offers doctoral degrees, offers doctoral degrees in theology
or religious occupations that have been approved by a federally
recognized accrediting organization;
  (3) Teaches students with faculty members who:
  (a) Hold degrees:
  (A) From a school that, at the time of the conferral of the
degrees, was accredited by a federally recognized accrediting
organization, held an exemption under this section, or was a
school described in ORS 348.594 (2)(d) on the date preceding July
15, 2005;
  (B) That are at least one level above the degree level of the
program in which the faculty members teach or that are the
terminal degrees in the field in which the faculty members teach;
and
  (C) That are not honorary degrees; or
  (b) Possess sufficient compensatory qualifications to
substitute for academic degrees in the fields in which the
faculty members teach;
  (4) Offers a curriculum:
  (a) Of a duration and level that is comparable to the
curriculums offered by schools that are not exempt under this
section; and
  (b) That, with higher degrees, increases the difficulty of the
work expected of students;
  (5) Requires students to complete academic assignments and to
demonstrate learning appropriate to the curriculum;
  (6) Awards credit toward degrees proportionate to the work done
by students;
  (7) Offers admission:
  (a) To a student:
  (A) With a high school diploma or an equivalent credential; or
  (B) Who completed the equivalent of a high school education
through home study; and
  (b) Based on evidence that the student can reasonably expect to
complete a degree and benefit from the education offered;
  (8) Provides or arranges for faculty members and students to
have access to information that supports instruction and
stimulates research or independent study in all areas of the
curriculum;
  (9) Provides accurate and appropriate credit transcripts to
students of the school and accurate and appropriate diplomas to
graduates of the school;
  (10) Charges tuition by the credit hour or other fixed rate for
instruction during an academic term and does not charge tuition
or fees for the award of a degree or charge a single fee for an
entire degree program;
  (11) Provides the oversight required by the commission
  { - through the office - }  over a faculty member or
administrator who has:
  (a) Been convicted of a felony; or
  (b) Violated a state or federal law related to the operation of
a school;

Enrolled Senate Bill 242 (SB 242-C)                      Page 134

  (12) Provides facilities that permit private communication
between faculty members and students;
  (13) Provides a number of faculty members that is adequate for
the number of students enrolled;
  (14) Provides clear and accurate information to students about
the school's expectations of students in the school's courses;
  (15) Ensures that a student who is pursuing a degree is making
continuous progress toward the degree;
  (16) Before a student enrolls in the school, informs the
student that a school to which the student might transfer retains
the discretion whether to accept the transfer of credits earned
at the school;
  (17) Provides official transcripts of faculty members to the
  { - office - }   { + commission + }; and
  (18) Pays the fee imposed by ORS 348.607.
  SECTION 182. ORS 348.605 is amended to read:
  348.605. (1) A school that obtains an exemption under ORS
348.604 or that, on the date preceding July 15, 2005, was a
school described in ORS 348.594 (2)(d) may not:
  (a) Award more than 25 percent of the credit toward a degree
for noninstructional activities, such as challenge examinations
and professional or life experiences;
  (b) Represent that the school is:
  (A) Approved by the State of Oregon; or
  (B) Accredited by an organization unless the organization is
recognized as an accreditor by the United States Department of
Education; or
  (c) Pay a faculty member a commission or otherwise base a
faculty member's compensation on the faculty member's recruitment
of students to the school.
  (2) A school that obtains an exemption under ORS 348.604 or
that, on the date preceding July 15, 2005, was a school described
in ORS 348.594 (2)(d) shall:
  (a) Preserve official transcripts for all faculty members and
students;
  (b) Notify the   { - Office of Degree Authorization - }
 { + Higher Education Coordinating Commission + } if a faculty
member or administrator at the school has:
  (A) Been convicted of a felony; or
  (B) Violated a state or federal law related to the operation of
a school;
  (c) Place in any course catalog that is available to students
or to the public a notice that states: '(Name of school) has been
granted exempt status by the State of Oregon to offer theological
and/or religious occupations degrees.';
  (d) If the school closes, return to students tuition payments
for the current term on a prorated basis;
  (e) If the school provides placement services to a student,
describe the placement services clearly and accurately to the
student and avoid giving unrealistic expectations of placement to
the student; and
  (f) If an administrator claims to possess an academic degree:
  (A) Ensure that the administrator possesses the academic degree
that the administrator claims to possess; and
  (B) Require that the degree is from a school that, at the time
of the conferral of the degree, was accredited by a federally
recognized accrediting organization, held an exemption under this
section, or was a school described in ORS 348.594 (2)(d) on the
date preceding July 15, 2005.
  SECTION 183. ORS 348.606 is amended to read:

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  348.606. (1) A school may not confer or offer to confer any
academic degree upon a person, or provide services purporting to
lead to a degree in whole or in part, without first obtaining
approval from the   { - Oregon Student Assistance Commission
through the Office of Degree Authorization - }  { +  Higher
Education Coordinating Commission + }. The commission shall adopt
by rule standards and procedures for the approval of schools.
  (2)(a) The commission, by rule, may impose a fee on any school
applying for approval to confer or offer to confer a degree upon
a person or to provide academic credit applicable to a degree.
The fee is nonrefundable.
  (b) The amount of the fee shall be established to recover
designated expenses incurred by the commission in carrying out
the administration of ORS 348.594 to 348.615, and may not exceed
the following amounts adjusted for inflation annually, beginning
on July 1, 2007, pursuant to the increase, if any, from the
preceding year in the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor:
  (A) For a doctoral degree, $5,500.
  (B) For a master's degree, $4,150.
  (C) For a bachelor's degree, $4,150.
  (D) For an associate degree, $2,750.
  (E) For a certificate or for any partial degree program,
$1,000.
  (c) In addition to the base fee described in paragraph (b) of
this subsection, the commission may assess the actual costs
related to the use of experts to evaluate programs leading to
professional licensure by the state, if such costs exceed 10
percent of the base fee.
  (d) Any fees collected under this subsection shall be deposited
in the   { - Office of - }  Degree Authorization Account
established under ORS 348.601.
  SECTION 184. ORS 348.607 is amended to read:
  348.607. (1) The   { - Oregon Student Assistance Commission - }
 { +  Higher Education Coordinating Commission + } may, by rule,
impose a fee on a school that applies for an exemption under ORS
348.604.  The amount of the fee may not exceed the lesser of:
  (a) The actual cost to the commission of determining the
school's compliance with the requirements for an exemption under
ORS 348.604; or
  (b) Fifty percent of the fee that the commission would impose
on the school under ORS 348.606 (2) if the school were applying
for approval to offer a bachelor's degree.
  (2) Except as provided in ORS 348.604 or 348.608 or section 6,
chapter 546, Oregon Laws 2005, the commission may not impose
requirements for a religious exemption from ORS 348.594 to
348.615.
  SECTION 185. ORS 348.608 is amended to read:
  348.608. (1) Each year, on a date prescribed by the
 { - Office of Degree Authorization - }   { + Higher Education
Coordinating Commission + }, a school that obtains an exemption
under ORS 348.604 or a school that, on the date preceding July
15, 2005, was a school described in ORS 348.594 (2)(d), shall
submit to the   { - office - }   { + commission + } a statement
that reads: '(Name of School) hereby certifies that the school
remains in compliance with all conditions for a religious
exemption from ORS 348.594 to 348.615. '
  (2) A school that obtains an exemption under ORS 348.604 or a
school that, on the date preceding July 15, 2005, was a school

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described in ORS 348.594 (2)(d) remains exempt unless the
 { - office - }  { + commission + } suspends or revokes the
exemption.
  (3) The   { - office - }   { + commission + } may suspend or
revoke an exemption if:
  (a) After the notice and opportunity to cure provided in
subsection (4) of this section, a school fails to provide the
statement required by subsection (1) of this section;
  (b) The   { - office - }   { + commission + } has received a
complaint from a student or former student of the school that the
school is failing to comply with a condition for exemption under
ORS 348.604, the
  { - office - }   { + commission + } determines that the
complaint is valid, the school has been provided with notice and
opportunity to cure as required by subsection (4) of this section
and the school fails to comply with the condition listed in the
notice; or
  (c) After the notice and opportunity to cure provided in
subsection (4) of this section, a school is in violation of ORS
348.605.
  (4) The   { - Oregon Student Assistance Commission, through the
office, - }   { + commission + } shall provide notice of and 90
days to cure a school's:
  (a) Failure to provide the statement required by subsection (1)
of this section;
  (b) Failure to maintain compliance with a condition for
exemption under ORS 348.604 if the   { - office - }
 { + commission + } has received a complaint from a student or
former student of the school that the school is failing to comply
with a condition for exemption under ORS 348.604 and the
 { - office - }   { + commission + } has determined the complaint
is valid; or
  (c) Violation of ORS 348.605.
  (5) A school may appeal the denial, suspension or revocation of
an exemption to the commission.
  (6) A school may appeal   { - to the commission the
office's - }   { + the commission's  + }decision that a faculty
member does not possess sufficient compensatory qualifications to
substitute for an academic degree in the field in which the
faculty member teaches.
  (7) The commission shall conduct an appeal under this section
as a contested case under ORS chapter 183.
  (8)(a) If a school appeals the denial, suspension or revocation
of an exemption and the commission upholds the denial, suspension
or revocation, the commission shall provide the school 90 days to
cure the grounds for the denial, suspension or revocation. If the
school does not cure the grounds for the denial, suspension or
revocation within 90 days after the commission upholds the
denial, suspension or revocation, then the denial, suspension or
revocation becomes effective 90 days after the issuance of the
decision on the appeal by the commission.
  (b) If a school does not appeal the denial, suspension or
revocation of an exemption to the commission and the school does
not cure the grounds for the denial, suspension or revocation
within the period of time to appeal the decision to the
commission, then the denial, suspension or revocation becomes
effective upon the expiration of the period of time to appeal.
  SECTION 186. ORS 348.609 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                      Page 137

  348.609. (1) A person may not claim or represent that the
person possesses any academic degree unless the degree has been
awarded to or conferred upon the person by a school that:
  (a) Has accreditation recognized by the United States
Department of Education or the foreign equivalent of such
accreditation;
  (b) Has been approved by the   { - Oregon Student Assistance
Commission through the Office of Degree Authorization - }
 { + Higher Education Coordinating Commission + } to offer and
confer degrees in Oregon;
  (c) Is described in ORS 348.597; or
  (d) Is located in the United States and has been found by the
commission to meet standards of academic quality comparable to
those of an institution located in the United States that has
accreditation, recognized by the United States Department of
Education, to offer degrees of the type and level claimed by the
person.
  (2)(a) A person who has been awarded a degree from a school
other than a school described in subsection (1) of this section
may claim or represent that the person possesses an academic
degree if:
  (A) The person has been awarded a degree from a school that has
the legal authority to issue degrees in the jurisdiction where
the degree is issued; and
  (B) The claim or representation is accompanied by a disclaimer
that states: '(Name of school) does not have accreditation
recognized by the United States Department of Education and has
not been approved by the   { - Office of Degree Authorization - }
 { + Higher Education Coordinating Commission + }.  '
  (b) A disclaimer allowed under this subsection shall be made in
any resume, letterhead, business card, announcement or
advertisement in which the person is claiming or representing to
have an academic degree from a school that does not meet the
requirements of subsection (1) of this section.
  (c) A person may not use a disclaimer described in this
subsection for a degree received from a diploma mill.
  (d) This subsection does not alter any requirement for
obtaining a license, admission into a school, teaching or
employment or for other areas in which a degree from an
accredited school is required.
  (3) The   { - Oregon Student Assistance - }  commission shall
adopt, by rule, standards and procedures for responding to
complaints about degree claims and for validation of degree
claims. Failure of a person to provide documentation of a claimed
degree shall be prima facie evidence that the claim of such
person to such degree is a violation of this section.
  (4) The   { - Oregon Student Assistance - }  commission, by
rule, may impose a fee on any school or person requesting
validation of degree claims. The amount of the fee shall be
established to recover designated expenses incurred by the
commission in carrying out the administration of ORS 348.594 to
348.615. Any fees collected under this subsection shall be
deposited in the   { - Office of - }  Degree Authorization
Account established under ORS 348.601.
  (5)(a) The   { - Oregon Student Assistance Commission, through
the Office of Degree Authorization, - }   { + commission + } may
cause a civil suit to be instituted in the circuit court for
legal or equitable remedies, including injunctive relief, to
ensure compliance with this section. The commission may recover
attorney fees and court costs for any such action.

Enrolled Senate Bill 242 (SB 242-C)                      Page 138

  (b) The commission shall adopt a schedule of civil penalties
for violations of this section. A civil penalty shall not exceed
$1,000 per violation.
  (c) In addition to any action or penalty provided by law, any
person who violates this section shall incur a civil penalty in
an amount prescribed by the schedule adopted by the commission.
Any civil penalty imposed under this subsection shall be imposed
in the manner provided in ORS 183.745. All penalties recovered
under this subsection shall be paid into the State Treasury and
credited to the General Fund.
  (6) The provisions of this section do not apply to a person who
is a graduate of a veterinary college, or a veterinary department
of a university or college, of good standing and repute, as
determined by the Oregon State Veterinary Medical Examining
Board.
  SECTION 187. ORS 348.611 is amended to read:
  348.611. (1) As used in this section:
  (a) 'Career pathways certificate of completion program ' means
a certification program that:
  (A) Is offered at a community college;
  (B) Provides a specified proficiency in specific skills to meet
an identified employment need;
  (C) Is provided in a grouping of 12 to 44 quarter credits, or
an equivalent number of credits;
  (D) Is wholly contained within an associate degree program or a
similar certification program of 45 or more quarter credits, or
an equivalent number of credits, that was reviewed and approved
as provided by ORS 348.603 (2); and
  (E) Satisfies the requirements for a career pathways
certificate of completion program, as prescribed by the
Department of Community Colleges and Workforce Development.
  (b) 'Program authority' means:
  (A) The governing body of a community college; or
  (B) The designee of the governing body of a community college
that has authority related to the offering of a career pathways
certificate of completion program at the community college.
  (2)(a) At least 30 business days prior to a community college
seeking final approval from the State Board of Education to offer
a new career pathways certificate of completion program, the
program authority shall provide notice of intent to offer the
program to the Department of Community Colleges and Workforce
Development. The notice of intent must be in the form required by
the department and may be provided electronically.
  (b) Upon receiving a notice of intent described in paragraph
(a) of this subsection, the department shall immediately provide
electronic notice to any private institution that may be affected
by the offering of a new career pathways certificate of
completion program.
  (3) A private institution that objects to the offering of a
career pathways certificate of completion program must provide a
notice of objection to the program authority within 12 business
days of receiving the notice of intent under subsection (2) of
this section.
  (4) If a program authority receives a notice of objection as
provided by subsection (3) of this section, the program authority
must:
  (a) Within three business days after the last date by which a
private institution may provide a notice of objection, offer all
private institutions that provided a notice of objection the

Enrolled Senate Bill 242 (SB 242-C)                      Page 139

opportunity to participate in a meeting described in subsection
(5) of this section; and
  (b) Postpone the seeking of final approval from the State Board
of Education for the career pathways certificate of completion
program until the requirements of subsection (6) of this section
have been satisfied.
  (5)(a) A community college that provided a notice of intent
under subsection (2) of this section and a private institution
that provided a notice of objection under subsection (3) of this
section shall participate in a meeting for the purpose of
avoiding detrimental duplication or a significantly adverse
impact by:
  (A) Identifying opportunities for collaboration in programs;
  (B) Forming agreements or partnerships for offering programs;
or
  (C) Developing ideas for modifying programs.
  (b) The program authority or the private institution may invite
the   { - Oregon Student Assistance Commission - }  { +  Higher
Education Coordinating Commission + } or any other third party to
join a meeting or to act as a mediator of a meeting.
  (6) A program authority may seek final approval from the State
Board of Education for a program following a postponement
described in subsection (4) of this section if:
  (a) An agreement is reached between the program authority and
all of the private institutions that participated in the meeting
described in subsection (5) of this section; or
  (b) The program authority and the private institutions that
participated in the meeting described in subsection (5) of this
section are unable to reach an agreement within 15 business days.
  (7) Notwithstanding the timelines prescribed by subsections
(3), (4) and (6) of this section, the program authority and the
private institutions may mutually agree to adjust the timelines.
  SECTION 188. ORS 348.612 is amended to read:
  348.612. The   { - Oregon Student Assistance Commission - }
 { + Higher Education Coordinating Commission + } may revoke or
suspend any approval given to a school under ORS 348.606 for
proper cause after a hearing. Such hearing shall be held only
after the school has been given 20 days' notice in writing of the
time and place of such hearing. Hearings shall be held in
accordance with the rules of the commission adopted under ORS
348.530.
  SECTION 189. ORS 348.615 is amended to read:
  348.615. If the   { - Oregon Student Assistance Commission - }
 { + Higher Education Coordinating Commission + } refuses to
grant approval to a school to confer degrees or revokes the
approval to confer degrees, the refusal or revocation shall be
subject to the right of review by an action brought in the
circuit court of the county in which the school is located. Such
review shall be tried as an action not triable by right to a
jury.
  SECTION 190. ORS 348.616 is amended to read:
  348.616. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission shall develop and adopt rules that provide
the minimum criteria that an employer must meet in order for the
employer's scholarship program for employees and dependents to be
certified as eligible for the employee and dependent scholarship
program tax credit provided under ORS 348.621. The commission
shall adopt rules to determine:
  (a) The types of educational programs, institutions and
expenses related to the programs and institutions for which

Enrolled Senate Bill 242 (SB 242-C)                      Page 140

scholarships may be offered to employees and dependents, and
scholarship moneys expended on their behalf;
  (b) The types of employees and dependents to whom scholarships
must be offered;
  (c) The minimum and maximum annual dollar amounts of a
scholarship that would be a qualified scholarship under ORS
315.237;
  (d) The minimum annual number of hours of instruction that a
scholarship beneficiary must commit to in order to be eligible
for a scholarship; and
  (e) Such other requirements as the commission may provide.
  (2) An employer must employ at least four full-time equivalent
employees but no more than 250 employees in order to be certified
as eligible for the employee and dependent scholarship program
tax credit under ORS 348.621.
  (3) An employer seeking to claim the tax credit provided under
ORS 315.237 must apply to the   { - Oregon Student Assistance - }
commission for both employee and dependent scholarship program
certification under ORS 348.618 and tax credit certification
under ORS 348.621.
  SECTION 191. ORS 348.618 is amended to read:
  348.618. (1) An application for employee and dependent
scholarship program certification shall be filed by the employer
establishing the program. The application shall be filed with the
Oregon Student   { - Assistance - }  { +  Access + } Commission
at least three months prior to the close of the first tax year
for which a tax credit under ORS 315.237 will be claimed.
  (2) The application shall be filed on a form prescribed by the
commission and shall contain the information required by the
commission, including:
  (a) The date on which the proposed employee and dependent
scholarship program will first be available to the employer's
employees and their dependents;
  (b) The total number of employees of the employer;
  (c) The total number of employees who will be eligible, or
whose dependents will be eligible, to participate in the program;
  (d) The criteria to be used by the employer in determining the
eligibility of an employee or an employee's dependent for a
scholarship under the program; and
  (e) The annual limit, if any, on the amount of funds to be used
for scholarships under the program.
  (3) The commission shall certify an application that describes
an employee and dependent scholarship program that is in
compliance with the rules adopted by the commission under ORS
348.616 (1) and (2), if made by an employer that meets the
employment requirements of ORS 348.616 (1) and (2).
  (4) The commission shall certify or reject an application
within 60 days of receipt of the application and shall notify the
employer of the commission's determination.
  (5) An employer whose application has been rejected by the
commission shall be afforded an opportunity to amend the
application to address the commission's objections to the
original application.
  (6) In the case of an employer whose proposed employee and
dependent scholarship program has been certified by the
commission, the commission shall send a letter of program
certification to the employer. The letter of program
certification shall set forth or incorporate by reference the
statements made in the application being certified.

Enrolled Senate Bill 242 (SB 242-C)                      Page 141

  (7) A letter of program certification issued under this section
shall remain valid until the employer changes the terms of
eligibility for a scholarship under the program, changes the
minimum or maximum amount of a scholarship under the program or
ceases to be an employer.
  SECTION 192. ORS 348.621 is amended to read:
  348.621. (1) An application for tax credit certification shall
be filed by an employer that has obtained program certification
under ORS 348.618 or that has applied for program certification
and is awaiting such certification by the Oregon Student
 { - Assistance - }  { +  Access + } Commission.
  (2) The application for tax credit certification shall be filed
by the employer with the commission. The application shall be
filed at the time prescribed by the commission, but no later than
October 1 of the calendar year in which begins the tax year for
which a credit under ORS 315.237 will be claimed.
  (3) The application shall be filed on a form prescribed by the
commission and shall contain the information required by the
commission, including the amount of scholarship moneys the
employer has provided or intends to provide to employees or
dependents during the calendar year for which tax credit
certification is being sought and the number of employees
employed by the employer for the calendar year.
  (4) The commission shall consider applications in the
chronological order in which the applications are received and
shall approve applications to the extent the amount set forth in
the application, when added to the total amount already certified
by the commission for the calendar year under this section, does
not exceed $1 million.
  (5) An employer may not receive tax credit certification:
  (a) For an amount that is greater than $1 million;
  (b) If the employer employs fewer than four full-time
equivalent employees for the calendar year; or
  (c) If the employer employs more than 250 employees for the
calendar year.
  (6) The commission shall send written notice of the amount of
the tax credit certification, or written notice that no amount is
being certified, to the employer and to the Department of Revenue
within 60 days of the date an application is filed under this
section.
  (7) The employer shall keep the written certification in the
employer's records for at least five years and shall furnish the
certification to the Department of Revenue if requested.
  SECTION 193. ORS 348.625 is amended to read:
  348.625. As used in ORS 348.570 and 348.625 to 348.695:
  (1) 'Alternative student loan program' means a program
established by the Oregon Student   { - Assistance - }  { +
Access + } Commission to fund loans to eligible students, or to
qualifying parents of eligible students, to help meet expenses of
eligible students of attending post-secondary educational
institutions; provided, however, that alternative student loan
program loans may be made only to students who have applied for
student financial aid under Title IV, Part B of the Higher
Education Act of 1965, as amended, and have received information
on their eligibility for programs under that Act, or the parents
of students who have made such application and received such
information.
  (2) 'Eligible student' means a student enrolled in an eligible
post-secondary educational institution located in Oregon or a
student who is an Oregon resident and who is enrolled in an

Enrolled Senate Bill 242 (SB 242-C)                      Page 142

eligible post-secondary educational institution located outside
of Oregon. The commission shall determine, among other things,
what constitutes enrollment and which post-secondary educational
institutions are eligible institutions under the alternative
student loan program.
  (3) 'Lender' means an insured institution as defined in ORS
706.008 that is authorized to do business in Oregon and which has
entered into an agreement with the commission to originate,
service and administer alternative student loans in the manner
authorized by ORS 348.570 and 348.625 to 348.695.
  SECTION 194. ORS 348.630 is amended to read:
  348.630. (1) Loans may be made under the alternative student
loan program to an eligible student or to a parent of an eligible
student.
  (2) Loans made under the alternative student loan program shall
not exceed the eligible costs of education as determined by the
Oregon Student   { - Assistance - }  { +  Access + } Commission,
minus other financial aid received, or $10,000, whichever is
less, for any eligible student during a single calendar year.
Total loans made for any eligible student under the alternative
student loan program shall not exceed $40,000.
  (3) Under the alternative student loan program, borrowers shall
undergo a credit check by the lender or by the commission and
shall be creditworthy or provide a creditworthy cosigner.
  SECTION 195. ORS 348.635 is amended to read:
  348.635. In consultation with private sector lenders, the
Oregon Student   { - Assistance - }  { +  Access + } Commission
shall establish the terms and conditions, including but not
limited to maturities and repayment provisions, of student loans
for which the commission shall provide funding. The commission
may also set standards of academic achievement which borrowers
must maintain to receive loans.
  SECTION 196. ORS 348.640 is amended to read:
  348.640. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission shall provide funding to lenders pursuant
to contracts which shall provide, among other things, the terms
and conditions under which private sector lenders, using funding
made available by the commission, shall originate, service and
administer loans pursuant to the alternative student loan
program. Lenders shall receive and process loan applications from
borrowers, perform credit analysis, approve or deny loan
requests, and for loans which are approved, originate, document,
administer and service such loans. The commission shall make
provision for payment to lenders of the reasonable costs of
origination, servicing and administration of loans. Payment may
be made directly by borrowers or by the commission, as the
commission may determine.
  (2) Loans shall be structured in such a manner that anticipated
payments of principal and interest shall permit timely repayment
of the revenue bonds to be issued by the State of Oregon pursuant
to ORS 348.570 and 348.625 to 348.695. As a condition of
participation in the alternative student loan program by private
sector lenders, the commission shall procure from each such
lender a guarantee or letter of credit   { - insuring - }
 { + ensuring + } that the commission shall receive full and
timely repayment of principal of and interest due on loans
originated, serviced and administered by the lender. The
commission shall provide by contract for payment by the
commission or by borrowers, as the commission may determine, of
the reasonable costs of such guarantees or letters of credit. It

Enrolled Senate Bill 242 (SB 242-C)                      Page 143

is the intention of ORS 348.570 and 348.625 to 348.695 that
participating private sector lenders, not the commission, shall
bear the entire risk of loss, nontimely repayment or nonpayment
of alternative student loan program loans.
  SECTION 197. ORS 348.655 is amended to read:
  348.655. In consultation with the Oregon Student
 { - Assistance - }  { +  Access + } Commission, the State
Treasurer may issue revenue bonds in an amount not to exceed $30
million annually, the proceeds of which shall be used to provide
funding for loans to be made pursuant to the alternative student
loan program. Interest on the bonds shall be exempt from personal
income taxation by the State of Oregon.
  SECTION 198. ORS 348.660 is amended to read:
  348.660. (1) If the State Treasurer, in consultation with the
Oregon Student   { - Assistance - }  { +  Access + } Commission,
determines that revenue bonds should be issued under ORS 348.570
and 348.625 to 348.695:
  (a) The State Treasurer, in consultation with the commission,
may authorize and issue in the name of the State of Oregon
revenue bonds secured by revenues from repayment of loans to
finance or refinance in whole or part the costs of the loan
program.  Refunding bonds may be issued to refinance such revenue
bonds.
  (b) The State Treasurer, in consultation with the commission,
shall designate the underwriter, trustee and bond counsel and
enter into appropriate agreements with each to carry out the
provisions of ORS 348.570 and 348.625 to 348.695.
  (2) Any trustee designated by the State Treasurer, in
consultation with the commission, must agree to furnish financial
statements and audit reports for each bond issue.
  (3) In determining whether to issue revenue bonds under ORS
348.570 and 348.625 to 348.695, the State Treasurer, in
consultation with the commission, shall consider:
  (a) The bond market for the types of bonds proposed for
issuance.
  (b) The terms and conditions of the proposed issue.
  (c) Such other relevant factors as the State Treasurer, in
consultation with the commission, considers necessary to protect
the financial integrity of the state.
  SECTION 199. ORS 348.665 is amended to read:
  348.665. Bonds authorized under ORS 348.570 and 348.625 to
348.695 shall be issued in accordance with the provisions of ORS
chapter 286A. The State Treasurer, in consultation with the
Oregon Student   { - Assistance - }  { +  Access + } Commission,
may establish special accounts or subaccounts in the Alternative
Student Loan Program Fund created by ORS 348.570 and may pledge
the assets or the revenues, or any portion thereof, of the
alternative student loan program.
  SECTION 200. ORS 348.670 is amended to read:
  348.670. The administrative expenses of the State Treasurer and
the Oregon Student   { - Assistance - }  { +  Access + }
Commission shall be charged against bond proceeds or repayment
revenues.
  SECTION 201. ORS 348.675 is amended to read:
  348.675. The State Treasurer, in consultation with the Oregon
Student   { - Assistance - }  { +  Access + } Commission, shall
have the power, whenever refunding is considered expedient, to
refund any bonds by the issuance of new bonds, whether the bonds
to be refunded have or have not matured. The refunding bonds may

Enrolled Senate Bill 242 (SB 242-C)                      Page 144

be exchanged for bonds to be refunded and the proceeds applied to
the purchase, redemption or payment of such bonds.
  SECTION 202. ORS 348.685 is amended to read:
  348.685. The official action authorizing the issuance of bonds
under ORS 348.570 and 348.625 to 348.695 may contain covenants,
notwithstanding that such covenants may limit the exercises of
powers conferred by ORS 348.570 and 348.625 to 348.695 in the
following respects and in such other respects as the state,
acting through the State Treasurer, in consultation with the
Oregon Student   { - Assistance - }  { +  Access + } Commission,
or the designee thereof may decide:
  (1) The use and disposition of the revenues from repayment;
  (2) The creation and maintenance of special accounts or
subaccounts in the Alternative Student Loan Program Fund created
by ORS 348.570 and the regulation, use and disposition thereof;
  (3) The purpose or purposes to which the proceeds of sale of
bonds may be applied and the use and disposition of such
proceeds;
  (4) The events of default and the rights and liabilities
arising thereon and the terms and conditions upon which the
holders of any bonds may bring any suit or action on such bonds
or on any coupons appurtenant thereto;
  (5) The issuance of other or additional bonds or instruments
payable from or constituting a charge against the revenues from
repayment;
  (6) The keeping of books of account and the inspection and
audit thereof;
  (7) The terms and conditions upon which any or all of the bonds
shall become or may be declared due before maturity and the terms
and conditions upon which such declaration and its consequences
may be waived;
  (8) The rights, liabilities, powers and duties arising upon the
breach of any covenants, conditions or obligations;
  (9) The appointing of and vesting in a trustee or trustees of
the right to hold or dispose of any funds, accounts, revenues or
assets of the alternative student loan program, to receive or
assign any pledge thereof or to enforce any covenants made to
secure or to pay the bonds, the powers and duties of such trustee
or trustees, and the limitation of the liabilities of the trustee
or trustees;
  (10) The terms and conditions upon which the holder or holders
of the bonds, or the holders of any proportion or percentage of
them, may enforce any covenants made under ORS 348.570 and
348.625 to 348.695; and
  (11) A procedure by which the terms of any official action
authorizing bonds or of any other contract with bondholders,
including but not limited to an indenture of trust or similar
instrument, may be amended or abrogated, and the amount of bonds
the holders of which may consent thereto, and the manner in which
such consent may be given.
  SECTION 203. ORS 348.690 is amended to read:
  348.690. (1) Revenue bonds issued under ORS 348.570 and 348.625
to 348.695:
  (a) Shall not be payable from nor charged upon any funds other
than the revenue pledged to the payment thereof, except as
provided in this section, nor shall the state be subject to any
liability thereon. No holder or holders of such bonds shall ever
have the right to compel any exercise of the taxing power of the
state to pay any such bonds or the interest thereon, nor to
enforce payment thereof against any property of the state.

Enrolled Senate Bill 242 (SB 242-C)                      Page 145

  (b) Shall not constitute a charge, lien or encumbrance, legal
or equitable, upon any property of the state other than the
Alternative Student Loan Program Fund created by ORS 348.570, any
account or subaccount thereof or student loans, if any, owned or
acquired by the Oregon Student   { - Assistance - }  { +
Access + } Commission pursuant to the alternative student loan
program.
  (2) Each bond issued under ORS 348.570 and 348.625 to 348.695
shall recite in substance that the bond, including interest
thereon, is payable solely from the revenue pledged to the
payment thereof. No such bond shall constitute a debt of the
state or a lending of the credit of the state within the meaning
of any constitutional or statutory limitation. However, nothing
in ORS 348.570 and 348.625 to 348.695 is intended to impair the
rights of holders of bonds to enforce covenants made for the
security thereof as provided in ORS 348.685.
  SECTION 204. ORS 348.696 is amended to read:
  348.696. Pursuant to section 4 (4)(d), Article XV of the Oregon
Constitution, the Education Stability Fund is established
separate and distinct from the General Fund. Except for earnings
on moneys in the school capital matching subaccount, moneys in
the fund shall be invested as provided in ORS 293.701 to 293.790.
All declared earnings on moneys in the fund shall be transferred
and are appropriated continuously as follows:
  (1) 75 percent to the Oregon Education Fund established by ORS
348.716; and
  (2) 25 percent to the Oregon Student   { - Assistance - }  { +
Access + } Commission for the Oregon Opportunity Grant program
under ORS 348.260.
  SECTION 205. ORS 348.890 is amended to read:
  348.890. (1) The State Board of Higher Education and the State
Board of Education shall hold at least one meeting annually as
the Joint Boards of Education for the purpose of coordinating
their activities and reaching joint agreement on matters of
education policy and opportunities of mutual interest to the two
boards and to the populations served by the boards.
  (2) Bylaws to be adopted by the members shall determine
procedures for setting meeting dates, locations, chairperson
rotation, agendas and staff support.
  (3) The Joint Boards of Education shall provide policy
direction to implement regional partnership proposals and any
other joint program or activity approved by both boards.
  (4) Notwithstanding   { - ORS 351.070 (3)(c) - }  { +  section
20 (3) of this 2011 Act + }, the Department of Community Colleges
and Workforce Development and the Oregon University System may
use appropriations from the General Fund to implement agreements
approved by the Joint Boards of Education that provide direct aid
to a student, or other incentives that encourage shared use of
facilities, programs and other resources of   { - state
institutions of higher education - }  { +  public universities
listed in ORS 352.002 + } and community colleges.
  SECTION 205a. ORS 348.890, as amended by section 205 of this
2011 Act, is amended to read:
  348.890.   { - (1) The State Board of Higher Education and the
State Board of Education shall hold at least one meeting annually
as the Joint Boards of Education for the purpose of coordinating
their activities and reaching joint agreement on matters of
education policy and opportunities of mutual interest to the two
boards and to the populations served by the boards. - }

Enrolled Senate Bill 242 (SB 242-C)                      Page 146

    { - (2) Bylaws to be adopted by the members shall determine
procedures for setting meeting dates, locations, chairperson
rotation, agendas and staff support. - }
    { - (3) - }  { +  (1) + } The   { - Joint Boards of
Education - }   { + Higher Education Coordinating Commission + }
shall provide policy direction to implement regional partnership
proposals and any other joint program or activity approved by
 { - both boards - }  { +  the State Board of Education and the
State Board of Higher Education + }.
  (4) Notwithstanding section 20 (3) of this 2011 Act, the
Department of Community Colleges and Workforce Development and
the Oregon University System may use appropriations from the
General Fund to implement agreements approved by the   { - Joint
Boards of Education - }  { +  Higher Education Coordinating
Commission + } that provide direct aid to a student, or other
incentives that encourage shared use of facilities, programs and
other resources of public universities listed in ORS 352.002 and
community colleges.
  SECTION 206. ORS 348.900 is amended to read:
  348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  (2) Based on the needs assessment, the Joint Boards of
Education shall inform  { + the + } community colleges,
 { - state institutions of higher education within the Oregon
University System - }  { +  public universities listed in ORS
352.002 + }, Oregon Health and Science University and health care
industry employers of the identified statewide needs and invite
the development of health care education programs that are
responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education, the State Board of Higher Education and the
Oregon Health and Science University Board of Directors shall use
the statewide needs assessment to evaluate whether a program
fulfills statewide needs. If a board determines there is a
statewide need, the board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges,   { - state institutions of higher
education - }  { +  public universities + }, Oregon Health and
Science University, the State Board of Education, the State Board
of Higher Education and the Oregon Health and Science University
Board of Directors shall consider issues related to statewide
access, student transferability between programs, course
articulation and common student learning outcomes for health care
education programs. The  { + community + } colleges,
 { - institutions, - }  { +  public universities, Oregon Health

Enrolled Senate Bill 242 (SB 242-C)                      Page 147

and Science + } University and boards shall continue to provide
and improve upon an effective articulation and transfer framework
for students in Oregon's post-secondary sectors.
  SECTION 206a. ORS 348.900, as amended by section 206 of this
2011 Act, is amended to read:
  348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  (2) Based on the needs assessment, the   { - Joint Boards of
Education - }  { +  Higher Education Coordinating Commission + }
shall inform the community colleges, public universities listed
in ORS 352.002, Oregon Health and Science University and health
care industry employers of the identified statewide needs and
invite the development of health care education programs that are
responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education, the State Board of Higher Education and the
Oregon Health and Science University Board of Directors shall use
the statewide needs assessment to evaluate whether a program
fulfills statewide needs. If a board determines there is a
statewide need, the board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges, public universities, Oregon Health
and Science University, the State Board of Education, the State
Board of Higher Education and the Oregon Health and Science
University Board of Directors shall consider issues related to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs. The community colleges, public
universities, Oregon Health and Science University and boards
shall continue to provide and improve upon an effective
articulation and transfer framework for students in Oregon's
post-secondary sectors.
  SECTION 207. ORS 348.910 is amended to read:
  348.910. (1) As used in this section, 'applied baccalaureate
degree' means a bachelor's degree designed to incorporate applied
associate courses and degrees with additional coursework
emphasizing higher-order thinking skills and advanced technical
knowledge and skills.
  (2) The Joint Boards of Education shall develop a plan for
offering applied baccalaureate degree programs at community
colleges and   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + }. The boards
shall consider the following types of programs for the purpose of
offering some of these types and the possibility of combinations
of these types:

Enrolled Senate Bill 242 (SB 242-C)                      Page 148

  (a) A career ladder program that requires a substantial number
of upper level courses in the same technical area of study as the
student's applied associate degree;
  (b) An inverse program that reverses the traditional curriculum
sequence by adding general education courses in the student's
third and fourth years to the associate degree courses taken in
the student's first and second years;
  (c) A management ladder program that combines associate degree
requirements with applied management skills coursework; and
  (d) A work experience program that combines general education
and technical coursework with direct, supervised work experience
in a relevant field.
  (3) The Joint Boards of Education plan must include the
following elements:
  (a) The method by which the applied baccalaureate degree
programs will be created, including any necessary accreditation
by the relevant accrediting agency;
  (b) The criteria for approving the degree and course options
offered by   { - state institutions of higher education - }  { +
public universities listed in ORS 352.002 + } and community
colleges;
  (c) The articulation agreements between community colleges and
 { - state institutions of higher education - }  { +  public
universities listed in ORS 352.002 + } necessary to ensure that
the applied baccalaureate degree programs are as widely available
as possible;
  (d) The resources required to implement the applied
baccalaureate degree program;
  (e) The timeline necessary to implement the applied
baccalaureate degree program; and
  (f) A recommendation as to whether community colleges should be
allowed to offer applied baccalaureate degrees.
    { - (4) The Joint Boards of Education shall submit a report,
along with proposed legislation, to the interim committee of the
Legislative Assembly related to higher education prior to
November 1, 2010. The boards shall provide progress reports on
the plan to the interim committee. - }
    { - (5) The Oregon University System, the Department of
Education and the Department of Community Colleges and Workforce
Development shall provide staff support to the Joint Boards of
Education in the preparation of the reports required by this
section. - }
  SECTION 207a. ORS 348.910, as amended by section 207 of this
2011 Act, is amended to read:
  348.910. (1) As used in this section, 'applied baccalaureate
degree' means a bachelor's degree designed to incorporate applied
associate courses and degrees with additional coursework
emphasizing higher-order thinking skills and advanced technical
knowledge and skills.
  (2) The   { - Joint Boards of Education - }  { +  Higher
Education Coordinating Commission + } shall develop a plan for
offering applied baccalaureate degree programs at community
colleges and public universities listed in ORS 352.002. The
 { - boards - }  { +  commission + } shall consider the following
types of programs for the purpose of offering some of these types
and the possibility of combinations of these types:
  (a) A career ladder program that requires a substantial number
of upper level courses in the same technical area of study as the
student's applied associate degree;

Enrolled Senate Bill 242 (SB 242-C)                      Page 149

  (b) An inverse program that reverses the traditional curriculum
sequence by adding general education courses in the student's
third and fourth years to the associate degree courses taken in
the student's first and second years;
  (c) A management ladder program that combines associate degree
requirements with applied management skills coursework; and
  (d) A work experience program that combines general education
and technical coursework with direct, supervised work experience
in a relevant field.
  (3) The   { - Joint Boards of Education - }  plan must include
the following elements:
  (a) The method by which the applied baccalaureate degree
programs will be created, including any necessary accreditation
by the relevant accrediting agency;
  (b) The criteria for approving the degree and course options
offered by public universities listed in ORS 352.002 and
community colleges;
  (c) The articulation agreements between community colleges and
public universities listed in ORS 352.002 necessary to ensure
that the applied baccalaureate degree programs are as widely
available as possible;
  (d) The resources required to implement the applied
baccalaureate degree program;
  (e) The timeline necessary to implement the applied
baccalaureate degree program; and
  (f) A recommendation as to whether community colleges should be
allowed to offer applied baccalaureate degrees.
  SECTION 208. ORS 351.065 is amended to read:
  351.065. (1) The State Board of Higher Education may, for each
 { - institution, division and department - }   { + public
university or office, department or activity + } under its
control { + , + } adopt rules and specific orders by or through
the   { - institutional executive of each institution - }  { +
president of each public university + } governing access to
personnel records of the   { - institution, division or
department, which - }   { + public university or office,
department or activity that + } are less than 25 years old.
  (2) Rules adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless upon a finding by the   { - institutional
executive - }  { +  president of the public university + } that
the public interest in maintaining individual rights to privacy
in an adequate educational environment would not suffer by
disclosure of such records. Access to such records may be limited
to designated classes of information or persons, or to stated
times and conditions, or to both, but cannot be limited for
records more than 25 years old.
  (3) No rule or order promulgated pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the board or its   { - institutions,
schools or departments - }  { +  public universities or offices,
departments or activities + }, except as provided in
 { - paragraphs (d) and (e) of this subsection - }  { +
subsections (7) and (8) of this section + }.
    { - (a) - }  { +  (4) + } The number of files relating to the
evaluation of a faculty member shall be limited to three, to be
kept in designated, available locations.
    { - (b) - }  { +  (5) + } Any evaluation received by
telephone shall be documented in each of the faculty member's

Enrolled Senate Bill 242 (SB 242-C)                      Page 150

files by means of a written summary of the conversation with the
names of the conversants identified.
    { - (c) - }  { +  (6) + } A faculty member shall be entitled
to submit, for placement in the three files, evidence rebutting,
correcting, amplifying or explaining any document contained
therein and other material   { - which - }   { + that + } the
member believes might be of assistance in the evaluation process.
    { - (d) - }  { +  (7) + } Letters and other information
submitted in confidence to the board or its   { - institutions,
schools or departments - }   { + public universities, offices,
departments or activities + } prior to July 1, 1975, shall be
maintained in the files designated. However, if a faculty member
requests access to those files, the anonymity of the contributor
of letters and other information obtained prior to July 1, 1975,
shall be protected.  The full text shall be made available except
that portions of the text   { - which - }   { + that + } would
serve to identify the contributor shall be excised by a faculty
committee. Only the names of the contributors and the excised
portions of the documents may be kept in a file other than the
three prescribed by   { - paragraph (a) of this subsection - }
 { +  subsection (4) of this section + }.
    { - (e) - }  { +  (8) + } Confidential letters and other
information submitted to or solicited after July 1, 1975, by the
board or its
  { - institutions, schools or departments - }   { + public
universities, offices, departments or activities + } prior to the
employment of a prospective faculty member are exempt from the
provisions of this section. However, if the member is employed by
the board or its
  { - institutions, schools or departments - }  { +  public
universities, offices, departments or activities + }, the
confidential preemployment materials shall be placed in the three
authorized files. If a faculty member requests access to the
member's files, the anonymity of the contributor of confidential
preemployment letters and other preemployment information shall
be protected. The full text shall be made available, except that
portions of the text
  { - which - }   { + that + } would serve to identify the
contributor shall be excised and retained in a file other than
the three designated in
  { - paragraph (a) of this subsection - }  { +  subsection (4)
of this section + }.
    { - (f) - }  { +  (9) + } Classroom survey evaluation by
students of a faculty member's classroom or laboratory
performance shall be anonymous. The record of tabulated reports
shall be placed in at least one of the files designated in
 { - paragraph (a) of this subsection - }  { +  subsection (4) of
this section + }. All survey instruments used to obtain
evaluation data shall be returned to the faculty member.
    { - (g) - }  { +  (10) + } After July 1, 1975, the board
 { - , - }  { +  and + } its
  { - institutions, schools or departments - }   { + public
universities, offices, departments or activities, + } when
evaluating its employed faculty members { + , + }   { - shall - }
 { + may + } not solicit   { - nor - }   { + or + } accept
letters, documents or other materials, given orally or in written
form, from individuals or groups who wish their identity kept
anonymous or the information they provide kept confidential.
    { - (4) - }  { +  (11) + } No rule or order promulgated
pursuant to this section limits the authority of the

Enrolled Senate Bill 242 (SB 242-C)                      Page 151

 { - institution, division or department - }   { + public
universities, offices, departments or activities under the
control of the board + } to prepare, without identification of
individual persons who have not consented thereto, statistical or
demographic reports from personnel records.
    { - (5) - }  { +  (12) + } Any category of personnel records
specifically designated as confidential pursuant to valid rules
or orders pursuant to this section   { - shall not be deemed - }
 { + is not + } a public record for the purposes of ORS 192.420.
    { - (6) - }  { +  (13) + } As used in this section,
'personnel records ' means records containing information kept by
the   { - institution, division or department - }   { + public
university, office, department or activity + } concerning a
faculty member and furnished by the faculty member or by others
about the faculty member at the   { - member's or at the
institution, division or department's - }  request { +  of the
faculty member or the public university, office, department or
activity + }, including, but not limited to, information
concerning discipline, membership activity, employment
performance or other personal records of individual persons.
  SECTION 209. ORS 351.067 is amended to read:
  351.067. (1) In carrying out its authority under ORS 351.070,
the State Board of Higher Education may authorize receipt of
compensation for any officer or employee of the Oregon University
System from private or public resources, including, but not
limited to, income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the Oregon University
System;
  (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
Oregon University System and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates,   { - which
augment - }   { + that augments + } an officer's or employee's
publicly funded salary. Such income shall be authorized and
received in accordance with policies and rules established by the
board.
  (2) The board may not authorize compensation, as
 { - defined - }  { +  described + } in subsection (1) of this
section, that, in the board's judgment, does not comport with the
mission of   { - the institution - }  { +  a public university
listed in ORS 352.002 + } and the Oregon University System or
substantially interferes with an officer's or employee's duties
to the Oregon University System.
  (3) Any compensation described and authorized under subsection
(1) of this section is considered official compensation or
reimbursement of expenses for purposes of ORS 244.040 and is not
considered an honorarium prohibited by ORS 244.042. If
authorization or receipt of the compensation creates a potential
conflict of interest, the officer or employee shall report the
potential conflict in writing in accordance with rules of the
  { - state - }  board. The disclosure is a public record subject
to public inspection.
  (4) The   { - state - }  board shall adopt by rule standards
governing employee outside employment and activities, including

Enrolled Senate Bill 242 (SB 242-C)                      Page 152

potential conflict of interest, as defined by   { - state - }
board rule and consistent with ORS 244.020, and the public
disclosure thereof, and procedures for reporting and hearing
potential or actual conflict of interest complaints.
  SECTION 210. ORS 351.072 is amended to read:
  351.072. (1) Notwithstanding ORS chapter 183, the following
actions may be taken by the State Board of Higher Education or
the
  { - educational institutions - }  { +  public universities + }
under its control without compliance with the rulemaking
provisions of ORS chapter 183:
  (a) Adoption of standards, regulations, policies or practices
relating primarily to admissions, academic advancement, classroom
grading policy, the granting of academic credits, granting of
degrees, scholarships and similar academic matters.
  (b) Adoption of fees or fee schedules relating to charges for
symposiums, conferences, short courses, food, books or other
retail goods, prices of admission to athletic, entertainment or
cultural events or advertising rates in student or
 { - institutional - }  { + university + } publications. However,
student loan service charges, charges levied as penalties for
prohibited conduct, general tuition, building fees, incidental
fees, health service fees and residence hall and housing charges
shall be adopted in accordance with the provisions of ORS chapter
183.
  (2) Any standards, regulations, policies, practices or fees
adopted under this section by the State Board of Higher Education
or by any of the   { - educational institutions - }  { +  public
universities + } under its control shall be reduced to writing
and made available to interested persons upon request.
  SECTION 211. ORS 351.077 is amended to read:
  351.077. (1) Pursuant to ORS 342.447, the   { - office of
the - } Chancellor of the Oregon University System shall ensure
the implementation of the plans developed for recruitment of
minority teachers.
  (2) The chancellor shall report biennially to the State Board
of Higher Education and the Legislative Assembly on the
implementation and results of the plans. The report may include
recommendations on ways in which the Legislative Assembly can
assist in increasing the number of minority teachers.
  SECTION 212. ORS 351.088 is amended to read:
  351.088. Notwithstanding ORS chapter 183, the State Board of
Higher Education or any   { - state institution of higher
education under the jurisdiction of the board - }  { +  public
university listed in ORS 352.002 + } may, by rule, establish
adjudicative procedures that are consistent with federal and
state constitutional requirements and other provisions of law.
The adjudicative procedures shall be consistent with ORS 183.413
to 183.497 and 183.502 whenever the type of hearing or procedure
required is substantially of the character that would necessitate
the procedures required by ORS 183.413 to 183.470.
  SECTION 213. ORS 351.097 is amended to read:
  351.097. (1) The payment of salary or compensation of the
officers, teachers, instructors and other employees of the Oregon
University System, where such salary or compensation is payable
out of the State Treasury and is fixed by law or the State Board
of Higher Education at a definite rate per hour, day, week, month
or year, shall be made weekly, biweekly, semimonthly or monthly
with any necessary adjustments, as provided in this section.

Enrolled Senate Bill 242 (SB 242-C)                      Page 153

  (2) With the approval of the board, the Chancellor of the
Oregon University System shall make out, certify and transmit to
the board at the end of each pay period a payroll, duly verified
by the chancellor or other designated officer and approved by the
proper auditing committee or officer, showing the names of the
several officers, teachers, instructors and other employees
during the preceding payroll period, the rate of compensation of
each by the hour, day, week, month or year, the time employed,
the amount due and any other facts the board requires. The board,
if it approves the payroll, shall draw a warrant on the State
Treasurer for the aggregate amount allowed in favor of the
chancellor, who shall immediately pay over the moneys received to
the several parties entitled thereto and take receipts therefor,
which shall be transmitted to the board.
  (3) Notwithstanding subsection (2) of this section   { - or any
other law - }  and pursuant to ORS 293.330, the State Board of
Higher Education may authorize the chancellor to designate a
person employed by and located at each   { - institution of
higher education - }  { +  public university  + }under the
jurisdiction of the board to implement and administer the payroll
system selected by the board to pay employees designated by the
board. The person shall be under bond to the State of Oregon.
  (4) When an employee receives payment of salary or compensation
in an amount greater than the employee's entitlement, the amount
of the overpayment may be deducted from salary or compensation
earned by the employee. The deduction may be in such form and
manner as the State Board of Higher Education may prescribe.
  SECTION 214. ORS 351.117 is amended to read:
  351.117. (1) If the State Board of Higher Education determines
that enrollment is sufficient to make an American Sign Language
class economically viable and if qualified instructors are
available, the board may offer to students courses for credit in
American Sign Language at   { - any institution of higher
education within the Oregon University System - }  { +  a public
university + }. Such courses shall satisfy any second language
elective requirement.
  (2) The State Board of Higher Education is encouraged to
continue to:
  (a) Coordinate with the State Board of Education   { - and the
Oregon School for the Deaf - }  to develop curricula for American
Sign Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and
  (c) Assist   { - institutions of higher education - }  { +
public universities + } in identifying local and regional needs
and resources available for American Sign Language courses.
   { +  NOTE: + } Section 215 was deleted by amendment.
Subsequent sections were not renumbered.
  SECTION 216. ORS 351.203 is amended to read:
  351.203. (1) The State Board of Higher Education shall
cooperate with the Education and Workforce Policy Advisor in the
development of a state comprehensive education plan including
post-secondary education and in review of the board's programs
and budget. The board shall submit in timely fashion to the
advisor such data as is appropriate in a form prescribed by the
advisor.
  (2) The board shall cooperate with the mediation process
administered by the   { - Oregon Student Assistance
Commission - }   { + Higher Education Coordinating Commission + }
pursuant to ORS 348.603 and, if a negotiated resolution cannot be

Enrolled Senate Bill 242 (SB 242-C)                      Page 154

reached by mediation, comply with the decisions of the commission
regarding proposed new post-secondary programs and proposed new
post-secondary locations, including those proposed by Oregon
Health and Science University in cooperation with the
 { - board - }   { + State Board of Higher Education + } under
ORS 353.440.
  SECTION 217. ORS 351.205 is amended to read:
  351.205. The State Board of Higher Education may allow
interchange of members of the faculties of   { - institutions of
higher learning - }  { +  public universities listed in ORS
352.002 + } with faculty members of comparable institutions of
other states or countries for a period of one year. Such exchange
service shall, for all purposes, be deemed continued service with
the Oregon
  { - institution - }  { +  public university + } covered, with
salary paid to the absent faculty member accordingly. Salary for
the visiting faculty member shall not be paid by the Oregon
 { - institution - }  { +  public university + } covered.
  SECTION 218. ORS 351.230 is amended to read:
  351.230. The State Board of Higher Education may manage,
develop or dispose of { + , + } by assignment, sale, lease,
license or other action deemed advisable by the board, property
acquired under ORS 351.220, and may contract with any person or
agency, board, commission or department of this or any other
state or with the federal government regarding the management,
development or disposition thereof. The board may make gratuitous
assignments of such property to any trust or fund, the sole
beneficiary of which is the   { - State - }  board   { - of
Higher Education - }  or any of the
  { - institutions - }  { +  public universities or offices,
departments + } or activities under its control, subject to the
share, if any, agreed to be paid to the assignor. The board may
reassign such property to the inventor, author or discoverer.
  SECTION 219. ORS 351.300 is amended to read:
  351.300. The Legislative Assembly finds that in order to avoid
unnecessary disruption at public   { - institutions of higher
education - }  { +  universities listed in ORS 352.002 + } and in
order to provide assurance that the   { - institutions - }  { +
public universities + } share in the benefits of any major reform
in the Oregon tax system, it is necessary to stabilize funding
for   { - such institutions - }  { +  the Oregon University
System + } over a longer period than is customary with biennial
budgeting.
  SECTION 220. ORS 351.310 is amended to read:
  351.310. (1) The State Board of Higher Education shall control
the use, distribution and disbursement of all funds,
appropriations and taxes now or hereafter in possession, levied
and collected, received or appropriated for the use, benefit,
support and maintenance of   { - institutions, departments or
activities of higher education - }  { +  the public universities
listed in ORS 352.002 and offices, departments and activities
under the control of the board + }, including the authorization
of individuals to sign vouchers for the disbursement of funds for
the various
  { - institutions, - }   { + public universities, offices, + }
departments and activities.
  (2) All moneys, except moneys appropriated from the State
Treasury for expenditure within a specified period of time,
heretofore or hereafter received by or on behalf of the
 { - State - } board   { - of Higher Education - } , or any

Enrolled Senate Bill 242 (SB 242-C)                      Page 155

 { - institution, department or activity under its control,
which - }   { + public university or office, department or
activity under the control of the board, that + } are not
otherwise appropriated by law, hereby are appropriated
continuously to the State Board of Higher Education for the
purposes for which such moneys were donated, granted or received,
in accordance with any applicable law governing the use of such
moneys.
  SECTION 221. ORS 351.320 is amended to read:
  351.320. The State Board of Higher Education may prorate all
expenses not otherwise provided for, incurred under authority of
ORS 351.040, 351.050,   { - 351.090 to - }   { + 351.100, + }
351.110, 351.130 and 351.310 to the   { - institutions - }
 { + public universities + } under its control, and pay the same
from the funds available for the general expenses of those
 { - institutions - }  { +  universities + }.
  SECTION 222. ORS 351.340 is amended to read:
  351.340. All sums of money provided by law for the support and
maintenance of   { - institutions and activities of higher
learning - }  { +  the public universities listed in ORS 352.002
and offices, departments and activities under the control of the
State Board of Higher Education + } may be used for the payment
of salaries of instructors and employees, current expenses,
construction of additional buildings, purchase of lands, purchase
of equipment, purchase of library books and periodicals, purchase
of laboratory supplies and apparatus  { - , - }   { + and + }
making necessary repairs and, in general, for the payment of all
such expenses connected with the management of   { - such
institutions and activities of higher learning - }  { +  the
public universities and offices, departments and activities + },
as the board may from time to time determine. However, such
 { - money - }   { + moneys + } in the instruction budget of the
board shall not be used to support hobby or recreation courses.
  SECTION 223. ORS 351.590 is amended to read:
  351.590. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
receiving all revenue from incidental fees, optional fees, health
services fees and all operating revenue from intercollegiate
athletics, student unions and educational activities.
  (2) Disbursements from the account designated by this section,
including any interest credited to the account, may be made for
necessary expenses for supplies, services and equipment
associated with student activities including but not limited to
recruiting, training and grant-in-aid to intercollegiate
athletes.
  (3) Income and interest derived from moneys in the account
designated by this section are credited to the account. The State
Board of Higher Education shall distribute annually the total
interest earnings proportionately to each   { - institution - }
 { + public university listed in ORS 352.002 + } based on each
 { - institution's - }  { +  university's + } average cash
balance in the account.
  SECTION 224. ORS 351.628 is amended to read:
  351.628. (1) There is established in the General Fund an
account to be known as the Higher Education Academic
Modernization Account. Funds in the account shall be used at
 { - state institutions of higher education within the Oregon
University System - }  { +  public universities listed in ORS
352.002 + } for academic modernization, capital repair, deferred

Enrolled Senate Bill 242 (SB 242-C)                      Page 156

maintenance and making facilities compliant with building and
safety codes.
  (2) The account shall consist of funds donated to the Oregon
University System for the purposes described in subsection (1) of
this section. The account may also consist of other funds
available to the Oregon University System for the purposes
described in subsection (1) of this section. The Oregon
University System may not deposit any moneys into the account
that were appropriated to the Department of Higher Education
under chapter 725, Oregon Laws 2003. Interest earned on moneys in
the account shall be credited to the account.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated to the
Oregon University System for the purposes described in subsection
(1) of this section. The account may not be credited with more
than $1,000,000 in interest, donations and other funds.
  SECTION 225. ORS 351.642 is amended to read:
  351.642. (1) As used in this section:
  (a) 'Active member of the Armed Forces of the United States'
includes officers and enlisted personnel of the Armed Forces of
the United States who:
  (A) Reside in this state while assigned to duty at any base,
station, shore establishment or other facility in this state;
  (B) Reside in this state while serving as members of the crew
of a ship that has an Oregon port or shore establishment as its
home port or permanent station; or
  (C) Reside in another state or a foreign country and establish
Oregon residency by filing Oregon state income taxes no later
than 12 months before leaving active duty.
  (b) 'Armed Forces of the United States' includes:
  (A) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (B) Reserve components of the Army, Navy, Air Force, Marine
Corps and Coast Guard of the United States; and
  (C) The National Guard of the United States and the Oregon
National Guard.
  (c) 'Dependent children' includes any children of an active
member of the Armed Forces of the United States who:
  (A) Are under 18 years of age and not married, otherwise
emancipated or self-supporting; or
  (B) Are under 23 years of age, unmarried, enrolled in a
full-time course of study in an institution of higher learning
and dependent on the member for over one-half of their support.
  (2) Active members of the Armed Forces of the United States and
their spouses and dependent children shall be considered
residents of this state for the purpose of admission and for the
purpose of determining fees and tuition to be paid by such
individuals while attending any   { - educational institution in
this state - }  { +  public university  + }that is under the
control of the State Board of Higher Education.
  (3) The State Board of Higher Education may contract with the
Armed Forces of the United States to furnish educational service
in   { - Oregon institutions - }  { +  the public
universities + } to active members of the Armed Forces of the
United States.
  (4) The State Board of Higher Education shall determine the
number of such students that should be accepted and shall make
final decisions on admission of individual applicants.

Enrolled Senate Bill 242 (SB 242-C)                      Page 157

  (5) Students attending   { - Oregon institutions - }  { +  the
public universities  + }under contracts with the Armed Forces of
the United States under this section shall pay fees and tuition
customarily charged Oregon students.
  (6) Payments made by the Armed Forces of the United States
under such contracts shall be deposited in a designated account
in the Oregon University System Fund established by ORS 351.506
in the same manner that fees and tuition payments for resident
students are deposited and credited.
  SECTION 226. ORS 351.643 is amended to read:
  351.643. (1) A student   { - at a state institution of higher
education - }   { + at a public university listed in ORS
352.002 + } who is a member of the military and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
 { - state institution of higher education - }  { +  public
university + } for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 351.644 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the   { - state
institution of higher education - }  { +  public university + },
the right to be readmitted and reenrolled at the   { - state
institution of higher education - }  { +  public university + }
within one year after release from active duty without a
requirement of redetermination of admission eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the   { - state
institution of higher education - }  { +  public university
 + }or the   { - Oregon Student Assistance Commission - }  { +
Oregon Student Access Commission + } before the student was
ordered to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the   { - state institution
of higher education - }  { +  public university + } may not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student

Enrolled Senate Bill 242 (SB 242-C)                      Page 158

completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The State Board of Higher Education shall adopt rules for
the administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 227. ORS 351.644 is amended to read:
  351.644. (1)(a) The amount of the credit specified in ORS
351.643 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at a
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } or from the   { - state
institution of higher education - }  { +  public university + },
the student must elect to claim the credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the   { - state institution of higher
education - }  { +  public university + } under ORS 351.643
(1)(c); or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
  { - state institution of higher education - }  { +  public
university + } from which the student withdraws.
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the   { - state institution of higher education - }
 { +  public university + } that the student died while serving
on active duty.
  (5) The State Board of Higher Education shall adopt rules for
the administration of this section, including rules that
determine the amount of credit and the method by which the credit
is prorated.
  SECTION 228. ORS 351.646 is amended to read:
  351.646. A   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 shall give
credit for education and training obtained by a person while
serving in the Armed Forces of the United States, as defined in
ORS 351.642. The education and training for which credit may be
given must meet the standards adopted by the State Board of
Higher Education by rule.

Enrolled Senate Bill 242 (SB 242-C)                      Page 159

  SECTION 229. ORS 351.647 is amended to read:
  351.647. The Legislative Assembly finds that:
  (1) It is in the interest of this state and its people that
Oregon residents have access to the post-secondary institutions
in the Northwest which best provide for the educational needs of
those students;
  (2) The people of Oregon and their post-secondary institutions
benefit through the provision of access to Oregon colleges and
universities for students from the state of Washington and from
the enhanced economic and cultural well-being of the northwest
region;
  (3) The state should reduce or eliminate the nonresident
tuition barriers which might exist between the states of Oregon
and Washington to restrict or inhibit enrollment of residents of
one of these states in a community college or public college or
university in the other state;
  (4) The general policy statement on reduction of admission and
tuition barriers between the states of Oregon and Washington
shall not apply to students at the Oregon Health and Science
University, where enrollment priority shall continue to be given
to qualified Oregon residents; and
  (5) The State Board of Higher Education and the   { - State
Board of Education - }  { +  Higher Education Coordinating
Commission + } shall develop plans to carry out the intent of
this policy within the appropriations available, and shall report
to the appropriate legislative review agency before implementing
the plan.
  SECTION 230. ORS 351.649 is amended to read:
  351.649. (1) For the purposes of this section:
  (a) 'Public institution of higher education' means:
  (A) A community college;
  (B) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (C) The Oregon Health and Science University.
  (b) 'School-sponsored media' means materials that are prepared,
substantially written, published or broadcast by student
journalists, that are distributed or generally made available,
either free of charge or for a fee, to members of the student
body and that are prepared under the direction of a student media
adviser. 'School-sponsored media' does not include media intended
for distribution or transmission solely in the classrooms in
which they are produced.
  (c) 'Student journalist' means a student who gathers, compiles,
writes, edits, photographs, records or prepares information for
dissemination in school-sponsored media.
  (d) 'Student media adviser' means a person who is employed,
appointed or designated by a public institution of higher
education to supervise, or provide instruction relating to,
school-sponsored media.
  (2) Student journalists are responsible for determining the
news, opinion, feature and advertising content of
school-sponsored media. This subsection does not prevent a
student media adviser from teaching professional standards of
English and journalism to the student journalists.
  (3) Nothing in this section may be interpreted to authorize
expression by students that:
  (a) Is libelous or slanderous;
  (b) Constitutes an unwarranted invasion of privacy;
  (c) Violates federal or state statutes, rules or regulations or
state common law; or

Enrolled Senate Bill 242 (SB 242-C)                      Page 160

  (d) So incites students as to create a clear and present danger
of:
  (A) The commission of unlawful acts on or off school premises;
  (B) The violation of school policies; or
  (C) The material and substantial disruption of the orderly
operation of the school. A school official must base a forecast
of material and substantial disruption on specific facts,
including past experience in the school and current events
influencing student behavior, and not on undifferentiated fear or
apprehension.
  (4) Any student enrolled in a public institution of higher
education may commence a civil action to obtain damages under
this subsection and appropriate injunctive or declaratory relief
as determined by a court for a violation of subsection (2) of
this section, the First Amendment to the United States
Constitution or section 8, Article I of the Oregon Constitution.
Upon a motion, a court may award $100 in damages and injunctive
and declaratory relief to a prevailing plaintiff in a civil
action brought under this subsection.
  SECTION 231. ORS 351.653 is amended to read:
  351.653. (1) In addition to any interstate agreements entered
into under ORS 351.647, the Governor shall encourage interstate
agreements with Washington, Idaho and California. Such agreements
shall be in accordance with ORS 190.410 to 190.440 and shall:
  (a) Provide for full-time equivalent reimbursement to this
state for any students from another state who enroll in an Oregon
public post-secondary institution pursuant to the agreement;
  (b) Provide that only students who reside in counties that
share a common border with this state may participate in any
program developed pursuant to such an agreement; and
  (c) Provide that the county government or other similar
county-wide public organization of any county involved in the
agreement shall provide or arrange to provide a portion of the
costs of attendance for participating students.
  (2) Any public post-secondary institution entering into an
interstate agreement under this section shall send a copy of the
agreement to the Governor and the   { - State Board of
Education - }  { +  Higher Education Coordinating Commission + }.
  (3) The provisions of this section shall not apply to
interstate agreements entered into pursuant to ORS 351.647.
  SECTION 232. ORS 351.656 is amended to read:
  351.656. (1) As used in this section:
  (a) 'Child' means a child, adopted child or stepchild of a
service member.
  (b) 'Eligible post-secondary institution' means:
  (A) A   { - state institution of higher education - }
 { + public university + } listed in ORS 352.002; and
  (B) The Oregon Health and Science University.
  (c) 'Qualified student' means a child, a spouse or an
unremarried surviving spouse of a service member.
  (d) 'Service member' means a person who:
  (A) As a member of the Armed Forces of the United States, died
on active duty;
  (B) As a member of the Armed Forces of the United States, died
as a result of a military service connected disability; or
  (C) Is 100 percent disabled as the result of a military service
connected disability, as certified by the United States
Department of Veterans Affairs or any branch of the Armed Forces
of the United States.

Enrolled Senate Bill 242 (SB 242-C)                      Page 161

  (2) Subject to subsections (3) to (6) of this section, an
eligible post-secondary institution shall waive tuition for a
qualified student for courses that may lead to a baccalaureate
degree or a master's degree. A qualified student who received a
tuition waiver for a baccalaureate degree may also qualify for a
tuition waiver for a master's degree.
  (3)(a) The maximum waiver granted under this section shall be
as follows:
  (A) For a baccalaureate degree, the total number of credit
hours that equals four years of full-time attendance at an
eligible post-secondary institution.
  (B) For a master's degree, the total number of credit hours
that equals two years of full-time attendance at an eligible
post-secondary institution.
  (b) Notwithstanding paragraph (a) of this subsection, a waiver
may not exceed the total number of credit hours the qualified
student needs to graduate with a baccalaureate degree or a
master's degree.
  (4) A waiver may be granted under this section only for credit
hours for courses that are offered by an eligible post-secondary
institution and are available for enrollment regardless of
whether the qualified student attends the course and pays
tuition.
  (5) A qualified student may receive a waiver under this section
if the student:
  (a) At the time of application for a waiver, is considered a
resident of this state for the purpose of determining tuition to
be paid at an eligible post-secondary institution; and
  (b) Has been admitted to an eligible post-secondary institution
for a baccalaureate degree program or has been admitted to a
master's degree program at an eligible post-secondary
institution.
  (6)(a) A child who applies for a waiver under this section must
be 23 years of age or younger at the time the child applies for a
waiver.
  (b) Notwithstanding paragraph (a) of this subsection, a child
who is older than 23 years of age is eligible for a waiver for a
master's degree if the child:
  (A) Applied for and received a waiver for a baccalaureate
degree when the child was 23 years of age or younger; and
  (B) Applied for a waiver for a master's degree within 12 months
of receiving a baccalaureate degree.
  SECTION 233. ORS 351.658 is amended to read:
  351.658. (1) The State Board of Higher Education shall direct
each   { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } to waive tuition for any
course audited by an Oregon resident 65 years of age or older if:
  (a) Space is available in the course for additional students to
register after degree-seeking students have registered;
  (b) The department in which the course is being taught
approves; and
  (c) The auditing student is registered for eight credits or
fewer per term.
  (2)   { - A state institution of higher education - }  { +  The
public university  + }may charge the student attending under
subsection (1) of this section fees associated with the course
being audited.
  (3) A   { - state institution of higher education - }  { +
public university + } may develop rules for implementation of

Enrolled Senate Bill 242 (SB 242-C)                      Page 162

this section, including rules relating to registration, admission
and fees.
  SECTION 234. ORS 351.700 is amended to read:
  351.700. As used in ORS 351.704 and 351.708, 'public
institution of higher education' means:
  (1) A community college; or
  (2) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002.
  SECTION 235. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education and the Oregon
Health and Science University Board of Directors may contract
with the Western Interstate Commission for Higher Education to
furnish educational service in their respective Oregon
 { - institutions - }   { + public universities + } to
out-of-state students.
  (2) The State Board of Higher Education and the Oregon Health
and Science University Board of Directors shall determine the
number of out-of-state students that should be accepted into
their respective   { - institutions - }  { +  universities + },
and shall make final decisions on admission of individual
applicants.
  (3) Payments made by the commission under such contracts shall
be deposited in and credited to a designated account in the
Oregon University System Fund established by ORS 351.506 for
students enrolled in   { - institutions - }   { + public
universities + } under the jurisdiction of the State Board of
Higher Education in the same manner that fees and tuition
payments for resident students are deposited and credited. The
estimated amount of the payments must be considered by the board
in making its biennial budgetary requests. Payments made by the
commission under such contracts must be deposited with the Oregon
Health and Science University for students who enroll in that
university under the terms of such contracts.
  SECTION 236. ORS 351.870 is amended to read:
  351.870. (1) The Legislative Assembly finds and declares that
basic research is fundamental to the continuation and expansion
of applied research and is thus a necessary ingredient in
economic growth. The Legislative Assembly further finds that
basic research is itself an important activity which should be
promoted.
  (2) It is the policy of this state that basic research is an
appropriate and necessary activity of our public universities.
Further, the State of Oregon has an obligation with other states
and the federal government to encourage and finance basic
research if the state and nation are to be active participants in
a future which will require ever increasing levels of knowledge
and understanding.
  (3) The Legislative Assembly acknowledges that a characteristic
of basic research is that no defined result can be guaranteed and
asserts that only through scholarly investigation can knowledge
be advanced to be later developed and applied.
  (4) The Legislative Assembly believes that moneys for basic
research should be regularly appropriated and that such moneys
should be used for support of qualified investigators and funding
of research projects.
  (5) The Legislative Assembly intends that in implementing the
policy on basic research or any other research policy, the State
Board of Higher Education, in keeping with the principle of
academic freedom, shall   { - insure - }   { + ensure + } open

Enrolled Senate Bill 242 (SB 242-C)                      Page 163

and free inquiry and publication in all   { - institutions - }
 { + public universities + } under its jurisdiction.
  SECTION 237. ORS 351.885 is amended to read:
  351.885. (1) With the advice and recommendations of the Council
for Research Policy Recommendations established by ORS 351.880,
the State Board of Higher Education shall adopt policies and
procedures for the administration of the account designated by
ORS 351.875.
  (2) The policies and procedures shall give consideration to:
  (a) The promotion of basic research of the highest caliber at
  { - institutions of higher education - }  { +  public
universities + } within the Oregon University System;
  (b) The identification of areas of inquiry that should be
supported so as to recognize both the intrinsic value and
extrinsic economic value of basic research;
  (c) The capacity of each   { - institution of higher
education - }  { +  public university + } to decide where basic
research moneys could best be spent within that
 { - institution - }  { +  public university + };
  (d) Administrative and accounting requirements that place upon
the   { - institution of higher education - }  { +  public
university + } receiving moneys from the account designated by
ORS 351.875 a minimum burden sufficient to guarantee an
appropriate degree of public accountability; and
  (e) Methods of   { - assuring - }   { + ensuring + }
nondiscriminatory access to the account designated by ORS
351.875.
  SECTION 238. ORS 352.004 is amended to read:
  352.004. The president of each   { - state institution of
higher education - }  { +  public university + } within the
Oregon University System is also president of the faculty. The
president is also the executive and governing officer of the
 { - institution - }  { +  public university + }, except as
otherwise provided by statute { +  or action of the State Board
of Higher Education + }. Subject to the supervision of the
 { - State - }  board   { - of Higher Education - } , the
president of the
  { - institution - }  { +  public university + } has authority
to control and give general directions to the practical affairs
of the   { - institution - }  { +  public university + }.
  SECTION 239. ORS 352.008 is amended to read:
  352.008. In consultation with the Oregon Health Authority, each
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } shall adopt a comprehensive
alcohol and drug abuse policy and implementation plan.
  SECTION 240. ORS 352.015 is amended to read:
  352.015. (1)   { - Every institution under the jurisdiction of
the State Board of Higher Education - }  { +  Each public
university listed in ORS 352.002 + } shall convene a physical
access committee to identify barriers to access by persons with
disabilities on the campus of each   { - institution - }  { +
public university + }. The committee shall include, but not be
limited to:
  (a) One or more students with disabilities or, if there are no
students with disabilities willing to participate, a person with
a disability who uses the   { - institution's - }  { +  public
university's + } facilities;
  (b) One or more members of the faculty or staff who have
disabilities;

Enrolled Senate Bill 242 (SB 242-C)                      Page 164

  (c) The coordinator of services for students with disabilities
for the   { - institution - }  { +  public university + };
  (d) One or more administrators of the   { - institution - }
 { +  public university + }; and
  (e) One or more members of the physical plant staff of the
  { - institution - }  { +  public university + }.
  (2) The physical access committee shall present its findings
and recommendations to the administration of the
 { - institution - }  { +  public university + } listing access
needs and priorities for meeting those needs. These findings and
recommendations shall identify the barriers to access that
prevent persons with disabilities from meaningfully utilizing
campus facilities related to instruction, academic support,
assembly and residence life.
  (3) In preparing   { - budget - }   { + funding + } requests
for each biennium, each   { - institution under the jurisdiction
of the State Board of Higher Education - }  { +  public
university + } shall include amounts for capital improvement that
will be applied to the substantial reduction and eventual
elimination of barriers to access by persons with disabilities as
identified by the physical access committee.
  (4) Nothing in this section and ORS 185.155 and 341.937
requires   { - an institution - }   { + a public university + }
to undertake projects for accessibility that are not otherwise
required unless such projects are funded specifically by the
Legislative Assembly.
  SECTION 241. ORS 352.017 is amended to read:
  352.017. (1) As used in this section, 'personally identifiable
information' means a student's Social Security number and gender
or a student's Social Security number and date of birth.
  (2) A   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + } may enter into a
contract with a private contractor to provide the service of
facilitating the disbursement of funds to students. If a
student's personally identifiable information is necessary to
administer the disbursement of funds under the contract, the
 { - institution must - }  { +  public university + }:
  (a)  { + Shall + } obtain from a student a written election to
receive the contracted services;
  (b)  { + Shall + } provide any alternative method of
disbursement of funds at no additional cost to a student who does
not elect to receive those services from a private contractor;
  (c)  { + May + } not release to a private contractor personally
identifiable information about a student who elects to receive
disbursement services from the private contractor without first
obtaining from the student a written consent to release the
personally identifiable information; and
  (d)  { + Shall + } provide to a student a written description
of the purposes for which a private contractor may use the
student's personally identifiable information.
  SECTION 242. ORS 352.021 is amended to read:
  352.021. (1) As used in this section, 'internment camp ' means
a relocation center to which persons were ordered evacuated by
Presidential Executive Order 9066, signed on February 19, 1942.
  (2) A person who meets the requirements of subsection (4) of
this section may request a   { - state institution of higher
education - }  { +  public university + } listed in ORS 352.002
to award the person an honorary post-secondary degree.
  (3) A representative of a deceased person who meets the
requirements of subsection (4) of this section may request a

Enrolled Senate Bill 242 (SB 242-C)                      Page 165

  { - state institution of higher education listed in ORS
352.002 - }  { +  public university + } to award an honorary
post-secondary degree on behalf of the deceased person.
  (4) Notwithstanding the requirements for a post-secondary
degree established by a   { - state institution of higher
education - }  { +  public university + } or by the State Board
of Higher Education, a
  { - state institution of higher education - }  { +  public
university + } that receives a request under subsection (2) or
(3) of this section may award an honorary post-secondary degree
to a person, or on behalf of a deceased person, who:
  (a) Was a student at the   { - state institution of higher
education - }  { +  public university + } in 1942; and
  (b) Did not graduate from the   { - institution - }  { +
public university + } because the person was ordered to an
internment camp.
  SECTION 243. ORS 352.223 is amended to read:
  352.223. (1) As used in this section:
  (a) 'Allied health education programs' includes, but is not
limited to:
  (A) Radiologic science;
  (B) Nuclear medicine;
  (C) Sonography;
  (D) Vascular technology;
  (E) Dental hygiene;
  (F) Respiratory care;
  (G) Clinical laboratory sciences; and
  (H) Emergency medical technician education.
  (b) 'Allied health education programs' does not include any
undergraduate or graduate nursing program administered by Oregon
Health and Science University.
  (2) There is created within the Oregon University System the
Oregon Center for Health Professions. The Oregon Center for
Health Professions shall be administered by the Oregon Institute
of Technology.
  (3) The purposes of the Oregon Center for Health Professions
are to:
  (a) Provide continued development of bachelor's degree level
education programs in areas of allied health;
  (b) Facilitate the creation of new partnerships between the
health care industry and community colleges, private institutions
of higher education and   { - state institutions of higher
education - }  { + public universities listed in ORS 352.002 + }
in order to increase the number of students and graduates in
allied health education programs;
  (c) Provide continuing education, professional development and
certificate programs for allied health care professionals; and
  (d) Align with and complement educational partnerships between
the Oregon Institute of Technology and Oregon Health and Science
University focusing on allied health education programs.
  (4) The Oregon University System may receive moneys from any
public or private source to support the Oregon Center for Health
Professions. Gifts and grants received to support the Oregon
Center for Health Professions shall be credited to the
appropriate fund at the Oregon Institute of Technology by the
Oregon University System.
  SECTION 244. ORS 352.360 is amended to read:
  352.360. (1) The State Board of Higher Education may enact such
regulations as the board deems convenient or necessary to provide
for the policing, control and regulation of traffic and parking

Enrolled Senate Bill 242 (SB 242-C)                      Page 166

of vehicles on the property of any   { - institution of higher
education under the jurisdiction of the board - }  { +  public
university listed in ORS 352.002 + }. The regulations may provide
for the registration of vehicles, the designation of parking
areas  { - , - }  and the assessment and collection of reasonable
fees and charges for parking  { - , and shall be filed in
accordance with the provisions of ORS chapter 183 - } . The board
may require that before a quarterly or yearly parking privilege
for any vehicle is granted to any full-time or part-time student
to use board property, the student must show that the vehicle is
operated by a student holding a valid   { - driver's - }
 { + driver + } license, that the vehicle is currently registered
and that the student driving the vehicle is insured under a motor
vehicle liability insurance policy that meets the requirements
described under ORS 806.080 or that the student or owner of the
vehicle has provided the Department of Transportation with other
satisfactory proof of compliance with the financial
responsibility requirements of this state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by the board for each   { - institution of higher
education under the jurisdiction of the board - }  { +  public
university + }.  Administrative and disciplinary sanctions may be
imposed upon students, faculty and staff for violation of the
regulations, including but not limited to, a reasonable monetary
penalty which may be deducted from student deposits, and faculty
or staff salaries or other funds in the possession of the
 { - institution - }  { +  public university + }. The board shall
provide opportunity for hearing for the determination of
controversies in connection with imposition of fines or
penalties. The board may prescribe procedures for such hearings
despite the provisions of ORS 183.413 to 183.470. Persons other
than students, faculty or staff may voluntarily submit to the
hearing procedures prescribed by the board, and shall be bound by
the results of the hearing. The powers granted to the board by
this section are supplemental to the existing powers of the board
with respect to the government of activities of students, faculty
and staff and the control and management of property under its
jurisdiction.
  (3) The regulations enacted pursuant to subsection (1) of this
section may also be enforced by the impoundment of vehicles, and
a reasonable fee may be enacted for the cost of impoundment and
storage, if any, prior to the release of the vehicles to their
owners.
  (4) All fees and charges for parking privileges and violations
are deposited in a designated account in the Oregon University
System Fund established by ORS 351.506 for the purpose of
defraying the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations  { - , - }  and maintenance and operation of parking
facilities and for the purpose of acquiring and constructing
additional parking facilities for vehicles at the various
 { - institutions, departments or - }   { + public universities
and offices, departments and + } activities under the control of
the board. Fees and charges may also be credited to the account
in the Oregon University System Fund designated by ORS 351.460.
Parking fees shall be established at levels no greater than those
required to finance the construction, operation and maintenance
of parking facilities on the same campus of the   { - state
institution of higher education on - }  { + public university

Enrolled Senate Bill 242 (SB 242-C)                      Page 167

for + } which the parking is provided.  Notwithstanding ORS
351.072, parking fees or changes in fees shall be adopted by rule
of the   { - state - }  board subject to the procedure for rules
adopted in ORS chapter 183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section. The board, for the
purpose of enforcing its rules and regulations governing traffic
control, may appoint peace officers who have the same authority
as other peace officers as defined in ORS 133.005.
  (6) The board and any municipal corporation or any department,
agency or political subdivision of this state may enter into
agreements or contracts with each other for the purpose of
providing a uniform system of enforcement of the rules and
regulations of the board enacted pursuant to subsection (1) of
this section.
  (7) In proceedings brought to enforce regulations enacted
pursuant to subsection (1) of this section, it shall be
sufficient to charge the defendant by an unsworn written notice
in accordance with the provisions of ORS 221.333. In any case in
which the defendant is not subject to and does not voluntarily
submit to the hearing procedures prescribed under subsection (2)
of this section, proceedings to enforce regulations enacted
pursuant to subsection (1) of this section shall be brought in
the name of the board in a circuit court, a justice court or a
city court for offenses committed within the territorial
jurisdiction of such court. Such courts shall have concurrent
jurisdiction over offenses committed within their respective
jurisdictions. All fines, penalties and court costs recovered
shall be paid to the clerk of the court involved and shall be
disposed of as provided in ORS 153.630.
  SECTION 245. ORS 352.370 is amended to read:
  352.370. (1) As used in this section, 'school of higher
education' means:
  (a) Any   { - school, institution or department under the
jurisdiction of the State Board of Higher Education - }  { +
public university listed in ORS 352.002 + }.
  (b) Any community college as defined in ORS 341.005.
  (2) No student shall be refused admission to a school of higher
education or be expelled from such a school for the sole reason
that, because of religious beliefs, the student is unable to
attend classes on a particular day.
  (3) Any student in a school of higher education who, because of
religious beliefs, is unable to attend classes on a particular
day shall be excused on that day from any examination, study
requirement or work requirement. However, at the student's own
expense the student shall make up the examination, study
requirement or work requirement missed because of the absence.
  SECTION 246. ORS 352.375 is amended to read:
  352.375. (1) A   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 or a community
college shall charge an enrolled student who is not a resident of
this state and who is attending classes as an undergraduate on a
public university or community college campus in this state
tuition and fees no greater than the resident rate plus 50
percent of the difference between the resident rate and the
nonresident rate if the student served in the Armed Forces of the
United States and was relieved or discharged from that service
under honorable conditions.
  (2) Every   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002 and community college

Enrolled Senate Bill 242 (SB 242-C)                      Page 168

in this state shall participate to the fullest extent allowed in
the federal educational assistance programs under the
Supplemental Appropriations Act of 2008 (P.L. 110-252) so as to
reduce the overall tuition rate for students eligible for tuition
rate reduction under subsection (1) of this section to the
resident tuition rate.
  (3) A person who served in the Armed Forces of the United
States and who receives federal tuition benefits in excess of the
tuition and fees the person is charged under subsection (1) of
this section at a   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 or a community
college where the person is enrolled shall pay tuition and fees
equal to the federal tuition benefits received.
  (4) Distance education and self-support courses as identified
by each   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002 and community college
are exempt from the tuition reduction provisions of this section.
  (5) If a nonresident student otherwise eligible for tuition
benefits under this section is receiving federal vocational
rehabilitation education benefits, that student shall pay full
nonresident tuition and fees charged by a   { - state institution
of higher education - }  { +  public university + } listed in ORS
352.002 or a community college.
  SECTION 247. ORS 352.380 is amended to read:
  352.380. (1) As used in this section, 'minority' means:
  (a) A person having origins in any of the black racial groups
of Africa but who is not Hispanic;
  (b) A person of Hispanic culture or origin;
  (c) A person having origins in any of the original peoples of
the Far East, Southeast Asia, the Indian subcontinent or the
Pacific Islands; or
  (d) An American Indian or Alaskan Native having origins in any
of the original peoples of North America.
  (2) Each   { - institution under the jurisdiction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + } shall:
  (a) Consider and maintain affirmative action plans and goals
when reductions in faculty and staff are required as a result of:
  (A) Reductions in revenue that necessitate discontinuance of
its educational program at its anticipated level;
  (B) Elimination of classes due to decreased student enrollment;
or
  (C) Reduction in courses due to administrative decisions.
  (b) Interview one or more qualified minority applicants when
hiring a head coach or athletic director, unless the
 { - institution - }  { +  public university + } was unable to
identify a qualified minority applicant who was willing to
interview for the position. It is an affirmative defense to a
claim of a violation of this paragraph that the
 { - institution - }  { +  public university + }, in good faith,
was unable to identify a qualified minority applicant who was
willing to interview for the position.
  SECTION 248. ORS 352.380, as amended by section 3, chapter 780,
Oregon Laws 2009, is amended to read:
  352.380. Each   { - institution under the jurisdiction of the
State Board of Higher Education - }  { +  public university
listed in ORS 352.002 + } shall consider and maintain affirmative
action plans and goals when reductions in faculty and staff are
required as a result of:

Enrolled Senate Bill 242 (SB 242-C)                      Page 169

  (1) Reductions in revenue that necessitate discontinuance of
its educational program at its anticipated level;
  (2) Elimination of classes due to decreased student enrollment;
or
  (3) Reduction in courses due to administrative decisions.
  SECTION 249. ORS 352.385 is amended to read:
  352.385. (1) The State Board of Higher Education may, at the
request of   { - any institution - }   { + a public
university + } under its control, authorize   { - that
institution - }   { + the university + } to commission one or
more of its employees as special campus security officers.
  { - However, - }  The total number of special campus security
officers commissioned at the   { - institutions - }   { + public
universities + } in the Oregon University System   { - shall - }
 { +  may + } not exceed 50. Special campus security officers
shall have stop and frisk authority as set forth in ORS 131.605
to 131.625 and probable cause arrest authority and the
accompanying immunities as set forth in ORS 133.310 and 133.315
when acting in the scope of their employment as defined by the
State Board of Higher Education. Special campus security officers
shall not be authorized to carry firearms as police officers and,
except as provided in subsection (3) of this section, shall not
be considered police officers for purposes of ORS 181.610,
238.005, 243.005 or 243.736.
  (2) The Department of Public Safety Standards and Training
shall train special campus security officers at the expense of
the State Board of Higher Education.
  (3) The State Board of Higher Education, acting by and through
its special campus security officers, is a criminal justice
agency for purposes of rules adopted pursuant to ORS 181.730 (3).
  SECTION 250. ORS 352.390 is amended to read:
  352.390. (1) The State Board of Higher Education shall cause to
have prepared and submitted to the Legislative Assembly a program
and time schedule for the establishment of regional services
institutes at appropriate   { - state institutions of higher
education - }  { +  public universities + }. The program shall
include academic curriculum and practical training appropriate to
train students in various aspects of economic and community
services planning, with particular emphasis on economic services
planning for areas of the state that have common geographic,
economic and social characteristics but that do not have
sufficient population to qualify as metropolitan statistical
areas.
  (2) In carrying out its duties under subsection (1) of this
section, the board shall consult with the Oregon Business
Development Department and shall rely on the department for
technical advice and, as necessary, technical services. The board
shall also consult with community colleges, the Oregon State
University Extension Service, economic development districts and
special districts providing community and economic development
services in the region in order to prepare curriculum and
programs with particular emphasis on streamlining existing
programs, avoiding duplication and overlap of programs, better
utilizing students and resources and identifying needs in the
region that are currently unaddressed.
  (3) In preparing programs for establishing regional services
institutes, the board shall give priority to establishing
institutes at Eastern Oregon University and Southern Oregon
University. The board may also direct the hiring of an institute
director and other staff as may be from time to time required.

Enrolled Senate Bill 242 (SB 242-C)                      Page 170

  SECTION 251. ORS 352.510 is amended to read:
  352.510. The interest that may accrue on an account arising
from the sale of lands for   { - institutions of higher
education - }  { +  public universities + } that were donated to
the state by Act of Congress of February 14, 1859, may be
deposited in and credited to an account in the Oregon University
System Fund established by ORS 351.506 for the purpose of the
maintenance, use and support of the University of Oregon. No part
of the interest may be expended otherwise than in the payment of
the salaries of the president, professors and teachers of the
University of Oregon and other current expenses of the University
of Oregon. If at the close of any fiscal year an amount equal to
or greater than $500 of the interest remains unexpended after the
full payment of the salaries and expenses for the fiscal year,
the amount shall be added to and become a part of the principal
of the account. The State Board of Higher Education or the
faculty or other officers of the University of Oregon may not
pledge the faith or credit of the University of Oregon in excess
of the interest annually accruing on the account, together with
the receipts from tuitions and other sources during the current
year.
  SECTION 252. ORS 352.669 is amended to read:
  352.669. The Legislative Assembly declares that all state
agencies  { - , in particular state institutions of higher
education, - }  { +  and the Oregon University System + } should
pursue policies and engage in practices that enhance the vitality
of independent higher education in Oregon and should cooperate
with the state's independent institutions.
  SECTION 253. ORS 352.720 is amended to read:
  352.720. As used in ORS 352.710 to 352.760, unless the context
requires otherwise:
    { - (1) 'Commission' means the Oregon Student Assistance
Commission. - }
    { - (2) - }   { + (1) + } 'Private and independent
institutions of higher education' or 'institution' means any
nonpublic and nonprofit college or university in the State of
Oregon accredited by the Northwest Association of Schools and
Colleges and any chiropractic college located in this state and
accredited by the Commission on Accreditation of the Council on
Chiropractic Education, or its successor.
    { - (3) - }   { + (2) + } 'Nonsectarian educational services'
means the providing of instruction in secular subjects.
    { - (4) - }   { + (3) + } 'Secular subjects' means any course
which is presented in the curriculum of a private and independent
institution of higher education which is not hobby or
recreational in nature or which does not advocate the religious
teachings or the morals or forms of worship of any sect.
  SECTION 254. ORS 352.730 is amended to read:
  352.730. (1) The Oregon Student   { - Assistance - }  { +
Access + } Commission may enter into contracts with private and
independent institutions of higher education for the performance
of nonsectarian educational services to assist the state in
providing educational opportunities for Oregon students.
  (2) The commission may accept grants, gifts, bequests, and
devises of real and personal property to carry out the purposes
of ORS 352.710 to 352.760.
  (3) No funds disbursed pursuant to ORS 352.710 to 352.760 shall
be used by any recipient for any religious purpose.
  SECTION 255. ORS 352.740 is amended to read:

Enrolled Senate Bill 242 (SB 242-C)                      Page 171

  352.740. Payments to private and independent institutions of
higher education under contracts entered into under ORS 352.730
shall be determined by the Oregon Student   { - Assistance - }
 { +  Access + } Commission on a uniform rate for every 45
quarter hours, or equivalent, of approved and registered course
work in nonsectarian subjects completed by undergraduate students
enrolled in the institutions who are residents of Oregon, and
shall not exceed the actual cost to the institution of providing
such educational services. This uniform rate shall apply to the
estimated 45-hour units for each institution upon which the
legislative appropriation is based for that year, or the actual
45-hour units for each institution, whichever is the lesser. Any
remaining funds shall be distributed among those institutions
whose actual 45-hour units exceed the estimate. The distribution
to each institution shall be according to the uniform rate
established for the 45-hour units or an amount equal to the ratio
that the excess units bear to 45. However, if insufficient funds
are available for such a distribution, then the distribution
shall be according to the ratio that the total number of 45-hour
units in excess of the estimate bears to the total amount of
funds remaining undistributed, multiplied by the number of excess
45-hour units, if any, at each institution.
  SECTION 256. ORS 352.750 is amended to read:
  352.750. In accordance with any applicable provisions of ORS
chapter 183, the Oregon Student   { - Assistance - }  { +
Access + } Commission may make such reasonable rules and
regulations as are necessary or proper to carry out ORS 352.710
to 352.760.
  SECTION 256a. ORS 353.080 is amended to read:
  353.080. Oregon Health and Science University shall file with
the Legislative Assembly { + , the Higher Education Coordinating
Commission + } and the Governor, not later than April 15 of each
year, a report of the university's activities and operations for
the preceding year.
  SECTION 257. ORS 353.200 is amended to read:
  353.200. (1) A student at the Oregon Health and Science
University who is a member of the military and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
university for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 353.202 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the university, the
right to be readmitted and reenrolled at the university within
one year after release from active duty without a requirement of
redetermination of admission eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the university or the
  { - Oregon Student Assistance Commission - }   { + Oregon
Student Access Commission + } before the student was ordered to
active duty.

Enrolled Senate Bill 242 (SB 242-C)                      Page 172

  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the university may not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The Oregon Health and Science University Board of Directors
shall adopt rules for the administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 258. ORS 353.260 is amended to read:
  353.260. (1) Oregon Health and Science University may adopt
policies governing access to university personnel records that
are less than 25 years old.
  (2) Policies adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless the president of the university finds that the
public interest in maintaining individual rights to privacy in an
adequate educational environment would not suffer by disclosure
of such records. Access to such records may be limited to
designated classes of information or persons, or to stated times
and conditions, or to both, but cannot be limited for records
more than 25 years old.
  (3) No rule or order adopted pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the university, except as provided in
subsection (4)(d) and (e) of this section.
  (4)(a) The files relating to the evaluation of a faculty member
shall be kept in designated, available locations.
  (b) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (c) A faculty member shall be entitled to submit, for placement
in the files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that
the member believes might be of assistance in the evaluation
process.
  (d) Letters and other information for a faculty member of the
university submitted in confidence to the State Board of Higher
Education or its   { - institutions - }  { +  public universities
or offices + }, schools or departments prior to July 1, 1975,

Enrolled Senate Bill 242 (SB 242-C)                      Page 173

shall be maintained in the files designated by paragraph (a) of
this subsection.  However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected. The full text shall be made available, except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the files designated by paragraph (a)
of this subsection.
  (e) Confidential letters and other information submitted to or
solicited by the university after July 1, 1995, and prior to the
employment of a prospective faculty member are exempt from the
provisions of this paragraph. However, if the member is employed
by the university, the confidential preemployment materials shall
be placed in the files designated by paragraph (a) of this
subsection. If a faculty member requests access to the member's
files, the anonymity of the contributor of confidential
preemployment letters and other preemployment information shall
be protected. The full text shall be made available, except that
portions of the text that would serve to identify the contributor
shall be excised and retained in a file other than the files
designated by paragraph (a) of this subsection.
  (f) Classroom survey evaluations by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated by paragraph (a) of this subsection. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (g) The university, when evaluating its employed faculty
members, shall not solicit or accept letters, documents or other
materials, given orally or in written form, from individuals or
groups who wish their identity kept anonymous or the information
they provide kept confidential.
  (5) No policy or order adopted pursuant to this section limits
the authority of the university to prepare, without
identification of individual persons who have not consented
thereto, statistical or demographic reports from personnel
records.
  (6) Any category of personnel records specifically designated
as confidential pursuant to valid policies or orders as provided
in this section shall not be deemed a public record for the
purposes of ORS 192.420.
  (7) As used in this section, 'personnel records' means records
containing information kept by the university concerning a
faculty member and furnished by the faculty member or by others
about the faculty member at the member's or at the university's
request, including but not limited to information concerning
discipline, membership activity, employment performance or other
personal records of individual persons.
  SECTION 259. ORS 353.440 is amended to read:
  353.440. The Legislative Assembly finds that:
  (1)   { - Institutions - }   { + Public universities + } in the
Oregon University System and other educational sectors have
academic programs that are related to or integrated with the
programs of Oregon Health and Science University.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.

Enrolled Senate Bill 242 (SB 242-C)                      Page 174

  (3) In order to best ensure the continued harmony of such
academic programs, the  { + Oregon Health and Science + }
University and the Oregon University System shall coordinate such
programs and shall advise each other of the following proposed
changes to such academic programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
   { +  (4) The Oregon Health and Science University and the
Higher Education Coordinating Commission shall coordinate and
advise each other of the following types of proposed changes to
their related or integrated academic programs:
  (a) Coordination of strategic plans for achieving higher
education goals;
  (b) Seeking advice and input from each other on modifications
to statutory educational missions;
  (c) Working to develop a statewide educational data system;
  (d) Collaborating as necessary on the creation of any new
degree programs; and
  (e) Notifying each other and commenting on tuition rate
changes. + }
    { - (4) - }  { +  (5) + } In order to further the
coordination described by this section,  { + Oregon Health and
Science + } University officers shall maintain a role in the
appropriate committees of the State Board of Higher
Education { + , the Higher Education Coordinating Commission + }
and the Oregon University System.
  SECTION 260. ORS 353.600 is amended to read:
  353.600. As used in ORS 353.600 to 353.612:
  (1) 'Committee' means the Oregon Nursing Shortage Coalition
Committee created in ORS 353.606.
  (2) 'Post-secondary education institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University; or
  (d) An Oregon-based, generally accredited, not-for-profit
private institution of higher education.
  SECTION 261. ORS 353.603 is amended to read:
  353.603. (1) Oregon Health and Science University shall
distribute grants to post-secondary education institutions to
support nursing education programs based on the selections of the
Oregon Nursing Shortage Coalition Committee and in accordance
with appropriate university policies and procedures. If the
university is not able to distribute a grant to a post-secondary
education institution selected by the committee, the university
shall report to the committee the reason for not distributing the
grant.
  (2) Grants distributed under this section to a community
college or   { - state institution of higher education - }  { +
a public university listed in ORS 352.002 + } may be based on an
intergovernmental agreement entered into by Oregon Health and
Science University and the college or   { - institution - }  { +
public university + }.

Enrolled Senate Bill 242 (SB 242-C)                      Page 175

  (3) Oregon Health and Science University may not use more than
five percent of the amount received from the Nursing Education
Grant Fund established in ORS 353.612 for the grant program in
any biennium for administrative expenses incurred in
administering ORS 353.600 to 353.612.
  (4) Oregon Health and Science University may accept
contributions of funds and assistance from the United States
Government or its agencies, or from any other source, public or
private, and agree to conditions placed on the funds not
inconsistent with the purposes of ORS 353.600 to 353.612. The
university shall use funds and assistance received under this
subsection for grants distributed under this section or for
administering ORS 353.600 to 353.612.
  (5) Oregon Health and Science University shall deposit moneys
received by the university for purposes of ORS 353.600 to 353.612
in the Nursing Education Grant Fund. The total amount of grants
distributed under this section may not exceed the amount of
moneys available for distribution in the fund.
  SECTION 262. ORS 357.004 is amended to read:
  357.004. As used in ORS 357.001 to 357.200, unless the context
requires otherwise:
  (1) 'Depository library' means a library that is designated as
such under ORS 357.095.
  (2)(a) 'Issuing agency' means state government, as that term is
defined in ORS 174.111.
  (b) 'Issuing agency' does not include the State Board of Higher
Education or any   { - institution, division or department - }
 { +  public university or office, department or activity + }
under the control of the board.
  (3)(a) 'Public document' means informational matter produced
for public distribution or access regardless of format, medium,
source or copyright, originating in or produced with the imprint
of, by the authority of or at the total or partial expense of any
state agency. 'Public document' includes informational matter
produced on computer diskettes, CD-ROMs, computer tapes, the
Internet or in other electronic formats.
  (b) 'Public document' does not include:
  (A) Correspondence, forms, interoffice or intraoffice
memoranda;
  (B) Legislative bills;
  (C) Oregon Revised Statutes or any edition thereof; or
  (D) Reports and publications of the Oregon Supreme Court, the
Oregon Court of Appeals and the Oregon Tax Court.
  SECTION 263. ORS 399.245 is amended to read:
  399.245. As used in ORS 399.245 to 399.265:
    { - (1) 'Commission' means the Oregon Student Assistance
Commission. - }
    { - (2) - }   { + (1) + } 'Qualified applicant' means an
Oregon resident who:
  (a) Is a member of the Oregon National Guard;
  (b) Maintains minimum academic standards at the qualified
institution of higher education;
  (c) Meets participation standards in the Oregon National Guard
as prescribed by the Oregon Military Department;
  (d) Is a full-time student; and
  (e) Serves one year in the Oregon National Guard for each year
a scholarship is granted.
    { - (3) - }   { + (2) + } 'Qualified institution of higher
education' means any two-year or four-year, nonprofit, generally
accredited institution of higher education located in this state,

Enrolled Senate Bill 242 (SB 242-C)                      Page 176

including community colleges and accredited schools of nursing
located in this state.
    { - (4) - }   { + (3) + } 'Scholarship' means a scholarship
equal in value to $800 to be used to pay the educational expenses
of the applicant at a qualified institution of higher education
during the period for which the scholarship is granted, of which
no more than 100 scholarships shall be awarded annually.
  SECTION 264. ORS 399.255 is amended to read:
  399.255. (1) Subject to the availability of funds, the Oregon
Military Department shall contract with the Oregon Student
  { - Assistance - }  { +  Access + } Commission to disburse to
qualified applicants, awards made to the applicants on behalf of
the Oregon National Guard Scholarship Program as determined by
the Oregon Military Department.
  (2) If the qualified applicant who receives a scholarship under
ORS 399.245 to 399.265 meets the standards of the Oregon Military
Department for renewal of the scholarship, the scholarship may be
renewed upon application until the applicant has received a
scholarship for a total of four undergraduate years.
  (3) A qualified applicant who receives a scholarship under ORS
399.245 to 399.265 must attend the qualified institution of
higher education upon which the scholarship application was based
unless the commission authorizes the scholarship to be used at a
different institution.
  (4) No scholarship shall be made to any student enrolled in a
course of study required for or leading to a degree in theology,
divinity or religious education.
  SECTION 265. ORS 399.265 is amended to read:
  399.265. A qualified applicant may be awarded a scholarship
under ORS 399.245 to 399.265 before completing the national guard
service requirement. However, if an applicant fails to fulfill
the service requirement, the applicant shall pay to the Oregon
Student
  { - Assistance - }  { +  Access + } Commission the amount of
the scholarship received plus interest for each year for which a
scholarship was awarded but for which the service requirement was
not met.
  SECTION 266. ORS 399.275 is amended to read:
  399.275. (1) As used in this section and ORS 399.280:
  (a) 'Eligible post-secondary institution' has the meaning given
that term in ORS 348.180.
  (b) 'Surviving family member' means a spouse or dependent of a
member of the Oregon National Guard who is killed while on active
duty.
  (2) Subject to the availability of funds, the Oregon Military
Department may contract with the Oregon Student
 { - Assistance - }  { +  Access + } Commission to:
  (a) Disburse to eligible post-secondary institutions the dollar
amount of tuition waivers authorized by this section and approved
for payment by the department; and
  (b) Provide to the department a compilation of the total dollar
amount of the tuition waivers approved for each academic term
included in the contract.
  (3) The department shall regularly provide to the commission
the names of members of the Oregon National Guard and surviving
family members for whom tuition waivers may be approved.
  (4) Any member of the Oregon National Guard or surviving family
member who registers for classes at an eligible post-secondary
institution may receive a tuition waiver of up to 100 percent of
the resident tuition charges imposed by that institution, except

Enrolled Senate Bill 242 (SB 242-C)                      Page 177

that in the case of a not-for-profit independent institution, the
tuition waiver may not exceed 100 percent of the resident tuition
at Oregon State University.
  (5)(a) A member of the Oregon National Guard may receive the
tuition waiver authorized by this section at any time if the
member maintains satisfactory performance with the Oregon
National Guard and pursues a course of study in the eligible
post-secondary institution in a manner that satisfies the usual
requirements of the institution.
  (b) A surviving family member may receive the tuition waiver
authorized by this section if the surviving family member pursues
a course of study in the eligible post-secondary institution in a
manner that satisfies the usual requirements of the institution.
  (c) The member of the Oregon National Guard or surviving family
member is responsible for payment of the balance of the tuition
charges not provided for by the tuition waiver program.
  (6) When determining to whom the tuition waivers shall be
granted, priority shall be given to those members of the Oregon
National Guard who have previously received tuition waivers while
serving in the Oregon National Guard and surviving family members
who have previously received tuition waivers.
  (7) The department shall apply qualifications and limitations
to the tuition waiver program that are consistent with efficient
and effective program management as determined by the Adjutant
General.
  SECTION 267. ORS 408.095 is amended to read:
  408.095. (1) As used in this section, 'community college ' has
the meaning given that term in ORS 341.005.
  (2) There is created in the Department of Veterans' Affairs the
Campus Veterans' Service Officers Program.
  (3) The purpose of the program is to provide educational
outreach to veterans to help ensure that they obtain maximum
state and federal benefits.
  (4) The department shall appoint a sufficient number of campus
veterans' service officers to ensure that each Oregon community
college and each   { - institution - }   { + public
university + } in the Oregon University System, as described in
ORS 352.002, is provided veterans' services.
  (5) Each community college and   { - institution - }
 { + public university + } in the Oregon University System shall
provide office space that may be used for the provision of
veterans' services.
  (6) The department may adopt rules to implement the Campus
Veterans' Service Officers Program.
  SECTION 268. ORS 411.894 is amended to read:
  411.894. (1) The Oregon JOBS Individual Education Account is
established to improve the position of JOBS Plus participants in
the workforce by increasing their access to continuing education.
Employer contributions to the account under this section shall be
used to pay for education expenses for the individual as provided
in subsection (2) of this section.
  (2)(a) After the participant has participated in the JOBS Plus
Program for 30 days, the employer shall pay, in addition to the
participant wage, one dollar for each participant hour worked
into the participant's individual education account.
Contributions to such an account shall be tax deferred or
tax-exempt to the extent permitted by federal and state law.
  (b) Any participant for whom an Oregon JOBS Individual
Education Account contribution is made shall be eligible for
access to education benefits from that participant's individual

Enrolled Senate Bill 242 (SB 242-C)                      Page 178

education account for up to five years after the participant has
left the JOBS Plus Program and has held a full-time, unsubsidized
job for at least 30 days.
  (c) When any participant has qualified for use of that
participant's individual education account, an amount equal to
that participant's individual education account balance shall be
transferred to the Oregon Student   { - Assistance - }  { +
Access + } Commission for that participant's use. Only one
individual education account shall be created for any
participant. Each account shall be administered by the commission
and shall be used for continuing education and training for the
participant and the participant's immediate family.
  (3)(a) The commission may use any interest earned by an
individual education account transferred to the commission under
this section for payment of expenses incurred by the commission
in carrying out its duties under this section.
  (b) The Department of Human Services shall transfer any
interest earned by the Oregon JOBS Individual Education Account
to the General Fund for general governmental purposes. The
department shall transfer the interest no later than the close of
each fiscal year in which the interest is earned.
  (4) Any unexpended or unobligated moneys remaining in an
individual education account five years after the participant has
left the JOBS Plus Program are appropriated and transferred to
the commission for the Oregon Opportunity Grant program on that
date.
  SECTION 269. 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,
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 Assistance Commission - }   { + 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

Enrolled Senate Bill 242 (SB 242-C)                      Page 179

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
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 270. ORS 431.690, as amended by section 1, chapter 27,
Oregon Laws 2010, and section 6, chapter 62, Oregon Laws 2010, is
amended to read:
  431.690. (1) As used in this section, 'place of public
assembly' means a single building that has 50,000 square feet or
more of indoor floor space and where:
  (a)(A) The public congregates for purposes such as
deliberation, shopping, entertainment, amusement or awaiting
transportation; or
  (B) Business activities are conducted; and
  (b) At least 50 individuals congregate on a normal business
day.
  (2) Notwithstanding ORS 431.680 (3), the owner of a place of
public assembly shall have on the premises at least one automated
external defibrillator.
  (3) Notwithstanding subsection (2) of this section:
  (a) A community college or a   { - state institution of higher
education - }   { + public university + } listed in ORS 352.002
shall have at least one automated external defibrillator on the
campus of the community college or   { - institution - }  { +
public university + }; and
  (b) If the campus of the community college or   { - institution
of higher education - }   { + public university + } contains more
than one place of public assembly, the community college or
 { - institution - }   { + public university + } shall ensure
that at least one automated external defibrillator is readily
available to each place of public assembly.
  (4) Subsection (2) of this section does not apply to a building
primarily used for worship or education associated with worship.
  SECTION 271. ORS 433.090 is amended to read:
  433.090. As used in ORS 433.090 to 433.102:
  (1) 'Authorized user' means a person or entity authorized to
provide information to or to receive information from an

Enrolled Senate Bill 242 (SB 242-C)                      Page 180

immunization registry or immunization tracking and recall system
under ORS 433.090 to 433.102. 'Authorized user' includes, but is
not limited to, licensed health care providers, health care
institutions, insurance carriers, the Oregon medical assistance
program, parents or guardians of children under 18 years of age,
clients 18 years of age or older, post-secondary education
institutions, schools, children's facilities, local health
departments, the Oregon Health Authority and agents of the
authority.
  (2) 'Children's facility' has the meaning given that term in
ORS 433.235.
  (3) 'Client' means any person registered with any Oregon
immunization tracking and recall system.
  (4) 'Immunization record' includes but is not limited to the
following:
  (a) Any immunization received;
  (b) Date immunization was received;
  (c) Complication or side effect associated with immunization;
  (d) Date and place of birth of a client;
  (e) Hospital where a client was born;
  (f) Client's name; and
  (g) Mother's name.
  (5) 'Immunization registry' means any listing of clients and
information relating to their immunization status, without regard
to whether the registry is maintained in this state or elsewhere.
  (6) 'Immunization tracking and recall record' includes but is
not limited to the client's name, address of the parent or
guardian of the client, telephone number, insurance carrier,
health care provider and other information needed to send
reminder cards to, place telephone calls to or personally contact
the client or the parent or the guardian of a client for the
purposes of informing the client, parent or guardian that the
client is late in receiving the recommended immunizations.
  (7) 'Local health department' has the meaning given that term
in ORS 433.235.
  (8) 'Parent or guardian' has the meaning given the term '
parent' in ORS 433.235.
  (9) 'Post-secondary education institution' means:
  (a) A   { - state institution of higher education under the
jurisdiction of the State Board of Higher Education - }  { +
public university listed in ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University; or
  (d) An Oregon-based, generally accredited, private institution
of higher education.
  (10) 'Provider' means a physician or a health care professional
who is acting within the scope of his or her licensure and
responsible for providing immunization services or for
coordinating immunization services within a clinic, public health
site, school or other immunization site.
  (11) 'School' has the meaning given that term in ORS 433.235.
  (12) 'Tracking and recall system' means a system attached to an
immunization registry designed to contact clients listed in the
immunization registry for the purposes of assisting in the
completion of the immunization series in a timely manner.
  SECTION 272. ORS 442.535 is amended to read:
  442.535. As used in ORS 442.540 and 442.545:
    { - (1) 'Commission' means the Oregon Student Assistance
Commission. - }

Enrolled Senate Bill 242 (SB 242-C)                      Page 181

    { - (2) - }   { + (1) + } 'Nurse' means any person who is
licensed under ORS 678.010 to 678.410 as a registered nurse.
    { - (3) - }   { + (2) + } 'Nursing critical shortage area'
means a locality or practice specialty identified as such by the
Oregon State Board of Nursing, in consultation with the Office of
Rural Health, under ORS 442.540.
    { - (4) - }   { + (3) + } 'Qualifying loan' means any loan
made to a nursing student under:
  (a) Programs under Title IV, parts B, D and E, of the Higher
Education Act of 1965, as amended; or
  (b) The Nursing Student Loan and Health Education Assistance
Loan programs administered by the United States Department of
Health and Human Services.
  SECTION 273. ORS 442.540 is amended to read:
  442.540. (1) There is created the Nursing Services Program, to
be administered by the Oregon Student   { - Assistance - }  { +
Access + } Commission pursuant to rules adopted by the
commission. The purpose of the program is to provide loan
repayments on behalf of nurses who agree to practice in nursing
critical shortage areas.
  (2) To be eligible to participate in the program, a nurse or
prospective nurse shall submit a letter of interest to the
commission. Applicants who are selected for participation
according to criteria adopted by the commission under subsection
(3) of this section shall sign a letter of agreement stipulating
that the applicant agrees to abide by the terms of the program
described in ORS 442.545.
  (3) The commission shall by rule adopt, in consultation with
the Oregon State Board of Nursing and the Office of Rural Health,
criteria for participation in the program.
  (4) The Oregon State Board of Nursing by rule shall annually
identify, in consultation with the Office of Rural Health, those
areas that are considered nursing critical shortage areas.
  (5) Amounts paid to the commission as penalties under ORS
442.545 shall be credited and deposited in the Nursing Services
Account created under ORS 348.570. The commission, in
consultation with the Oregon State Board of Nursing, by rule
shall allow waiver of all or part of any fees or penalties owed
to the commission due to circumstances that prevent a nurse from
fulfilling a service obligation under ORS 442.545.
  SECTION 274. ORS 442.545 is amended to read:
  442.545. (1) A nurse or prospective nurse applicant who is a
graduate of an accredited nursing program with a baccalaureate or
associate degree and who wishes to participate in the Nursing
Services Program established under ORS 442.540 shall agree that:
  (a) For each year of nursing school, the applicant designates
an agreed amount, not to exceed $8,800 or the amount determined
under subsection (2) of this section, as a qualifying loan for
the program.
  (b) In the four years following the execution of a Nursing
Services Program agreement with the Oregon Student
 { - Assistance - }  { +  Access + } Commission, a nurse agrees
to practice for at least two full years in a nursing critical
shortage area in Oregon.
  (c) For not less than two nor more than four years that the
nurse practices in a nursing critical shortage area, the
commission shall annually pay:
  (A) For full-time practice, an amount equal to 25 percent of
the total of all qualifying loans made to the nurse.

Enrolled Senate Bill 242 (SB 242-C)                      Page 182

  (B) For half-time practice, an amount equal to 12.5 percent of
the total of all qualifying loans made to the nurse.
  (d) If the nurse does not complete the full service obligation
set forth in paragraphs (b) and (c) of this subsection, the
commission shall collect 100 percent of any payments made by the
commission to the nurse under the Nursing Services Program. In
addition, the commission shall assess against the nurse a penalty
equal to 50 percent of the qualifying loans and interest paid by
the commission.
  (2)(a) On July 1 of each year, beginning in 2002 and ending in
2007, the   { - Oregon Student Assistance - }  commission shall
adjust the maximum dollar amount allowed under subsection (1)(a)
of this section as a qualifying loan by multiplying the amount by
a cost-of-living adjustment as specified in this subsection.
  (b) The cost-of-living adjustment applied on July 1 each year
by the commission shall be equal to the ratio of the seasonally
adjusted United States City Average Consumer Price Index for All
Urban Consumers as published by the Bureau of Labor Statistics of
the United States Department of Labor for April of the calendar
year divided by the value of the same index for April 2001.
  (c) Beginning on July 1, 2008, the commission shall use the
cost-of-living adjustment calculated for July 1, 2007.
  (d) If the value of the dollar amount determined under
paragraph (a) of this subsection is not a multiple of $100, the
commission shall round the dollar amount to the next lower
multiple of $100.
  SECTION 275. ORS 461.543 is amended to read:
  461.543. (1) Except as otherwise specified in subsection (5) of
this section, the Sports Lottery Account is continuously
appropriated to and shall be used by the State Board of Higher
Education to fund sports programs at   { - state institutions of
higher education - }  { +  public universities listed in ORS
352.002 + }. Seventy percent of the revenues in the fund shall be
used to fund nonrevenue producing sports and 30 percent shall be
used for revenue producing sports. Of the total amount available
in the fund, at least 50 percent shall be made available for
women's athletics.
  (2) The   { - State - }  board   { - of Higher Education - }
shall allocate moneys in the Sports Lottery Account among the
 { - institutions of higher education under its jurisdiction - }
 { +  public universities, + } giving due consideration to:
  (a) The athletic conference to which the   { - institution - }
 { +  public university + } belongs and the relative costs of
competing in that conference.
  (b) The level of effort being made by the   { - institution - }
 { + public university + } to generate funds and support from
private sources.
  (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season.
  (4) An amount equal to one percent of the moneys transferred to
the Administrative Services Economic Development Fund from the
State Lottery Fund shall be allocated from the Administrative
Services Economic Development Fund to the Sports Lottery Account.
  (5) The amounts received by the Sports Lottery Account shall be
allocated as follows:
  (a) Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section, but not to exceed $8

Enrolled Senate Bill 242 (SB 242-C)                      Page 183

million annually, adjusted annually pursuant to the Consumer
Price Index, as defined in ORS 327.006.
  (b) Twelve percent for the purpose of scholarships, to be
distributed equally between scholarships based on academic merit
and scholarships based on need, as determined by rule of the
  { - State - }  board   { - of Higher Education - } , but not to
exceed $1,090,909 annually.
  (c) All additional money to the   { - Oregon Student Assistance
Commission - }  { +  Oregon Student Access Commission + } for the
Oregon Opportunity Grant program under ORS 348.260.
  SECTION 276. ORS 541.375 is amended to read:
  541.375. (1) Any person, tribe, watershed council, soil and
water conservation district, community college,   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + }, independent not-for-profit institution
of higher education or political subdivision of this state that
is not a state agency may submit a request for funding for or for
advice and assistance in developing a project under ORS 541.351
to 541.415. A state agency or federal agency may apply for
funding under this section only as a coapplicant with one of the
other eligible entities.
  (2) The request under subsection (1) of this section shall be
filed in the manner, be in the form and contain the information
required by the Oregon Watershed Enhancement Board.
  (3) The board may establish a grant program through soil and
water conservation districts organized under ORS 568.210 to
568.808 and 568.900 to 568.933 that provides funds for local
implementation of watershed enhancement, education and monitoring
efforts.
  (4) The board may fund implementation of action plans based on
a watershed assessment that addresses water quality and aquatic
resources of the watershed.
  (5) A project may use mechanical, vegetative or structural
methods including, but not limited to, management techniques,
erosion control, streambank stabilization, forest, range or crop
land treatment, site specific in-stream structures, acquisitions
or leases of land or water rights from a willing owner, watershed
assessments, landowner incentives and action plan development,
implementation and monitoring.
  (6) The actions of a soil and water conservation district
carried out pursuant to a grant program established by the board
under subsection (3) of this section shall not be subject to
review and approval by the Natural Resources Division under ORS
561.400.
  (7) The Oregon Watershed Enhancement Board shall approve for
funding only those projects that:
  (a) Are based on sound principles of watershed management;
  (b) Use methods most adapted to the project locale;
  (c) Meet the criteria established by the board under ORS
541.396; and
  (d) Contribute to either:
  (A) The improved health of a stream, lake or reservoir and
toward the achievement of standards that satisfy the requirements
of the Federal Water Pollution Control Act (P.L. 92-500), as
amended; or
  (B) The restoration of wildlife, habitat or native fish.
  (8) The Oregon Watershed Enhancement Board may fund a project
for the restoration of a riparian area or associated upland that
is carried out in conjunction with a storage structure. However,
the board shall not approve funding for any proposed project that

Enrolled Senate Bill 242 (SB 242-C)                      Page 184

consists solely of construction of a storage structure for
out-of-stream use.
  (9) The Oregon Watershed Enhancement Board may fund projects
involving the acquisition of lands and waters, or interests
therein from willing sellers, for the purpose of maintaining or
restoring watersheds, habitat and native salmonids. Interests in
these lands and waters may be held by local, state and federal
agencies, tribes, not-for-profit land conservation organizations
and trusts,   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + }, independent
not-for-profit institutions of higher education or political
subdivisions of this state, as long as the entity continues to
use the land or water for the purposes specified under section
4b, Article XV of the Oregon Constitution.
  (10) If the Oregon Watershed Enhancement Board approves funding
for a project under this section that requires the applicant to
obtain a permit or license from a local, state or federal agency
or governing body, the board shall not disburse any funds to the
applicant until the applicant presents evidence that the agency
has granted the permit or license.
  SECTION 277. ORS 634.660 is amended to read:
  634.660. Each of the following state agencies   { - or
services - } shall implement integrated pest management practices
when carrying out the agency's duties related to pest control:
  (1) State Department of Agriculture, including the control of
noxious weeds.
  (2) State Department of Fish and Wildlife.
  (3) Department of Transportation.
  (4) State Parks and Recreation Department.
  (5) State Forestry Department.
  (6) Department of Corrections.
  (7) Oregon Department of Administrative Services.
  (8) The Department of State Lands.
  (9) Each   { - Oregon institution of higher education - }  { +
public university listed in ORS 352.002 + }, for the
 { - institution's - }   { + public university's + } own building
and grounds maintenance.
  SECTION 278. ORS 657.665 is amended to read:
  657.665. (1) Except as provided in subsections (2) to (4) of
this section, all information in the records of the Employment
Department pertaining to the administration of the unemployment
insurance, employment service and labor market information
programs:
  (a) Is confidential and for the exclusive use and information
of the Director of the Employment Department in administering the
unemployment insurance, employment service and labor market
information programs in Oregon.
  (b) May not be used in any court action or in any proceeding
pending in the court unless the director or the state is a party
to the action or proceeding or unless the proceeding concerns the
establishment, enforcement or modification of a support
obligation and support services are being provided by the
Division of Child Support or the district attorney pursuant to
ORS 25.080.
  (c) Is exempt from disclosure under ORS 192.410 to 192.505.
  (2) The Employment Department shall disclose information:
  (a) To any claimant or legal representative, at a hearing
before an administrative law judge, to the extent necessary for
the proper presentation of an unemployment insurance claim.

Enrolled Senate Bill 242 (SB 242-C)                      Page 185

  (b) Upon request to the United States Secretary of Labor. The
Employment Department shall disclose the information in a form
and containing the information that the United States Secretary
of Labor may require. The information disclosed is confidential
and may not be used for any other purpose.
  (c) Pursuant to section 303(a)(7) of the Social Security Act,
upon request to any agency of the United States charged with the
administration of public works or assistance through public
employment. Under this paragraph, the Employment Department shall
disclose the name, address, ordinary occupation and employment
status of each recipient of unemployment insurance benefits and a
statement of the recipient's right to further benefits under this
chapter. The information disclosed is confidential and may not be
used for any other purpose.
  (d) Pursuant to section 303(c)(1) of the Social Security Act,
to the Railroad Retirement Board. Under this paragraph, the
Employment Department shall disclose unemployment insurance
records. The information disclosed is confidential and may not be
used for any other purpose. The costs of disclosing information
under this paragraph shall be paid by the board.
  (e) Pursuant to section 303(d) of the Social Security Act, upon
request to officers and employees of the United States Department
of Agriculture and to officers or employees of any state
Supplemental Nutrition Assistance Program agency for the purpose
of determining an individual's eligibility for or the amount of
supplemental nutrition assistance. The information disclosed is
confidential and may not be used for any other purpose. The costs
of disclosing information under this paragraph shall be paid by
the United States Department of Agriculture.
  (f) Pursuant to section 303(e)(1) and (2)(A)(ii) of the Social
Security Act, to state or local child support enforcement
agencies enforcing child support obligations under Title IV-D of
the Social Security Act for the purposes of establishing child
support obligations, locating individuals owing child support
obligations and collecting child support obligations from those
individuals. The information disclosed is confidential and may
not be used for any other purpose. The costs of disclosing
information under this paragraph shall be paid by the child
support enforcement agency.
  (g) Pursuant to sections 303(f) and 1137 of the Social Security
Act, to agencies participating in the income and eligibility
verification system for the purpose of verifying an individual's
eligibility for benefits, or the amount of benefits, under
unemployment insurance, temporary assistance for needy families,
Medicaid, the Supplemental Nutrition Assistance Program,
Supplemental Security Income, child support enforcement or Social
Security programs. The information disclosed is confidential and
may not be used for any other purpose. The costs of disclosing
information under this paragraph shall be paid by the requesting
agency.
  (h) Pursuant to section 303(h) of the Social Security Act and
section 3304(a)(16)(B) of the Federal Unemployment Tax Act, to
the United States Department of Health and Human Services
National Directory of New Hires. The information disclosed is
confidential and may not be used for any other purpose. The costs
of disclosing information under this paragraph shall be paid by
the United States Department of Health and Human Services.
  (i) Pursuant to section 303(i) of the Social Security Act, to
officers and employees of the United States Department of Housing
and Urban Development and to representatives of a public housing

Enrolled Senate Bill 242 (SB 242-C)                      Page 186

agency for the purpose of determining an individual's eligibility
for benefits, or the amount of benefits, under a housing
assistance program of the United States Department of Housing and
Urban Development. The information disclosed is confidential and
may not be used for any other purpose. The costs of disclosing
information under this paragraph shall be paid by the United
States Department of Housing and Urban Development or the public
housing agency.
  (j) Pursuant to regulations of the United States Secretary of
Health and Human Services issued under section 3304(a)(16)(A) of
the Federal Unemployment Tax Act, and except as required by
section 303 of the Social Security Act, to the state, a political
subdivision or a federally recognized Indian tribe that has
signed an agreement with the Department of Human Services to
administer Part A of Title IV of the Social Security Act for the
purpose of determining an individual's eligibility for
assistance, or the amount of assistance, under a program funded
under Part A of Title IV of the Social Security Act. The
information disclosed is confidential and may not be used for any
other purpose.
  (k) Upon request, to the United States Attorney's Office.
Under this paragraph, the Employment Department may disclose an
individual's employment and wage information in response to a
federal grand jury subpoena or for the purpose of collecting
civil and criminal judgments, including restitution and special
assessment fees. The information disclosed is confidential and
may not be used for any other purpose. The costs of disclosing
information under this paragraph shall be paid by the United
States Attorney's Office.
  (3) The Employment Department may disclose information secured
from employing units:
  (a) To agencies of this state, federal agencies and local
government agencies to the extent necessary to properly carry out
governmental planning, performance measurement, program analysis,
socioeconomic analysis and policy analysis functions performed
under applicable law. The information disclosed is confidential
and may not be disclosed by the agencies in any manner that would
identify individuals, claimants, employees or employing units. If
the information disclosed under this paragraph is not prepared
for the use of the Employment Department, the costs of disclosing
the information shall be paid by the agency requesting the
information.
  (b) As part of a geographic information system. Points on a map
may be used to represent economic data, including the location,
employment size class and industrial classification of businesses
in Oregon. Information presented as part of a geographic
information system may not give specific details regarding a
business's address, actual employment or proprietary information.
If the information disclosed under this paragraph is not prepared
for the use of the Employment Department, the costs of disclosing
the information shall be paid by the party requesting the
information.
  (c) In accordance with ORS 657.673.
  (4) The Employment Department may:
  (a) Disclose information to public employees in the performance
of their duties under state or federal laws relating to the
payment of unemployment insurance benefits, the provision of
employment services and the provision of labor market
information.

Enrolled Senate Bill 242 (SB 242-C)                      Page 187

  (b) At the discretion of the Director of the Employment
Department and subject to an interagency agreement, disclose
information to public officials in the performance of their
official duties administering or enforcing laws within their
authority and to the agents or contractors of public officials.
The public official shall agree to assume responsibility for
misuse of the information by the official's agent or contractor.
  (c) Disclose information pursuant to an informed consent,
received from an employer or claimant, to disclose the
information.
  (d) Disclose information to partners under the federal
Workforce Investment Act of 1998 for the purpose of administering
state workforce programs under the Act. The information disclosed
is confidential and may not be used for any other purpose. The
costs of disclosing information under this paragraph shall be
paid by the requesting partner.
  (e) Disclose the names and addresses of employing units to the
Bureau of Labor and Industries for the purpose of disseminating
information to employing units. The names and addresses disclosed
are confidential and may not be used for any other purpose. If
the information disclosed under this paragraph is not prepared
for the use of the Employment Department, the costs of disclosing
the information shall be paid by the bureau.
  (f) Disclose information to the Commissioner of the Bureau of
Labor and Industries for the purpose of performing duties under
ORS 279C.800 to 279C.870, 658.005 to 658.245 or 658.405 to
658.503 or ORS chapter 652, 653 or 659A. The information
disclosed may include the names and addresses of employers and
employees and payroll data of employers and employees. The
information disclosed is confidential and may not be used for any
other purpose. If the information disclosed under this paragraph
is not prepared for the use of the Employment Department, the
costs of disclosing the information shall be paid by the bureau.
  (g) Disclose information required under ORS 657.660 (3) and (4)
to the Public Employees Retirement System for the purpose of
determining the eligibility of members of the retirement system
for disability retirement allowances under ORS chapter 238. The
information disclosed is confidential and may not be used for any
other purpose. The costs of disclosing information under this
paragraph shall be paid by the Public Employees Retirement
System.
  (h) Disclose to the Oregon Business Development Commission
information required by the commission in performing its duty
under ORS 285A.050 to verify changes in employment levels
following direct employer participation in Oregon Business
Development Department programs or indirect participation through
municipalities under ORS 285B.410 to 285B.482. The information
disclosed to the commission may include an employer's employment
level, total subject wages payroll and whole hours worked. The
information disclosed is confidential and may not be used for any
other purpose. The commission may not disclose the information in
any manner that would identify an employing unit or employee
except to the extent necessary to carry out the commission's duty
under ORS 285A.050. If the information disclosed under this
paragraph is not prepared for the use of the Employment
Department, the costs of disclosing the information shall be paid
by the commission.
  (i) Disclose information to the Department of Revenue for the
purpose of performing its duties under ORS 293.250 or under the
revenue and tax laws of this state. The information disclosed may

Enrolled Senate Bill 242 (SB 242-C)                      Page 188

include the names and addresses of employers and employees and
payroll data of employers and employees. The information
disclosed is confidential and may not be disclosed by the
Department of Revenue in any manner that would identify an
employing unit or employee except to the extent necessary to
carry out the department's duties under ORS 293.250 or in
auditing or reviewing any report or return required or permitted
to be filed under the revenue and tax laws administered by the
department. The Department of Revenue may not disclose any
information received to any private collection agency or for any
other purpose. If the information disclosed under this paragraph
is not prepared for the use of the Employment Department, the
costs of disclosing the information shall be paid by the
Department of Revenue.
  (j) Disclose information to the Department of Consumer and
Business Services for the purpose of performing its duties under
ORS chapters 654 and 656. The information disclosed may include
the name, address, number of employees and industrial
classification code of an employer and payroll data of employers
and employees. The information disclosed is confidential and may
not be disclosed by the Department of Consumer and Business
Services in any manner that would identify an employing unit or
employee except to the extent necessary to carry out the
department's duties under ORS chapters 654 and 656, including
administrative hearings and court proceedings in which the
Department of Consumer and Business Services is a party. If the
information disclosed under this paragraph is not prepared for
the use of the Employment Department, the costs of disclosing the
information shall be paid by the Department of Consumer and
Business Services.
  (k) Disclose information to the Construction Contractors Board
for the purpose of performing its duties under ORS chapter 701.
The information disclosed to the board may include the names and
addresses of employers and status of their compliance with this
chapter. If the information disclosed under this paragraph is not
prepared for the use of the Employment Department, the costs of
disclosing the information shall be paid by the board.
  (L) Disclose information to the State Fire Marshal to assist
the State Fire Marshal in carrying out duties under ORS 453.307
to 453.414. The information disclosed may include the name,
address, telephone number and industrial classification code of
an employer. The information disclosed is confidential and may
not be disclosed by the State Fire Marshal in any manner that
would identify an employing unit except to the extent necessary
to carry out duties under ORS 453.307 to 453.414. If the
information disclosed under this paragraph is not prepared for
the use of the Employment Department, the costs of disclosing the
information shall be paid by the office of the State Fire
Marshal.
  (m) Disclose information to the   { - Oregon Student Assistance
Commission - }   { + Oregon Student Access Commission + } for the
purpose of performing the commission's duties under ORS chapter
348 and Title IV of the Higher Education Act of 1965. The
information disclosed may include the names and addresses of
employers and employees and payroll data of employers and
employees. The information disclosed is confidential and may not
be disclosed by the commission in any manner that would identify
an employing unit or employee except to the extent necessary to
carry out the commission's duties under ORS chapter 348 or Title
IV of the Higher Education Act of 1965.  If the information

Enrolled Senate Bill 242 (SB 242-C)                      Page 189

disclosed under this paragraph is not prepared for the use of the
Employment Department, the costs of disclosing the information
shall be paid by the commission.
  (n) Disclose information to the Department of Transportation to
assist the Department of Transportation in carrying out the
duties of the Department of Transportation relating to collection
of delinquent and liquidated debts, including taxes, under ORS
184.610 to 184.666, 184.670 to 184.733 and 805.263, ORS chapter
319 and the Oregon Vehicle Code. The information disclosed may
include the names and addresses of employers and employees and
payroll data of employers and employees. The information
disclosed is confidential and may not be disclosed by the
Department of Transportation in any manner that would identify an
employing unit or employee except to the extent necessary to
carry out the Department of Transportation's duties relating to
collection of delinquent and liquidated debts or in auditing or
reviewing any report or return required or permitted to be filed
under the revenue and tax laws administered by the Department of
Transportation. The Department of Transportation may not disclose
any information received to any private collection agency or for
any other purpose. If the information disclosed under this
paragraph is not prepared for the use of the Employment
Department, the costs of disclosing the information shall be paid
by the Department of Transportation.
  (o) Disclose to any person establishment level information
secured pursuant to this chapter from federal, state and local
government employing units. If the information disclosed under
this paragraph is not prepared for the use of the Employment
Department, the costs of disclosing the information shall be paid
by the party requesting the information.
  (p) Disclose to any person the industrial classification code
assigned to an employing unit. If the information disclosed under
this paragraph is not prepared for the use of the Employment
Department, the costs of disclosing the information shall be paid
by the party requesting the information.
  (5) Any officer appointed by or any employee of the Director of
the Employment Department who discloses confidential information,
except with the authority of the director, pursuant to rules or
as otherwise required by law, may be disqualified from holding
any appointment or employment with the Employment Department.
  (6) Any person or any officer or employee of an entity to whom
information is disclosed by the Employment Department under this
section who divulges or uses the information for any purpose
other than that specified in the provision of law or agreement
authorizing the use or disclosure may be disqualified from
performing any service under contract or disqualified from
holding any appointment or employment with the state agency that
engaged or employed that person, officer or employee. The
Employment Department may immediately cancel or modify any
information sharing agreement with an entity when a person or an
officer or employee of that entity discloses confidential
information, other than as specified in law or agreement.
  SECTION 279. ORS 659.855 is amended to read:
  659.855. (1) Any public elementary or secondary school
determined by the Superintendent of Public Instruction or any
community college determined by the Commissioner for Community
College Services to be in noncompliance with provisions of ORS
659.850 and this section shall be subject to appropriate
sanctions, which may include withholding of all or part of state
funding, as established by rule of the State Board of Education.

Enrolled Senate Bill 242 (SB 242-C)                      Page 190

  (2) Any public   { - institution of higher education - }  { +
university listed in ORS 352.002 + } determined by the Chancellor
of the Oregon University System to be in noncompliance with
provisions of ORS 659.850 and this section shall be subject to
appropriate sanctions, which may include withholding of all or
part of state funding, as established by rule of the State Board
of Higher Education.
  (3) Any public charter school determined by the sponsor of the
school or the superintendent   { - of Public Instruction - }  to
be in noncompliance with the provisions of ORS 659.850 and this
section shall be subject to appropriate sanctions, which may
include the withholding of all or part of state funding by the
sponsor or superintendent, as established by rule of the State
Board of Education.
  SECTION 280. ORS 660.312 is amended to read:
  660.312. (1) The Governor shall be responsible for a
coordinated and comprehensive response to education and workforce
issues. The Governor shall appoint an Education and Workforce
Policy Advisor, who serves at the pleasure of the Governor. The
advisor shall, with the advice of such advisory committees as may
be appointed or assigned, advise the Governor on policy, planning
and coordination for education and workforce development in
Oregon.
  (2) The duties of the advisor shall include:
  (a) Guiding the development of state-level policy related to
education and workforce issues;
  (b) Providing general direction and serving as a liaison
between state and local efforts in education, training and
workforce development;
  (c) Ensuring, through collaboration with the leadership of
local workforce investment boards and regional workforce
committees, the alignment of statewide, local and regional
strategic plans, and the periodic reporting of performance in the
implementation of such plans; and
  (d) Consulting with local workforce investment boards and
regional workforce committees on the development and
implementation of a workforce performance measurement system.
  (3) In the performance of duties, the advisor shall
collectively involve state agencies, including but not limited
to:
  (a) The Department of Education;
  (b) The Oregon University System;
  (c) The Oregon Business Development Department;
  (d) The Department of Community Colleges and Workforce
Development;
  (e) The Employment Department;
  (f) The Department of Human Services;
  (g) The Bureau of Labor and Industries;
  (h) The Department of Corrections;
  (i) The   { - Oregon Student Assistance Commission - }
 { + Oregon Student Access Commission + }; and
  (j) The Teacher Standards and Practices Commission.
  (4) The advisor shall seek input from key interested parties to
help guide policy development, including but not limited to
representatives of:
  (a) Businesses and industry organizations;
  (b) Labor and labor organizations;
  (c) Local education providers;
  (d) Local government;
  (e) Student, teacher, parent and faculty organizations;

Enrolled Senate Bill 242 (SB 242-C)                      Page 191

  (f) Community-based organizations;
  (g) Public-private partnership organizations;
  (h) Independent nonprofit and proprietary post-secondary
colleges and schools; and
  (i) Regional workforce committees, local workforce investment
boards and regional investment boards.
  (5) The advisor shall meet, on a regularly scheduled basis,
with the local workforce investment boards, regional workforce
committees and such others as necessary to ensure that local
interests are represented. The advisor shall seek input, advice
and feedback on policy issues affecting state, regional and local
education and workforce development from interested parties and
other committees formed under ORS 660.306, 660.312 and 660.315.
  (6) Pursuant to ORS chapter 183, the advisor may adopt rules
necessary to carry out the duties of the advisor.
  SECTION 281. ORS 660.315 is amended to read:
  660.315. (1) The Governor shall designate regional workforce
committees to advise the Governor, local workforce investment
boards that represent federally recognized workforce areas
containing multiple regions, and county elected officials on
regional and local needs for workforce development. The
committees shall also prepare plans for achieving regional goals
and coordinate the provision of services within regions. The
committees shall have private and public sector members. However,
a majority of the members of each committee shall represent the
private sector and include business and labor representatives.
The chairperson of each committee shall be a private sector
member and be elected by the committee.
  (2) The private sector committee members shall play a critical
role in workforce development, including but not limited to:
  (a) Identifying current and future workforce needs;
  (b) Providing feedback on public sector programs;
  (c) Assisting public agencies in changing programs to be more
effective in meeting private sector needs; and
  (d) Being a partner in addressing workforce needs.
  (3) Private sector members of a committee created under this
section shall be appointed by county commissioners and, in the
region that includes the City of Portland, the Mayor of Portland.
The members of the committee shall reflect the broadest feasible
representation from the groups described in ORS 660.312 (4)(a) to
(h).
  (4) The public sector representatives on the committee are
representatives who receive resources and deliver education and
workforce programs within the labor market area. Public sector
members shall include the broadest feasible representation from,
but not be limited to, the following:
  (a) The Department of Human Services;
  (b) School districts, education service districts, community
colleges,   { - state institutions of higher education - }  { +
public universities listed in ORS 352.002 + } and Oregon Health
and Science University;
  (c) The Oregon Business Development Department and local
economic development entities;
  (d) The Employment Department;
  (e) The federal Act programs; and
  (f) Other public sector partners.
  (5) A region may recommend to the Governor an alternate
structure for its regional committee, based on regional
determination and mutually agreed to by the current public and
private sector members of the regional workforce committee and

Enrolled Senate Bill 242 (SB 242-C)                      Page 192

the chief elected officials. The alternate structure must retain
a private sector chairperson, appointments of the private sector
members as provided in subsection (3) of this section, and
substantive public and private sector and other stakeholder
participation through formalized methods, such as standing
committees.
  (6) A regional workforce committee shall develop and implement
a strategic regional workforce plan that responds to the current
and future workforce needs of the regional labor market.
  (7) The strategic regional workforce plan shall:
  (a) Consider the supply and demand outlook for the region;
  (b) Identify and prioritize initiatives and resources, both
public and private, to meet the regional workforce needs;
  (c) Articulate and include the coordination of both public and
private resources in addressing the workforce needs and goals;
and
  (d) Ensure the most appropriate use of resource investments.
  (8) The regional workforce committee shall create or enhance
the workforce program delivery system to meet the strategic
priorities of the region and any strategic priorities of a
federally recognized workforce area that includes that region.
  (9) Within each region, or within overlapping regions, regional
workforce committees, local workforce investment boards and
regional investment boards shall coordinate their planning
efforts to ensure that the strategic efforts and resource
allocation of economic and workforce development of an area are
consistent. Regional workforce committees and regional investment
boards will extend opportunities to other entities engaged in
economic and workforce development programs and services to
participate in their joint or integrated strategic planning.
  (10)(a) A local workforce investment board that represents a
multiregional workforce area shall hold regional workforce
committees in the area accountable for any policy and operational
responsibilities under 2832(d) of the federal Act that is
delegated to the committees in accordance with state policy and
local workforce investment board policy.
  (b) A regional workforce committee within a multiregional
workforce area is accountable to the local workforce investment
board for any policy and operational responsibilities carried out
under the federal Act on behalf of the board.
  (c) As it relates to regional responsibilities under this
section, a regional workforce committee may, through a vote of
the committee, determine the methodology for delegating the
responsibilities of the regional workforce committee to a local
workforce investment board representing the multiregional
workforce area.
  SECTION 282. ORS 660.358 is amended to read:
  660.358. (1) The State Workforce Investment Board, in
consultation with the Governor, the Education and Workforce
Policy Advisor and other parties deemed appropriate by the board
and after consideration of the clean energy and energy efficiency
policies of this state, shall develop a plan for a green jobs
growth initiative to promote the development of emerging
technologies and innovations that lead to, create or sustain
family wage green jobs.
  (2) The plan for the initiative developed by the board shall:
  (a) Identify industries that are high demand green industries
based on current and projected creation of family wage green jobs
and the potential for career pathways created for such jobs.

Enrolled Senate Bill 242 (SB 242-C)                      Page 193

  (b) Use the needs of identified high demand green industries as
the basis for the planning of workforce development activities
that promote the development of emerging green technologies and
innovations. These activities include, but are not limited to,
such efforts undertaken by community colleges, the
 { - institutions - }  { +  public universities + } of the Oregon
University System, designated signature research centers,
registered apprenticeship programs and other private sector
training programs.
  (c) Leverage and align existing public workforce development
programs and other public and private resources to the goal of
recruiting, supporting, educating and training of targeted
populations of workers.
  (d) Require the board to work collaboratively with stakeholders
from business, labor and low income advocacy groups in the
regional economy to develop and implement the initiative.
  (e) Link adult basic and remedial education programs with job
training for skills necessary for green jobs.
  (f) Require the board to collaborate with employers and labor
organizations to identify skills and competencies necessary for
green job career pathways.
  (g) Ensure that support services are integrated with education
and training for green jobs and that such services are provided
by organizations with direct access to and experience with
targeted populations.
  SECTION 283. ORS 678.425 is amended to read:
  678.425. The Oregon Center for Nursing and the Oregon
Healthcare Workforce Institute may serve in advisory capacities
to the State Workforce Investment Board, the   { - Joint Boards
of Education - }  { +  Higher Education Coordinating
Commission + } and other related entities. The Oregon Center for
Nursing may advise on education and workforce development issues
affecting nursing. The Oregon Healthcare Workforce Institute may
advise on education and workforce development issues affecting
doctors, dentists and other allied health professionals. The
Oregon Center for Nursing and the Oregon Healthcare Workforce
Institute may work together to develop comprehensive solutions to
the healthcare workforce shortages in Oregon.
  SECTION 284. ORS 679.020 is amended to read:
  679.020. (1) A person may not practice dentistry without a
license.
  (2) Only a person licensed as a dentist by the Oregon Board of
Dentistry may own, operate, conduct or maintain a dental
practice, office or clinic in this state.
  (3) The restrictions of subsection (2) of this section, as they
relate to owning and operating a dental office or clinic, do not
apply to a dental office or clinic owned or operated by any of
the following:
  (a) A labor organization as defined in ORS 243.650 and 663.005
(6), or to any nonprofit organization formed by or on behalf of
such labor organization for the purpose of providing dental
services. Such labor organization must have had an active
existence for at least three years, have a constitution and
bylaws, and be maintained in good faith for purposes other than
providing dental services.
  (b) The School of Dentistry of the Oregon Health and Science
University.
  (c)   { - Institutions of higher education - }  { +  Public
universities + } listed in ORS 352.002.
  (d) Local governments.

Enrolled Senate Bill 242 (SB 242-C)                      Page 194

  (e) Institutions or programs accredited by the Commission on
Dental Accreditation of the American Dental Association to
provide education and training.
  (f) Nonprofit corporations organized under Oregon law to
provide dental services to rural areas and medically underserved
populations of migrant, rural community or homeless individuals
under 42 U.S.C. 254b or 254c or health centers qualified under 42
U.S.C. 1396d(l)(2)(B) operating in compliance with other
applicable state and federal law.
  (g) Nonprofit charitable corporations as described in section
501(c)(3) of the Internal Revenue Code and determined by the
Oregon Board of Dentistry as providing dental services by
volunteer licensed dentists to populations with limited access to
dental care at no charge or a substantially reduced charge.
  (4) For the purpose of owning or operating a dental office or
clinic, an entity described in subsection (3) of this section
must:
  (a) Name an actively licensed dentist as its dental director,
who shall be subject to the provisions of ORS 679.140 in the
capacity as dental director. The dental director, or an actively
licensed dentist designated by the director, shall have
responsibility for the clinical practice of dentistry, which
includes, but is not limited to:
  (A) Diagnosis of conditions within the human oral cavity and
its adjacent tissues and structures.
  (B) Prescribing drugs that are administered to patients in the
practice of dentistry.
  (C) The treatment plan of any dental patient.
  (D) Overall quality of patient care that is rendered or
performed in the practice of dentistry.
  (E) Supervision of dental hygienists, dental assistants or
other personnel involved in direct patient care and the
authorization for procedures performed by them in accordance with
the standards of supervision established by statute or by the
rules of the board.
  (F) Other specific services within the scope of clinical dental
practice.
  (G) Retention of patient dental records as required by statute
or by rule of the board.
  (H) Ensuring that each patient receiving services from the
dental office or clinic has a dentist of record.
  (b) Maintain current records of the names of licensed dentists
who supervise the clinical activities of dental hygienists,
dental assistants or other personnel involved in direct patient
care utilized by the entity. The records must be available to the
board upon written request.
  (5) Subsections (1) and (2) of this section do not apply to a
limited access permit dental hygienist who renders services
authorized by a limited access permit issued by the board
pursuant to ORS 680.200.
  (6) Nothing in this chapter precludes a person or entity not
licensed by the board from:
  (a) Ownership or leasehold of any tangible or intangible assets
used in a dental office or clinic. These assets include real
property, furnishings, equipment and inventory but do not include
dental records of patients related to clinical care.
  (b) Employing or contracting for the services of personnel
other than licensed dentists.
  (c) Management of the business aspects of a dental office or
clinic that do not include the clinical practice of dentistry.

Enrolled Senate Bill 242 (SB 242-C)                      Page 195

  (7) If all of the ownership interests of a dentist or dentists
in a dental office or clinic are held by an administrator,
executor, personal representative, guardian, conservator or
receiver of the estate of a former shareholder, member or
partner, the administrator, executor, personal representative,
guardian, conservator or receiver may retain the ownership
interest for a period of 12 months following the creation of the
ownership interest. The board shall extend the ownership period
for an additional 12 months upon 30 days' notice and may grant
additional extensions upon reasonable request.
  SECTION 285. ORS 680.515 is amended to read:
  680.515. (1) Subject to the provisions of ORS 676.612, upon
application accompanied by payment of required fees, the Oregon
Health Licensing Agency shall issue a license to practice denture
technology to any applicant who submits proof satisfactory to the
agency that the applicant has completed all requirements for
licensure, which include, but are not limited to:
  (a) Providing to the agency official transcripts verifying
completion of an associate degree program in denture technology,
or the equivalent in formal, post-secondary education, approved
by the agency in consultation with the   { - Oregon Student
Assistance Commission - }   { + Oregon Student Access
Commission + } and the Department of Education. The educational
program shall include pertinent courses in anatomy, including
histology, microbiology, physiology, pharmacology, pathology
emphasizing periodontology, dental materials, medical
emergencies, geriatrics, professional ethics, clinical denture
technology and denture laboratory technology;
  (b) Providing to the agency documentation of 1,000 hours of
supervised clinical practice in denture technology, completed
while enrolled in or after having completed a course of study
offered in a post-secondary educational institution, or through
equivalent supervised experience, as determined by the agency in
consultation with the   { - Oregon Student Assistance - }
commission and the Department of Education; and
  (c) Passing a written and a practical examination prescribed,
recognized or approved by the State Board of Denture Technology.
An applicant who fails the practical examination must complete
additional hours of clinical and laboratory training in an
approved work experience program, as determined by the
 { - board - }  { +  State Board of Denture Technology + }, to
qualify for reexamination.
  (2) Notwithstanding subsection (1)(a) of this section, the
  { - board - }   { + State Board of Denture Technology + } may
accept educational training obtained in any other state or
country if, upon review of satisfactory evidence, the agency
determines that the educational program in the other state or
country meets the educational standards prescribed under this
section.
  SECTION 286. ORS 684.040 is amended to read:
  684.040. (1) Any person applying for a license to practice
chiropractic in this state shall make application to the State
Board of Chiropractic Examiners, upon such form and in such
manner as may be provided by the board. The application must be
accompanied by nonrefundable fees of:
  (a) $150; and
  (b) The amount established by the board by rule under ORS
181.534.
  (2) Each applicant shall furnish to the board:

Enrolled Senate Bill 242 (SB 242-C)                      Page 196

  (a) Evidence satisfactory to the board of the applicant's good
moral character.
  (b) A certificate of proficiency in the fundamental sciences
(Part I, taken subsequent to January 1, 1971) issued to the
applicant by the National Board of Chiropractic Examiners.
  (c) Evidence of successful completion of at least two years of
liberal arts and sciences study, in any college or university
accredited by either the Northwest Association of Schools and
Colleges or a like regional association or in any college or
university in Oregon approved for granting degrees by the
 { - Oregon Student Assistance Commission - }   { + Oregon
Student Access Commission + }.
  (d) A diploma and transcript, certified by the registrar, or
other documents satisfactory to the   { - board - }   { + State
Board of Chiropractic Examiners + } evidencing graduation from a
chiropractic school or college approved by the board under the
board's academic standards, or from a school accredited by the
Council on Chiropractic Education or its successor agency, under
standards that are accepted and adopted biennially by the board
in the version applied to that school by the accrediting agency.
  (e) A statement of any other health care provider license in
this state held by the applicant, with identifying information
required by the   { - board - }  { +  State Board of Chiropractic
Examiners + }.
  (3) The   { - board - }   { + State Board of Chiropractic
Examiners + } may waive the requirements of subsection (2)(c) of
this section for any applicant for a license to practice
chiropractic if the applicant is licensed in another state and
practiced chiropractic in that state, but the applicant must pass
the examination authorized by ORS 684.050 or by ORS 684.052.
  SECTION 287. ORS 685.060 is amended to read:
  685.060. (1) The minimum educational requirements for a license
under the provisions of this chapter are:
  (a) At least two years' satisfactory liberal arts and sciences
study, or either, in a college or university accredited by either
the Northwest Association of Schools and Colleges or a like
regional association or in a college or university in Oregon
approved for granting degrees by the   { - Oregon Student
Assistance Commission - }   { + Oregon Student Access
Commission + } as evidenced by certificate or transcript of
credits from the college or university; and
  (b) Graduation from an accredited naturopathic school or
college.
  (2)(a) The areas of study required of an applicant for a
license to practice naturopathic medicine in this state include
basic sciences, clinical sciences and any naturopathic subjects
specified by the Oregon Board of Naturopathic Medicine by rule.
  (b) The   { - board - }   { + Oregon Board of Naturopathic
Medicine + } may not include major surgery as a required area of
study under paragraph (a) of this subsection.
  SECTION 288. 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 of a real estate broker or
principal real estate broker registered with the agency under ORS
696.026;

Enrolled Senate Bill 242 (SB 242-C)                      Page 197

  (b) A 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) A private career school approved by the agency to teach
continuing education courses;
  (f) An accredited community college or an accredited
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + };
  (g) A distance learning provider approved by the agency; or
  (h) Another provider approved by the Real Estate Board.
  (3) 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.
  (4) The list of course topics developed by the agency under
subsection (3) of this section must allow for changes in the real
estate profession.
  (5) 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 289. ORS 743.550 is amended to read:
  743.550. (1) Student health insurance is subject to ORS
743.537, 743.540, 743.543, 743.546 and 743.549, except as
provided in this section.
  (2) Coverage under a student health insurance policy may be
mandatory for all students at the institution, voluntary for all
students at the institution, or mandatory for defined classes of
students and voluntary for other classes of students. As used in
this subsection, 'classes' refers to undergraduates, graduate
students, domestic students, international students or other like
classifications. Any differences based on a student's nationality
may be established only for the purpose of complying with federal
law in effect when the policy is issued.
  (3) When coverage under a student health insurance policy is
mandatory, the policyholder may allow any student subject to the
policy to decline coverage if the student provides evidence
acceptable to the policyholder that the student has similar
health coverage.
  (4) A student health insurance policy may provide for any
student to purchase optional supplemental coverage.
  (5) Student health insurance coverage for athletic injuries
may:
  (a) Exclude coverage for injuries of students who have not
obtained medical release for a similar injury; and
  (b) Be provided in excess of or in addition to any other
coverage under any other health insurance policy, including a
student health insurance policy.
  (6) A student health insurance policy may provide that coverage
under the policy is secondary to any other health insurance for
purposes of guidelines established under ORS 743.552.
  (7) A student health insurance policy may provide, on request
by the policyholder, that all or any portion of any indemnities
provided by such policy on account of hospital, nursing, medical
or surgical services may, at the insurer's option, be paid
directly to the hospital or person rendering such services.
However, the amount of any such payment shall not exceed the
amount of benefit provided by the policy with respect to the

Enrolled Senate Bill 242 (SB 242-C)                      Page 198

service or billing of the provider of aid. The amount of such
payments pursuant to one or more assignments shall not exceed the
amount of expenses incurred on account of such hospitalization or
medical or surgical aid.
  (8) An insurer providing student health insurance as primary
coverage may negotiate and enter into contracts for alternative
rates of payment with providers and offer the benefit of such
alternative rates to insureds who select such providers. An
insurer may utilize such contracts by offering a choice of plans
at the time an insured enrolls, one of which provides benefits
only for services by members of a particular provider
organization with whom the insurer has an agreement. If an
insured chooses such a plan, benefits are payable only for
services rendered by a member of that provider organization,
unless such services were requested by a member of such
organization or are rendered as the result of an emergency.
  (9) Payments made under subsection (8) of this section shall
discharge the insurer's obligation with respect to the amount of
insurance paid.
  (10) An insurer shall provide each student health insurance
policyholder with a current roster of institutional and
professional providers under contract to provide services at
alternative rates under the group policy and shall also make such
lists available for public inspection during regular business
hours at the insurer's principal office within this state.
  (11) As used in this section, 'student health insurance ' means
that form of health insurance under a policy issued to a college,
school or other institution of learning, a school district or
districts, or school jurisdictional unit, or recognized student
government at   { - an institution of higher education within the
Oregon University System - }  { +  a public university listed in
ORS 352.002 + }, or to the head, principal or governing board of
any such educational unit, who or which shall be deemed the
policyholder, that is available exclusively to students at the
college, school or other institution.
  SECTION 290. ORS 759.445 is amended to read:
  759.445. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Connecting
Oregon Communities Fund. Moneys in the fund shall consist of
amounts deposited in the fund under ORS 759.405 and any other
moneys deposited by a telecommunications carrier that elects to
be subject to ORS 759.405 and 759.410, including amounts
deposited pursuant to a performance assurance plan implemented by
a telecommunications carrier in connection with an application
under 47 U.S.C. 271, as in effect on January 1, 2002. Interest
earned on moneys in the fund shall accrue to the fund. Moneys in
the fund may be invested as provided in ORS 293.701 to 293.820.
Moneys in the fund shall be used to provide access to advanced
telecommunications technology in elementary schools and high
schools, colleges and universities, community colleges, public
television corporations, rural health care providers, public
libraries and other eligible persons.
  (2) Two dedicated accounts shall be established within the
Connecting Oregon Communities Fund for purposes of supporting
education and public access to advanced telecommunications
services. The first $25 million of the moneys deposited in the
Connecting Oregon Communities Fund in both 2000 and 2001 shall be
appropriated to the School Technology Account established under
subsection (3) of this section. Except as provided in subsection
(8) of this section, any additional moneys available in the fund

Enrolled Senate Bill 242 (SB 242-C)                      Page 199

shall be appropriated to the Public Access Account established
under subsection (4) of this section.
  (3) There is established the School Technology Account within
the Connecting Oregon Communities Fund. The purpose of the School
Technology Account is to improve access to advanced
telecommunications services for students attending public school
in kindergarten through grade 12. Moneys in the account shall be
expended as provided in section 34, chapter 1093, Oregon Laws
1999.
  (4)(a) There is established the Public Access Account within
the Connecting Oregon Communities Fund. The purpose of the Public
Access Account is to improve access to advanced
telecommunications services for community colleges, universities,
public libraries and rural health care providers.
  (b) If funding has not been provided from other sources, the
first $3 million available in the Public Access Account shall be
transferred to the Oregon University System for the purpose of
funding the Oregon Wide Area Network project to provide and
expand Internet access for the Oregon University System. The
Oregon University System shall complete an audit of bandwidth
utilization and report to the Joint Legislative Committee on
Information Management and Technology during the Seventy-first
Legislative Assembly in the manner provided in ORS 192.245.
  (c) Following the transfer of funds described in paragraph (b)
of this subsection, the next $1 million available in the Public
Access Account shall be transferred to the Oregon University
System for Oregon State University for the purpose of providing
virtual access to persons with disabilities.
  (d) Following the transfer of funds as described in paragraphs
(b) and (c) of this subsection, the next $2 million available in
the Public Access Account shall be transferred to the Department
of Community Colleges and Workforce Development for distribution
to community colleges for the purpose of developing connectivity
and distance education programs.
  (e) Following the transfer of funds described in paragraphs (b)
to (d) of this subsection, the next $4 million available in the
Public Access Account shall be transferred to the Oregon
University System for video transport and network management
services for the Oregon University System.
  (f) Following the transfer of funds described in paragraphs (b)
to (e) of this subsection, the next $5.5 million available in the
Public Access Account shall be transferred to the Oregon Public
Broadcasting Corporation for the purpose of digitizing the state
television network, using the Oregon Enterprise Network when
possible.
  (g) Following the transfer of funds described in paragraphs (b)
to (f) of this subsection, the next $500,000 available in the
Public Access Account shall be transferred to the Southern Oregon
Public Television Corporation for the purpose of digitizing the
state television network, using the Oregon Enterprise Network
when possible.
  (h) Following the transfer of funds described in paragraphs (b)
to (g) of this subsection, a   { - state institution of higher
education, including - }  { +  public university listed in ORS
352.002 or + } the Oregon Health and Science University
 { - , - }  may apply for one-time matching funds up to $1
million from the Public Access Account to endow a
telecommunications chair for the purpose of increasing research
and development of advanced telecommunications services
applications. Only one chair may be endowed under this paragraph.

Enrolled Senate Bill 242 (SB 242-C)                      Page 200

  (5)(a) The Oregon Business Development Commission shall approve
expenditure of any remaining moneys in the Public Access Account
consistent with this section and ORS 759.430.
  (b) Community colleges,   { - state institutions of higher
education - }  { +  public universities listed in ORS
352.002 + }, public libraries, public television corporations and
rural health care providers may apply to the Oregon Business
Development Commission for funding from the Public Access Account
under this subsection.
  (c) Funds received from the account shall be used for the
purchase of advanced telecommunications services, equipment or
recurring costs of telecommunications connectivity. Priority
shall be given to collaborative projects that improve access to
advanced telecommunications services.
  (d) Funds available in the Public Access Account under this
subsection are continuously appropriated to the Oregon Business
Development Department for the purposes described in this
subsection.
  (6) Public libraries and rural health care providers must apply
for federal universal service support in order to be eligible for
a grant from the Public Access Account.
  (7) The video transport and network management services
purchased with funds made available under this section shall be
purchased through the Oregon Department of Administrative
Services.
  (8) Any moneys deposited in the Connecting Oregon Communities
Fund under subsection (1) of this section pursuant to a
performance assurance plan implemented by a telecommunications
carrier in connection with an application under 47 U.S.C. 271, as
in effect on January 1, 2002, shall be placed in the School
Technology Account to be expended as provided in section 34,
chapter 1093, Oregon Laws 1999.
  SECTION 290a. Section 9, chapter 802, Oregon Laws 2007, is
amended to read:
   { +  Sec. 9. + } Section 8   { - of this 2007 Act - }  { + ,
chapter 802, Oregon Laws 2007, + } is repealed on   { - January
2, 2012 - }  { +  the effective date of this 2011 Act + }.

                               { +
REPEALS + }

  SECTION 291.  { + ORS 351.005, 351.007, 351.090, 351.200 and
351.315 are repealed. + }
  SECTION 291a.  { + ORS 348.599 is repealed. + }

                               { +
OPERATIVE DATE + }

  SECTION 292.  { + Sections 1 to 16, 20a, 21, 21a, 23a, 29a and
36a of this 2011 Act, 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 and the repeal
of ORS 348.599 by section 291a of this 2011 Act become operative
on July 1, 2012. + }
  SECTION 292a.  { + Sections 17 to 20, 22a, 23, 24 to 29, 30,
33, 41a, 43, 170b and 170c of this 2011 Act, the amendments to
statutes by sections 31, 32, 34 to 36, 37 to 41, 42, 44 to 81, 82
to 120, 124 to 131, 134 to 170a, 171, 172 to 178, 190 to 205,
206, 207, 208 to 214, 217 to 228, 230, 232 to 256, 257, 258, 260
to 282 and 284 to 290a of this 2011 Act and the repeal of ORS

Enrolled Senate Bill 242 (SB 242-C)                      Page 201

351.005, 351.007, 351.090, 351.200 and 351.315 by section 291 of
this 2011 Act become operative on January 1, 2012. + }
  SECTION 293.  { + The State Board of Higher Education and the
Chancellor of the Oregon University System may take any action
before the operative dates specified in sections 292 and 292a of
this 2011 Act that is necessary for the board and the chancellor
to exercise, on and after the operative dates specified in
sections 292 and 292a of this 2011 Act, all of the duties,
functions and powers conferred on the board and the chancellor by
sections 1 to 30a, 33, 36a, 41a, 43 and 170b of this 2011 Act,
the amendments to statutes by sections 31, 32, 34 to 36, 37 to
41, 42, 44 to 170a and 171 to 290a of this 2011 Act and the
repeal of statutes by sections 291 and 291a of this 2011 Act. + }

                               { +
CAPTIONS + }

  SECTION 294.  { + The unit captions used in this 2011 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2011 Act. + }

                               { +
EMERGENCY DECLARATION + }

  SECTION 295.  { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
                         ----------

Passed by Senate June 17, 2011

Repassed by Senate June 29, 2011

    .............................................................
                               Robert Taylor, Secretary of Senate

    .............................................................
                              Peter Courtney, President of Senate

Passed by House June 27, 2011

    .............................................................
                                    Bruce Hanna, Speaker of House

    .............................................................
                                   Arnie Roblan, Speaker of House

Enrolled Senate Bill 242 (SB 242-C)                      Page 202

Received by Governor:

......M.,............., 2011

Approved:

......M.,............., 2011

    .............................................................
                                         John Kitzhaber, Governor

Filed in Office of Secretary of State:

......M.,............., 2011

    .............................................................
                                   Kate Brown, Secretary of State

Enrolled Senate Bill 242 (SB 242-C)                      Page 203
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