77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

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

LC 2093

                         House Bill 2312

Sponsored by Representative READ (Presession filed.)

                             SUMMARY

The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.

  Establishes Portland State University as independent public
university, governed by university board of directors.
  Directs Portland State University Board of Directors to set
enrollment fees and tuition, purchase and manage property,
develop contract policies and set personnel rules.
  Removes sunset for Oregon Education Investment Board.
  Becomes operative July 1, 2014.
  Declares emergency, effective on passage.

                        A BILL FOR AN ACT
Relating to higher education; creating new provisions; amending
  ORS 21.007, 30.264, 30.864, 36.145, 36.150, 131.594, 182.122,
  182.415, 183.635, 184.475, 184.477, 184.631, 192.501, 205.450,
  205.455, 238.005, 238.200, 238.215, 238A.005, 240.185, 243.105,
  243.107, 243.778, 243.800, 243.820, 243.850, 243.910, 243.945,
  244.050, 270.100, 270.110, 273.785, 276.227, 276.229, 276.610,
  276.612, 279A.025, 282.076, 283.143, 283.310, 284.633, 284.701,
  284.735, 285B.168, 285B.174, 286A.615, 291.038, 291.055,
  291.229, 292.043, 292.044, 307.095, 307.110, 310.155, 326.543,
  326.587, 329.822, 329.840, 332.114, 332.155, 336.057, 337.500,
  337.511, 338.005, 338.115, 339.885, 340.005, 340.310, 341.430,
  341.440, 342.144, 342.147, 342.360, 342.390, 342.443, 344.259,
  344.557, 344.753, 348.005, 348.010, 348.180, 348.205, 348.270,
  348.282, 348.394, 348.470, 348.597, 348.890, 348.900, 348.910,
  351.015, 351.047, 351.052, 351.065, 351.067, 351.165, 351.170,
  351.296, 351.473, 351.476, 351.509, 351.511, 351.642, 351.643,
  351.644, 351.646, 351.649, 351.656, 351.658, 351.695, 351.697,
  351.700, 351.704, 351.708, 351.718, 351.735, 351.810, 351.820,
  351.840, 352.002, 352.006, 352.008, 352.012, 352.015, 352.021,
  352.063, 352.066, 352.068, 352.071, 352.074, 352.360, 352.370,
  352.375, 352.380, 352.385, 353.440, 353.600, 353.603, 357.004,
  357.203, 408.095, 419B.005, 431.690, 433.090, 461.543, 471.580,
  541.932, 634.660, 659.850, 659.855, 659.860, 660.315, 660.358,
  679.020, 696.182, 743.550, 759.445, 815.080, 820.100, 820.110,
  820.120, 820.130 and 820.150 and section 3, chapter 797, Oregon
  Laws 2001, sections 13 and 17, chapter 761, Oregon Laws 2007,
  section 22, chapter 904, Oregon Laws 2009, and section 14,
  chapter 36, Oregon Laws 2012; repealing section 10, chapter
  519, Oregon Laws 2011; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:

  SECTION 1.  { + (1) Portland State University is established as
a public university and shall exercise and carry out all of the
powers, rights and duties that are expressly conferred upon the
university that are implied by law or incident to such powers,
rights and duties.
  (2) The university is an instrumentality of state government,
performing governmental functions and exercising governmental
powers. The university is independent, has statewide purposes and
is without territorial boundaries. The university is a state
institution of higher education, but is not an agency, department
or division of the state, a unit of local or municipal government
or part of the executive branch.
  (3) The university shall be governed by the Portland State
University Board of Directors.
  (4) The board may exercise authority over matters of university
concern to the fullest extent allowed by Constitutions and laws
of the United States and this state. + }
  SECTION 2.  { + (1) The Portland State University Board of
Directors shall consist of 15 members as follows:
  (a) Eight members appointed by the Governor and confirmed by
the Senate in the manner prescribed in ORS 171.562 and 171.565,
including:
  (A) One student enrolled at the university; and
  (B) One faculty member of the university.
  (b) One member who is a nonstudent member of the State Board of
Higher Education, appointed by the State Board of Higher
Education.
  (c) Five members appointed by the Portland State University
Board of Directors, including one member who is a member of the
university foundation's board of directors.
  (d) The president of Portland State University, who shall be a
nonvoting member.
  (e) The Portland State University Board of Directors may
appoint other nonvoting members as it deems necessary in the best
interests of the university.
  (2)(a) Except for the president of the university, the term of
office of each nonstudent member is four years. The term of
office of the student member is two years.
  (b) Before the expiration of the term of a member, the
appointing authority shall appoint a successor whose term begins
on July 1 next following. A member is eligible for reappointment
for one additional term.
  (c) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become effective for the
remainder of the unexpired term. For members appointed by the
Governor, the board shall nominate a slate of candidates whenever
a vacancy occurs or is announced and shall forward the names of
the recommended candidates to the Governor for consideration.
  (d) A student enrolled at the university may not be appointed
to, or continue to serve on, the board unless the student is in
good standing pursuant to bylaws or policies of the board.
  (3) Except as provided in subsection (1) of this section, a
voting member may not be an employee of the university, the
Oregon University System or the State of Oregon.
  (4) The board shall select one of its members as the
chairperson, another as vice chairperson and another as
secretary, for such terms and with such duties and powers as the
board considers necessary for performance of the functions of
those offices. The board shall adopt bylaws for its governance,
including provisions specifying how a quorum is constituted and
when a quorum is necessary.
  (5) The board shall meet at least once every three months on
the university's campus. Board members may participate in the
meeting electronically as provided in ORS 192.610 to 192.690.
Each board shall meet at such other times and places specified by
the chairperson or by a majority of the members of that board.
  (6) An appointing authority may remove any member appointed by
the authority at any time for cause, after notice and public
hearing. + }
  SECTION 3.  { + Notwithstanding the terms of office specified
in section 2 of this 2013 Act, of the members first appointed to
the Portland State University Board of Directors, other than the
president of the university:
  (1) Four members appointed by the Governor, including the
student member, and three members appointed by the board shall
serve for terms ending June 30, 2015; and
  (2) The following shall serve for terms ending June 30, 2017:
  (a) Four members appointed by the Governor, including the
faculty member;
  (b) Two members appointed by the board, including the member of
the university foundation's board of directors; and
  (c) The member appointed by the State Board of Higher
Education. + }
  SECTION 4.  { + The Governor and the State Board of Higher
Education shall appoint members to the Portland State University
Board of Directors as described in section 2 of this 2013 Act no
later than July 15, 2014. These board members shall appoint the
board members described in section 2 (1)(c) of this 2013 Act no
later than 60 days after confirmation of the gubernatorial
appointees by the Senate. + }
  SECTION 5.  { + The Portland State University Board of
Directors 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 Portland State
University.
  (2) Manage, control and apply all property of any nature given
to or appropriated for the use, support or benefit of the
university, according to the terms and conditions of such gift or
appropriation. Moneys received under this section shall be
deposited in an account designated by Portland State University.
Interest earned by the account shall be credited to the account.
  (3) Design, acquire, erect, improve, repair, maintain, lease,
renovate, demolish, equip, furnish and dispose of buildings,
structures and lands necessary for carrying out the powers,
rights and duties of the board.
  (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 the university by private donors, whether such
gifts are made to the university, the State Board of Higher
Education or to the State of Oregon; or
  (b) Acquired by any other method or from any source for the
benefit of the university, except for any structure, equipment or
asset encumbered by a certificate of participation.
  (5) Exercise the power of eminent domain for the condemnation
of property of any kind and all water rights, easements and
appurtenances thereto that the university considers necessary for
carrying out the powers, rights and duties of the board.
  (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers, rights and duties of the
board.
  (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of mortgages described in subsection
(6) of this section or for the purpose of carrying into effect
any and all of the powers, rights and duties of the board. Except
as otherwise provided by ORS 30.260 to 30.300, the board has the
authority to defend and indemnify its employees, officers and
agents when they are acting in good faith within the course and
scope of their duties for public purposes.
  (8) Acquire, receive, hold, control, sell, manage, operate,
lease, license or lend any goods, supplies, materials, equipment,
services and information technology for the use, support or
benefit of the university.
  (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 university. Portland State University shall be considered a
state agency for purposes of ORS 286A.730 to 286A.750.
  (10) Own, control and operate Oregon University System motor
vehicles for use by the university. The board shall establish
requirements governing the use and operation of university 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 board shall reimburse the State Treasurer for legal
fees incurred in connection with borrowings done at the request
of the board.
  (12) Request that the Chancellor of the Oregon University
System seek issuance by the State Treasurer of bonds for the
support or benefit of the university.
  (13) Purchase any insurance, operate a self-insurance program,
enter into an agreement with the Oregon University System or
otherwise arrange for the equivalent of insurance coverage of any
nature.
  (14) Acquire, purchase, manage, develop, license or dispose of
intellectual property of any kind.
  (15) Exercise any other power, duty or responsibility necessary
or convenient to matters of university concern. + }
  SECTION 6.  { + (1) In consultation with the State Board of
Higher Education and the Chancellor of the Oregon University
System, the Portland State University Board of Directors shall
appoint a president of Portland State University.
  (2) The president of the university is the president of the
faculty and is the chief executive officer of the university. The
president of the university has authority to direct the affairs
and operation of the university, subject to the policies and
direction of the Portland State University Board of Directors.
  (3) The Portland State University Board of Directors may
delegate to the president any of the powers, duties or functions
granted to the board. + }
  SECTION 7.  { + The president and professors of Portland State
University constitute the faculty of the university and have the
immediate government and discipline of the university and the
students therein. The faculty may, subject to the supervision of
the Portland State University Board of Directors, prescribe the
course of study to be pursued at the university and the textbooks
to be used. + }
  SECTION 8.  { + (1) The Portland State University Board of
Directors shall set enrollment fees for Portland State
University.  Enrollment fees include tuition for education and
services and any other charges found by the board to be necessary
to carry out the educational program of the university.
  (2) The board shall establish enrollment fees for the
university. The process of establishing the fees must provide for
participation of enrolled students and the recognized student
government of the university.
  (3) The university may 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 university. + }
  SECTION 9.  { + (1) The Portland State University Board of
Directors shall implement a personnel system for Portland State

University and may engage in collective bargaining with the
employees and shall have payroll authority.
  (2)(a) The board shall establish competitive procedures for the
purchasing, procurement and contracting of goods, services and
information technology for the benefit of the university. 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 are not less than the 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:
  (a) Appoint and employ a president, as provided in section 6 of
this 2013 Act, and other officers and prescribe their
compensation and tenure of office or employment.
  (b) Demand and receive the interest described in ORS 352.510
and all sums due and accruing for admission and tuition, and
apply the interest and sums accruing for admission and tuition,
or so much thereof as is necessary, to the payment of the
compensation under paragraph (a) of this subsection and other
current expenses.
  (c) Prescribe incidental fees for programs under the
supervision or control of the board that are found by the board,
upon its own motion or upon recommendation of the recognized
student government, to be advantageous to the cultural or
physical development of students. Fees realized in excess of
amounts allocated and exceeding required reserves shall be
considered surplus incidental fees and shall be allocated for
programs under the control of the board and found to be
advantageous to the cultural or physical development of students
by the president upon the recommendation of the recognized
student government.
  (d) Upon recommendation of the recognized student government,
collect optional fees for student activities other than those
described in paragraph (c) of this subsection or section 8 of
this 2013 Act as authorized by the president. The payment of such
fees is optional for the student and is not a prerequisite of
enrollment.
  (e) Confer, consistent with the mission and programs of the
university and on the recommendation of the faculty, such degrees
as usually are conferred by public universities, or as the
faculty deems appropriate.
  (f) Prescribe the qualifications for admission.
  (g) Contract to provide health services to students at student
health centers.
  (h) Provide health services at student health centers to any of
the following:
  (A) Dependents of students.
  (B) Staff.
  (C) Faculty.
  (4) The board shall:
  (a) Supervise the general course of instruction at the
university, and the research, extension, educational and other
activities.
  (b) Adopt rules and bylaws for university governance, including
governance of the faculty, teachers, students and employees.
  (c) Maintain cultural and physical development services and
facilities for the university and may, in connection with the
services and facilities, cooperate and enter into agreements with
any person or governmental agency.
  (d) Provide health services at student health centers to
students.
  (e) Prescribe and collect charges.
  (f) Adopt rules relating to the creation, use, custody and
disclosure, including access, of student education records that
are consistent with the requirements of applicable state and
federal law. Whenever a student has attained 18 years of age or
is attending the university, 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
only to the student.
  (g) 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 university may use any educational facility available for the
use of the university. + }
  SECTION 10.  { + (1) The Portland State University Board of
Directors may purchase such real property as the board, in its
sole discretion, deems necessary for the present or future
development of Portland State University. The board may enter
into contracts of purchase or agreements that the board deems
necessary in carrying out this authorization.
  (2) The board may apply any funds toward the purchase of
property authorized under this section. The board may 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.
  (3) The board may 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.
  (4) Legal title to all real property acquired by the university
shall be taken and held in the name of the State of Oregon. Legal
title to all real property conveyed to the university 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 the university shall be executed in the name of the
State of Oregon by the president of the university or the
chairperson of the board.
  (5) The university shall have custody and control of and shall
care for all real property used for university purposes.
Management, maintenance and preservation of all real property
used for university purposes is the responsibility of the
university. + }
  SECTION 11.  { + (1) Portland State University shall develop
contract policies that support openness, impartiality and
competition in the awarding of contracts in accordance with ORS
279A.015.
  (2) The university shall also develop contract policies that
are designed to encourage affirmative action, recycling,
inclusion of art in public buildings, the purchase of goods and
services from individuals with disabilities, the protection of
workers through the payment of prevailing wages as determined by
the Bureau of Labor and Industries, the provision of workers'
compensation insurance to workers on contracts and the
participation of emerging small businesses and businesses owned
by women and minorities.
  (3) The Portland State University Board of Directors shall have
the authority to enact policies, appropriate for the use of the
university, governing public contracting and may devise and
publish forms for use in carrying out the policies. + }  { +  + }
  SECTION 12.  { + (1) As used in this section:
  (a) 'Direct labor' includes all work required for preparation,
processing and packing, but not supervision, administration,
inspection or shipping.
  (b) 'Individual with a disability' means an individual who,
because of the nature of the individual's disability, is not able
to participate fully in competitive employment, and for whom
specialized employment opportunities must be provided.
  (c) 'Qualified nonprofit agency for individuals with
disabilities' means a nonprofit activity center or rehabilitation
facility:
  (A) Organized under the laws of the United States or of this
state and operated in the interest of individuals with
disabilities, and the net income of which does not inure in whole
or in part to the benefit of any shareholder or other individual;
  (B) That complies with any applicable occupational health and
safety standards required by the laws of the United States or of
this state; and
  (C) That in the manufacture of products and in the provision of
services during the fiscal year employs individuals with
disabilities for not less than 75 percent of the work hours of
direct labor required for the manufacture or provision of the
products or services.
  (2) The Portland State University Board of Directors shall
further the policy of this state to encourage and assist
individuals with disabilities in achieving maximum personal
independence through useful and productive gainful employment by
ensuring an expanded and constant market for sheltered workshop
and activity center products and services, thereby enhancing the
dignity of individuals with disabilities and their capacity for
self-support and minimizing their dependence on welfare and need
for costly institutionalization.
  (3) It is the duty of Portland State University to:
  (a) Determine the price of all products manufactured and
services offered for sale to the university by any qualified
nonprofit agency for individuals with disabilities. The price
shall recover for the workshops the cost of raw materials, labor,
overhead, delivery costs and a margin held in reserve for
inventory and equipment replacement;
  (b) Revise such prices from time to time in accordance with
changing cost factors;
  (c) Make such rules regarding specifications, time of delivery
and other relevant matters of procedure as shall be necessary;
and
  (d) Utilize prices and specifications, in its discretion,
established by the Oregon Department of Administrative Services.
  (4) The university shall establish and publish a list of
sources or potential sources of products produced by a qualified
nonprofit agency for individuals with disabilities and the
services provided by any such agency that the university
determines are suitable for its procurement. The university, in
its discretion, may utilize any list established and published by
the department.
  (5) If the university intends to procure any product or service
on the procurement list, the university shall procure such
product or service at the price established by the university
from a qualified nonprofit agency for individuals with
disabilities, provided the product or service is of the
appropriate specifications and is available at the location and
within the period required by the university.
  (6) It is the intent of the Legislative Assembly that there be
close cooperation among the board, the university and qualified
nonprofit agencies for individuals with disabilities. The
university, on behalf of the board, is authorized to enter into
such contractual agreements, cooperative working relationships or
other arrangements as may be necessary for effective coordination
and efficient realization of the objectives of this section. + }
  SECTION 13.  { + (1) Except as otherwise provided in sections 1
to 18 of this 2013 Act and ORS chapters 351 and 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 Portland
State University.
  (2) Notwithstanding subsection (1) of this section, the
provisions of ORS 182.100, 182.109, 240.167, 276.073 to 276.090,
279A.065 (2), 279B.055 (3), 279C.380 (1)(a) and (3), 279C.600 to
279C.625, 279C.800, 279C.810, 279C.825, 279C.830, 279C.835,
279C.840, 279C.845, 279C.850, 279C.855, 279C.860, 279C.865,
279C.870, 283.085 to 283.092, 291.200, 291.201 to 291.222,
291.223, 291.224 (2) and (6), 291.226, 291.272 to 291.278,
291.322 to 291.334, 291.405, 291.407, 291.445, 292.043 and
292.044 apply to Portland State University.
  (3) Notwithstanding subsection (1) of this section, ORS 273.413
to 273.456 apply to any structure, equipment or asset owned by
Portland State University 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 and 297
and ORS 30.260 to 30.460, 184.480, 184.483, 184.486, 184.488,
200.005 to 200.025, 200.045 to 200.090, 200.100 to 200.120,
200.160 to 200.200, 236.605 to 236.640, 243.650 to 243.782,
243.800, 243.820, 243.830, 243.850, 243.910 to 243.945, 307.090
and 307.112 apply to Portland State University under the same
terms as they apply to other public bodies other than the State
of Oregon.
  (b) The provisions of ORS chapter 286A and ORS 293.115,
293.117, 293.130, 293.169, 293.171, 293.205 to 293.225, 293.250,
293.265 to 293.280, 293.285, 293.295, 293.321, 293.353, 293.375,
293.406, 293.465 to 293.485, 293.490, 293.495, 293.525, 293.701
to 293.820, 293.875, 293.880 and 293.990 apply to Portland State
University under the same terms as they apply to state agencies
with moneys held by the State Treasurer.
  (5) Notwithstanding subsections (1) and (6) of this section,
Portland State University 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) In carrying out the duties, functions and powers imposed by
law upon Portland State University, the Portland State University
Board of Directors may contract with any public agency for the
performance of such duties, functions and powers as the board
considers appropriate. + }
  SECTION 14.  { + The Portland State University Board of
Directors may, in its discretion, accept financial assistance and
grants, either in the form of money or labor, from the United
States or any of its agencies, subject to the terms and
conditions thereof, regardless of any laws of this state in
conflict with the regulations of the federal government with
respect thereto, and may also accept from others any donation,
grant of land, gift of money or other valuable gift or thing, for
any of the purposes described in Article XI-F(1) and Article XI-G
of the Oregon Constitution, ORS 351.160 to 351.190, 351.345 to
351.460, 351.500 and 351.505. Unless enjoined by the terms or
conditions of any such gift or grant, the board may convert the
same, or any of them, into money, through sale or disposal
thereof. + }
  SECTION 15.  { + (1) The Portland State University Board of
Directors 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, tuition
or other revenues collected.
  (2) The board shall adopt a budget on a regular schedule. + }
  SECTION 16.  { + Portland State University shall conduct
independent audits if the audits are considered advisable by the
university. Subject to ORS 297.250, the audits are at the
exclusive discretion and control of the university. The audits
are subject to disclosure pursuant to ORS 192.410 to 192.505. + }
  SECTION 17.  { + The Portland State University Board of
Directors may open, establish, lay out and dedicate to the public
use such streets through the lands situated within the corporate
limits of the City of Portland, owned by or belonging to Portland
State University, upon such terms and conditions as may be agreed
upon by the board and the common council of the City of Portland.
When such streets are so opened, laid out and established, they
hereby are declared to be dedicated to the public use and are
further declared to be public streets of the City of
Portland. + }
  SECTION 18.  { + (1) The Portland State University Board of
Directors shall provide group insurance to employees of Portland
State University through the Public Employees' Benefit Board or
may elect to provide alternative group health and welfare
insurance benefit plans to employees of the university if the
same level of benefits is available at a lower cost than through
the Public Employees' Benefit Board.
  (2) For the purposes of ORS 243.555 to 243.575, if the Portland
State University Board of Directors chooses not to provide the
benefit plans offered through the Public Employees' Benefit
Board, the Portland State University Board of Directors 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 Portland State University Board of Directors shall
offer one or more deferred compensation plans to employees of the
university. The university 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 university. + }
  SECTION 19.  { + As used in sections 19 to 29 of this 2013 Act:
  (1) 'Former university' means Portland State University in the
university's former status as a university within the Oregon
University System.
  (2) 'University' means Portland State University.
  (3) 'Board' means the Portland State University Board of
Directors. + }
  SECTION 20.  { + (1) Pursuant to the provisions of ORS 236.605
to 236.640, and except as otherwise expressly provided in
sections 1 to 18 of this 2013 Act, all persons employed by
Portland State University on July 1, 2014, shall continue their
employment with the university and shall retain any seniority,
contractual rights or tenure granted prior to July 1, 2014.
  (2) Nothing in sections 1 to 18 of this 2013 Act shall affect
the representation rights of collective bargaining organizations
that represent university employees. Nothing in sections 1 to 18
of this 2013 Act shall affect any term or condition of any
collective bargaining agreement in effect on July 1, 2014. + }
  SECTION 21.  { + All of the duties, functions and powers of the
former university are transferred to the university as if the
university were a continuation of the former university and not a
new authority. + }
  SECTION 22.  { + (1) All records and property of the former
university shall be considered the records and property of
Portland State University.

  (2) There are transferred to the Portland State University
Board of Directors title to and possession of all the supplies,
materials, equipment, records, books, papers and facilities of
the State Board of Higher Education pertaining to the former
university.
  (3) Title to real property acquired prior to July 1, 2014,
utilized by the former university or held or managed by the State
of Oregon for the benefit of the former university shall be
continuously held in the name of the State of Oregon, except that
Portland State University has the exclusive care, custody and
control of such real property and facilities.
  (4) Portland State University may sell, convey or lease such
property, or any interest therein, as the Portland State
University Board of Directors deems in the best interest of the
university as provided in section 10 of this 2013 Act. + }
  SECTION 23.  { + All unexpended moneys, including but not
limited to General Fund appropriations, gifts, bequests, other
funds, assessments, liability and worker's compensation reserves
and premiums that are appropriated to, held, managed or invested
by or on behalf of or otherwise available to the former
university or its president, for the purposes of any of its
duties, functions or powers transferred to Portland State
University, are appropriated and transferred to the
university. + }
  SECTION 24.  { + (1) Any action, suit, proceeding, prosecution
or other business or matter undertaken or commenced before the
operative date of section 21 of this 2013 Act by the former
university, with respect to the duties, functions or powers
transferred to Portland State University by section 21 of this
2013 Act and still pending on the operative date of section 21 of
this 2013 Act may be conducted and completed by the university in
the same manner, under the same terms and conditions and with the
same effect as though undertaken, conducted or completed by the
former university before the transfer.
  (2) The transfer of duties, functions and powers to the
Portland State University Board of Directors under section 21 of
this 2013 Act does not affect any action, suit, 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 Portland State University Board of Directors
shall be substituted for the State Board of Higher Education in
any such action, suit, proceeding or prosecution.
  (3) Any action, suit, proceeding, prosecution or other business
or matter undertaken or commenced before the operative date of
section 21 of this 2013 Act by a state officer or agency, with
respect to the duties, functions or powers transferred to the
university and still pending on the operative date of section 21
of this 2013 Act, may be conducted and completed by the
university in the same manner, under the same terms and
conditions and with the same effect as though undertaken,
conducted or completed by the former university before the
transfer. + }
  SECTION 25.  { + Nothing in sections 1 to 18 of this 2013 Act
relieves any person of any obligation with respect to a tax, fee,
fine or other charge, interest, penalty, forfeiture or other
liability, duty or obligation. + }
  SECTION 26.  { + Portland State University is considered to be
a continuation of the former university with respect to its
duties, functions and powers, and not a new authority for the
purpose of succession to all rights and obligations of the former
university as constituted at the time of such assignment or
transfer, except as otherwise provided in sections 1 to 18 of
this 2013 Act, with the same force and effect as if such duties,
functions and powers had not been assigned or transferred. + }
  SECTION 27.  { + (1) Whenever, in any law or resolution of the
Legislative Assembly or in any rule, document, record or
proceeding authorized thereby, reference is made to the former
university, or an employee of the former university, whose
duties, functions or powers are assigned or transferred by
sections 1 to 18 of this 2013 Act, except as otherwise provided
by sections 1 to 18 of this 2013 Act, such reference is
considered to describe Portland State University or an employee
of the university that, by sections 1 to 18 of this 2013 Act, is
charged with carrying out such duties, functions and powers.
  (2) There are imposed upon, transferred to and vested in the
Portland State University Board of Directors the duties,
functions and powers of the State Board of Higher Education that
pertain to the former university.
  (3) Notwithstanding the transfer of duties, functions and
powers by sections 1 to 18 of this 2013 Act, the lawfully adopted
rules of the State Board of Higher Education pertaining to the
former university in effect on the operative date of section 21
of this 2013 Act continue in effect until lawfully superseded or
repealed by the Portland State University Board of Directors.
References in rules of the State Board of Higher Education to the
state board or an officer or employee of the state board are
considered to be references to the Portland State University
Board of Directors. + }
  SECTION 28.  { + The rights and obligations of the State Board
of Higher Education legally incurred under contracts, leases and
business transactions executed, entered into or begun before the
operative date of section 21 of this 2013 Act pertaining to the
former university are transferred to the Portland State
University Board of Directors. For the purpose of succession to
these rights and obligations, the Portland State University Board
of Directors is considered to be a continuation of the State
Board of Higher Education and not a new authority, and the
Portland State University Board of Directors must exercise such
rights and fulfill such obligations as if they had not been
transferred. + }
  SECTION 29.  { + For the purpose of administering and enforcing
the duties, functions and powers transferred by section 21 of
this 2013 Act and for the payment of the expenses lawfully
incurred by the State Board of Higher Education with respect to
the administration and enforcement of such duties, functions and
powers pertaining to the former university, the Portland State
University Board of Directors may expend the moneys that are
authorized to be expended by the State Board of Higher Education
for administering and enforcing the duties, functions and powers
transferred by section 21 of this 2013 Act and that are
unexpended on the operative date of section 21 of this 2013 Act.
Subject to section 18 of this 2013 Act, the Portland State
University Board of Directors shall assume and pay all
outstanding obligations lawfully incurred by the State Board of
Higher Education pertaining to the former university before the
operative date of section 21 of this 2013 Act that are properly
charged against amounts authorized by this section to be expended
by the Portland State University Board of Directors. + }
  SECTION 30. Section 14, chapter 36, Oregon Laws 2012, is
amended to read:
   { +  Sec. 14. + } (1) For the purposes of this section:
  (a) 'Achievement compact' means an agreement entered into
between the Oregon Education Investment Board and the governing
body of an education entity as described in this section.
  (b) 'Education entity' means:
  (A) A school district, as defined in ORS 332.002;
  (B) An education service district operated under ORS chapter
334;
  (C) A community college district or community college service
district operated under ORS chapter 341;
  (D) The Oregon University System established by ORS 351.011;

  (E) A public university of the Oregon University System, as
listed in ORS 352.002;   { - and - }
   { +  (F) Portland State University; and + }
    { - (F) - }  { +  (G) + } The health professions and graduate
science programs of the Oregon Health and Science University
operated under ORS chapter 353.
  (c) 'Governing body of an education entity' means:
  (A) For a school district, the school district board.
  (B) For an education service district, the board of directors
of the education service district.
  (C) For a community college district or a community college
service district, the board of education of the community college
district.
  (D) For the Oregon University System, the State Board of Higher
Education.
  (E) For a public university of the Oregon University System,
the president of the university.
   { +  (F) For Portland State University, the Portland State
University Board of Directors. + }
    { - (F) - }  { +  (G) + } For the Oregon Health and Science
University, the Oregon Health and Science University Board of
Directors.
  (2)(a) Prior to the beginning of each fiscal year, the
governing body of each education entity must enter into an
achievement compact with the Oregon Education Investment Board
for the fiscal year.
  (b) Governing bodies of education entities identified in
subsection (1)(b)(A) to (C) of this section shall enter into
achievement compacts as part of the budgeting process under ORS
294.305 to 294.565 and shall submit achievement compacts to the
board prior to July 1 of each year.
  (c) The board shall specify a process for adoption and a
timeline for submission of achievement compacts for education
entities identified in subsection (1)(b)(D) to   { - (F) - }
 { +  (G) + } of this section.
  (d) The board shall provide to each school district a number
quantifying the district's estimated level of funding for the
next fiscal year compared to the determination of funding needed
to ensure that the state's system of kindergarten through grade
12 public education meets the quality goals specified under ORS
327.506.
  (3)(a) The board shall establish the terms for achievement
compacts.
  (b) The terms of an achievement compact may include:
  (A) A description of goals for outcomes that are consistent
with the educational goals identified in ORS 329.015, the
findings described in ORS 351.003 and the mission of education
provided in ORS 351.009.
  (B) A description of the outcomes and measures of progress that
will allow each education entity to quantify:
  (i) Completion rates for:
  (I) Critical stages of learning and programs of study;
  (II) The attainment of diplomas, certificates and degrees; and
  (III) Achieving the high school and post-secondary education
goals established in ORS 351.009 and a projection of the progress
needed to achieve those goals by 2025;
  (ii) Validations of the quality of knowledge and skills
acquired by students of the education entity; and
  (iii) The relevance of the knowledge and skills acquired by the
students of the education entity and the means by which those
skills and knowledge will contribute to the workforce, the
economy and society as described in state policy.
  (C) Other information suggested by the governing body of an
education entity and approved by the board.
  (c) Notwithstanding the terms described in paragraph (b) of
this subsection, for an achievement compact entered into by an
education entity identified in subsection   { - (1)(b)(F) - }
 { +  (1)(b)(G) + } of this section, the terms of the achievement
compact shall be limited to the enrollment of, and attainment of
degrees by, Oregon residents in programs for which the state
provides funding.
  (4)(a) The governing body of each education entity shall
identify a target number and percentage of students for
achievement of the outcomes, measures of progress and goals
specified in the achievement compact for the fiscal year.
  (b) The governing body of each education entity shall provide a
target number and percentage of students for the aggregate of all
disadvantaged subgroups, as defined by federal law or specified
by rules adopted by the board. The target number and percentage
of students must reflect the education entity's goals of
improving education outcomes for disadvantaged student groups and
closing any student achievement gaps between disadvantaged
student groups and other student groups.
  (5) As part of the process of entering into an achievement
compact, the governing body of an education entity shall ensure
that open communications are provided to parents, students,
teachers or faculty, employees, exclusive bargaining
representatives and community representatives for the purposes of
explaining and discussing the outcomes, measures of progress,
goals and targets specified in the achievement compact for the
fiscal year. The open communications must be provided during each
education entity's public budget process.
  (6) The board shall specify the format of the achievement
compacts and provide model achievement compacts to the governing
body of each education entity.
  (7) The board may adopt a timeline and method for governing
bodies of education entities to provide the board with a report
at the end of a fiscal year that describes the achievements made
by the education entities during the fiscal year. The report:
  (a) Must include disaggregated data for each disadvantaged
student group specified by the board; and
  (b) May state achievements in numbers and percentages and in
relation to the outcomes, measures of progress, goals and targets
specified in the achievement compact for the fiscal year.
  SECTION 31. 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,
public university listed in ORS 352.002 { + , Portland State
University + } or  { + any + } 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, public universities or
independent not-for-profit institutions of post-secondary
education.
  SECTION 32. ORS 348.010 is amended to read:
  348.010. (1) An account in the Oregon University System Fund
established under ORS 351.506 is designated for the purpose of
granting student loans under the terms established by the
National Defense Education Act of 1958, as amended, under the
terms of the Health Professions Educational Assistance Act of
1963, as amended, and under the terms of the Nurses Training Act
of 1964, as amended.
  (2) The account designated under this section consists of:
  (a) All moneys made available to the State Board of Higher
Education { +  or Portland State University + } for student loan
purposes by state appropriations and by the federal government
under terms of the National Defense Education Act of 1958, as
amended, under the terms of the Health Professions Educational
Assistance Act of 1963, as amended, and under the terms of the
Nurses Training Act of 1964, as amended;
  (b) Repayments of loans identified in paragraph (a) of this
subsection;
  (c) Interest earned on student loans identified in paragraph
(a) of this subsection; and
  (d) Earnings from investments of the account.
  (3) The repayment in whole or part of any student loan made
under terms of the National Defense Education Act of 1958, as
amended, under the terms of the Health Professions Educational
Assistance Act of 1963, as amended, and under the terms of the
Nurses Training Act of 1964, as amended, shall be made pursuant
to the provisions of the applicable federal statutes and
repayment to the account designated under this section shall be
made in accordance with applicable federal statutes.
  (4) Income and interest derived from moneys in the account
designated by this section are credited to the account.
  SECTION 33. ORS 348.180 is amended to read:
  348.180. As used in this section and ORS 348.186, 348.205,
348.230, 348.250, 348.260 and 348.285:
  (1) 'Cost of education' includes but is not limited to,
tuition, fees and living expenses.
  (2) 'Eligible post-secondary institution' means:
  (a) A public university listed in ORS 352.002 { +  or Portland
State University + };
  (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 Access Commission; and
  (c) Is making satisfactory academic progress as defined by rule
of the commission.
  SECTION 34. ORS 348.205 is amended to read:
  348.205. (1) The Oregon Opportunity Grant program is
established within the Oregon Student Access Commission.
  (2) Under the program, the cost of education of a qualified
student shall be shared by the student, the family of the
student, the federal government and the state.
  (3) The commission shall determine the cost of education of a
qualified student based on the type of eligible post-secondary

institution the student is attending. The cost of education
equals:
  (a) For a student attending a community college, the average
cost of education of attending a community college in this state;
  (b) For a student attending a public university under the
direction of the State Board of Higher Education, the average
cost of education of attending a public university under the
direction of the board;  { +
  (c) For a student attending Portland State University, the
average cost of education of attending the university; + }
    { - (c) - }  { +  (d) + } 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) - }  { +  (e) + } For a student attending the Oregon
Health and Science University or a four-year Oregon-based,
generally accredited, not-for-profit institution of higher
education, the average cost of education of attending an
institution under the direction of the board.
  (4)(a) The commission shall determine the amount of the student
share. The student share shall be based on:
  (A) The type of eligible post-secondary institution the student
is attending;
  (B) The number of hours of work that the commission determines
may be reasonably expected from the student; and
  (C) The amount of loans that the commission determines would
constitute a manageable debt burden for the student.
  (b) The student shall determine how to cover the student share
through income from work, loans, savings and scholarships.
  (c) The student share for a student who attends a community
college may not exceed the amount that the commission determines
a student may earn based on the number of hours of work
reasonably expected from the student under paragraph (a) of this
subsection.
  (d) The student share for a student who attends an eligible
post-secondary institution that is not a community college may
not exceed the sum of the amount that the commission determines a
student may receive as loans plus the amount a student may earn
based on the number of hours of work reasonably expected from the
student under paragraph (a) of this subsection.
  (5) The commission shall determine the amount of the family
share. The family share shall be based on the resources of the
family.
  (6) The commission shall determine the amount of the federal
share based on how much the student or the student's family is
expected to receive from the federal government as grants, loans,
tax credits or other student assistance.
  (7)(a) The commission shall determine the amount of the state
share. The state share shall be equal to the cost of education
reduced by the student share, family share and amount received by
the student from the federal government.
  (b) The commission shall establish a minimum amount that a
student may receive as a state share. If the commission
determines that the amount of the state share of a student is
below the minimum amount, the student may not receive the state
share.
  (c) In determining the amount of the state share, the
commission shall consider the total amount available to award as
grants to all qualified students. If the commission must reduce
the amount of the state share under this paragraph, the
commission may not reduce the amount of the state share awarded
to students in the low income range in a greater proportion than
the amount that the state share for students in other income
ranges is reduced.
  (8)(a) The commission shall adopt rules that prioritize current
foster children and former foster children for receiving Oregon
Opportunity Grants when the Oregon Opportunity Grant program does
not have sufficient funding to serve all eligible Oregon
students.
  (b) For the purposes of this subsection, 'former foster child'
has the meaning given that term in ORS 351.293.
  SECTION 35. ORS 348.270 is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the commission shall award scholarships in any public
university listed in ORS 352.002 { + , in Portland State
University + }, 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 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 current foster child or 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 current foster
children or former foster children shall equal the amount of
tuition and all fees levied by the institution against the
recipient of the scholarship. 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 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 current foster child or former
foster child or who is the dependent of a public safety officer
with a disability continues to remain enrolled in a 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 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 current foster
child or 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.

  (C) A police officer commissioned by a university under ORS
352.383.
  (D) An authorized tribal police officer as defined in section
1, chapter 644, Oregon Laws 2011.
  SECTION 36. ORS 348.270, as amended by section 51, chapter 644,
Oregon Laws 2011, is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the commission shall award scholarships in any public
university listed in ORS 352.002 { + , in Portland State
University + }, 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 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 current foster child or 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 current foster
children or former foster children shall equal the amount of
tuition and all fees levied by the institution against the
recipient of the scholarship. 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 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 current foster child or former
foster child or who is the dependent of a public safety officer
with a disability continues to remain enrolled in a 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 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 current foster
child or 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.

  (C) A police officer commissioned by a university under ORS
352.383.
  SECTION 37. ORS 348.282 is amended to read:
  348.282. As used in this section and ORS 348.283:
  (1) 'Armed Forces of the United States' means:
  (a) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (b) The reserves of the Army, Navy, Air Force, Marine Corps and
Coast Guard of the United States; and
  (c) The Oregon National Guard and a National Guard of any other
state or territory.
  (2) 'Public post-secondary institution' means:
  (a) A public university under the direction of the State Board
of Higher Education { +  or Portland State University + }; and
  (b) A community college operated under ORS chapter 341.
  (3) 'Veteran' has the meaning given that term in ORS 408.225.
  SECTION 38. 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 public university listed in ORS 352.002;  { +
  (b) Portland State University; + }
    { - (b) - }   { + (c) + } A community college as defined in
ORS 341.005; or
    { - (c) - }   { + (d) + } A generally accredited,
not-for-profit institution of higher education.
  (2) 'Participant' means a student who receives a grant under
ORS 348.401.
  SECTION 39. ORS 348.470 is amended to read:
  348.470. The Legislative Assembly finds and declares that:
  (1) It is the policy of this state to encourage cooperation
  { - between - }   { + among + } the Oregon University
System { + , Portland State University + } and community colleges
on issues affecting students who transfer   { - between the
two - }  { +  among the + } segments; and
  (2) All unnecessary obstacles that restrict student transfer
opportunities   { - between the two - }  { +  among the + }
segments shall be eliminated.
  SECTION 40. 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 public university listed in ORS 352.002;
  (c) The Oregon Health and Science University;
   { +  (d) Portland State University; + }
    { - (d) - }  { +  (e) + } 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) - }  { +  (f) + } A school that, on July 14, 2005,
was a school that met the criteria and followed procedures to
obtain a religious exemption adopted by rule by the Oregon
Student Access Commission and that offered only degrees with
approved titles in theology or religious occupations; or
    { - (f) - }  { +  (g) + } A school that is exempt from ORS
348.594 to 348.615 under ORS 348.604.
  (3) The Higher Education Coordinating Commission shall issue a
separate license to issue degrees to each school that meets the
requirements for exemption from evaluation by the office set
forth in subsection   { - (2)(d) - }  { +  (2)(e) + } of this
section. The license shall remain in effect if the school
continues to meet the requirements of subsection   { - (2)(d) - }
 { +  (2)(e) + } of this section.
  SECTION 41. ORS 348.890 is amended to read:
  348.890. (1) The Higher Education Coordinating Commission shall
provide policy direction to implement regional partnership
proposals and any other joint program or activity approved by the
State Board of Education { + , + }   { - and - }  the State Board
of Higher Education { +  and the Portland State University Board
of Directors + }.
  (2) Notwithstanding ORS 351.063 (3), the Department of
Community Colleges and Workforce Development and the Oregon
University System may use appropriations from the General Fund to
implement agreements approved by the Higher Education
Coordinating Commission that provide direct aid to a student, or
other incentives that encourage shared use of facilities,
programs and other resources of public universities listed in ORS
352.002 and community colleges.
  SECTION 42. 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 Higher Education
Coordinating Commission shall inform the community colleges,
public universities listed in ORS 352.002 { + , Portland State
University + }, 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 { + , the
Portland State University Board of Directors + } 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 { + , the Portland State University
Board of Directors + } 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,  { + Portland State University, + } 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 43. 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 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 { +  and Portland State University + }. The 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;
  (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 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 44. ORS 351.015 is amended to read:
  351.015. The Oregon University System shall be conducted under
the control of a board of 15 directors, to be known as the State
Board of Higher Education. Except as otherwise provided by law,
the board has sole authority to govern, set policy and otherwise
manage the affairs of the public universities listed in ORS
352.002. The board shall consist of:
  (1) Two students who at the time of their appointment to the
board are attending different public universities listed in ORS
352.002.
  (2) One member of the faculty at Oregon State University  { - ,
Portland State University - }  or  { + the + } University of
Oregon.
  (3) One member of the faculty at Eastern Oregon University,
Oregon Institute of Technology, Southern Oregon University or
Western Oregon University.
  (4) Eleven members of the general public who are not students
or faculty members at the time of appointment.
  SECTION 45. ORS 351.047 is amended to read:
  351.047. The State Board of Higher Education shall:
  (1) Review all mission statements of the public universities
listed in ORS 352.002 { +  and Portland State University + }; 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 { +  or by
Portland State University + }; and
  (c) Are allocated among the public universities in the Oregon
University System { +  and Portland State University + } to
maximize the achievement of statewide needs and requirements.
  SECTION 46. ORS 351.052, as amended by section 7, chapter 104,
Oregon Laws 2012, is amended to read:
  351.052. (1) For the purposes of this section, 'performance
compact' means { + :
  (a) + } 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.
   { +  (b) An agreement between Portland State University and
the State Board of Higher Education to achieve certain
performance targets in order to enhance the success of 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) Before a date set by the State Board of Higher Education,
the Portland State University Board of Directors shall submit to
the State Board of Higher Education a performance compact and
funding request for the biennium beginning on July 1 of the
following year. + }
    { - (2) - }  { +  (3) + } On or before September 1 of each
even-numbered year, the State Board of Higher Education shall
submit the funding
  { - request - }  { +  requests for Portland State University
and the Oregon University System + } and performance
 { - compact - }  { +  compacts for the Oregon University System
and Portland State University + } to the Oregon Department of
Administrative Services for the Oregon University System.
    { - (3) - }  { +  (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 { +  and Portland State University + }. 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 { +  and Portland State University + }.
    { - (4) - }   { + (5) + } The funding request must include,
in addition to the performance compact, a report on performance
from the previous biennium's performance compact.
    { - (5) - }   { + (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 47. ORS 351.065 is amended to read:
  351.065. (1) The State Board of Higher Education may, for each
public university or office, department or activity under its
control,  { + and the Portland State University Board of
Directors may for Portland State University, + } adopt rules and
specific orders by or through the president of each public
university governing access to personnel records of the public
university or office, department or activity that are less than
25 years old.
  (2) Rules adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless upon a finding by the president of the public
university that the public interest in maintaining individual
rights to privacy in an adequate educational environment would
not suffer by disclosure of such records. Access to such records
may be limited to designated classes of information or persons,
or to stated times and conditions, or to both, but cannot be
limited for records more than 25 years old.
  (3)   { - No - }  { +  A + } rule or order promulgated pursuant
to this section
  { - shall - }  { +  may not + } deny to a faculty member full
access to the member's personnel file or records kept by the
board or   { - its public universities or offices, departments or
activities - }  { +  the public university + }, except as
provided in subsections (7) and (8) of this section.
  (4) The number of files relating to the evaluation of a faculty
member   { - shall be - }  { +  is + } limited to three, to be
kept in designated, available locations.
  (5) Any evaluation received by telephone   { - shall - }  { +
must + } be documented in each of the faculty member's files by
means of a written summary of the conversation with the names of
the conversants identified.
  (6) A faculty member   { - shall be - }  { +  is + } entitled
to submit, for placement in the three files, evidence rebutting,
correcting, amplifying or explaining any document contained
therein and other material that the member believes might be of
assistance in the evaluation process.
  (7) Letters and other information submitted in confidence to
the board or its public universities, offices, departments or
activities prior to July 1, 1975, shall be maintained in the
files designated. However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected.  The full text shall be made available except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the three prescribed by subsection (4)
of this section.
  (8) { + (a) + } Confidential letters and other information
submitted to or solicited after July 1, 1975, by the board or its
public universities, offices, departments or activities prior to
the employment of a prospective faculty member are exempt from
the provisions of this section. However, if the member is
employed by the board or its public universities, offices,
departments or activities, the confidential preemployment
materials shall be placed in the three authorized files. If a
faculty member requests access to the member's files, the
anonymity of the contributor of confidential preemployment
letters and other preemployment information shall be protected.
The full text shall be made available, except that portions of
the text that would serve to identify the contributor shall be
excised and retained in a file other than the three designated in
subsection (4) of this section.
   { +  (b) Confidential letters and other information submitted
to or solicited by Portland State University after July 1, 2014,
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 three authorized
files. If a faculty member requests access to the member's files,
the anonymity of the contributor of confidential preemployment
letters and other preemployment information shall be protected.
The full text shall be made available, except that portions of
the text that would serve to identify the contributor shall be
excised and retained in a file other than the three designated in
subsection (4) of this section. + }

  (9) Classroom survey evaluation by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated in subsection (4) of this section. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (10)  { + Portland State University and,  + }after July 1,
1975, the board and its public universities, offices, departments
or activities, when evaluating its employed faculty members, may
not solicit or accept letters, documents or other materials,
given orally or in written form, from individuals or groups who
wish their identity kept anonymous or the information they
provide kept confidential.
  (11)   { - No - }  { +   + }  { +  A + } rule or order
promulgated pursuant to this section   { - limits - }  { +  does
not limit + } the authority of  { + Portland State University or
 + }the public universities, offices, departments or activities
under the control of the   { - board - }  { +  State Board of
Higher Education + } to prepare, without identification of
individual persons who have not consented thereto, statistical or
demographic reports from personnel records.
  (12) Any category of personnel records specifically designated
as confidential pursuant to valid rules or orders pursuant to
this section is not a public record for the purposes of ORS
192.420.
  (13) As used in this section, 'personnel records' means records
containing information kept by the public university, office,
department or activity concerning a faculty member and furnished
by the faculty member or by others about the faculty member at
the request of the faculty member or the public university,
office, department or activity, including, but not limited to,
information concerning discipline, membership activity,
employment performance or other personal records of individual
persons.
  SECTION 48. ORS 351.067 is amended to read:
  351.067. (1)  { + The State Board of Higher Education, + } in
carrying out its authority under ORS 351.070,   { - the State
Board of Higher Education - }  { +  and the Portland State
University Board of Directors + } 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  { +  or Portland State University + };
  (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 { +  or Portland State University + }
and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates, that augments an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies and rules
established by   { - the - }  { +  each + } board.
  (2)   { - The - }  { +  Each + } board may not authorize
compensation, as described in subsection (1) of this section,
that, in the board's judgment, does not comport with the mission
of   { - a - }  { +  the + } 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 - }  { +  university + }.

  (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  { + board + }
rules   { - of the board - } . The disclosure is a public record
subject to public inspection.
  (4)   { - The - }  { +  Each + } board shall adopt by rule
standards governing employee outside employment and activities,
including potential conflict of interest, as defined by board
rule and consistent with ORS 244.020, and the public disclosure
thereof, and procedures for reporting and hearing potential or
actual conflict of interest complaints.
  SECTION 49. ORS 351.165 is amended to read:
  351.165.  { + (1) + } No later than March 1 of each
odd-numbered year  { - , - }  { + :
  (a) + } The State Board of Higher Education shall submit a
report to the Legislative Assembly concerning the status of all
previously approved Oregon University System capital construction
projects that have not been completed or have been completed
within the preceding 24-month period.
   { +  (b) The Portland State University Board of Directors
shall submit a report to the Legislative Assembly concerning the
status of all previously approved capital construction projects
that have not been completed or have been completed within the
preceding 24-month period.
  (2) + } The report  { + described in this section + } shall
include the project title, funding sources, the amount of the
original appropriation or expenditure limitation, the amount of
unexpected funds, the construction status and the anticipated
completion date.
  SECTION 50. ORS 351.170 is amended to read:
  351.170. (1) The State Board of Higher Education  { + and the
Portland State University Board of Directors + } may establish
rates, charges and fees for use of buildings, structures and
projects under   { - its - }  control { +  of the board + }. The
rates and charges shall be sufficient, in the judgment of the
board and with other available revenues, as defined in ORS
351.160, to pay the operating costs and any indebtedness for the
buildings, structures and projects.
  (2)   { - The - }  { +  Each + } board shall charge and collect
from each regular student a building fee at a rate not to exceed
$45 for each regular term, for not less than three terms in each
regular academic year, and not to exceed $67.50 if instruction is
on a semester basis, or an equivalent rate of charge when
instruction is on a different basis.   { - The - }  { +  Each + }
board is authorized to maintain adequate accounts for bonds
outstanding. The fee shall be in addition to tuition and other
fees charged to students and shall be deposited   { - in - }
 { + :
  (a) For the Oregon University System, in + } the appropriate
subaccount of the account maintained in the Oregon University
System Fund under ORS 351.460.
   { +  (b) For Portland State University, in an account
maintained by the university. + }
  SECTION 51. ORS 351.296 is amended to read:
  351.296. (1) As used in this section, 'state institution of
higher learning' means:
  (a) A state institution of higher education listed in ORS
352.002;
  (b) A community college operated under ORS chapter 341;
 { - or - }
  (c) Oregon Health and Science University  { - . - }  { + ;
or + }
   { +  (d) Portland State University. + }
  (2) A state institution of higher learning shall allow members
and agents of the Armed Forces of the United States to recruit on
a public campus and shall set rules and standards for such
recruitment that are the same as for all other employment
recruitment activities allowed on the campus.
  SECTION 52.  { + (1) The Portland State University Board of
Directors may request the Chancellor of the Oregon University
System to issue higher education revenue bonds as provided in ORS
351.473 to 351.485 to provide funds for the purposes of Article
XI-F(1) and Article XI-G of the Oregon Constitution.
  (2) The Portland State University Board of Directors shall
designate a fund for the purposes described in ORS 351.476
(1). + }
  SECTION 53. ORS 351.473 is amended to read:
  351.473. As used in ORS 351.473 to 351.485:
  (1) 'Bond-related costs' means:
  (a) The costs and expenses of issuing, administering and
maintaining higher education revenue bonds including, but not
limited to, the costs of:
  (A) Paying or redeeming higher education revenue bonds.
  (B) Paying amounts due in connection with credit enhancement
devices or agreements for exchange of interest rates.
  (C) Paying the fees, administrative costs and expenses of the
State Treasurer { + , Portland State University + } 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 ORS 351.476.
  (3) 'Higher education revenues' includes:
  (a) Tuition, fees and charges imposed or collected by the
Oregon University System,   { - or - }  by one of the public
universities in the system { +  or by Portland State
University + }; and
  (b) Moneys appropriated, allocated or otherwise made available
to the Oregon University System,   { - or - }  to one of
 { - its - }  { + the + } universities  { - , - }  { +  in the
system or to Portland State University + } by the Legislative
Assembly, if those moneys are lawfully available to pay the
bond-related costs of higher education revenue bonds.
  SECTION 54. ORS 351.476 is amended to read:
  351.476. (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) Finance projects that the Portland State University
Board of Directors determines will assist Portland State
University in carrying out its statutory powers; + }
    { - (b) - }  { +  (c) + } Refund bonds issued for the
projects; and
    { - (c) - }  { +  (d) + } 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 { +  or
Portland State University + };
  (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 { +  or Portland State University + }; and
  (C) Loans to the Oregon University System  { + or Portland
State University + } funded by state general obligation bonds.
  (b) Pursuant to ORS 286A.010, the Oregon University System
 { +  and Portland State University + } 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  { + and Portland State
University + } shall be considered   { - a - }  related
 { - agency - }   { + agencies + } 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
  (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  { + and Portland State University + } 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 { + , Portland State University + } and
the Oregon University System do not have an obligation to pay
bond-related costs except as provided in ORS 351.473 to 351.485.
A holder of higher education revenue bonds issued under this

section does not have the right to compel the exercise of the
taxing power of the State of Oregon to pay bond-related costs.
  (7) As long as any higher education revenue bonds issued under
this section are outstanding, covenants related to the higher
education revenue bonds are deemed to be contracts between the
State of Oregon and holders of the higher education revenue
bonds. The State of Oregon may not give force or effect to a
statute or initiative or referendum measure approved by the
electors of this state if doing so would unconstitutionally
impair existing covenants made with the holders of existing
higher education revenue bonds or would unconstitutionally impair
other obligations or agreements regarding the security of higher
education revenue bonds to which the moneys deposited in the
accounts established by ORS 351.479, 351.482 and 351.485 are
pledged and assigned.
  (8) The principal, interest and any premium and any issuance
costs on a financing agreement under ORS 283.085 to 283.092, any
general obligation bond, any revenue bond and any related credit
enhancement device or interest rate exchange agreement shall be
paid from the sources specified in the laws and documents
authorizing the financing agreement, bond, credit enhancement
device or interest rate exchange agreement. The Oregon University
System  { + and Portland State University + } 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 { +  or Portland State University + }
and any related credit enhancement device or interest rate
exchange agreement.
  SECTION 55. ORS 351.509 is amended to read:
  351.509. (1) There is established in the General Fund an
account to be known as the Portland State University Center for
Nanoscience and Nanotechnology Account. Funds in the account
shall be used for the acquisition and expansion of microscopy and
materials characterization facilities at Portland State
University related to a signature research center.
  (2) The account shall consist of proceeds from lottery bonds
made available to   { - the Oregon University System - }  { +
Portland State University + } for the purpose of the Portland
State University center for nanoscience and nanotechnology
project described in subsection (1) of this section. Interest
earned on moneys in the account shall be credited to the account.
  (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } for the center for nanoscience and nanotechnology
project described in subsection (1) of this section. The account
may not be credited with more than $500,000 in interest and
proceeds from lottery bonds.
  SECTION 56. ORS 351.511 is amended to read:
  351.511. (1) There is established in the General Fund an
account to be known as the Portland State University Northwest
Engineering Science Center Phase I Account. Funds in the account
shall be used for acquisition or construction of an engineering
science center at Portland State University.
  (2) The account shall consist of federal and local government
funds made available to and funds donated to   { - the Oregon
University System - }  { +  Portland State University + } for the
purpose of the Portland State University Northwest Engineering
Science Center Phase I project described in subsection (1) of
this section.  Interest earned on moneys in the account shall be
credited to the account.
  (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } for the purposes described in subsection (1) of
this section. The account may not be credited with more than
$26,500,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  SECTION 57. ORS 351.642, as amended by section 7, chapter 106,
Oregon Laws 2012, 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, of an active
member of the commissioned corps of the National Oceanic and
Atmospheric Administration or of a member of the Public Health
Service of the United States Department of Health and Human
Services detailed by proper authority for duty with the Army or
Navy 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,
active members of the commissioned corps of the National Oceanic
and Atmospheric Administration and members of the Public Health
Service of the United States Department of Health and Human
Services detailed by proper authority for duty with the Army or
Navy of the United States, and their spouses and dependent
children, are considered residents of this state for the purpose
of admission and for the purpose of determining fees and tuition
to be paid by such individuals while attending any public
university that is under the control of the State Board of Higher
Education { +  or Portland State University + }.
  (3) The State Board of Higher Education { +  and the Portland
State University Board of Directors + } may contract with the
Armed Forces of the United States to furnish educational service
in the public universities to active members of the Armed Forces
of the United States.
  (4) The State Board of Higher Education { +  and the Portland
State University Board of Directors + } shall determine the
number of such students that should be accepted and shall make
final decisions on admission of individual applicants.
  (5) Students attending the public universities under contracts
with the Armed Forces of the United States under this section
shall pay fees and tuition customarily charged Oregon students.

  (6) Payments made by the Armed Forces of the United States
under such contracts shall be deposited in a designated account
in the Oregon University System Fund established by ORS 351.506
in the same manner that fees and tuition payments for resident
students are deposited and credited.
  SECTION 58. ORS 351.643, as amended by section 8, chapter 106,
Oregon Laws 2012, is amended to read:
  351.643. (1) A student at a public university listed in ORS
352.002 { +  or at Portland State University + } who is a member
of the military, a member of the commissioned corps of the
National Oceanic and Atmospheric Administration or a member of
the Public Health Service of the United States Department of
Health and Human Services detailed by proper authority for duty
with the Army or Navy of the United States and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
public university for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 351.644 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the public
university, the right to be readmitted and reenrolled at the
public university within one year after release from active duty
without a requirement of redetermination of admission
eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the public university
or the Oregon Student Access Commission before the student was
ordered to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the public university may
not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The State Board of Higher Education { +  and the Portland
State 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 59. ORS 351.644 is amended to read:
  351.644. (1)(a) The amount of the credit specified in ORS
351.643 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at a public
university listed in ORS 352.002 { +  or at Portland State
University, + } or from the public university, the student must
elect to claim the credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the public university under ORS 351.643
(1)(c); or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
public university from which the student withdraws.
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the public university that the student died while
serving on active duty.
  (5) The State Board of Higher Education { +  and the Portland
State University Board of Directors  + }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 60. ORS 351.646 is amended to read:
  351.646. A public university listed in ORS 352.002  { + and
Portland State University + } 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 rule + } by the State Board of Higher
Education   { - by rule - }  { +  or the Portland State
University Board of Directors + }.
  SECTION 61. 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 public university listed in ORS 352.002;   { - and - }
   { +  (C) Portland State University; and + }
    { - (C) - }   { + (D) + } 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
  (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 62. 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 public university listed in ORS 352.002 { +  or Portland
State University + }; 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.
  (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 63. ORS 351.658 is amended to read:
  351.658. (1) The State Board of Higher Education shall direct
each public university listed in ORS 352.002 { + , and the
Portland State University Board of Directors shall direct
Portland State University, + } to waive tuition for any course
audited by an Oregon resident 65 years of age or older if:
  (a) Space is available in the course for additional students to
register after degree-seeking students have registered;
  (b) The department in which the course is being taught
approves; and
  (c) The auditing student is registered for eight credits or
fewer per term.
  (2) The public university may charge the student attending
under subsection (1) of this section fees associated with the
course being audited.
  (3) A public university may develop rules for implementation of
this section, including rules relating to registration, admission
and fees.
  SECTION 64. ORS 351.695 is amended to read:
  351.695. (1) A university   { - within the Oregon University
System - }  { +  listed in ORS 352.002 + } may deposit moneys
received for its university venture development fund in the
Higher Education Donation Fund established under ORS 351.130.
  (2) Notwithstanding ORS 351.697 (5), the State Treasurer, as
payment for expenses, may deduct a fee pursuant to ORS 293.718
from a university venture development fund administered by a
university within the Oregon University System { + , Portland
State University + } or the Oregon Health and Science University.
  (3) A university within the Oregon University System { + ,
Portland State University + } or the Oregon Health and Science
University may direct that moneys credited to its university
venture development fund be held and invested by the university's
affiliated foundation. Any moneys held by an affiliated
foundation under this section or ORS 351.697 are not subject to
the provisions of ORS chapter 293 or 295 and may not be
considered public or state funds for any purpose. Moneys
transferred to an affiliated foundation under this section or ORS
351.697 may be used only as provided under ORS 351.692, 351.695,
351.697 and 353.445.
  (4) At the request of a university within the Oregon University
System, moneys in the Higher Education Donation Fund that were
deposited by the university under this section may be transferred
to the university's affiliated foundation.
  (5) A university within the Oregon University System { + ,
Portland State University + } or the Oregon Health and Science
University may retain or may elect to have its affiliated
foundation retain some or all of the principal contributed to a
university venture development fund for investment to perpetuate
and increase the moneys available for expenditure. The balance of
the fund and the earnings on that balance may be used as provided
under ORS 351.692, 351.695, 351.697 and 353.445.
  SECTION 65. ORS 351.697 is amended to read:
  351.697. (1) Each university in the Oregon University
System { + , Portland State University + } and Oregon Health and
Science University may elect to establish a university venture
development fund as provided in this section for the purpose of
facilitating the commercialization of university research and
development. A university shall direct that the university
venture development fund be administered, in whole or in part, by
the university or by the university's affiliated foundation.
  (2) The purposes of a university venture development fund are
to provide:
  (a) Capital for university entrepreneurial programs;
  (b) Opportunities for students to gain experience in applying
research to commercial activities;
  (c) Proof-of-concept funding for transforming research and
development concepts into commercially viable products and
services;
  (d) Entrepreneurial opportunities for persons interested in
transforming research into viable commercial ventures that create
jobs in this state; and
  (e) Tax credits for contributors to university research
commercialization activities.
  (3) Each university that elects to establish a university
venture development fund shall:
  (a) Notify the Department of Revenue of the establishment of
the fund;
  (b) Either directly or through its affiliated foundation,
solicit contributions to the fund and receive, manage and
disburse moneys contributed to the fund;
  (c) Subject to ORS 315.521 (1), 351.692 (3) and 353.445 (3),
issue tax credit certificates to contributors to the fund in the
amount of the contributions;
  (d) Establish a grant program that meets the requirements for a
venture grant program under policies adopted by { + :
  (A) + } The State Board of Higher Education under ORS 351.692
 { - or under policies adopted by - }  { + ;
  (B) The Portland State University Board of Directors; or
  (C) + } The Oregon Health and Science University Board of
Directors under ORS 353.445; and
  (e) Subject to available moneys from the fund, provide
qualified grant applicants with moneys for the purpose of
facilitating the commercialization of university research and
development.
  (4) Except as provided in subsection (5) of this section,
moneys in a university venture development fund shall be
disbursed only as directed by a university.

  (5) A university or its affiliated foundation may charge its
customary administrative assessment to manage its university
venture development fund in an amount not to exceed three percent
of the fund's average balance during the fiscal year of the
university or its affiliated foundation. The administrative
assessment may be paid from the assets in the fund. Except as
authorized by law, no other fees or indirect costs shall be
charged against the university venture development fund or any
associated grants or other disbursements from the fund.
  (6) A university that has established a university venture
development fund shall monitor the use of grants made from the
fund and identify the income realized by the university as the
result of the use of the grants. Income consists of cash realized
from royalties, milestone and license fee payments and cash from
the sale of equity. The university shall cause the transfer of 20
percent of the income realized from the grants to the General
Fund, but not to exceed the amount of the tax credits issued by
the university as a result of contributions to its university
venture development fund. Immediately upon deposit of the
transferred amount into the General Fund, the university may
issue new tax credits to equal the transferred amount.
  (7) A university that has established a university venture
development fund shall report annually to the Legislative
Assembly or, if the Legislative Assembly is not in session, to
the interim legislative committees on revenue. The report shall
be at the end of the fiscal year of the university or of its
affiliated foundation and provide information for that fiscal
year. The university shall include in the report the following
information pertaining to its university venture development
fund:
  (a) The amount of donations received for the fund;
  (b) The amount of income received from the fund;
  (c) The amount of disbursements and grants paid from the fund;
  (d) The amount of income and royalties received from
disbursements from the fund; and
  (e) The amount of moneys transferred from the fund to the
General Fund.
  SECTION 66. 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 public university listed in ORS 352.002 { +  or Portland
State University + }.
  SECTION 67. 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, { +
or any group health and welfare insurance benefit plan developed
by Portland State University, + } 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.
  SECTION 68. ORS 351.708 is amended to read:
  351.708. The State Board of Education { + , + }   { - and - }
the State Board of Higher Education { +  and the Portland State
University Board of Directors + } shall establish baselines and
conduct annual reviews of each public institution of higher
education with respect to the employment of full-time faculty and
of faculty working less than full-time. Each public institution
of higher education shall provide the necessary data for the
board's report prior to September 1 of each year. The boards
shall report the results of the reviews to the Legislative
Assembly and the Governor's office prior to October 1 of each
year. The reviews shall include:
  (1) Examination of data related to the ratio of courses taught
by the following faculty categories:
  (a) Full-time faculty;
  (b) Part-time faculty; and
  (c) Graduate assistants;
  (2) The pay differential for the faculty categories; and
  (3) The health care and other benefits provided for each
faculty category.
  SECTION 69. ORS 351.718 is amended to read:
  351.718. (1) The members of the Higher Education Coordinating
Commission must be residents of this state who are well informed
on the principles of higher education.
  (2) A member of the State Board of Higher Education, Oregon
Health and Science University Board of Directors { + , Portland
State 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 70. ORS 351.735, as amended by section 1, chapter 104,
Oregon Laws 2012, is amended to read:
  351.735. (1) The Higher Education Coordinating Commission shall
advise the Oregon Education Investment Board on state goals and
associated achievement compacts for the state post-secondary
education system, including community colleges { + , + }
 { - and - }  public universities listed in ORS 352.002 { +  and
Portland State University + }, and for the Oregon Student Access
Commission.
  (2) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;
  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 { +  and at Portland
State University + } in accordance with criteria set by the State
Board of Higher Education { +  or the Portland State University
Board of Directors + }, 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.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System { +
and Portland State University + };
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System { +  and for Portland State University + }.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
  (a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (b) Recommend and encourage student success and completion
initiatives.
  (c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (A) Transfers and other movements throughout the higher
education system;
  (B) Accelerated college credit programs for high school
students;
  (C) Applied baccalaureate and other transfer degrees; and
  (D) Reciprocity agreements with other states.
  (d) Review research efforts among the public universities of
this state to improve economic development in this state.
  (e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education.
  SECTION 71. ORS 351.735, as amended by sections 1 and 3,
chapter 104, Oregon Laws 2012, is amended to read:
  351.735. (1) The Higher Education Coordinating Commission shall
advise the Oregon Education Investment Board on state goals and
associated achievement compacts for the state post-secondary
education system, including community colleges { + , + }
 { - and - }  public universities listed in ORS 352.002 { +  and
Portland State University + }, and for the Oregon Student Access
Commission.
  (2) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;

  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 { +  and at Portland
State University + } in accordance with criteria set by the State
Board of Higher Education { +  or the Portland State University
Board of Directors + }, 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.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System { +
and Portland State University + };
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System { +  and for Portland State University + }.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
  (a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (b) Recommend and encourage student success and completion
initiatives.
  (c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (A) Transfers and other movements throughout the higher
education system;
  (B) Accelerated college credit programs for high school
students;
  (C) Applied baccalaureate and other transfer degrees; and
  (D) Reciprocity agreements with other states.
  (d) Review research efforts among the public universities of
this state to improve economic development in this state.

  (e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education.
  (f) Oversee the licensing of career schools under ORS 345.010
to 345.450.
  SECTION 72. ORS 351.735, as amended by sections 1, 3 and 5,
chapter 104, Oregon Laws 2012, is amended to read:
  351.735. The Higher Education Coordinating Commission shall:
  (1) Develop state goals and associated achievement compacts for
the state post-secondary education system, including community
colleges { + , + }   { - and - }  public universities listed in
ORS 352.002 { +  and Portland State University + }, and for the
Oregon Student Access Commission.
  (2) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (a) Increasing the educational attainment of the population;
  (b) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (c) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (d) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (3) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (4) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (a) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (b) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 { +  and at Portland
State University + } in accordance with criteria set by the State
Board of Higher Education { +  or the Portland State University
Board of Directors + }, 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 { +
and Portland State University + };
  (c) Ongoing operations for community colleges;
  (d) Needed new facilities or programs; and
  (e) Capital improvements.
  (6) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (7) Approve and authorize degrees for the Oregon University
System { +  and for Portland State University + }.
  (8) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (9) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (10) Recommend and encourage student success and completion
initiatives.
  (11) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (a) Transfers and other movements throughout the higher
education system;
  (b) Accelerated college credit programs for high school
students;
  (c) Applied baccalaureate and other transfer degrees; and
  (d) Reciprocity agreements with other states.
  (12) Review research efforts among the public universities of
this state to improve economic development in this state.
  (13) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education.
  (14) Oversee the licensing of career schools under ORS 345.010
to 345.450.
  SECTION 73. ORS 351.810 is amended to read:
  351.810. The State Board of Higher Education, { +  Portland
State University, + } the Oregon Health and Science University
and the Oregon members of the Western Interstate Commission for
Higher Education are authorized to take any action necessary to
achieving the ends of the Western Regional Higher Education
Compact.
  SECTION 74. ORS 351.820 is amended to read:
  351.820. (1) Prior to June 1 of each even-numbered year the
Oregon members of the Western Interstate Commission for Higher
Education shall determine the quotas of Oregon students for whom
various kinds of educational service should be purchased in
out-of-state institutions during the next biennium and shall
recommend to the State Board of Higher Education { + , the
Portland State University Board of Directors + } and the Oregon
Health and Science University Board of Directors the amount to be
included in its biennial budget to cover the cost of such
educational service for students enrolled in their respective
institutions.
  (2) The State Board of Higher Education { + , the Portland
State University Board of Directors + } and the Oregon Health and
Science University Board of Directors shall negotiate contracts
with the Western Interstate Commission for Higher Education for
educational service of the kind and amount indicated by the
quotas determined under subsection (1) of this section.
 { - The - }  { +  Each + } board shall make payments required by
such contracts out of the money appropriated to it for that
purpose.
  (3) The State Board of Higher Education may also contract with
higher education institutions, or others, which are not members
of the Western Interstate Commission for Higher Education, to
furnish educational services to students who are residents of the
State of Oregon in those areas of higher education where the
educational institutions of the State of Oregon are unable to
provide the desired professional educational opportunities.
  SECTION 75. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education { + , the
Portland State University Board of Directors + } and the Oregon
Health and Science University Board of Directors may contract
with the Western Interstate Commission for Higher Education to
furnish educational service in their respective Oregon public
universities to out-of-state students.
  (2) The State Board of Higher Education { + , the Portland
State University Board of Directors + } and the Oregon Health and
Science University Board of Directors shall determine the number
of out-of-state students that should be accepted into their
respective universities, and shall make final decisions on
admission of individual applicants.
  (3) { + (a) + } Payments made by the commission under such
contracts shall be deposited in and credited to a designated
account in the Oregon University System Fund established by ORS
351.506 for students enrolled in public universities under the
jurisdiction of the State Board of Higher Education 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.
   { +  (b) + } Payments made by the commission under such
contracts must be deposited with the Oregon Health and Science
University for students who enroll in   { - that - }  { +
the + } university under the terms of such contracts.
   { +  (c) Payments made by the commission under such contracts
for students who enroll at Portland State University must be
deposited with the university under the terms of such
contracts. + }
  SECTION 76. ORS 352.002 is amended to read:
  352.002. The Oregon University System established in ORS
351.011 consists of the following public universities under the
jurisdiction of the State Board of Higher Education:
  (1) University of Oregon.
  (2) Oregon State University.
    { - (3) Portland State University. - }
    { - (4) - }   { + (3) + } Oregon Institute of Technology.
    { - (5) - }   { + (4) + } Western Oregon University.
    { - (6) - }   { + (5) + } Southern Oregon University.
    { - (7) - }   { + (6) + } Eastern Oregon University.
  SECTION 77. ORS 352.006 is amended to read:
  352.006.   { - No - }  { +  A + } political or sectarian test
 { - shall ever - }  { +  may not + } be allowed or applied in
the appointment of faculty and other employees of the Oregon
University System { +  or Portland State University + }.
  SECTION 78. ORS 352.008 is amended to read:
  352.008. In consultation with the Oregon Health Authority and
the Alcohol and Drug Policy Commission, each public university
listed in ORS 352.002 { +  and Portland State University + }
shall adopt a comprehensive alcohol and drug abuse policy and
implementation plan.
  SECTION 79. ORS 352.012 is amended to read:
  352.012. For the purpose of requesting a state or nationwide
criminal records check under ORS 181.534, the Oregon University
System  { + and Portland State University + } may require the
fingerprints of a person who:
  (1)(a) Is employed or applying for employment by the Oregon
University System { +  or Portland State University + }; or
  (b) Provides services or seeks to provide services to the
Oregon University System { +  or Portland State University + } as
a contractor or volunteer; and
  (2) Is, or will be, working or providing services in a position
that is designated as a critical or security-sensitive position.
As used in this subsection, 'critical or security-sensitive
position' means a position in which the person:
  (a) Has direct access to persons under 18 years of age or to
student residence facilities because the person's work duties
require the person to be present in the residence facility;
  (b) 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) 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;
  (d) Has access to property where chemicals, hazardous materials
and other items controlled by state or federal laws or
regulations are located;
  (e) Has access to laboratories, nuclear facilities or utility
plants to which access is restricted in order to protect the
health or safety of the public;
  (f) Has fiscal, financial aid, payroll or purchasing
responsibilities as one of the person's primary responsibilities;
or
  (g) Has access to personal information about employees or
members of the public including Social Security numbers, dates of
birth, driver license numbers, medical information, personal
financial information or criminal background information.
  SECTION 80. ORS 352.015 is amended to read:
  352.015. (1) Each public university listed in ORS 352.002 { +
and Portland State University + } shall convene a physical access
committee to identify barriers to access by persons with
disabilities on the campus of each 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 public university's facilities;
  (b) One or more members of the faculty or staff who have
disabilities;
  (c) The coordinator of services for students with disabilities
for the public university;
  (d) One or more administrators of the public university; and
  (e) One or more members of the physical plant staff of the
public university.
  (2) The physical access committee shall present its findings
and recommendations to the administration of the 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 funding requests for each biennium, each
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 a public university to undertake projects for
accessibility that are not otherwise required unless such
projects are funded specifically by the Legislative Assembly.
  SECTION 81. ORS 352.021 is amended to read:
  352.021. (1) As used in this section, 'internment camp ' means
a relocation center to which persons were ordered evacuated by
Presidential Executive Order 9066, signed on February 19, 1942.
  (2) A person who meets the requirements of subsection (4) of
this section may request a public university listed in ORS
352.002  { +  or Portland State University + } to award the
person an honorary post-secondary degree.
  (3) A representative of a deceased person who meets the
requirements of subsection (4) of this section may request a
public university to award an honorary post-secondary degree on
behalf of the deceased person.
  (4) Notwithstanding the requirements for a post-secondary
degree established by a public university or by the State Board
of Higher Education, a public university that receives a request
under subsection (2) or (3) of this section may award an honorary
post-secondary degree to a person, or on behalf of a deceased
person, who:
  (a) Was a student at the public university in 1942; and
  (b) Did not graduate from the public university because the
person was ordered to an internment camp.
  SECTION 82. ORS 352.063 is amended to read:
  352.063.   { - The Oregon University System - }  { +  Portland
State University + } may receive moneys from any public or
private source to support the Mark O. Hatfield School of
Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies created under ORS 352.066, 352.068, 352.071 and 352.074.
Gifts and grants received to support the Mark O. Hatfield School
of Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies shall be credited to the appropriate fund at Portland
State University   { - by the Oregon University System - } .
  SECTION 83. ORS 352.066 is amended to read:
  352.066. (1) Pursuant to ORS 351.870,   { - there is created
within the Oregon University System - }  the Mark O. Hatfield
School of Government { +  is created + }. The Mark O. Hatfield
School of Government shall be administered by Portland State
University. The president of Portland State University shall
appoint the director of the Mark O. Hatfield School of
Government.
  (2) The purposes of the Mark O. Hatfield School of Government
are:
  (a) To prepare students for careers in political service,
public administration and the administration of justice;
  (b) To perform the duties required of the school under ORS
36.179, 183.502 and 390.240; and
  (c) To assist the Criminal Justice Research and Policy
Institute in carrying out the duties under subsection (3) of this
section.
  (3) There is created within the Mark O. Hatfield School of
Government the Criminal Justice Research and Policy Institute.
The institute may assist the Legislative Assembly and state and
local governments in developing policies to reduce crime and
delinquency by:
  (a) Providing the Legislative Assembly with objective,
nonpartisan analyses of existing or proposed state criminal
justice policies, which analyses may not be inconsistent with
state or federal law or the Oregon or United States Constitution;
  (b) Evaluating programs, including but not limited to programs
dealing with public safety professionalism, ethics in leadership
and childhood development, funded directly or indirectly by the
State of Oregon that are intended to reduce criminal and
delinquent behavior or to improve professionalism in public
safety careers;
  (c) Managing reviews and evaluations relating to major
long-term issues confronting the state involving criminal and
juvenile justice, public safety professionalism, ethics in
leadership and early childhood development programs;
  (d) Initiating, sponsoring, conducting and publishing research
on criminal and juvenile justice, public safety professionalism,
ethics in leadership and early childhood development that is peer
reviewed and directly useful to policymakers;
  (e) Organizing conferences on current state issues that bring
together policymakers, public agencies and leading academicians;
and
  (f) Seeking to strengthen the links among the Legislative
Assembly, state and local governments, the Oregon Criminal
Justice Commission, the Department of Public Safety Standards and
Training and the academic community in the interest of more

informed policymaking, the application of best practices and more
relevant academic research.
  (4) The Governor, the Chief Justice of the Supreme Court, the
President of the Senate, the Speaker of the House of
Representatives or the chairperson of a legislative committee
with responsibility over criminal or juvenile justice systems or
childhood development programs may request the assistance of the
Criminal Justice Research and Policy Institute in evaluating
criminal or juvenile justice programs developed for, but not
necessarily limited to, preventing delinquency, reducing crime
and improving professionalism in public safety careers.
  (5) Agencies, departments and officers of state and local
governments may assist the Criminal Justice Research and Policy
Institute in the performance of its functions and furnish
information, data and advice as requested by the institute.
  SECTION 84. ORS 352.068 is amended to read:
  352.068. (1) Pursuant to ORS 351.870,   { - there is created
within the Oregon University System - }  the Center for Lakes and
Reservoirs { +  is created + }. The Center for Lakes and
Reservoirs shall be administered by Portland State University.
  (2) The purpose of the Center for Lakes and Reservoirs is to
assist state and federal agencies in researching and mitigating
nonindigenous, invasive aquatic species in this state and to work
with communities in developing effective management of lakes and
reservoirs.
  SECTION 85. ORS 352.071 is amended to read:
  352.071. (1) Pursuant to ORS 351.870,   { - there is created
within the Oregon University System - }  the Graduate School of
Social Work { +  is created + }. The Graduate School of Social
Work shall be administered by Portland State University.
  (2) The purpose of the Graduate School of Social Work is to
provide a center for specialized education and research in the
social services for the betterment of communities in the Portland
metropolitan area, the state and the Pacific Northwest.
  SECTION 86. ORS 352.074 is amended to read:
  352.074. (1) Pursuant to ORS 351.870,   { - there is created
within the Oregon University System - }  the Institute of
Portland Metropolitan Studies { +  is created + }. The Institute
of Portland Metropolitan Studies shall be administered by
Portland State University.
  (2) The purpose of the Institute of Portland Metropolitan
Studies is to build partnerships between Portland State
University's urban studies programs and the surrounding
communities of metropolitan Portland and to sponsor public
service research.
  SECTION 87. ORS 352.360 is amended to read:
  352.360. (1) The State Board of Higher Education  { + and the
Portland State University Board of Directors + } may enact such
regulations as   { - the - }  { +  each + } board deems
convenient or necessary to provide for the policing, control and
regulation of traffic and parking of vehicles on the property of
any public university listed in ORS 352.002 { +  or of Portland
State University + }. The regulations may provide for the
registration of vehicles, the designation of parking areas and
the assessment and collection of reasonable fees and charges for
parking. The board may require that before a quarterly or yearly
parking privilege for any vehicle is granted to any full-time or
part-time student to use board property, the student must show
that the vehicle is operated by a student holding a valid driver
license, that the vehicle is currently registered and that the
student driving the vehicle is insured under a motor vehicle
liability insurance policy that meets the requirements described
under ORS 806.080 or that the student or owner of the vehicle has
provided the Department of Transportation with other satisfactory
proof of compliance with the financial responsibility
requirements of this state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by   { - the - }  { +  each + } board   { - for each
public university - } .  Administrative and disciplinary
sanctions may be imposed upon students, faculty and staff for
violation of the regulations, including but not limited to, a
reasonable monetary penalty which may be deducted from student
deposits, and faculty or staff salaries or other funds in the
possession of the public university.   { - The - }  { +  Each + }
board shall provide opportunity for hearing for the determination
of controversies in connection with imposition of fines or
penalties.   { - The - }  { +  Each + } 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 { +  or an account
designated by Portland State University + } for the purpose of
defraying the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations and maintenance and operation of parking facilities
and for the purpose of acquiring and constructing additional
parking facilities for vehicles at the various public
universities and offices, departments and activities under the
control of the board. Fees and charges may also be credited to
the account in the Oregon University System Fund designated by
ORS 351.460 { +  or an account designated by Portland State
University + }. Parking fees shall be established at levels no
greater than those required to finance the construction,
operation and maintenance of parking facilities on the same
campus of the public university for which the parking is
provided. Notwithstanding ORS 351.072, parking fees or changes in
fees shall be adopted by rule of the board subject to the
procedure for rules adopted in ORS chapter 183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section.   { - The - }  { +
Each + } 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 - }  { +  Each + } 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 - }
 { +  is + } sufficient to charge the defendant by an unsworn
written notice in accordance with the provisions of ORS 221.333.
In any case in which the defendant is not subject to and does not
voluntarily submit to the hearing procedures prescribed under
subsection (2) of this section, proceedings to enforce
regulations enacted pursuant to subsection (1) of this section
shall be brought in the name of the board in a circuit court, a
justice court or a city court for offenses committed within the
territorial jurisdiction of such court. Such courts shall have
concurrent jurisdiction over offenses committed within their
respective jurisdictions. All fines, penalties and court costs
recovered shall be paid to the clerk of the court involved and
shall be disposed of as provided in ORS 153.640 to 153.680.
  SECTION 88. ORS 352.370 is amended to read:
  352.370. (1) As used in this section, 'school of higher
education' means:
  (a) Any public university listed in ORS 352.002.
  (b) Any community college as defined in ORS 341.005.   { +
  (c) Portland State University. + }
  (2)   { - No - }  { +  A + } student   { - shall - }  { +  may
not + } 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 89. ORS 352.375 is amended to read:
  352.375. (1) A public university listed in ORS 352.002 { + ,
Portland State University + } 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 - }  { +  Each + } public university
 { - listed in ORS 352.002 - } and community college 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 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 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 public university
  { - listed in ORS 352.002 - }  or a community college.
  SECTION 90. 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 public university listed in ORS 352.002  { + and
Portland State University + } 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 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 public university, in good faith, was unable to identify
a qualified minority applicant who was willing to interview for
the position.
  SECTION 91. ORS 352.380, as amended by section 3, chapter 780,
Oregon Laws 2009, and section 248, chapter 637, Oregon Laws 2011,
is amended to read:
  352.380. Each public university listed in ORS 352.002  { + and
Portland State University + } shall consider and maintain
affirmative action plans and goals when reductions in faculty and
staff are required as a result of:
  (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 92. ORS 352.385 is amended to read:
  352.385. (1) { + (a) + } The State Board of Higher Education
may, at the request of a public university under its control,
authorize the university to commission one or more of its
employees as special campus security officers.
   { +  (b) The Portland State University Board of Directors may
commission one or more of its employees as special campus
security officers.
  (2) + } The total number of special campus security officers
commissioned at   { - the public universities in the Oregon
University System - }   { + a public university under this
section  + }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 { +  or the Portland State
University Board of Directors + }. Special campus security
officers   { - shall - }  { +  may + } not be authorized to carry
firearms as police officers and, except as provided in subsection
(3) of this section,   { - shall - }  { +  may + } not be
considered police officers for purposes of ORS 181.610, 238.005,
243.005 or 243.736.
    { - (2) - }  { +  (3) + } The Department of Public Safety
Standards and Training shall train special campus security
officers at the expense of { + :
  (a) + } The State Board of Higher Education { +  for officers
for a public university listed in ORS 352.002 + }.
   { +  (b) The Portland State University Board of Directors for
officers for Portland State University. + }
    { - (3) - }  { +  (4) + } The State Board of Higher
Education { +  and Portland State University Board of
Directors + }, acting by and through   { - its - } special campus
security officers,   { - is a criminal justice agency - }  { +

are criminal justice agencies + } for purposes of rules adopted
pursuant to ORS 181.730 (3).
  SECTION 93. ORS 21.007, as amended by section 8, chapter 48,
Oregon Laws 2012, is amended to read:
  21.007. It is the intent of the Legislative Assembly that
funding be provided to the following entities by appropriations
each biennium to fund programs, services and activities that were
funded through court fees before the 2011-2013 biennium:
  (1) To the counties of this state for the purposes of funding
mediation services, conciliation services and other services in
domestic relations cases.
  (2) To the counties of this state for the purposes of funding
the operation of law libraries or of providing law library
services.
  (3) To { +  Portland State University and + } the Oregon
University System to fund the programs and expenses of the Mark
O. Hatfield School of Government and the University of Oregon
School of Law  { +  respectively + } under ORS 36.100 to 36.238
and 183.502.
  (4) To the Housing and Community Services Department for the
purpose of funding programs that defray the cost of rent for
dwelling units for very low income households.
  (5) To the Oregon University System to fund clinical legal
education programs at accredited institutions of higher education
that provide civil legal services to victims of domestic
violence, stalking or sexual assault.
  (6) To the State Department of Agriculture for the purpose of
funding mediation programs established by the department, other
than individual farm credit mediations.
  (7) To the Judicial Department for the purposes of funding the
appellate settlement program established under ORS 2.560.
  (8) To the Department of Human Services for the funding of the
Office of Children's Advocate.
  SECTION 94. ORS 30.264 is amended to read:
  30.264. (1) { + (a) + } The State Board of Higher Education may
authorize public universities listed in ORS 352.002 to provide
liability insurance coverage for students involved in off-campus
experiential activities, including, but not limited to, student
teaching, internships, clinical experiences, capstone projects
and related activities.
   { +  (b) The Portland State University Board of Directors may
authorize Portland State University to provide liability
insurance coverage for students involved in off-campus
experiential activities, including, but not limited to, student
teaching, internships, clinical experiences, capstone projects
and related activities. + }
  (2) If commercial liability insurance coverage is not available
to the public universities, students participating in the
activities described in subsection (1) of this section shall be
considered to be acting within the course and scope of state
employment duties for purposes of ORS 30.260 to 30.300.
  SECTION 95. ORS 30.864 is amended to read:
  30.864. (1) Any person claiming to be aggrieved by the reckless
disclosure of personally identifiable information from a
student's education records as prohibited by rules of the State
Board of Education { + , + }   { - or - }  the State Board of
Higher Education { +  or the Portland State University Board of
Directors + } may file a civil action in circuit court for
equitable relief or, subject to the terms and conditions of ORS
30.265 to 30.300, for damages, or both. The court may order such
other relief as may be appropriate.
  (2) The action authorized by this section shall be filed within
two years of the alleged unlawful disclosure.
  (3) In an action brought under this section, the court may
allow the prevailing party costs, disbursements and reasonable
attorney fees.
  SECTION 96. ORS 36.145 is amended to read:
  36.145. The Dispute Resolution Account is established in the
State Treasury, separate and distinct from the General Fund. All
moneys received under ORS 36.150 shall be deposited to the credit
of the account. Notwithstanding the provisions of ORS 291.238,
all moneys in the account are continuously appropriated to the
Oregon University System { +  or Portland State University + }
for the purposes for which the moneys were made available and
shall be expended in accordance with the terms and conditions
upon which the moneys were made available.
  SECTION 97. ORS 36.150 is amended to read:
  36.150.   { - The Oregon University System - }  { +  Portland
State University + }, on behalf of the Mark O. Hatfield School of
Government { + , + } and the  { + Oregon University System, on
behalf of the + } University of Oregon School of Law, may accept
and expend moneys from any public or private source, including
the federal government, made available for the purpose of
encouraging, promoting or establishing dispute resolution
programs in Oregon or to facilitate and assist the schools in
carrying out the responsibilities of the schools under ORS 36.100
to 36.238 and 183.502. All moneys received by the Oregon
University System { +  and Portland State University + } under
this section shall be deposited in the Dispute Resolution
Account.
  SECTION 98. 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;
  (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,
 { + a + } community college { + , Portland State University + }
or  { + a + } public university listed in ORS 352.002.
  (7) This section applies only to criminal forfeiture proceeds
arising out of prohibited conduct.
  SECTION 99. ORS 182.122 is amended to read:
  182.122. (1) As used in this section:
  (a) 'Executive department' has the meaning given that term in
ORS 174.112.
  (b) 'Information systems' means computers, hardware, software,
storage media, networks, operational procedures and processes
used in the collection, processing, storage, sharing or
distribution of information within, or with any access beyond
ordinary public access to, the state's shared computing and
network infrastructure.
  (2) The Oregon Department of Administrative Services has
responsibility for and authority over information systems
security in the executive department, including taking all
measures reasonably necessary to protect the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The Oregon Department
of Administrative Services shall, after consultation and
collaborative development with agencies, establish a state
information systems security plan and associated standards,
policies and procedures.
  (3) The Oregon Department of Administrative Services, in its
sole discretion, shall:
  (a) Review and verify the security of information systems
operated by or on behalf of agencies;
  (b) Monitor state network traffic to identify and react to
security threats; and
  (c) Conduct vulnerability assessments of agency information
systems for the purpose of evaluating and responding to the
susceptibility of information systems to attack, disruption or
any other event that threatens the availability, integrity or
confidentiality of information systems or the information stored
in information systems.
  (4) The Oregon Department of Administrative Services shall
contract with qualified, independent consultants for the purpose
of conducting vulnerability assessments under subsection (3) of
this section.
  (5) In collaboration with agencies, the Oregon Department of
Administrative Services shall develop and implement policies for
responding to events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems, whether those systems
are within, interoperable with or outside the state's shared
computing and network infrastructure. In the policies, the
department shall prescribe actions reasonably necessary to:
  (a) Promptly assemble and deploy in a coordinated manner the
expertise, tools and methodologies required to prevent or
mitigate the damage caused or threatened by an event;
  (b) Promptly alert other persons of the event and of the
actions reasonably necessary to prevent or mitigate the damage
caused or threatened by the event;
  (c) Implement forensic techniques and controls developed under
subsection (6) of this section;
  (d) Evaluate the event for the purpose of possible improvements
to the security of information systems; and
  (e) Communicate and share information with agencies, using
preexisting incident response capabilities.
  (6) After consultation and collaborative development with
agencies, the Oregon Department of Administrative Services shall
implement forensic techniques and controls for the security of
information systems, whether those systems are within,
interoperable with or outside the state's shared computing and
network infrastructure. The techniques and controls must include
the use of specialized expertise, tools and methodologies, to
investigate events that damage or threaten the availability,
integrity or confidentiality of information systems or the
information stored in information systems. The department shall
consult with the Oregon State Police, the Office of Emergency
Management, the Governor and others as necessary in developing
forensic techniques and controls under this section.
  (7) The Oregon Department of Administrative Services shall
ensure that reasonably appropriate remedial actions are
undertaken when the department finds that such actions are
reasonably necessary by reason of vulnerability assessments of
information systems under subsection (3) of this section,
evaluation of events under subsection (5) of this section and
other evaluations and audits.
  (8)(a) Agencies are responsible for the security of computers,
hardware, software, storage media, networks, operational
procedures and processes used in the collection, processing,
storage, sharing or distribution of information outside the
state's shared computing and network infrastructure following
information security standards, policies and procedures
established by the Oregon Department of Administrative Services
and developed collaboratively with agencies. Agencies may
establish plans, standards and measures that are more stringent
than the standards established by the department to address
specific agency needs if those plans, standards and measures do
not contradict or contravene the state information systems
security plan. Independent agency security plans shall be
developed within the framework of the state information systems
security plan.
  (b) An agency shall report the results of any vulnerability
assessment, evaluation or audit conducted by the agency to the
department for the purposes of consolidating statewide security
reporting and, when appropriate, to prompt a state incident
response.
  (9) This section does not apply to:
  (a) Research and student computer systems used by or in
conjunction with the State Board of Higher Education { + , + }
 { - or - }  any public university listed in ORS 352.002 { +  or
Portland State University + }; 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 100. 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 public university listed in ORS 352.002 { +  or at Portland
State University + }.
  (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 101. 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.
  (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 public universities listed in
ORS 352.002.
  (r) Oregon Youth Authority.
  (s) Psychiatric Security Review Board.
   { +  (t) Portland State University. + }
    { - (t) - }  { +  (u) + } The Oregon Health Authority for
hearings conducted under ORS 161.315 to 161.351.
    { - (u) - }  { +  (v) + } Public Utility Commission.
    { - (v) - }  { +  (w) + } State Accident Insurance Fund
Corporation.
    { - (w) - }  { +  (x) + } State Apprenticeship and Training
Council.
    { - (x) - }  { +  (y) + } State Board of Parole and
Post-Prison Supervision.
    { - (y) - }  { +  (z) + } State Land Board.
    { - (z) - }  { +  (aa) + } State Treasurer.
    { - (aa) - }  { +  (bb) + } 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.
  (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 102. 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 public universities listed in ORS 352.002  { +
or at Portland State University + }.
  (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 103. ORS 184.477 is amended to read:
  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 public universities listed in ORS 352.002  { +
or at Portland State University + }.
  SECTION 104. ORS 184.631 is amended to read:
  184.631. (1) The Department of Transportation shall establish a
public-private partnership research and development program.
  (2) As part of the program established under this section, the
department may enter into joint research and development
agreements for the purpose of developing products for market that
may reduce the cost of maintenance and preservation or extend the
useful life of the state's highways or that may improve highway
safety. The department may enter into agreements with the
following:
  (a) Individuals.
  (b) Businesses.
  (c) Nonprofit organizations.
  (d) The State Board of Higher Education.
   { +  (e) The Portland State University Board of Directors. + }
  (3) The department may enter into agreements under subsection
(2) of this section that allow the department to obtain royalties
or other financial benefits from the sale or use of products
developed through the public-private partnership research and
development program.
  (4) Moneys that the department is authorized to spend on
planning and research may be used for development of products
under this section.
  (5) The department shall adopt rules that govern the
solicitation and selection of product development projects that
will receive funding under the program established under this
section.
  SECTION 105. 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:
  (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.
  (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:
  (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 { + ,
Portland State University + } or the Oregon University System
about a person who has or who is interested in donating money or
property to the university  { - , - }  { +  or + } the system
 { - or a 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 { +  or to Portland
State University + }.

  (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
public university listed in ORS 352.002 { + , Portland State
University + } 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, 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.
  (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.
  (37) Any document or other information related to an audit of a
public body, as defined in ORS 174.109, that is in the custody of
an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
  SECTION 106. 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, section 2, chapter 769, Oregon Laws 2009,
section 15, chapter 9, Oregon Laws 2011, section 2, chapter 285,
Oregon Laws 2011, and section 69, chapter 637, Oregon Laws 2011,
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:
  (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.
  (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:
  (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 { + ,
Portland State University + } or the Oregon University System
about a person who has or who is interested in donating money or
property to the university  { - , - }  { +  or + } the system
 { - or a 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 { +  or to Portland
State University + }.
  (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
public university listed in ORS 352.002 { + , Portland State
University + } 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, 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.
  (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.
  (36) Any document or other information related to an audit of a
public body, as defined in ORS 174.109, that is in the custody of
an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
  SECTION 107. 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 public university listed in ORS 352.002 { +  or Portland
State University + };
  (c) A community college or local school district in this state;
  (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 108. ORS 205.455 is amended to read:
  205.455. (1)   { - No - }  { +  A + } person or county
 { - shall - }  { +  may not + } accept for filing an invalid
claim of encumbrance.

  (2)   { - No - }  { +  A + } person or county   { - shall - }
 { +  may not + } 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 public university listed in ORS 352.002
 { +  or Portland State University + } 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)
____________________________________________________________
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 109. ORS 238.005, as amended by section 30, chapter 54,
Oregon Laws 2012, is amended to read:
  238.005. For purposes of this chapter:
  (1) '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.
  (2) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
  (3) 'Board' means the Public Employees Retirement Board.
  (4) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
  (5) '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
remained in that employment until having established membership
in the Public Employees Retirement System.
  (6) '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.
  (7) '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.
  (8) '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
a 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.
  (9) '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.
  (10) '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
  (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.
  (11) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
  (12) 'Fund' means the Public Employees Retirement Fund.
  (13) '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.
  (14) 'Institution of higher education' means a public
university listed in ORS 352.002 { + , Portland State
University + }, the Oregon Health and Science University and a
community college, as defined in ORS 341.005.
  (15) '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.
  (16) 'Member account' means the regular account and the
variable account.
  (17) '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.
  (18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  (19) '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.
  (c) Employees of the Oregon Liquor Control Commission who are
classified as liquor enforcement inspectors 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) Police officers who are commissioned by a university under
ORS 352.383 and who are classified as police officers by the
university.
  (g) 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.
  (h) Police officers appointed under ORS 276.021 or 276.023.
  (i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  (j) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  (k) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
  (L) Investigators of the Criminal Justice Division of the
Department of Justice.
  (m) Corrections officers as defined in ORS 181.610.
  (n) 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.
  (o) The Director of the Department of Corrections.
  (p) 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.

  (q) 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.
  (r) 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.
  (s) 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.
  (t) 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.
  (u) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
  (20) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
  (21) '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.
  (22) '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.
  (23) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  (24) 'Retired member' means a member who is retired for service
or disability.
  (25) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
  (26)(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 ORS 238.008; 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
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
  (H) Payments for instructional services rendered to public
universities   { - of the Oregon University System - }  { +
listed in ORS 352.002, Portland State University + } 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.
  (27) 'School year' means the period beginning July 1 and ending
June 30 next following.
  (28) 'System' means the Public Employees Retirement System.
  (29) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
  (30) 'Vested' means being an active member of the system in
each of five calendar years.
  (31) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
  SECTION 110. ORS 238.200 is amended to read:
  238.200. (1)(a) An active member of the Public Employees
Retirement System shall contribute to the Public Employees
Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
  (b) Notwithstanding paragraph (a) of this subsection, an
employee who is an active member of the system on August 21,
1981, shall contribute to the fund and there shall be withheld
from salary of the member, as long as the employee continues to
be an active member of the system, four percent of that salary if
the salary for a month is less than $500, or five percent of that
salary if the salary for a month is $500 or more and less than
$1,000.
   { +  (c) + } Notwithstanding subsection (2) of this section,
for the purpose of computing the percentage of salary to be
withheld under this paragraph from a member who is an employee of
a school district { + , of Portland State University + } or of
the State Board of Higher Education whose salary is based on an
annual agreement, the agreed annual salary of the member shall be
divided into 12 equal installments, and each installment shall be
considered as earned and paid in separate, consecutive months,
commencing with the first month that payment is actually made
under the terms of the salary agreement.
  (2) The contributions of each member as provided in subsection
(1) of this section shall be deducted by the employer from each
payroll and transmitted by the employer to the Public Employees
Retirement Board, which shall cause them to be credited to the
member account of the member. Salary shall be considered earned
in the month in which it is paid. The date inscribed on the
paycheck or warrant shall be considered as the pay date,
regardless of when the salary is actually delivered to the
member.

  (3) An active member who is concurrently employed by more than
one participating public employer, and who is a member of or
entitled to membership in the system, shall make contributions to
the fund on the basis of salary paid by each employer.
  (4) Notwithstanding subsections (1) to (3) of this section, a
member of the system, or a participating employer acting on
behalf of the member pursuant to ORS 238.205, is not permitted or
required to make employee contributions to the fund for service
performed on or after January 1, 2004. This subsection does not
affect any contribution for the purpose of unit purchases under
ORS 238.440 or amounts paid for acquisition of creditable service
under ORS 238.105 to 238.175.
  SECTION 111. ORS 238.215 is amended to read:
  238.215. Notwithstanding any other provision of this chapter:
  (1) An employee, as defined in ORS 243.910 (2), who is an
active member of the system and who has elected, and not canceled
that election, to be assisted by the State Board of Higher
Education { +  or the Portland State University Board of
Directors + } under ORS 243.920 (1),   { - shall - }  { +
may + } not contribute to the fund on any part of the annual
salary of the employee in excess of $4,800 at any time during
which the   { - State Board of Higher Education - }  { +
board + } assists the employee under ORS 243.920 (1).
  (2) The current service pension, whether for service or
disability retirement, under this chapter provided by the
contributions of the employers of such employee shall be:
  (a) If the State Board of Higher Education  { + or the Portland
State University Board of Directors + } is assisting such
employee under ORS 243.920 (1) at the time of retirement, a
pension equal to the annuity provided by the employee's
accumulated contributions to the fund.
  (b) If the   { - State Board of Higher Education - }  { +
board + } is not assisting such employee under ORS 243.920 (1) at
the time of retirement, but previously so assisted the employee:
  (A) For service before the date the   { - State Board of Higher
Education - }  { +  board + } last ceased to assist the employee,
a pension equal to the annuity provided by the employee's
accumulated contributions to the fund before that date.
  (B) For service on and after the date the   { - State Board of
Higher Education - }  { +  board + } last ceased to so assist the
employee, a pension computed as provided in ORS 238.300 (2), but
if the employee retires before reaching the normal retirement
age, actuarially reduced and computed on the then attained age.
For the purpose of computing the pension under this subparagraph,
only the number of years of membership of the employee after the
day before that date and only the salary of the employee on which
the employee contributes to the fund for those years shall be
considered.
  (3) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system, who elected to be assisted by the State Board of
Higher Education  { + or the Portland State University Board of
Directors + } under ORS 243.920 (1) before January 1, 1968, who
canceled that election within the first 60 days of the calendar
year 1968 as provided in ORS 243.940 (5) and who does not
thereafter elect to be assisted by the   { - State Board of
Higher Education - }  { +  board + } under ORS 243.920 (1).
  (4) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system and has been an active member of the system
continuously since any date before January 1, 1968; who elected
to be assisted by the State Board of Higher Education { +  or the
Portland State University Board of Directors + } under ORS
243.920 (1) before January 1, 1968; and who cancels that election
in any calendar year after 1968, but before the calendar year in
which the employee retires, as provided in ORS 243.940 (5) and
does not thereafter elect to be assisted by the   { - State Board
of Higher Education - }  { +  board + } under ORS 243.920 (1). In
this case the benefit, whether for service or disability
retirement, shall be computed as under ORS 238.300; however, for
service during periods in which the employee was assisted by the
 { - State Board of Higher Education - }  { +  board + } under
ORS 243.920 (1), a year of membership as used in ORS 238.300 (2)
shall be a portion of a year which is represented by a fraction
the numerator of which is $4,800 and the denominator of which is
the salary earned by the employee in that year. However, in no
case shall the fraction be greater than one.
  SECTION 112. ORS 238A.005, as amended by section 1, chapter 31,
Oregon Laws 2012, 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;
  (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 { + , Portland State
University + }, the Oregon Health and Science University or a
community college, as defined in ORS 341.005.
  (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.
  (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.
  (13) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  (14) 'Police officer' means a police officer as described in
ORS 238.005.
  (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).
  (16) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  (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, 2011.
  (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, 2011.
  (E) Retroactive payments described in ORS 238.008.
  (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 public
universities of the Oregon University System { + , Portland State
University + } or the Oregon Health and Science 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.
  (18) 'System' means the Public Employees Retirement System.
  SECTION 113. ORS 240.185 is amended to read:
  240.185. (1) On and after January 1, 1984, the number of
persons employed by the state shall not exceed 1.5 percent of the
state's population of the prior year.
  (2) The population figure shall be that required by ORS 190.510
to 190.610.
  (3) This section applies to all full-time equivalent budgeted
positions.
  (4) This section does not apply to the Governor, the Secretary
of State, the State Treasurer, the Supreme Court or the
Legislative Assembly in the conduct of duties vested in any of
them by the Oregon Constitution. However, this exception applies
only to the office of the Governor and not to the executive
branch of government.
  (5) This section does not apply to personnel who administer
unemployment insurance benefits programs of the Employment
Department, to personnel who administer programs required to be
implemented as a condition for the continued certification of the
Employment Division Law by the United States Secretary of Labor
or to personnel who administer programs implemented by the United
States Department of Labor under federal law if the state is
required to enter into contracts to provide such programs.
  (6) This section does not apply to personnel whose positions
are funded by the gifts, grants and contracts program in the
Oregon University System { +  or Portland State University + }.
  (7) In order to assess the effect of subsection (1) of this
section, the Oregon Department of Administrative Services by
December 31 of each even-numbered year shall conduct a workload
analysis of each state agency, regardless of whether the agency
is exempt from the application of subsection (1) of this section.
The workload analysis of each agency shall be submitted to the
Legislative Assembly prior to its convening in the subsequent
odd-numbered year regular session and shall accompany the
agency's budget request before the Joint Ways and Means
Committee.
  SECTION 114. 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
  (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 a public university listed in ORS
352.002 { +  or Portland State University + }.
  (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 115. ORS 243.107 is amended to read:
  243.107. A person employed by a public university listed in ORS
352.002 { + , Portland State University + } 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,  { + the Portland
State University Board of Directors  + }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 116. ORS 243.778 is amended to read:
  243.778. (1) When an appropriate bargaining unit includes
members of the faculty of a public university listed in ORS
352.002 { +  or of Portland State University + }, the duly
organized and recognized entity of student government at that
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, '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.
  SECTION 117. ORS 243.800 is amended to read:
  243.800. (1) Notwithstanding any provision of ORS chapter 238
or 238A or ORS 243.910 to 243.945, the State Board of Higher
Education  { + and Portland State University + } shall establish
and administer an Optional Retirement Plan for administrative and
academic employees of the Oregon University System  { + or
Portland State University + } who are eligible for membership in
the Public Employees Retirement System. The Optional Retirement
Plan must be a qualified plan under the Internal Revenue Code,
capable of accepting funds transferred under subsection (7) of
this section without the transfer being treated as a taxable
event under the Internal Revenue Code, and willing to accept
those funds.  Retirement and death benefits shall be provided
under the plan by the purchase of annuity contracts, fixed or
variable or a combination thereof, or by contracts for
investments in mutual funds.
  (2) The State Board of Higher Education  { + and Portland State
University + } shall select at least two life insurance companies
providing fixed and variable annuities and at least two
investment companies providing mutual funds, but not more than
five companies in total, for the purpose of providing benefits
under the Optional Retirement Plan.   { - The State Board of
Higher Education - }   { + Each board + } shall establish
selection criteria for the purpose of this subsection.
  (3) An administrative or academic employee may make an
irrevocable election to participate in the Optional Retirement
Plan within six months after being employed. An election under
this subsection is effective on the first day of the month
following six full months of employment.
  (4) An administrative or academic employee who does not elect
to participate in the Optional Retirement Plan:
  (a) Remains or becomes a member of the Public Employees
Retirement System in accordance with ORS chapters 238 and 238A;
or
  (b) Continues to be assisted by the State Board of Higher
Education  { + or Portland State University + } under ORS 243.920
if the employee is being so assisted.
  (5) Except as provided in subsection (6) of this section,
employees who elect to participate in the Optional Retirement
Plan are ineligible for active membership in the Public Employees
Retirement System or for any assistance by the State Board of
Higher Education  { + or Portland State University + } under ORS
243.920 as long as those employees are employed in the Oregon
University System  { + or by Portland State University + } and
the plan is in effect.
  (6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
  (b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
  (c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
  (d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
  (e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership
of the employee in the individual account program upon making the
transfer.
  (f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be separated
from all service with participating public employers and with
employers who are treated as part of a participating public
employer's controlled group under the federal laws and rules
governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
  (7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
  (8) An employee participating in the Optional Retirement Plan
shall contribute monthly an amount equal to the percentage of the
employee's salary that the employee would otherwise have
contributed as an employee contribution to the Public Employees
Retirement System if the employee had not elected to participate
in the Optional Retirement Plan.
  (9) The State Board of Higher Education  { + or Portland State
University + } shall contribute monthly to the Optional
Retirement Plan the percentage of salary of each employee
participating in the plan equal to the percentage of salary that
would otherwise have been contributed as an employer contribution
on behalf of the employee to the Public Employees Retirement
System, before any offset under ORS 238.229 (2), if the employee
had not elected to participate in the Optional Retirement Plan.
  (10) Both employee and employer contributions to an Optional
Retirement Plan shall be remitted directly to the companies that
have issued annuity contracts to the participating employees or
directly to the mutual funds.
  (11) Benefits under the Optional Retirement Plan are payable to
employees who elect to participate in the plan and their
beneficiaries by the selected annuity provider or mutual fund in
accordance with the terms of the annuity contracts or the terms
of the contract with the mutual fund. Employees electing to
participate in the plan agree that benefits payable under the
plan are not obligations of the State of Oregon or of the Public
Employees Retirement System.
  SECTION 118. ORS 243.820 is amended to read:
  243.820. (1) In order to obtain the advantages of 26 U.S.C.
403(b), or any equivalent provision of federal law, an employer
may agree with an employee who performs services for an
educational institution that:
  (a) The employee's salary will be reduced monthly by a stated
amount, or the employee will forgo monthly a salary increase of a
stated amount; and
  (b) On behalf of the employee, the employer shall contribute
monthly an amount equal to the stated amount determined under
paragraph (a) of this subsection as premiums for an annuity
contract or to a custodial account for investment in the stock of
regulated investment companies as defined in 26 U.S.C.
403(b)(7)(C). The amount contributed by the employer under this
subsection may not exceed the stated amount.
  (2) Notwithstanding any other provision of law, pursuant to an
agreement under subsection (1) of this section, the stated
amounts shall be forwarded by the employer as annuity premiums to
the company or association with which it has entered into an
annuity contract or to the regulated investment company or its
transfer agent for the benefit of the employee.
  (3) An employer may make nonelective employer contributions on
behalf of an employee who performs services for an educational
institution as premiums for an annuity contract, or to a
custodial account for investment in the stock of regulated
investment companies as defined in 26 U.S.C. 403(b)(7)(C), for
the purpose of obtaining the advantages of 26 U.S.C. 403(b) or
any equivalent provision of federal law. Employer contributions
under this subsection are in addition to any employee
contributions under subsection (1) of this section.
  (4) As used in this section:
  (a) 'Educational institution' means an educational institution
that normally maintains a regular faculty and curriculum and
normally has a regularly organized body of students in attendance
at the place where its educational activities are carried on or
an education service district.
  (b) 'Employer' means the State Board of Higher Education, any
other state agency, a community college district, a school
district, the Oregon Health and Science University { + , Portland
State University + } or an education service district employing
an individual who performs services for an educational
institution.
  SECTION 119. ORS 243.850 is amended to read:
  243.850. (1) An eligible football coach and the State Board of
Higher Education { +  or the Portland State University Board of
Directors + } may enter into an agreement to provide that:
  (a) The coach's salary will be reduced monthly by a stated
amount that is not less than $25 a month, or the coach will forgo
monthly a salary increase of a stated amount that is not less
than $25 a month; and
  (b) The   { - State Board of Higher Education - }  { +
board + } will contribute monthly an amount equal to the stated
amount determined under paragraph (a) of this subsection for the
month to a designated qualified football coaches plan. The amount
contributed by the employer shall not exceed the stated amount.
  (2) The amount by which an eligible football coach's salary or
wages is reduced by reason of the salary reduction or forgoing of
a salary increase authorized by subsection (1) of this section
shall continue to be included as regular compensation for the
purpose of computing the retirement, pension and Social Security
benefits earned by the coach, but that amount shall not be
considered current taxable income for the purpose of computing
federal and state income taxes withheld on behalf of that coach.
  (3) For the purposes of this section:
  (a) 'Eligible football coach' means a staff member of the
Oregon University System  { + or Portland State University + }
who primarily coaches football as a full-time employee of a
four-year university described in 26 U.S.C. 170(b)(1)(A)(ii).
  (b) 'Qualified football coaches plan' has the meaning given
that term in 29 U.S.C. 1002(37).
  SECTION 120. 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
public universities listed in ORS 352.002,  { + the Portland
State University Board of Directors for Portland State
University + } and
  { - for the Oregon Health and Science University means - }  the
Oregon Health and Science University Board of Directors { +  for
Oregon Health and Science University + }.
  (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 121. ORS 243.945 is amended to read:
  243.945. Notwithstanding ORS 243.910 to 243.945, any person who
is hired on or after September 9, 1995, is not eligible to be
assisted by the Oregon University System  { + or Portland State
University + } under the provisions of ORS 243.910 to 243.945.
  SECTION 122. ORS 244.050, as amended by section 9, chapter 90,
Oregon Laws 2012, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
district attorneys and members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor 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.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (TT) Deputy Superintendent of Public Instruction.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I) State Board of Higher Education.
  (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.
  (FF) Oregon Growth Board.   { +
  (GG) Portland State University Board of Directors. + }
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 123. ORS 244.050, as amended by sections 9 and 29,
chapter 90, Oregon Laws 2012, is amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
district attorneys and members of the Legislative Assembly.
  (b) Any judicial officer, including justices of the peace and
municipal judges, except any pro tem judicial officer who does
not otherwise serve as a judicial officer.
  (c) Any candidate for a public office designated in paragraph
(a) or (b) of this subsection.
  (d) The Deputy Attorney General.
  (e) The Legislative Administrator, the Legislative Counsel, the
Legislative Fiscal Officer, the Secretary of the Senate and the
Chief Clerk of the House of Representatives.
  (f) The Chancellor 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.
  (R) Director of Transportation.
  (S) Public Utility Commissioner.
  (T) Director of Veterans' Affairs.
  (U) Executive director of Oregon Government Ethics Commission.
  (V) Director of the State Department of Energy.
  (W) Director and each assistant director of the Oregon State
Lottery.
  (X) Director of the Department of Corrections.
  (Y) Director of the Oregon Department of Aviation.
  (Z) Executive director of the Oregon Criminal Justice
Commission.
  (AA) Director of the Oregon Business Development Department.
  (BB) Director of the Office of Emergency Management.
  (CC) Director of the Employment Department.
  (DD) Chief of staff for the Governor.
  (EE) Administrator of the Office for Oregon Health Policy and
Research.
  (FF) Director of the Housing and Community Services Department.
  (GG) State Court Administrator.
  (HH) Director of the Department of Land Conservation and
Development.
  (II) Board chairperson of the Land Use Board of Appeals.
  (JJ) State Marine Director.
  (KK) Executive director of the Oregon Racing Commission.
  (LL) State Parks and Recreation Director.
  (MM) Public defense services executive director.
  (NN) Chairperson of the Public Employees' Benefit Board.
  (OO) Director of the Department of Public Safety Standards and
Training.
  (PP) Chairperson of the Oregon Student Access Commission.
  (QQ) Executive director of the Oregon Watershed Enhancement
Board.
  (RR) Director of the Oregon Youth Authority.
  (SS) Director of the Oregon Health Authority.
  (TT) Deputy Superintendent of Public Instruction.
  (h) Any assistant in the Governor's office other than personal
secretaries and clerical personnel.
  (i) Every elected city or county official.
  (j) Every member of a city or county planning, zoning or
development commission.
  (k) The chief executive officer of a city or county who
performs the duties of manager or principal administrator of the
city or county.
  (L) Members of local government boundary commissions formed
under ORS 199.410 to 199.519.
  (m) Every member of a governing body of a metropolitan service
district and the executive officer thereof.
  (n) Each member of the board of directors of the State Accident
Insurance Fund Corporation.
  (o) The chief administrative officer and the financial officer
of each common and union high school district, education service
district and community college district.
  (p) Every member of the following state boards and commissions:
  (A) Board of Geologic and Mineral Industries.
  (B) Oregon Business Development Commission.
  (C) State Board of Education.
  (D) Environmental Quality Commission.
  (E) Fish and Wildlife Commission of the State of Oregon.
  (F) State Board of Forestry.
  (G) Oregon Government Ethics Commission.
  (H) Oregon Health Policy Board.
  (I) State Board of Higher Education.
  (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.   { +
  (FF) Portland State University Board of Directors. + }
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 124. 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 public universities of
the Oregon University System { +  and Portland State
University + }, 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;
  (e) Property controlled by the Oregon University System { +  or
Portland State University + };

  (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, 406.050,
407.135, 407.145, 407.375 and 407.377.
  SECTION 125. ORS 270.110 is amended to read:
  270.110. (1) Except as provided in subsection (2) of this
section, whenever the state or any agency thereof possesses or
controls real property not needed for public use, or whenever the
public interest may be furthered, the state or its agency may
sell, exchange, convey or lease for any period not exceeding 99
years all or any part of its interest in the property to or with
the state or any political subdivision of the state or the United
States or any agency thereof or private individual or
corporation.  Except where the state is exchanging real property,
the consideration for the transfer or lease may be cash or real
property, or both.
  (2) If the ownership, right or title of the state to any real
property set apart by deed, will or otherwise for a burial ground
or cemetery, or for the purpose of interring the remains of
deceased persons, is limited or qualified or the use of such real
property is restricted, whether by dedication or otherwise, the
state or its agency may, after first declaring by resolution that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease thereof will further the
public interest, file a complaint in the circuit court for the
county in which such real property is located against all persons
claiming any right, title or interest in such real property,
whether the interest be contingent, conditional or otherwise, for
authority to sell, exchange, convey or lease all or any part of
such real property. The resolution is prima facie evidence that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease will further the public
interest. The action shall be commenced and prosecuted to final
determination in the same manner as an action not triable by
right to a jury. The complaint shall contain a description of
such real property, a statement of the nature of the
restrictions, qualifications or limitations, and a statement that
the defendants claim some interest therein. The court shall make
such judgment as it shall deem proper, taking into consideration
the limitations, qualifications or restrictions, the resolution
and all other matters pertinent thereto. Neither costs nor
disbursements may be recovered against any defendant.
  (3) The authority to lease property granted by this section
includes authority to lease property not owned or controlled by
the state at the time of entering into the lease. Such lease
shall be conditioned upon the subsequent acquisition of the
interest covered by the lease.
  (4) Any lease of state real property exceeding five years must
be approved in advance by the Oregon Department of Administrative
Services, except for leases:
  (a) Negotiated by the Oregon Department of Aviation;
  (b) Of state forestlands;
  (c) Of property controlled by the Department of State Lands,
Department of Transportation { + , Portland State University + }
or Oregon University System; or
  (d) Of property controlled by the legislative or judicial
branches of state government.
  SECTION 126. ORS 273.785 is amended to read:
  273.785. ORS 273.551 and 273.775 to 273.790 do not apply to:
  (1) Soil, clay, stone, sand and gravel acquired or used by
state agencies for the purpose of constructing or repairing roads
or other state facilities, or the proceeds from those materials.
  (2) Mineral or geothermal resource rights or proceeds from
those rights acquired by the State Fish and Wildlife Commission
pursuant to an agreement with the federal government under 16
U.S.C. 669 to 669i (P.L. 75-415).
  (3) Mineral or geothermal resource rights or proceeds from
those rights if other disposition is required by federal rules or
regulations or any agreement entered into at the time of
acquisition of the mineral or geothermal resource rights by the
state.
  (4) Proceeds of mineral and geothermal resource rights acquired
by the state pursuant to ORS 530.010 and 530.030, other than
those distributed under ORS 530.110 (1)(c).
  (5) Mineral or geothermal resource rights or proceeds from
those rights acquired after January 1, 1974, for the state by the
Department of Veterans' Affairs pursuant to ORS 88.720, 406.050
(2), 407.135 or 407.145. After consultation, the Department of
State Lands and the Department of Veterans' Affairs shall enter
into an interagency agreement governing consultation between them
concerning mineral and geothermal resource values on properties
acquired for the state by the Department of Veterans' Affairs.
The Department of Veterans' Affairs shall adopt rules relating to
the release of mineral and geothermal rights on such properties.
  (6) Mineral or geothermal resource rights or proceeds from
those rights given by a donor to any public university or office,
department or activity under the control of the State Board of
Higher Education  { + or the Portland State University Board of
Directors + } that are acquired or held for the state by the
State Board of Higher Education pursuant to ORS chapters 351 and
567 { +  or the Portland State University Board of Directors + }.
In managing mineral or geothermal resource leases, the State
Board of Higher Education { +  or the Portland State University
Board of Directors + } 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 - }  { +  each
board + } governing consultation between the department and the
 { - State Board of Higher Education - }  { +  board + } and
governing management of the mineral or geothermal resources.
  (7) Mineral or geothermal resource rights or proceeds from
those rights acquired and held by the Department of
Transportation. In managing mineral or geothermal resource
leases, the Department of Transportation shall enter into an
intergovernmental agreement with the Department of State Lands
governing consultation between the departments and governing
management of the mineral or geothermal resources.
  SECTION 127. 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.
  (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 do not apply to public
universities listed in ORS 352.002 { + , Portland State
University + }, the Oregon Health and Science University or a
community college as defined in ORS 341.005.
  SECTION 128. 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 do not apply to public
universities listed in ORS 352.002 { + , Portland State
University + }, the Oregon Health and Science University, or a
community college as defined in ORS 341.005.
  SECTION 129. ORS 276.610 is amended to read:
  276.610. There is established a fund in the State Treasury to
be known as the State Building Fund which shall be used for the
construction, alteration and repair of buildings required for use
of institutions and activities under the jurisdiction of the
Department of Corrections, the Department of Human Services, the
Oregon Health Authority { + , the Portland State University Board
of Directors + } or the State Board of Education and the State
Board of Higher Education and for the furnishing and equipping of
buildings so constructed, altered or repaired.
  SECTION 130. 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  { + and the Portland State
University Board of Directors + } shall determine the buildings
to be constructed, altered, repaired, furnished and equipped for
the use of public universities or offices, departments or
activities under
  { - its - }  { +  each board's + } jurisdiction.
  SECTION 131. 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:
  (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,
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 public
universities, except as provided in ORS 351.086;  { +
  (c) Portland State University; + }
    { - (c) - }  { +  (d) + } The legislative department;
    { - (d) - }   { + (e) + } The judicial department;
    { - (e) - }   { + (f) + } 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) - }   { + (g) + } Oregon Corrections Enterprises;
    { - (g) - }   { + (h) + } The Oregon Film and Video Office,
except as provided in ORS 279A.100 and 279A.250 to 279A.290;
    { - (h) - }   { + (i) + } The Travel Information Council,
except as provided in ORS 279A.250 to 279A.290;
    { - (i) - }   { + (j) + } The Oregon 529 College Savings
Network and the Oregon 529 College Savings Board;
    { - (j) - }   { + (k) + } The Oregon Innovation Council;
    { - (k) - }   { + (L) + } The Oregon Utility Notification
Center; or
    { - (L) - }   { + (m) + } 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 132. ORS 282.076 is amended to read:
  282.076. (1) An athletic department of  { + Portland State
University or + } any university under the jurisdiction of the
State Board of Higher Education   { - shall - }  { +  may + } not
be required to use state printing services controlled by the
Director of the Oregon Department of Administrative Services or
the designee of the director as required by ORS 282.020 (1).
  (2) A state agency that gives to the director prior written
notice of its intent to use other printing services shall not be
required to use state printing services controlled by the
director or the director's designee as required by ORS 282.020
(1), if the agency can demonstrate that these other printing
services provide better value in the form of lower prices or
better responsiveness than those services already provided by the
Oregon Department of Administrative Services.
  SECTION 133. ORS 283.143 is amended to read:
  283.143. (1) To encourage utilization of statewide integrated
videoconferencing and statewide online access services, the
Oregon Department of Administrative Services shall, in addition
to any other charge or assessment for providing
telecommunications services to state agencies, impose upon each
agency and public corporation a surcharge, in an amount
established by the department. All surcharge moneys collected
shall be deposited in the Oregon Department of Administrative
Services Operating Fund, and may be expended only for state
agency and public corporation telecommunication and
videoconferencing activities, under such terms and conditions as
the department may prescribe.
  (2) Notwithstanding subsection (1) of this section, the Oregon
Department of Administrative Services   { - shall - }  { +
may + } not impose the surcharge established by this section on
the Oregon University System { + , Portland State University + }
or the Oregon Health and Science University. The Oregon
Department of Administrative Services shall enter into an
agreement with the Oregon University System { + , Portland State
University + } and the Oregon Health and Science University on
the amounts to be paid by the Oregon University System { + ,
Portland State University + } and the Oregon Health and Science
University to the Oregon Department of Administrative Services in
lieu of the surcharge provided for in this section.
  SECTION 134. 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 may not authorize or
allow the use of any motor vehicle to transport students to an
event or activity not directly related to an officially
sanctioned program, as established under ORS 351.277, of a public
university listed in ORS 352.002.
  (4) The State Board of Higher Education { +  and the Portland
State University Board of Directors + }, in conjunction with the
Oregon Department of Administrative Services, shall establish by
rule vehicle operation standards and training to promote safe
vehicular travel practices in the conduct of all travel by
employees, students and official volunteers at all public
universities in the Oregon University System { +  and Portland
State University + }.
  SECTION 135. 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 { + , Portland State University + } or a 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 136. ORS 284.701 is amended to read:
  284.701. As used in ORS 284.701 to 284.749:
  (1) 'Clean energy' means a technology, product, process or
innovation that involves conservation of natural resources, solar
energy, green building products and services, biofuels, biomass
energy, bio-based products or other renewable and sustainable
energy.
  (2) 'Innovation-based economic development' includes, but is
not limited to, a technology, product, process or innovation
that:
  (a) Derives from and supports innovation and research;
  (b) Promotes Oregon's market capacities and competitive
advantages;
  (c) Involves technology-based innovation;
  (d) Facilitates the creation of new products, processes and
services that retain and create high-wage jobs;
  (e) Involves the establishment of partnerships between and
collaboration with research institutions, the private sector and
public entities;
  (f) Endeavors to transfer innovative technologies to the
private sector or to commercialize innovative research and
development; and
  (g) Includes, but is not limited to, clean energy and clean
energy economic development.
  (3) 'Oregon growth business' means:
  (a) An individual, group of individuals or private sector
business entity, including but not limited to a partnership,
limited liability company, corporation, firm, association or
other business entity, that engages in business that furthers
innovation-based economic development, that has the capacity upon
obtaining appropriate capital to generate significant high-skill,
high-wage employment in Oregon and that conducts business in
Oregon; or
  (b) An emerging growth business as defined in ORS 348.701.
  (4) 'Public entity' means any agency of the federal or state
government, county, city, town, public corporation or political
subdivision in this state.
  (5) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002 { +  or Portland
State University + };
  (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;
  (f) A private not-for-profit research institution located in
Oregon;
  (g) An institution for higher education as defined in ORS
289.005; or
  (h) A private institution of higher education located in
Oregon.
  (6) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 137. ORS 284.701, as amended by section 20, chapter 90,
Oregon Laws 2012, is amended to read:
  284.701. As used in ORS 284.701 to 284.749:
  (1) 'Clean energy' means a technology, product, process or
innovation that involves conservation of natural resources, solar
energy, green building products and services, biofuels, biomass
energy, bio-based products or other renewable and sustainable
energy.
  (2) 'Innovation-based economic development' includes, but is
not limited to, a technology, product, process or innovation
that:
  (a) Derives from and supports innovation and research;
  (b) Promotes Oregon's market capacities and competitive
advantages;
  (c) Involves technology-based innovation;
  (d) Facilitates the creation of new products, processes and
services that retain and create high-wage jobs;
  (e) Involves the establishment of partnerships between and
collaboration with research institutions, the private sector and
public entities;
  (f) Endeavors to transfer innovative technologies to the
private sector or to commercialize innovative research and
development; and
  (g) Includes, but is not limited to, clean energy and clean
energy economic development.
  (3) 'Oregon growth business' means:
  (a) An individual, group of individuals or private sector
business entity, including but not limited to a partnership,
limited liability company, corporation, firm, association or
other business entity, that engages in business that furthers
innovation-based economic development, that has the capacity,
upon obtaining appropriate capital, to generate significant
high-skill, high-wage employment in Oregon and that conducts
business in Oregon; or
  (b) An emerging growth business consisting of an individual or
group of individuals or a new or small company, including but not
limited to any new or small partnership, limited liability
company, corporation, firm, association or other business entity,
that has the capacity, upon obtaining appropriate capital, to
generate significant high-skill, high-wage employment.
  (4) 'Public entity' means any agency of the federal or state
government, county, city, town, public corporation or political
subdivision in this state.
  (5) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002 { +  or Portland
State University + };
  (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;
  (f) A private not-for-profit research institution located in
Oregon;
  (g) An institution for higher education as defined in ORS
289.005; or
  (h) A private institution of higher education located in
Oregon.
  (6) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 138. ORS 284.735 is amended to read:
  284.735. (1) The Oregon Innovation Council may make grants and
loans from the Oregon Commercialized Research Fund to Oregon
growth businesses.
  (2) To qualify for a grant or loan under this section, an
Oregon growth business must enter into an agreement with one or
more research institutions to carry out proof of concept
activities to:
  (a) Establish the commercial potential of research; and
  (b) Develop a business concept that can attract early stage
private investment, including angel capital and venture capital.
  (3) Proof of concept activities for which an Oregon growth
business may receive a grant or loan under this section include:
  (a) The development of intellectual property;
  (b) The payment of salaries and related expenses for
commercialized research;
  (c) The acquisition of equipment and supplies required for the
proof of concept activities;
  (d) Furthering innovation-based economic development; and
  (e) Other activities as defined by rule of the council.
  (4) To receive a grant or loan, the Oregon growth business or a
research institution that has entered into an agreement with the
business must agree to provide a cash match equivalent to:
  (a) 30 percent of the amount of the grant or loan for
businesses with fewer than 20 employees.
  (b) 50 percent of the amount of the grant or loan for
businesses with 20 or more but fewer than 50 employees.
  (c) 75 percent of the amount of the grant or loan for
businesses with 50 or more but fewer than 100 employees.
  (5)(a) The council shall award grant or loan moneys to an
Oregon growth business in a two-phase contract. Each phase of the
contract shall have clearly defined performance measures included
in the contract between the business and the council.
  (b) Under phase I of the contract, a business may be granted or
loaned an initial investment not to exceed $75,000. Phase I shall
also include an agreement that upon successful completion of the
performance measures for phase I, the business shall be eligible
for funding under phase II. The amount of grant or loan moneys
available to a business under both phases may not exceed
$200,000.

  (6) The council shall require any Oregon growth business that
receives a grant or loan under this section and that moves more
than 50 percent of the employees of the business out of the state
within two years after receiving grant or loan moneys to repay
the total amount of the grant or loan moneys.
  (7) The council shall require an Oregon growth business that
receives a loan under this section to repay the loan within five
years after receiving the loan. The council shall deposit any
loan moneys received under this subsection in the Oregon
Commercialized Research Fund.
  (8) The council may award up to 15 percent of the amount of
moneys available in the fund for grants or loans:
  (a) To the Oregon University System  { + and Portland State
University + } for education of faculty on issues related to
developing effective technology transfer and commercialized
research processes; and
  (b) For other activities as defined by rule of the council.
  (9) The council may adopt rules to administer this section.
The council shall follow the advice of the Oregon Commercialized
Research Fund Advisory Council when adopting rules to administer
this section.
  SECTION 139. 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 public university
listed in ORS 352.002 { +  or Portland State University + } to
assist in the formation, improvement and operation of small
business development centers.  If a community college district, a
community college service district or a public university is
unable to adequately provide services in a specific geographic
area, the department may make grants available to other service
providers as determined by the department. The grant application
shall include:
  (a) Plans for providing small business owners and managers
individual counseling, to the greatest extent practicable, in
subject areas critical to small business success;
  (b) A budget for the year for which a grant is requested,
including cost apportionment among the department, small business
clients, the community college, the public university or other
service providers and other sources;
  (c) A plan for evaluating the effect of the program on small
business clients served; and
  (d) A plan for providing collaboration with other state
agencies, state-supported organizations and private sector
entities that provide services to small businesses.
  (2) The grants made under subsection (1) of this section are to
be used by the grant recipient to provide:
  (a) Small business development center staff and support staff;
  (b) Expert resource persons from the business community;
  (c) Other training and business resources as approved by the
department in skill areas for which, or areas of the state where,
the grant recipient can demonstrate it does not otherwise have
the capacity or expertise to provide the resources; and
  (d) Other costs related to providing training, counseling and
business resources to small business clients.
  (3) To be eligible for a grant under subsection (1) of this
section, the recipient shall be required to provide funds,
in-kind contributions or some combination of funds and
contributions, in accordance with rules adopted by the
department.
  (4) Subject to the approval of the department, a grant
recipient may subcontract funds received under this section to
any other entity that is eligible to receive funding under this
section.
  (5) The grant recipient shall submit a final report to the
department after the distribution of grant funds and the delivery
of services to the proposed business clients. The report shall
state whether the plan and related budget have met the applicable
criteria as described in the recipient's application for the
grant period.
  SECTION 140. ORS 285B.174 is amended to read:
  285B.174. In cooperation with other state agencies and private
organizations, public universities listed in ORS 352.002 { + ,
Portland State University + } 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 141. 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
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 public
universities listed in ORS 352.002 { +  and Portland State
University + }.
  (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 142. ORS 291.038 is amended to read:
  291.038. (1) The planning, acquisition, installation and use of
all information and telecommunications technology by state
government and agencies of state government shall be coordinated
so that statewide plans and activities, as well as those of
individual agencies, are addressed in the most integrated,
economic and efficient manner. To provide policy direction for
and coordination of information technology for state government,
the Director of the Oregon Department of Administrative Services
shall chair and appoint not fewer than five agency executives to
an Information Resources Management Council. The council
membership shall include at least two members who represent the
private sector and political subdivisions of the state.
  (2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of
Administrative Services shall adopt rules, policies and standards
to plan for, acquire, implement and manage the state's
information resources. In developing rules, policies and
standards, the department shall consult with state agencies that
have needs that information resources may satisfy. State agencies
shall cooperate with the department in preparing and complying
with rules, policies and standards. The rules, policies and
standards must be formulated to promote electronic communication
and information sharing among state agencies and programs,
between state and local governments and with the public where
appropriate.
  (3) Rules, policies, plans, standards and specifications must
be formulated to ensure that information resources fit together
in a statewide system capable of providing ready access to
information, computing or telecommunication resources. Plans and
specifications the department adopts must be based on industry
standards for open systems to the greatest extent possible.
Before adopting rules described in subsection (2) of this
section, the department shall present the proposed rules to the
appropriate legislative committee. The department has the
responsibility to review, oversee and ensure that state agencies'
planning, acquisition and implementation activities align with
and support the statewide information resources management plan.
The department is responsible for procuring information
technology fairly, competitively and in a manner that is
consistent with the department's rules.
  (4)(a) The policy of the State of Oregon is that state
government telecommunications networks should be designed to
provide state-of-the-art services where economically and
technically feasible, using shared, rather than dedicated, lines
and facilities.
  (b) The department shall, when procuring telecommunications
network services, consider achieving the economic development and
quality of life outcomes set forth in the Oregon benchmarks.
  (5)(a) The department, upon request, may furnish and deliver
statewide integrated videoconferencing and statewide online
access service to a public or private entity that primarily
conducts activities for the direct good or benefit of the public
or community at large in providing educational, economic
development, health care, human services, public safety, library
or other public services. The department shall adopt rules with
respect to furnishing the service.

  (b) The department shall establish the statewide integrated
videoconferencing and statewide online access user fees,
services, delivery, rates and long range plans in consultation
with the Stakeholders Advisory Committee created pursuant to this
section.  The rates shall reflect the department's cost in
providing the service.
  (c) The department by rule shall restrict the department's
furnishing or delivery of Internet access service to private
entities when the service would directly compete with two or more
local established providers of Internet access services within
the local exchange telecommunications service area.
  (d) The rates and services established and provided under this
section are not subject to the Public Utility Commission's
regulation or authority.
  (6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director
of the Oregon Department of Administrative Services. In making
appointments, the director shall give consideration to geographic
balance and adequate representation of the department's users and
providers and the general public.
  (b) The committee must consist of members who represent
elementary or secondary education, higher education, community
colleges, economic development, health care, human services and
public safety. At least four members must reside in areas east of
the Cascade Mountains.
  (c) The term of office of each member is three years, but a
member serves at the sole discretion of the director. The
director shall appoint a successor to a member before the
member's term expires. A member is eligible for reappointment. If
a position on the committee is vacant for any cause, the director
shall make an appointment to the position that is immediately
effective for the unexpired term.
  (d) A member of the committee is entitled to travel expenses
pursuant to ORS 292.495. Members of the committee are not
entitled to compensation.
  (e) The director may establish additional advisory and
technical committees as the director considers necessary to aid
and advise the Stakeholders Advisory Committee in the performance
of the committee's functions.
  (f) The director may delegate to the State Chief Information
Officer a duty, function or power that this subsection imposes
upon the director.
  (7) An organization or organizations recognized as tax exempt
under section 501(c)(3) of the Internal Revenue Code that
primarily conduct activities for the direct good or benefit of
the public or community at large in providing educational,
economic development, health care, human services, public safety,
library or other public services and have formed an affiliation
with one or more federal, state or local governmental units
within this state may apply to the department for designation as
a community of interest. The application must be in the form
prescribed by the department and contain information regarding
the governmental affiliation relationship, the tax exempt status
of each organization and the public benefit services to be
provided. The department shall establish an application review
and appeal process to ensure that designating the organizations
as a community of interest for the purposes of including the
organization in telecommunications contracts under ORS 283.520
will result in providing educational, medical, library or other
services for public benefit.
  (8) This section does not apply to the State Board of Higher
Education { + , + }   { - or - }  any public university listed in
ORS 352.002 { +  or Portland State University + }.
  (9) As used in this section:

  (a) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  (b) 'Information technology' includes, but is not limited to,
present and future forms of hardware, software and services for
data processing, office automation and telecommunications.
  (c) 'Internet access service' means electronic connectivity to
the Internet and the services of the Internet.
  (d) 'Open systems' means systems that allow state agencies
freedom of choice by providing a vendor-neutral operating
environment where different computers, applications, system
software and networks operate together easily and reliably.
  (e) 'State-of-the-art services' includes equipment, facilities
and the capability to distribute digital communication signals
that transmit voice, data, video and images over a distance.
  (f) 'Telecommunications' means hardware, software and services
for transmitting voice, data, video and images over a distance.
  (g) 'Statewide integrated videoconferencing' means a statewide
electronic system capable of transmitting video, voice and data
communications.
  (h) 'Statewide online access' means electronic connectivity to
information resources such as computer conferencing, electronic
mail, databases and Internet access.
  SECTION 143. ORS 291.055 is amended to read:
  291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted during the period beginning
on the date of adjournment sine die of a regular session of the
Legislative Assembly and ending on the date of adjournment sine
die of the next regular session of the Legislative Assembly:
  (a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
  (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  (e) Are rescinded on adjournment sine die of the next regular
session of the Legislative Assembly as described in this
subsection, unless otherwise authorized by enabling legislation
setting forth the approved fees.
  (2) This section does not apply to:
  (a) Any tuition or fees charged by the State Board of Higher
Education   { - and - }  { +  for + } the public universities
listed in ORS 352.002  { +  or by Portland State University + }.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.

  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Department of
Consumer and Business Services pursuant to ORS 731.804 or fees
charged by the Division of Finance and Corporate Securities of
the Department of Consumer and Business Services to banks, trusts
and credit unions pursuant to ORS 706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget or the legislatively approved budget for the
agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 144. ORS 291.229, as amended by section 2, chapter 101,
Oregon Laws 2012, is amended to read:
  291.229. (1) The Oregon Department of Administrative Services
shall develop a plan for state agencies that employ more than 100
employees to attain a ratio of 11 to 1 of employees of state
agencies who are not supervisory employees to supervisory
employees. The plan shall be used to develop the legislatively
adopted budget and may provide for a transition to the ratio
specified in this subsection during a period lasting more than
one biennium.
  (2) As part of the development of the legislatively adopted
budget, during each odd-numbered year regular session of the
Legislative Assembly, the department shall report on the plan
developed under subsection (1) of this section to the Joint
Committee on Ways and Means. The report shall include the ratio

of employees of state agencies who are not supervisory employees
to supervisory employees.
  (3) As used in this section:
  (a) 'Legislatively adopted budget' means the budget enacted by
the Legislative Assembly during an odd-numbered year regular
session.
  (b)(A) 'State agency' means all state officers, boards,
commissions, departments, institutions, branches, agencies,
divisions and other entities, without regard to the designation
given to those entities, that are within the executive department
of government as described in section 1, Article III of the
Oregon Constitution.
  (B) 'State agency' does not include:
  (i) The legislative department as defined in ORS 174.114;
  (ii) The judicial department as defined in ORS 174.113;
  (iii) The Public Defense Services Commission;
  (iv) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices;
  (v) Semi-independent state agencies listed in ORS 182.454;
  (vi) The Oregon Tourism Commission;
  (vii) The Oregon Film and Video Office;
  (viii) The Oregon University System;
   { +  (ix) Portland State University; + }
    { - (ix) - }   { + (x) + } The Oregon Health and Science
University;
    { - (x) - }   { + (xi) + } The Travel Information Council;
    { - (xi) - }   { + (xii) + } Oregon Corrections Enterprises;
    { - (xii) - }   { + (xiii) + } The Oregon State Lottery
Commission;
    { - (xiii) - }   { + (xiv) + } The State Accident Insurance
Fund Corporation;
    { - (xiv) - }   { + (xv) + } The Oregon Health Insurance
Exchange Corporation;
    { - (xv) - }   { + (xvi) + } The Oregon Utility Notification
Center;
    { - (xvi) - }   { + (xvii) + } Oregon Community Power;
    { - (xvii) - }   { + (xviii) + } The Citizens' Utility Board;
    { - (xviii) - }   { + (xix) + } A special government body as
defined in ORS 174.117;
    { - (xix) - }   { + (xx) + } Any other public corporation
created under a statute of this state and specifically designated
as a public corporation; and
    { - (xx) - }   { + (xxi) + } Any other semi-independent state
agency denominated by statute as a semi-independent state agency.
  (c) 'Supervisory employee' has the meaning given that term in
ORS 243.650.
  SECTION 145. 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 a
public university listed in ORS 352.002 { + ; or
  (C) A tax exempt organization designated by the Portland State
University Board of Directors to solicit contributions for the
support of the university + }.
  (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 { +  or Portland State
University + }, is authorized, upon written request of the
individual, to deduct each month from the salary or wages of the

individual the amount of money designated by the individual for
payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency { + , + }   { - or - }  the State
Board of Higher Education { +  or the Portland State University
Board of Directors + }, 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 146. 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 - }  { +  or Portland State
University + }.
  (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) { + (a) + } The Chancellor of the Oregon University System
or a designee of the chancellor may approve a written request
made by a public university or office, department or activity
under the jurisdiction of the State Board of Higher Education, in
which an employee of the public university or office, department
or activity may designate an amount from the salary or wages of
the employee for payment to a qualifying nonprofit organization.
A request made to the chancellor under this section must identify
the nonprofit organization to whom payments would be made.
   { +  (b) The Portland State University Board of Directors may
approve a written request made by the university, in which an
employee of the university may designate an amount from the
salary or wages of the employee for payment to a qualifying
nonprofit organization. A request made to the board under this
section must identify the nonprofit organization to which
payments would be made. + }
  (3) Upon written approval of the chancellor { + , + }
 { - or - }  of a designee of the chancellor { +  or of the
Portland State University Board of Directors + } and a written
request of an employee of the public university   { - or office,
department or activity to which the approval applies - } , the
state official within the Oregon University System { +  or
Portland State University + } 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  { + and the Portland State University
Board of Directors + } shall prescribe procedures for determining
whether an organization qualifies as a nonprofit organization
under this section.
  SECTION 147. ORS 307.095 is amended to read:
  307.095. (1) Any portion of state property that is used during
the tax year for parking on a rental or fee basis to private
individuals is subject to ad valorem taxation.
  (2) The real market value of such portion shall be computed by
determining that percentage which the total of receipts from
private use bears to the total of receipts from all use of the
property. The assessed value of such portion shall be computed as
provided in ORS 308.146. However, receipts from any use by a
state officer or employee in the performance of the official
duties of the state officer or employee shall not be considered
as receipts from private use in computing the portion subject to
ad valorem taxation.
  (3) This section and ORS 276.592 do not apply to state property
that is used by the Oregon University System { + , Portland State
University + } or the Oregon Health and Science University solely
to provide parking for employees, students or visitors.
  SECTION 148. ORS 307.110 is amended to read:
  307.110. (1) Except as provided in ORS 307.120, all real and
personal property of this state or any institution or department
thereof or of any county or city, town or other municipal
corporation or political subdivision of this state, held under a
lease or other interest or estate less than a fee simple, by any
person whose real property, if any, is taxable, except employees
of the state, municipality or political subdivision as an
incident to such employment, shall be subject to assessment and
taxation for the assessed or specially assessed value thereof
uniformly with real property of nonexempt ownerships.
  (2) Each leased or rented premises not exempt under ORS 307.120
and subject to assessment and taxation under this section which
is located on property used as an airport and owned by and
serving a municipality or port shall be separately assessed and
taxed.
  (3) Nothing contained in this section shall be construed as
subjecting to assessment and taxation any publicly owned property
described in subsection (1) of this section that is:
  (a) Leased for student housing by a school or college to
students attending such a school or college.
  (b) Leased to or rented by persons, other than sublessees or
subrenters, for agricultural or grazing purposes and for other
than a cash rental or a percentage of the crop.
  (c) Utilized by persons under a land use permit issued by the
Department of Transportation for which the department's use
restrictions are such that only an administrative processing fee
is able to be charged.
  (d) County fairgrounds and the buildings thereon, in a county
holding annual county fairs, managed by the county fair board
under ORS 565.230, if utilized, in addition to county fair use,
for any of the purposes described in ORS 565.230 (2), or for
horse stalls or storage for recreational vehicles or farm
machinery or equipment.
  (e) The properties and grounds managed and operated by the
State Parks and Recreation Director under ORS 565.080, if
utilized, in addition to the purpose of holding the Oregon State
Fair, for horse stalls or for storage for recreational vehicles
or farm machinery or equipment.
  (f) State property that is used by the Oregon University
System { + , Portland State University + } or the Oregon Health
and Science University to provide parking for employees, students
or visitors.
  (g) Property of a housing authority created under ORS chapter
456 which is leased or rented to persons of lower income for
housing pursuant to the public and governmental purposes of the
housing authority. For purposes of this paragraph, 'persons of
lower income' has the meaning given the phrase under ORS 456.055.
  (h) Property of a health district if:
  (A) The property is leased or rented for the purpose of
providing facilities for health care practitioners practicing
within the county; and
  (B) The county is a frontier rural practice county under rules
adopted by the Office of Rural Health.
  (4) Property determined to be an eligible project for tax
exemption under ORS 285C.600 to 285C.626 and 307.123 that was
acquired with revenue bonds issued under ORS 285B.320 to 285B.371
and that is leased by this state, any institution or department
thereof or any county, city, town or other municipal corporation
or political subdivision of this state to an eligible applicant
shall be assessed and taxed in accordance with ORS 307.123. The
property's continued eligibility for taxation and assessment
under ORS 307.123 is not affected:
  (a) If the eligible applicant retires the bonds prior to the
original dates of maturity; or
  (b) If any applicable lease or financial agreement is
terminated prior to the original date of expiration.
  (5) The provisions of law for liens and the payment and
collection of taxes levied against real property of nonexempt
ownerships shall apply to all real property subject to the
provisions of this section. Taxes remaining unpaid upon the
termination of a lease or other interest or estate less than a
fee simple, shall remain a lien against the real or personal
property.
  (6) If the state enters into a lease of property with, or
grants an interest or other estate less than a fee simple in
property to, a person whose real property, if any, is taxable,
then within 30 days after the date of the lease, or within 30
days after the date the interest or estate less than a fee simple
is created, the state shall file a copy of the lease or other
instrument creating or evidencing the interest or estate with the
county assessor. This section applies notwithstanding that the
property may otherwise be entitled to an exemption under this
section, ORS 307.120 or as otherwise provided by law.
  SECTION 149. 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
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 { + ,
Portland State University + } and 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 150. 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 public university listed in ORS 352.002 { +  and Portland
State University + }; 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 151. ORS 326.587 is amended to read:
  326.587. (1) A public university listed in ORS 352.002 { +  and
Portland State University + } may not disclose the Social
Security number of a student who is attending the public
university.
  (2) Subsection (1) of this section does not apply if the 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;
  (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 152. 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
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, public university listed in ORS 352.002 { + , Portland
State University + } 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 153. 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 - }  { +  17 + }
members appointed as follows:
  (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 - }  { +  15 + }
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 university listed in ORS
352.002.  { +
  (E) One member who represents Portland State University. + }
    { - (E) - }  { +  (F) + } One member who represents a
not-for-profit private institution of higher education.
    { - (F) - }  { +  (G) + } One member who represents the
Teacher Standards and Practices Commission.
    { - (G) - }  { +  (H) + } One member who represents the
Governor's office.
    { - (H) - }  { +  (I) + } 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
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 154. 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,  { + Portland State University, + }
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 155. 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
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 public university listed in ORS 352.002  { + or
Portland State University + } 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 156. 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.
  (2) Be required in { +  Portland State University and + } all
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 157. 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 public university listed in ORS 352.002 { +  and Portland
State University + };
  (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 158. 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 public university listed
in ORS 352.002;
   { +  (i) One member from the faculty of Portland State
University; + }

    { - (i) - }  { +  (j) + } One member who is also a member of
a district school board; and
    { - (j) - }  { +  (k) + } Two members of the general public.
  (2) Except for those members appointed under subsection
  { - (1)(i) and (j) - }  { +  (1)(j) and (k) + } 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,  { + at
least + } one of the members appointed   { - under subsection
(1)(a) to (j) of this section - }  { +  to the commission + }
must hold a teaching license with an endorsement in some aspect
of special education or have demonstrated knowledge or experience
in special education.
  (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 159. 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
public university listed in ORS 352.002   { - shall receive
no - }   { + or Portland State University may not receive + }
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 160. 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
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 public university listed in ORS 352.002 { +  or Portland
State University + };
  (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 161. ORS 338.005, as amended by section 19, chapter 91,
Oregon Laws 2012, is amended to read:
  338.005. As used in this chapter, unless the context requires
otherwise:
  (1) 'Applicant' means any person or group that develops and
submits a written proposal for a public charter school to a
sponsor.
  (2) 'Institution of higher education' means a community college
operated under ORS chapter 341, a public university listed in ORS
352.002 { + , Portland State University + } or the Oregon Health
and Science University.
  (3) 'Public charter school' means an elementary or secondary
school offering a comprehensive instructional program operating
under a written agreement entered into between a sponsor and an
applicant and operating pursuant to this chapter.
  (4) 'Remote and necessary school district' means a school
district that offers kindergarten through grade 12 and has:
  (a) An average daily membership (ADM), as defined in ORS
327.006, in the prior fiscal year of less than 110; and
  (b) A school that is located, by the nearest traveled road,
more than 20 miles from the nearest school or from a city with a
population of more than 5,000.
  (5) 'Sponsor' means:
  (a) The board of the common school district or the union high
school district in which the public charter school is located
that has developed a written charter with an applicant to create
a public charter school.
  (b) The State Board of Education pursuant to ORS 338.075.
  (c) An institution of higher education pursuant to ORS 338.075.
  (6)(a) 'Virtual public charter school' means a public charter
school that provides online courses.
  (b) 'Virtual public charter school' does not include a public
charter school that primarily serves students in a physical
location.
  SECTION 162. ORS 338.115, as amended by section 9, chapter 92,
Oregon Laws 2012, 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 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (k) ORS 337.150 (textbooks);
  (L) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (m) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (n) ORS 339.326 (notice concerning students subject to juvenile
court petitions);
  (o) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (p) ORS chapter 657 (Employment Department Law);
  (q) ORS 659.850, 659.855 and 659.860 (discrimination);
  (r) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (s) Health and safety statutes and rules;
  (t) Any statute or rule that is listed in the charter;
  (u) ORS 339.119 (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) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.
  (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, public university listed in ORS 352.002 { + ,
Portland State University + }, 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 163. ORS 338.115, as amended by section 7, chapter 839,
Oregon Laws 2007, section 12, chapter 50, Oregon Laws 2008,
section 4, chapter 618, Oregon Laws 2009, section 3, chapter 53,
Oregon Laws 2010, section 3, chapter 94, Oregon Laws 2011,
section 118, chapter 637, Oregon Laws 2011, section 5, chapter
682, Oregon Laws 2011, and section 10, chapter 92, Oregon Laws
2012, 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 30.260 to 30.300 (tort claims);
  (c) ORS 192.410 to 192.505 (public records law);
  (d) ORS 192.610 to 192.690 (public meetings law);
  (e) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (f) ORS 326.565, 326.575 and 326.580 (student records);
  (g) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (h) ORS 329.045 (academic content standards and instruction);
  (i) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (j) ORS 329.496 (physical education);
  (k) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (L) ORS 337.150 (textbooks);
  (m) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (n) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (o) ORS 339.326 (notice concerning students subject to juvenile
court petitions);

  (p) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
abuse and sexual conduct and training on prevention and
identification of abuse and sexual conduct);
  (q) ORS chapter 657 (Employment Department Law);
  (r) ORS 659.850, 659.855 and 659.860 (discrimination);
  (s) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (t) Health and safety statutes and rules;
  (u) Any statute or rule that is listed in the charter;
  (v) ORS 339.119 (consideration for educational services); and
  (w) 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) A public charter school shall maintain an active
enrollment of at least 25 students.
  (b) For a public charter school that provides educational
services under a cooperative agreement described in ORS 338.080,
the public charter school is in compliance with the requirements
of this subsection if the public charter school provides
educational services under the cooperative agreement to at least
25 students, without regard to the school districts in which the
students are residents.
  (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, public university listed in ORS 352.002 { + ,
Portland State University + }, 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 164. ORS 339.885 is amended to read:
  339.885. (1)   { - No - }  { +  A + } secret society of any
kind, including a fraternity or sorority,   { - shall be
permitted - }  { +  is prohibited + } 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 public university listed
in ORS 352.002 { +  or to Portland State University + }.
  SECTION 165. ORS 340.005 is amended to read:
  340.005. For purposes of ORS 340.005 to 340.090:
  (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.
  (5) 'Eligible post-secondary institution' means:
  (a) A community college;
  (b) A public university listed in ORS 352.002 { +  and Portland
State University + }; 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
ORS 340.005 to 340.090.
  (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 166. ORS 340.310, as amended by section 10, chapter
104, Oregon Laws 2012, is amended to read:
  340.310. (1) The Higher Education Coordinating Commission shall
develop statewide standards for dual credit programs to be
implemented by public high schools, community colleges { + ,
Portland State University + } and   { - state institutions of
higher education within the Oregon University System - }  { +
public universities listed in ORS 352.002 + }. The standards must
establish the manner by which:
  (a) A student may, upon completion of a course, earn course
credit both for high school and for a community college or
 { - state institution of higher education within the Oregon
University System - }  { +  a public university + }; and
  (b) Teachers of courses that are part of a dual credit program
will work together to determine the quality of the program and to
ensure the alignment of the content, objectives and outcomes of
individual courses.
  (2) Each public high school, community college and   { - state
institution of higher education within the Oregon University
System - }  { +  public university  + }that provides a dual
credit program must implement the statewide standards developed
under subsection (1) of this section.
  (3) Each school district, community college and   { - state
institution of higher education within the Oregon University
System - }  { +  public university + } that provides a dual
credit program shall submit an annual report to the Higher
Education Coordinating Commission on the academic performance of
students enrolled in a dual credit program. The Higher Education
Coordinating Commission shall establish the required contents of
the report, which must provide sufficient information to allow
the commission to determine the quality of the dual credit
program.
  SECTION 167. ORS 341.430, as amended by section 11, chapter
104, Oregon Laws 2012, is amended to read:
  341.430. (1) As used in this section:
  (a) 'Associate transfer degree' means an associate degree that
is awarded by a community college and that is intended to allow a
student to apply the credits earned for the degree toward a
baccalaureate degree.
  (b) 'Community college' means a community college operated
under ORS chapter 341.
    { - (c) 'State institution of higher education' means a state
institution of higher education listed in ORS 352.002. - }
   { +  (c) 'Public university' means a public university listed
in ORS 352.002 or Portland State University. + }
  (d) 'Transfer program' means a one-year program that is
designed to allow a student to apply the credits earned through
the program toward a baccalaureate degree.
  (2) The Higher Education Coordinating Commission shall develop
standards related to the ability of students to apply credits
earned through courses of study at community colleges to
baccalaureate degrees awarded by state institutions of higher
education. The standards shall be known as the 'Transfer Student
Bill of Rights and Responsibilities. '
  (3) The standards developed under this section may include:
  (a) Admission standards to state institutions of higher
education for students who have earned an associate transfer
degree.
  (b) The maximum number of credits that students who have earned
an associate transfer degree would need to complete prior to
receiving various types of baccalaureate degrees at state
institutions of higher education.
  (c) The maximum number of credits that students who have
completed a transfer program would need to complete prior to
receiving various types of baccalaureate degrees at state
institutions of higher education.
  (d) A process by which a community college would award an
associate degree to a student upon completion of necessary
credits, regardless of whether the student applied to receive the
degree or whether the student earned the credits for the degree

at a community college or a state institution of higher
education.
  (e) Any other issues identified by the Higher Education
Coordinating Commission that relate to courses of study at
community colleges and the ability of a student to transfer
credits to a community college or a state institution of higher
education, to be admitted to a state institution of higher
education or to earn a degree at a community college or a state
institution of higher education.
  (f) Requirements that students must meet in order to benefit
from the standards described in paragraphs (a) to (e) of this
subsection.
  (4) Each community college and state institution of higher
education shall submit annual reports to the Higher Education
Coordinating Commission related to:
  (a) The number of students who attend a community college and
then a state institution of higher education, or a state
institution of higher education and then a community college.
  (b) The number of students who attend one community college and
then a different community college.
  (c) The number of students who transfer from a community
college to a state institution of higher education and who have
an associate transfer degree or have completed a transfer
program.
  (d) The average number of credits students have when they
transfer from a community college to a state institution of
higher education.
  (e) The average number of credits students have when they
attend one community college and then a different community
college.
  (f) The average number of credits that a student earning an
associate transfer degree completed at a community college.
  (g) The average number of credits students who have transferred
from a community college to a state institution of higher
education must earn prior to receiving a baccalaureate degree
compared to the average number of credits students who did not
transfer from a community college must earn prior to receiving a
baccalaureate degree.
  SECTION 168. ORS 341.440 is amended to read:
  341.440. (1) A community college district may contract with
another community college district,  { + a + } common or union
high school district,  { + an + } education service district, the
Oregon University System, { +  Portland State University, + } the
Oregon Health and Science University,   { - with - }  a private
educational institution accredited by the Northwest Association
of Schools and Colleges or its successor or a career school as
defined in ORS 345.010 to obtain educational services for
students enrolled in the community college of the district.
However, the educational services so obtained must meet the
standards for educational services provided by the college and
the contract price to the college for such services must not
exceed the costs which would otherwise be incurred by the college
to provide its students the same or similar services.
  (2) Educational services for which a district operating a
community college may contract include services offered by
correspondence and services offered electronically or through
telecommunications if such services are accredited by a
nationally recognized accrediting association.
  (3) For purposes of ORS 341.626, costs incurred under
subsection (1) of this section shall be considered operating
expenses of the district if the contract is approved by the
Commissioner for Community College Services.
  SECTION 169. 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.

  (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 - }  public university listed in ORS
352.002 { +  or Portland State University + }.
  (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 170. ORS 342.147 is amended to read:
  342.147. (1) After considering recommendations of the State
Board of Education, the Teacher Standards and Practices
Commission shall establish by rule standards for approval of
teacher education institutions and teacher education programs.
Public teacher education institutions shall be approved for
programs of more than four years' duration only if teacher
education programs which are reasonably attainable in a four-year
period are also available in the system of higher education and
are designed to culminate in a baccalaureate degree that
qualifies its graduates for entry-level teaching licenses.
  (2) The commission shall establish rules that allow teacher
education programs leading to graduate degrees to commence prior
to the student's completion of baccalaureate degree requirements
and that allow the combined use of undergraduate and graduate
level course work in achieving program completion.
  (3) Whenever any teacher education institution or program is
denied approved status or has such status withdrawn, such denial
or withdrawal must be treated as a contested case within the
meaning of ORS chapter 183.
  (4) Nothing in this section is intended to grant any authority
to the commission relating to granting degrees or establishing
degree requirements that are within the authority of { + :
  (a) + } The State Board of Higher Education or any of the
public universities listed in ORS 352.002  { - , - }  { + ;
  (b) The Portland State University Board of Directors; + } or
   { +  (c) + }   { - that are within the authority of - }  The
governing board of any private institution of higher education.
  SECTION 171. 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
universities listed in ORS 352.002 { +  or Portland State
University + };
  (c) Minority students accepted in public universities;
  (d) Minority students graduated from public 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, { +  Portland State
University, + } 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 172. ORS 344.259 is amended to read:
  344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult
self-improvement, professional and technical education for
agencies under its regulatory authority. The State Board of
Higher Education shall coordinate continuing education in upper
division and graduate education for public universities under its
jurisdiction.
  (2) When significantly adverse impact is alleged by one or more
of the agencies listed in this subsection, the affected parties
jointly shall provide for written agreements. These agreements
shall allocate responsibility for planning and providing
continuing education or off-campus instruction in specific areas
or by specific types. The agencies are:
  (a) The State Board of Education.
  (b) The State Board of Higher Education.
   { +  (c) The Portland State University Board of Directors. + }
    { - (c) - }   { + (d) + } Community college districts.
    { - (d) - }   { + (e) + } Independent colleges.
    { - (e) - }   { + (f) + } 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 - }   { + Portland State University or an + } Oregon
University System university   { - offering - }   { + that offers
 + }the program, or the offering of lower division programs
within 30 miles of the campus   { - offering - }  { +  that
offers + } the program in areas outside a community college
district. Such programs are entitled to the same college credit
and financial support as programs offered on the campus of the
university.
  SECTION 173. 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 Higher Education
Coordinating Commission to offer and confer degrees in Oregon.
  (c) A community college.
  (d) A public university listed in ORS 352.002.
  (e) The Oregon Health and Science University.
   { +  (f) Portland State University. + }
    { - (f) - }  { +  (g) + } A career school licensed under ORS
345.010 to 345.450.
    { - (g) - }  { +  (h) + } An apprenticeship program that is
registered with the State Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 174. ORS 344.753 is amended to read:
  344.753. (1) Employers who enter into written agreements with
educational institutions and who are providing training to
participants in youth apprenticeship and training or work based
learning programs are eligible for reimbursement of expenses
incurred in the training process. These expenses may include
wages paid to the student, training costs for mentors and
supervisors, equipment costs to set up youth training capacity,
curriculum development costs, costs of establishing interfirm
training centers or other costs necessitated by the training
agreement.
  (2) The amount of reimbursement shall be 50 percent of the
actual cost of the investment, such reimbursement not to exceed
$2,500 per student who completes the agreed upon course of study.
In the event that a student drops out of the program through no
fault of the employer, the Department of Education may reimburse
the employer for costs incurred to that point.
  (3) Eligible employers may elect to receive education service
credits in lieu of the reimbursement provided in this section.
The amount of the education service credit shall equal the value
of the potential reimbursement on a dollar-for-dollar basis.
Education service credits may be used to purchase educational
services provided to the employer by school districts, education
service districts, community colleges, { +  Portland State
University, + } the Oregon University System or private providers
approved by the Department of Education.
  (4) Employers who terminate students without the concurrence of
the school forfeit all claim to reimbursements or education
service credits earned under this section.
  (5) The total amount of employer reimbursement allowable under
this section to all employers shall not exceed the amount
allocated therefor biennially from the Administrative Services
Economic Development Fund.
  (6) Reimbursements allowed under this section must first be
certified with regard to eligibility and availability of funds
pursuant to a method established by the Department of Education
in consultation with the Bureau of Labor and Industries.
  SECTION 175. ORS 353.440 is amended to read:
  353.440. The Legislative Assembly finds that:
  (1) Public universities in the Oregon University System { + ,
Portland State University + } and other educational sectors have
academic programs that are related to or integrated with the
programs of Oregon Health and Science University.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.
  (3) In order to best ensure the continued harmony of such
academic programs, the Oregon Health and Science University { + ,
Portland State University + } and the Oregon University System
shall coordinate such programs and shall advise each other of the
following proposed changes to such academic programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
  (4) The Oregon Health and Science University and the Higher
Education Coordinating Commission shall coordinate and advise
each other of the following types of proposed changes to their
related or integrated academic programs:
  (a) Coordination of strategic plans for achieving higher
education goals;
  (b) Seeking advice and input from each other on modifications
to statutory educational missions;
  (c) Working to develop a statewide educational data system;
  (d) Collaborating as necessary on the creation of any new
degree programs; and
  (e) Notifying each other and commenting on tuition rate
changes.
  (5) In order to further the coordination described by this
section, Oregon Health and Science University officers shall
maintain a role in the appropriate committees of the State Board
of Higher Education, the Higher Education Coordinating Commission
and the Oregon University System.
  SECTION 176. 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 public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;  { +
  (c) Portland State University; + }
    { - (c) - }  { +  (d) + } A school or division of Oregon
Health and Science University; or
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, not-for-profit private institution of higher
education.
  SECTION 177. 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 - }  a public university listed in ORS
352.002 { +  or Portland State University + } may be based on an
intergovernmental agreement entered into by Oregon Health and
Science University and the college or public university.
  (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 178. 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 { + :
  (A) + } The State Board of Higher Education or any public
university or office, department or activity under the control of
the board { + ; or
  (B) Portland State University + }.
  (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 179. ORS 357.203 is amended to read:
  357.203. (1) The State Library and State of Oregon Law Library
operating budget for services to state agencies shall be assessed
against all state agencies except the Oregon University
System { +  and Portland State University + }. The State Library
assessment shall be apportioned among the agencies as follows:
  (a) One-third of the assessment shall be based on the use of
the State Library by the agency; and
  (b) Two-thirds of the assessment shall be based on the number
of full-time equivalent employees budgeted by the agency.
  (2) Except as provided in subsection (4) of this section, the
Oregon Department of Administrative Services shall cause the
amount assessed to be transferred from the moneys appropriated to
each state agency to the Miscellaneous Receipts Account for the
State Library.
  (3) Subject to the provisions of subsection (5) of this
section, the department shall determine and may at any time
redetermine which state funds or appropriations shall be assessed
a reasonable share of State Library and State of Oregon Law
Library operating expenses that support state agencies. In
determining or redetermining the funds that shall be so assessed:
  (a) A fund consisting of moneys the use of which is restricted
by the Oregon Constitution shall be assessed only those
governmental service expenses ascertained as being necessarily
incurred in connection with the purposes set forth in the Oregon
Constitution.
  (b) Trust funds shall be assessed only those governmental
service expenses ascertained as being necessarily incurred in
connection with the purposes for which the trust fund was
established.
  (c) State agencies shall be assessed only the State Library and
State of Oregon Law Library expenditures that support state
agencies.
  (4) The Oregon Department of Administrative Services shall
cause the amount assessed against state agencies for the
operating budget of the State of Oregon Law Library to be
transferred to the Judicial Department. Moneys transferred under
this subsection are continuously appropriated to the Judicial
Department and may be used only for the costs of operating the
State of Oregon Law Library.
  (5) Unless the Oregon Department of Administrative Services and
the Judicial Department agree to a different methodology and
formula, the State of Oregon Law Library assessment shall be
apportioned on the basis of the number of full-time equivalent
employees budgeted by the agency.
  SECTION 180. 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 public university in the
Oregon University System, as described in ORS 352.002 { + , and
Portland State University + }, is provided veterans' services.
  (5) Each community college and 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 181. ORS 419B.005, as amended by section 60, chapter
37, Oregon Laws 2012, and section 1, chapter 92, Oregon Laws
2012, is amended to read:
  419B.005. As used in ORS 419B.005 to 419B.050, unless the
context requires otherwise:
  (1)(a) 'Abuse' means:
  (A) Any assault, as defined in ORS chapter 163, of a child and
any physical injury to a child which has been caused by other
than accidental means, including any injury which appears to be
at variance with the explanation given of the injury.
  (B) Any mental injury to a child, which shall include only
observable and substantial impairment of the child's mental or
psychological ability to function caused by cruelty to the child,
with due regard to the culture of the child.
  (C) Rape of a child, which includes but is not limited to rape,
sodomy, unlawful sexual penetration and incest, as those acts are
described in ORS chapter 163.
  (D) Sexual abuse, as described in ORS chapter 163.
  (E) Sexual exploitation, including but not limited to:
  (i) Contributing to the sexual delinquency of a minor, as
defined in ORS chapter 163, and any other conduct which allows,
employs, authorizes, permits, induces or encourages a child to
engage in the performing for people to observe or the
photographing, filming, tape recording or other exhibition which,
in whole or in part, depicts sexual conduct or contact, as
defined in ORS 167.002 or described in ORS 163.665 and 163.670,
sexual abuse involving a child or rape of a child, but not
including any conduct which is part of any investigation
conducted pursuant to ORS 419B.020 or which is designed to serve
educational or other legitimate purposes; and
  (ii) Allowing, permitting, encouraging or hiring a child to
engage in prostitution or to patronize a prostitute, as defined
in ORS chapter 167.
  (F) Negligent treatment or maltreatment of a child, including
but not limited to the failure to provide adequate food,
clothing, shelter or medical care that is likely to endanger the
health or welfare of the child.
  (G) Threatened harm to a child, which means subjecting a child
to a substantial risk of harm to the child's health or welfare.
  (H) Buying or selling a person under 18 years of age as
described in ORS 163.537.
  (I) Permitting a person under 18 years of age to enter or
remain in or upon premises where methamphetamines are being
manufactured.
  (J) Unlawful exposure to a controlled substance, as defined in
ORS 475.005, that subjects a child to a substantial risk of harm
to the child's health or safety.
  (b) 'Abuse' does not include reasonable discipline unless the
discipline results in one of the conditions described in
paragraph (a) of this subsection.
  (2) 'Child' means an unmarried person who is under 18 years of
age.
  (3) 'Higher education institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A public university listed in ORS 352.002;
   { +  (c) Portland State University; + }
    { - (c) - }   { + (d) + } The Oregon Health and Science
University; and
    { - (d) - }   { + (e) + } A private institution of higher
education located in Oregon.
  (4) 'Law enforcement agency' means:
  (a) A city or municipal police department.
  (b) A county sheriff's office.
  (c) The Oregon State Police.
  (d) A police department established by a university under ORS
352.383.
  (e) A county juvenile department.
  (5) 'Public or private official' means:
  (a) Physician, osteopathic physician, physician assistant,
naturopathic physician, podiatric physician and surgeon,
including any intern or resident.
  (b) Dentist.
  (c) School employee, including an employee of a higher
education institution.
  (d) Licensed practical nurse, registered nurse, nurse
practitioner, nurse's aide, home health aide or employee of an
in-home health service.
  (e) Employee of the Department of Human Services, Oregon Health
Authority, Early Learning Council, Youth Development Council,
Child Care Division of the Employment Department, the Oregon
Youth Authority, a county health department, a community mental
health program, a community developmental disabilities program, a
county juvenile department, a licensed child-caring agency or an
alcohol and drug treatment program.
  (f) Peace officer.
  (g) Psychologist.
  (h) Member of the clergy.
  (i) Regulated social worker.
  (j) Optometrist.
  (k) Chiropractor.
  (L) Certified provider of foster care, or an employee thereof.
  (m) Attorney.
  (n) Licensed professional counselor.
  (o) Licensed marriage and family therapist.
  (p) Firefighter or emergency medical services provider.
  (q) A court appointed special advocate, as defined in ORS
419A.004.
  (r) A child care provider registered or certified under ORS
657A.030 and 657A.250 to 657A.450.
  (s) Member of the Legislative Assembly.
  (t) Physical, speech or occupational therapist.
  (u) Audiologist.
  (v) Speech-language pathologist.
  (w) Employee of the Teacher Standards and Practices Commission
directly involved in investigations or discipline by the
commission.
  (x) Pharmacist.
  (y) An operator of a preschool recorded program under ORS
657A.255.
  (z) An operator of a school-age recorded program under ORS
657A.257.
  (aa) Employee of a private agency or organization facilitating
the provision of respite services, as defined in ORS 418.205, for
parents pursuant to a properly executed power of attorney under
ORS 109.056.
  (bb) Employee of a public or private organization providing
child-related services or activities:
  (A) Including but not limited to youth groups or centers, scout
groups or camps, summer or day camps, survival camps or groups,
centers or camps that are operated under the guidance,
supervision or auspices of religious, public or private
educational systems or community service organizations; and
  (B) Excluding community-based, nonprofit organizations whose
primary purpose is to provide confidential, direct services to
victims of domestic violence, sexual assault, stalking or human
trafficking.
  (cc) A coach, assistant coach or trainer of an amateur,
semiprofessional or professional athlete, if compensated and if
the athlete is a child.
  SECTION 182. ORS 431.690 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 public
university listed in ORS 352.002 { +  or Portland State
University + } shall have at least one automated external
defibrillator on the campus of the community college or public
university; and
  (b) If the campus of the community college or public university
contains more than one place of public assembly, the community
college or 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 183. 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
immunization registry or tracking and recall system under ORS
433.090 to 433.102. 'Authorized user' includes, but is not
limited to:
  (a) The Oregon Health Authority and its agents;
  (b) Local health departments and their agents;
  (c) Licensed health care providers and their agents;
  (d) Health care institutions;
  (e) Insurance carriers;
  (f) State health plans as defined in ORS 192.556;
  (g) Parents, guardians or legal custodians of children under 18
years of age;
  (h) Clients 18 years of age or older;
  (i) Post-secondary education institutions;
  (j) Schools; and
  (k) Children's facilities.
  (2) 'Children's facility' has the meaning given that term in
ORS 433.235.
  (3) 'Client' means a person registered with any Oregon tracking
and recall system.
  (4) 'Immunization record' includes but is not limited to
records of 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 a listing of clients and
information relating to their immunization status, without regard
to whether the registry is maintained in this state or elsewhere.
  (6) 'Local health department' has the meaning given that term
in ORS 433.235.
  (7) 'Parent or guardian' has the meaning given the term '
parent' in ORS 433.235.
  (8) 'Post-secondary education institution' means:
  (a) A public university listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;  { +
  (c) Portland State University; + }
    { - (c) - }  { +  (d) + } A school or division of Oregon
Health and Science University; or
    { - (d) - }  { +  (e) + } An Oregon-based, generally
accredited, private institution of higher education.
  (9) 'Provider' means a physician or a health care professional
who is acting within the scope of the physician's or
professional's licensure and is responsible for providing
immunization services or for coordinating immunization services
within a clinic, public health site, school or other immunization
site.
  (10) 'School' has the meaning given that term in ORS 433.235.
  (11) 'Tracking and recall record' means information needed to
send reminder cards to, place telephone calls to or personally
contact the client or the parent or guardian of a client for the
purposes of informing the client, parent or guardian that the
client is late in receiving recommended immunizations, hearing or
lead screenings, or other public health interventions, including
but not limited to the client's:
  (a) Name;
  (b) Address;
  (c) Telephone number;
  (d) Insurance carrier; and
  (e) Health care provider.
  (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 timely
completion of immunization series, hearing or lead screenings, or
other public health interventions designated by rule of the
authority.
  SECTION 184. 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 public universities listed
in ORS 352.002 { +  and Portland State University + }. Seventy
percent of the revenues in the fund shall be used to fund
nonrevenue producing sports and 30 percent shall be used for
revenue producing sports.  Of the total amount available in the
fund, at least 50 percent shall be made available for women's
athletics.
  (2) The board shall allocate moneys in the Sports Lottery
Account among the public universities, giving due consideration
to:
  (a) The athletic conference to which the public university
belongs and the relative costs of competing in that conference.
  (b) The level of effort being made by the public university to
generate funds and support from private sources.
  (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season.
  (4) An amount equal to one percent of the moneys transferred to
the Administrative Services Economic Development Fund from the
State Lottery Fund shall be allocated from the Administrative
Services Economic Development Fund to the Sports Lottery Account.
  (5) The amounts received by the Sports Lottery Account shall be
allocated as follows:
  (a) Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section, but not to exceed $8
million annually, adjusted annually pursuant to the Consumer
Price Index, as defined in ORS 327.006.
  (b) Twelve percent for the purpose of scholarships, to be
distributed equally between scholarships based on academic merit
and scholarships based on need, as determined by rule of the
board, but not to exceed $1,090,909 annually.
  (c) All additional money to the Oregon Student Access
Commission for the Oregon Opportunity Grant program under ORS
348.260.
  SECTION 185. ORS 471.580 is amended to read:
  471.580. (1) As used in this section:
  (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  (b) 'Education provider' means:
  (A) A community college, as defined in ORS 341.005, offering a
food or beverage career program approved by the State Board of
Education;
  (B) A career school, as defined in ORS 345.010, offering a food
or beverage career program approved by the Oregon Student
Assistance Commission or the State Board of Education;

  (C) An institution of higher education listed in ORS 352.002
offering a food or beverage career program approved by the State
Board of Higher Education; or
  (D) A private and independent institution of higher education,
as defined in ORS 352.720, { +  or Portland State University, + }
offering a food or beverage career program that qualifies for
payment under ORS 352.740.
  (c) 'Food or beverage career program' means a course of study
designed to qualify a person for a career in the food service
industry or alcoholic beverage industry, including but not
limited to a course of study in culinary arts, viticulture,
winemaking, enology, brewing or restaurant management.
  (2) The charging or payment of tuition or a special fee for
enrollment in a class that is part of a food or beverage career
program or in a workshop or seminar concerning matters related to
food or beverage industry workforce training, offered by an
education provider, that includes the consumption of alcoholic
beverages for educational purposes, is not a sale or purchase of,
or other exchange of consideration for, alcoholic beverages.
  (3) Notwithstanding ORS 471.130, 471.406, 471.410 and 471.475,
an education provider may serve alcoholic beverages to a person
who is 18, 19 or 20 years of age and may allow the person to
possess and consume alcoholic beverages on a licensed or
unlicensed premises that the education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and possessed and
consumed by, the person for educational purposes as part of the
class curriculum or a workshop or seminar concerning food or
beverage workforce training;
  (c) The service, possession and consumption of the alcoholic
beverages are supervised by a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class, workshop or seminar period does not
exceed two ounces of alcohol equivalence.
  (4) Notwithstanding ORS 471.130 or 471.410, a person may serve
alcoholic beverages to another person who is 18, 19 or 20 years
of age on premises that an education provider uses for
educational purposes if:
  (a) The person served is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and consumed by, the
person for educational purposes as part of the class curriculum
or, with the approval of the education provider, as part of a
workshop or seminar concerning food or beverage workforce
training;
  (c) The service and consumption of the alcoholic beverages are
supervised by a faculty or staff member of the education provider
who is 21 years of age or older;
  (d) The person served does not purchase the alcoholic
beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class period does not exceed two ounces of
alcohol equivalence.
  (5) Notwithstanding ORS 471.130 or 471.410 or the prohibitions
in ORS 471.430, a person who is 18, 19 or 20 years of age may
possess and consume alcoholic beverages on a licensed or
unlicensed premises that an education provider uses for
educational purposes if:

  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The person possesses and consumes the alcoholic beverages
for educational purposes as part of the class curriculum or, with
the approval of the education provider, as part of a workshop or
seminar concerning food or beverage workforce training;
  (c) The person possesses and consumes the alcoholic beverages
under the supervision of a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount consumed by the person during any two-hour
class, workshop or seminar period does not exceed two ounces of
alcohol equivalence.
  (6) Notwithstanding ORS 471.410, a person who exercises control
over private real property may allow a person who is 18, 19 or 20
years of age to remain on the property after the person who is
18, 19 or 20 years of age consumes an alcoholic beverage on the
property in accordance with this section.
  (7) Subsections (3) to (5) of this section do not affect the
ability of an education provider, a licensee or a permittee to
make alcoholic beverages available to a person 21 years of age or
older in accordance with this chapter or the ability of a person
21 years of age or older to possess or consume alcoholic
beverages in accordance with this chapter.
  SECTION 186. ORS 471.580, as amended by section 44, chapter
104, Oregon Laws 2012, is amended to read:
  471.580. (1) As used in this section:
  (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  (b) 'Education provider' means:
  (A) A community college, as defined in ORS 341.005, offering a
food or beverage career program approved by the State Board of
Education;
  (B) A career school, as defined in ORS 345.010, offering a food
or beverage career program approved by the Oregon Student
Assistance Commission or the Higher Education Coordinating
Commission;
  (C) An institution of higher education listed in ORS 352.002
offering a food or beverage career program approved by the State
Board of Higher Education; or
  (D) A private and independent institution of higher education,
as defined in ORS 352.720, { +  or Portland State University, + }
offering a food or beverage career program that qualifies for
payment under ORS 352.740.
  (c) 'Food or beverage career program' means a course of study
designed to qualify a person for a career in the food service
industry or alcoholic beverage industry, including but not
limited to a course of study in culinary arts, viticulture,
winemaking, enology, brewing or restaurant management.
  (2) The charging or payment of tuition or a special fee for
enrollment in a class that is part of a food or beverage career
program or in a workshop or seminar concerning matters related to
food or beverage industry workforce training, offered by an
education provider, that includes the consumption of alcoholic
beverages for educational purposes, is not a sale or purchase of,
or other exchange of consideration for, alcoholic beverages.
  (3) Notwithstanding ORS 471.130, 471.406, 471.410 and 471.475,
an education provider may serve alcoholic beverages to a person
who is 18, 19 or 20 years of age and may allow the person to
possess and consume alcoholic beverages on a licensed or
unlicensed premises that the education provider uses for
educational purposes if:

  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and possessed and
consumed by, the person for educational purposes as part of the
class curriculum or a workshop or seminar concerning food or
beverage workforce training;
  (c) The service, possession and consumption of the alcoholic
beverages are supervised by a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class, workshop or seminar period does not
exceed two ounces of alcohol equivalence.
  (4) Notwithstanding ORS 471.130 or 471.410, a person may serve
alcoholic beverages to another person who is 18, 19 or 20 years
of age on premises that an education provider uses for
educational purposes if:
  (a) The person served is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The alcoholic beverages are served to, and consumed by, the
person for educational purposes as part of the class curriculum
or, with the approval of the education provider, as part of a
workshop or seminar concerning food or beverage workforce
training;
  (c) The service and consumption of the alcoholic beverages are
supervised by a faculty or staff member of the education provider
who is 21 years of age or older;
  (d) The person served does not purchase the alcoholic
beverages; and
  (e) The amount served to the person for consumption purposes
during any two-hour class period does not exceed two ounces of
alcohol equivalence.
  (5) Notwithstanding ORS 471.130 or 471.410 or the prohibitions
in ORS 471.430, a person who is 18, 19 or 20 years of age may
possess and consume alcoholic beverages on a licensed or
unlicensed premises that an education provider uses for
educational purposes if:
  (a) The person is enrolled as a student in a required or
elective class that is part of a food or beverage career program
offered by the education provider;
  (b) The person possesses and consumes the alcoholic beverages
for educational purposes as part of the class curriculum or, with
the approval of the education provider, as part of a workshop or
seminar concerning food or beverage workforce training;
  (c) The person possesses and consumes the alcoholic beverages
under the supervision of a faculty or staff member of the
education provider who is 21 years of age or older;
  (d) The person does not purchase the alcoholic beverages; and
  (e) The amount consumed by the person during any two-hour
class, workshop or seminar period does not exceed two ounces of
alcohol equivalence.
  (6) Notwithstanding ORS 471.410, a person who exercises control
over private real property may allow a person who is 18, 19 or 20
years of age to remain on the property after the person who is
18, 19 or 20 years of age consumes an alcoholic beverage on the
property in accordance with this section.
  (7) Subsections (3) to (5) of this section do not affect the
ability of an education provider, a licensee or a permittee to
make alcoholic beverages available to a person 21 years of age or
older in accordance with this chapter or the ability of a person
21 years of age or older to possess or consume alcoholic
beverages in accordance with this chapter.
  SECTION 187. ORS 541.932 is amended to read:

  541.932. (1)(a) The following entities may submit a request for
funding for, or for advice and assistance in developing, a
project under ORS 541.890 to 541.969:
  (A) A person;
  (B) An Indian tribe;
  (C) A watershed council;
  (D) A soil and water conservation district;
  (E) A community college;
  (F) A public university listed in ORS 352.002;  { +
  (G) Portland State University; + }
    { - (G) - }  { +  (H) + } An independent not-for-profit
institution of higher education; or
    { - (H) - }  { +  (I) + } A political subdivision of this
state that is not a state agency.
  (b) A state agency or federal agency may apply for funding
under this section only as a coapplicant with an entity described
in paragraph (a) of this subsection.
  (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, regardless of
the anticipated funding source for the project.
  (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) If a project or a portion of a project is not subject to
the funding criteria described in ORS 541.958 and applies to
receive funding from the board, the board may approve the project
or portion of a project for funding only if the project or
portion of a project:
  (a) Is based on sound principles of native fish or wildlife
habitat conservation or watershed management;
  (b) Uses methods most adapted to the project locale;
  (c) Meets the criteria established by the board under ORS
541.906; and
  (d) Contributes 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 conservation or restoration of habitat for, or of
watershed or ecosystem function for, native fish or wildlife.
  (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
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 and habitat for native fish or wildlife.
Interests in these lands and waters may be held by local, state
and federal agencies, tribes, not-for-profit land conservation
organizations and trusts, 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, the board may not disburse
funds to the applicant for any part of the project that requires
the applicant to obtain a permit or license from a local, state
or federal agency or governing body until the applicant presents
evidence that the agency has granted the permit or license.
  SECTION 188. ORS 634.660 is amended to read:
  634.660. Each of the following state agencies 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 public university listed in ORS 352.002 { +  or
Portland State University + }, for   { - the public - }
 { + each + } university's own building and grounds maintenance.
  SECTION 189. ORS 659.850 is amended to read:
  659.850. (1) As used in this section, 'discrimination ' means
any act that unreasonably differentiates treatment, intended or
unintended, or any act that is fair in form but discriminatory in
operation, either of which is based on race, color, religion,
sex, sexual orientation, national origin, marital status, age or
disability. 'Discrimination' does not include enforcement of an
otherwise valid dress code or policy, as long as the code or
policy provides, on a case-by-case basis, for reasonable
accommodation of an individual based on the health and safety
needs of the individual.
  (2) A person may not be subjected to discrimination in any
public elementary, secondary or community college education
program or service, school or interschool activity or in any
higher education program or service, school or interschool
activity where the program, service, school or activity is
financed in whole or in part by moneys appropriated by the
Legislative Assembly.
  (3) The State Board of Education { + , + }   { - and - }  the
State Board of Higher Education  { + and the Portland State
University Board of Directors + } shall establish rules necessary
to ensure compliance with subsection (2) of this section in the
manner required by ORS chapter 183.
  SECTION 190. ORS 659.855 is amended to read:
  659.855. (1) Any public elementary or secondary school
determined by the Superintendent of Public Instruction or any
community college determined by the Commissioner for Community
College Services to be in noncompliance with provisions of ORS
659.850 and this section shall be subject to appropriate
sanctions, which may include withholding of all or part of state
funding, as established by rule of the State Board of Education.
  (2)  { + If the Chancellor of the Oregon University System
determines that + } any public university listed in ORS 352.002

  { - determined by the Chancellor of the Oregon University
System to be - }   { + or Portland State University is + } in
noncompliance with provisions of ORS 659.850 and this
section { + , the university + } 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 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 191. ORS 659.860 is amended to read:
  659.860. (1) Any person claiming to be aggrieved by unlawful
discrimination as prohibited by ORS 659.850 may file a civil
action in circuit court for equitable relief or, subject to the
terms and conditions of ORS 30.265 to 30.300, damages, or both.
The court may order such other relief as may be appropriate.
Damages shall be $200 or actual damages, whichever is greater.
  (2) The action authorized by this section shall be filed within
one year of the filing of a grievance.
  (3)   { - No - }   { + An + } action   { - shall - }  { +  may
not + } be filed unless, within 180 days of the alleged
discrimination, a grievance has been filed with the school
district board, public charter school governing body, community
college board of education { + , Portland State University Board
of Directors + } or State Board of Higher Education.
  (4)   { - No - }  { +  An + } action may { +  not + } be filed
until 90 days after filing a grievance unless only injunctive
relief is sought pursuant to ORCP 79. The right to temporary or
preliminary injunctive relief   { - shall be - }  { +  is + }
independent of the right to pursue any administrative remedy
available to complainants pursuant to ORS 659.850.
  (5)   { - No - }  { +  An + } action may { +  not + } be filed
if the school district board, public charter school governing
body, community college board of education { + , Portland State
University Board of Directors + } or State Board of Higher
Education has obtained a conciliation agreement with the person
filing the grievance or if a final determination of a grievance
has been made except as provided in ORS 183.480.
  (6) Notwithstanding the filing of a grievance, pursuant to
subsection (3) of this section, any person seeking to maintain an
action under this section shall also file a notice of claim
within 180 days of the alleged discrimination as required by ORS
30.275.
  (7) The court shall award reasonable attorney fees to a
prevailing plaintiff in any action under this section. The court
may award reasonable attorney fees and expert witness fees
incurred by a defendant who prevails in the action if the court
determines that the plaintiff had no objectively reasonable basis
for asserting a claim or no objectively reasonable basis for
appealing an adverse decision of a trial court.
  (8) Nothing in this section is intended to reduce the
obligations of the education agencies under this section and ORS
659.850 and 659.855.
  SECTION 192. 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, public universities listed in ORS 352.002 { + ,
Portland State University + } 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
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 193. 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.
  (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 public
universities of the Oregon University System { + , Portland State
University + }, 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.
  (h) Include an analysis of occupations in the forest products
industry to:
  (A) Determine key growth factors and employment projections for
green jobs in the forest products industry; and
  (B) Define the educational and skill standards required for
current and emerging green occupations in the forest products
industry.
  (3) Based on the analysis conducted under subsection (2)(h) of
this section, the State Workforce Investment Board, in
consultation with the Education and Workforce Policy Advisor,
shall identify those forest products industries to be classified
as high-demand green industries, taking into consideration
current and future job creation and the strategic importance of
the development of high-demand green forest products industry
jobs to the development and growth of the state's green economy.
  (4) As used in this section, 'forest products industry '
includes, but is not limited to, businesses that grow, manage,
harvest, transport or process forest, wood and paper products.
  SECTION 194. 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) Public universities listed in ORS 352.002 { +  or Portland
State University + }.
  (d) Local governments.
  (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 an
expanded practice dental hygienist who renders services
authorized by a 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.
  (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 195. ORS 696.182 is amended to read:
  696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
  (2) The agency shall include in the rules that an applicant for
certification under this section must be:
  (a) A main or branch office, with a registered business name as
provided under ORS 696.026, of a licensed real estate property
manager or principal real estate broker;
  (b) A licensed title or escrow company conducting business in
this state;
  (c) A real estate trade association or a trade association in a
related field;
  (d) A real estate multiple listing service;
  (e) An attorney admitted to practice in this state;
  (f) A private career school licensed by the Department of
Education and approved by the agency to provide the basic real
estate broker's or property manager's educational courses
required under ORS 696.022;
  (g) An accredited community college,   { - an accredited - }
 { +  a + } public university listed in ORS 352.002 { + ,
Portland State University + } or a private and independent
institution of higher education as defined in ORS 352.720;
  (h) A distance learning provider as provided by rule of the
agency; or
  (i) Another provider approved by the Real Estate Board.
  (3) The Real Estate Agency may provide continuing education
without being certified under this section.
  (4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
  (6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
  SECTION 196. ORS 696.182, as amended by section 46, chapter
104, Oregon Laws 2012, is amended to read:
  696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
  (2) The agency shall include in the rules that an applicant for
certification under this section must be:
  (a) A main or branch office, with a registered business name as
provided under ORS 696.026, of a licensed real estate property
manager or principal real estate broker;
  (b) A licensed title or escrow company conducting business in
this state;
  (c) A real estate trade association or a trade association in a
related field;
  (d) A real estate multiple listing service;
  (e) An attorney admitted to practice in this state;
  (f) A private career school licensed by the Higher Education
Coordinating Commission and approved by the agency to provide the
basic real estate broker's or property manager's educational
courses required under ORS 696.022;
  (g) An accredited community college,   { - an accredited - }
 { +  a + } public university listed in ORS 352.002 { + ,
Portland State University + } or a private and independent
institution of higher education as defined in ORS 352.720;
  (h) A distance learning provider as provided by rule of the
agency; or
  (i) Another provider approved by the Real Estate Board.
  (3) The Real Estate Agency may provide continuing education
without being certified under this section.
  (4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
  (6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
  SECTION 197. 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
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 a public university listed in ORS 352.002 { +  or
Portland State University + }, 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 198. 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
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 public university listed in ORS
352.002 { + , Portland State University + } 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.
  (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, public universities listed in ORS
352.002 { + , Portland State University + }, 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 199. ORS 815.080 is amended to read:
  815.080. (1) A person commits the offense of providing a safety
belt, harness equipment or a child safety system that does not
comply with standards if the person does any of the following:
  (a) Sells or offers for sale a new motor vehicle that is not
equipped with safety belts, safety harnesses or child safety
systems that comply with and are installed in compliance with the
rules adopted by the Department of Transportation under ORS
815.055. This paragraph applies only to motor vehicles that are
primarily designed for transportation of individuals and that
have seating for one or more passengers side-by-side with the
operator.  This paragraph requires only that the vehicle be
equipped with one seat belt or harness for the operator and one
for at least one of the passengers seated beside the operator.
  (b) Sells or offers for sale any safety belt, safety harness,
child safety system, anchor or other device for attaching or
securing safety belts, safety harnesses or child safety system if
the belt, harness, child safety system, anchor or device does not
comply with the rules adopted by the department under ORS
815.055.  This paragraph applies only to belts, harnesses, child
safety systems, anchors or devices for use or installation on a
vehicle that is primarily designed for transportation of
individuals.
  (c) Sells or offers for sale any safety belt, safety harness,
child safety system, anchor or other device for attaching or
securing safety belts, safety harnesses or child safety systems
if the belt, harness, child safety system, anchor or device is
not marked as required under federal safety standards and if the
mark is not legible when the belt, harness, child safety system,
anchor or other device is used or installed on a vehicle. This
paragraph applies only to belts, harnesses, child safety systems,

anchors or devices for use or installation on a vehicle that is
primarily designed for transportation of individuals.
  (d) Installs any safety belt, safety harness, child safety
system, anchor or other device for attaching or securing safety
belts, safety harnesses or child safety systems on a vehicle that
is primarily designed for the transportation of individuals
except in compliance with rules adopted by the department under
ORS 815.055.
  (2) This section does not apply to school buses or school
activity vehicles that are subject to equipment standards adopted
by the State Board of Education { + , + }   { - or - }  the State
Board of Higher Education under ORS 820.100 { +  or the Portland
State University Board of Directors + }.
  (3) The offense described in this section, providing a safety
belt, harness equipment or a child safety system that does not
comply with standards, is a Class C traffic violation.
  SECTION 200. ORS 820.100 is amended to read:
  820.100. (1) The State Board of Education shall adopt and
enforce such reasonable standards relating to school bus and
school activity vehicle construction and school bus and school
activity vehicle equipment as the board deems necessary for safe
and economical operation, except that the board may not authorize
the use of school buses manufactured before April 1, 1977.
  (2) The State Board of Higher Education  { + and the Portland
State University Board of Directors  + }may adopt and enforce
separate rules of the type described under this section for
school buses and school activity vehicles that are under
 { - the - }  { +  each + } board's jurisdiction, except that the
board may not authorize the use of school buses manufactured
before April 1, 1977.
  (3) The State Board of Education shall adopt and enforce
standards for school bus stop arms authorized by ORS 820.105.
  (4) Rules adopted under this section:
  (a) Must be consistent with requirements established by statute
or by rule adopted under statutory authority that relate to the
same subject.
  (b) Shall be consistent with minimum uniform national
standards, if such standards exist.
  (c) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (d) May include any exemptions determined appropriate under ORS
820.150.
  SECTION 201. ORS 820.110 is amended to read:
  820.110. (1) The State Board of Education shall adopt and
enforce rules to establish requirements of operation,
qualifications or special training of drivers and special
accident reports for school buses and school activity vehicles.
  (2) The State Board of Higher Education { +  and the Portland
State University Board of Directors + } may adopt and enforce
separate rules of the type described under this section for
school buses and school activity vehicles that are under
 { - its - }  { +  each board's + } jurisdiction.
  (3) The rules adopted under this section:
  (a) Are subject to ORS 820.190 and 820.200 and to any other
statute or regulation relating to the operation of vehicles,
qualifications of drivers and accident reports.
  (b) Must be consistent with requirements established by statute
or by rule adopted under statutory authority that relate to the
same subject.
  (c) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (d) May include any exemptions determined appropriate under ORS
820.150.
  (4) If the Department of Transportation suspends, cancels or
revokes any driving privileges of a person who holds a school bus
endorsement under ORS 807.035 (5), the Department of
Transportation shall notify the Department of Education of the
suspension, cancellation or revocation.
  SECTION 202. ORS 820.120 is amended to read:
  820.120. (1) The State Board of Education shall adopt and
enforce rules to provide for the inspection of school buses and
school activity vehicles to   { - assure - }   { + ensure + }
that the vehicles are in compliance with requirements under rules
established under ORS 820.100 and 820.110, as applicable, and
that the vehicles are safe for operation. The rules may include
intervals of inspections.
  (2) The State Board of Higher Education  { + and the Portland
State University Board of Directors + } may adopt and enforce
separate rules of the type described under this section for
school buses and school activity vehicles that are under
 { - its - }  { +  each board's + } jurisdiction.
  (3) The rules adopted under this section:
  (a) Are subject to any other statute or regulation relating to
the safety of vehicles for operation and the inspection of
vehicles.
  (b) May include different requirements for different classes or
types of school buses or school activity vehicles.
  (c) May include any exemptions determined appropriate under ORS
820.150.
  SECTION 203. ORS 820.130 is amended to read:
  820.130. The Department of Transportation shall issue
registration for a school bus when notified that the vehicle
conforms to applicable rules under ORS 820.100 to 820.120 and
that the vehicle is safe for operation on the highways.
Notification required by this section shall be from:
  (1) The State Board of Education or its authorized
representative regarding vehicles under its regulatory authority.
  (2) The State Board of Higher Education or its authorized
representative regarding vehicles under its jurisdiction.
   { +  (3) The Portland State University Board of Directors or
its authorized representative regarding vehicles under its
jurisdiction. + }
  SECTION 204. ORS 820.150 is amended to read:
  820.150. (1) The State Board of Education, by rule, may
establish classes or types of vehicles that are not considered
school buses or school activity vehicles for purposes of the
Oregon Vehicle Code or classes of school buses or school activity
vehicles that are not subject to regulation under the Oregon
Vehicle Code either partially or completely.
  (2) The State Board of Higher Education { +  and the Portland
State University Board of Directors + } may adopt separate rules
of the type described under this section for vehicles that are
under its jurisdiction.
  (3) Rules adopted under this section are subject to the
following:
  (a) Any exemption, either partial or total, established under
this section may be based upon passenger capacity, on limited use
or on any other basis the State Board of Education { + , + }
 { - or - }  the State Board of Higher Education { +  or Portland
State University Board of Directors + } considers appropriate.
  (b) No exemption, either partial or total, shall be established
under this section for any vehicle that is marked with or
displays the words 'school bus.  '
  (c) Any vehicle determined not to be a school bus under this
section is not a school bus within the definition established
under ORS 801.460. Partial exemptions established for vehicles
under this section may include removal of the vehicle from any
provisions relating to school buses under the vehicle code.
  (d) Any vehicle determined not to be a school activity vehicle
under this section is not a school activity vehicle within the
definition established under ORS 801.455. Partial exemptions
established for vehicles under this section may include removal
of the vehicle from any provisions relating to school activity
vehicles under the vehicle code.
  (e) In considering any rules under this section, the boards
shall consider the need to assure student safety.
  SECTION 205. Section 13, chapter 761, Oregon Laws 2007, as
amended by section 5, chapter 2, Oregon Laws 2009, section 93,
chapter 762, Oregon Laws 2009, and section 32, chapter 2, Oregon
Laws 2011, is amended to read:
   { +  Sec. 13. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
Research and Teaching Center and Hazardous Waste Facility
Account.  Funds in the account shall be used for the acquisition,
construction, remodeling, expansion and renovation of facilities
for a Science Research and Teaching Center and Hazardous Waste
Facility Phase I at Portland State University.
  (2) The account shall consist of proceeds from certificates of
participation, grant funds, gift funds, proceeds of legal
settlements, federal and local government funds made available to
and funds donated to   { - the Oregon University System - }  { +
Portland State University + } for the purpose of the center and
facility project described in subsection (1) of this section.
Interest earned on moneys in the account shall be credited to the
account. The account may not be credited with more than
$7,000,000 for purposes of this subsection.
  (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the center
and facility project described in subsection (1) of this section.
  SECTION 206. Section 17, chapter 761, Oregon Laws 2007, as
amended by section 97, chapter 762, Oregon Laws 2009, and section
36, chapter 2, Oregon Laws 2011, is amended to read:
   { +  Sec. 17. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
PCAT Redevelopment Account. Funds in the account shall be used
for the acquisition, construction, remodeling, expansion and
renovation of facilities on the current site of the Portland
Center for Advanced Technology at Portland State University.
  (2) The account shall consist of grant funds, gift funds,
proceeds of legal settlements, federal and local government funds
made available to and funds donated to   { - the Oregon
University System - }  { +  Portland State University + } for the
purpose of the project described in subsection (1) of this
section. Interest earned on moneys in the account shall be
credited to the account. The account may not be credited with
more than $10,000,000 for purposes of this subsection.
  (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the project
described in subsection (1) of this section.
  SECTION 207. Section 22, chapter 904, Oregon Laws 2009, as
amended by section 50, chapter 2, Oregon Laws 2011, and section
46, chapter 9, Oregon Laws 2011, is amended to read:
   { +  Sec. 22. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
Research and Teaching Center/Hazardous Waste Facility Phase 2
Project Account. Funds in the account shall be used for the
acquisition, construction, remodeling, expansion and renovation
of facilities for a facility project at Oregon State University.
  (2) The account shall consist of proceeds from grant funds,
gift funds and federal and local government funds made available
to   { - the Oregon University System - }  { +  Portland State
University + } for the purpose of the facility project described
in subsection (1) of this section. Interest earned on moneys in
the account shall be credited to the account. The account may not
be credited with more than $2,500,000 for purposes of this
subsection.
  (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the
facility project described in subsection (1) of this section.
  SECTION 208. Section 3, chapter 797, Oregon Laws 2001, is
amended to read:
   { +  Sec. 3. + } Subject to available funding, if a building
evaluated under section 2 (4) { + , chapter 797, Oregon Laws
2001, + }   { - of this 2001 Act - }  is found by a board to pose
an undue risk to life safety during a seismic event, the State
Board of Higher Education,  { +  Portland State University Board
of Directors, + } local school district board, community college
board or education service district board, as appropriate, shall
develop a plan for seismic rehabilitation of the building or for
other actions to reduce the risk. For a board that is subject to
ORS 291.224, the board's plan to rehabilitate or take other
action to reduce the seismic risk of a building must be included
in the capital construction program of the board. A board that is
subject to ORS 291.224 shall rank the relative benefit of
projects to reduce seismic risk in comparison with other life
safety and code requirement projects. Subject to availability of
funding, all seismic rehabilitations or other actions to reduce
seismic risk must be completed before January 1, 2032. If the
building is listed on a national or state register of historic
places or properties or is designated as a landmark by local
ordinance, the plan for seismic rehabilitation or other action
shall be developed in a manner that gives consideration to
preserving the character of the building.
  SECTION 209.  { + Section 10, chapter 519, Oregon Laws 2011, as
amended by section 1, chapter 37, Oregon Laws 2012, is
repealed. + }
  SECTION 210.  { + Sections 1 to 18 of this 2013 Act and the
amendments to statutes by sections 30 to 208 of this 2013 Act and
the repeal of section 10, chapter 519, Oregon Laws 2011, by
section 209 of this 2013 Act become operative on July 1,
2014. + }
  SECTION 211.  { + The State Board of Higher Education shall
continue to have jurisdiction over the operations of Portland
State University for the 2013-2014 academic year. However, the
Portland State University Board of Directors shall propose
funding requests pursuant to ORS 351.052, as amended by section
46 of this 2013 Act, and shall prepare budgets, in cooperation
with the State Board of Higher Education, for the biennium
beginning July 1, 2013. The president of Portland State
University shall assume responsibilities for administration of
the university on July 1, 2014. + }
  SECTION 212.  { + For the biennium beginning July 1, 2013, the
funding requests required to be submitted by Portland State
University under ORS 351.052, as amended by section 46 of this
2013 Act, shall be submitted to the State Board of Higher
Education prior to November 1, 2013. + }
  SECTION 213.  { + This 2013 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2013 Act takes effect on
its passage. + }
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