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 1686

                         Senate Bill 211

Sponsored by Senator KRUSE (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.

  Provides that State Board of Education shall consist of 11
members appointed by Governor to represent kindergarten through
grade 12, community colleges and institutions of higher
education.
  Directs State Board of Education to appoint Superintendent of
Public Instruction.
  Abolishes State Board of Higher Education and Higher Education
Coordinating Commission. Transfers duties and powers of board and
commission to State Board of Education.
  Takes effect only if Senate Joint Resolution 4 (2013) is
approved by people at next regular general election.
  Takes effect July 1, 2015.

                        A BILL FOR AN ACT
Relating to the State Board of Education; creating new
  provisions; amending ORS 30.264, 30.864, 36.155, 62.720,
  171.735, 182.122, 184.631, 190.510, 190.520, 190.530, 190.540,
  190.580, 190.590, 190.610, 196.438, 200.025, 200.055, 238.200,
  238.215, 240.205, 243.107, 243.800, 243.820, 243.850, 243.910,
  244.050, 273.573, 273.586, 273.785, 276.610, 276.612, 282.076,
  283.310, 284.540, 284.706, 284.711, 291.002, 291.038, 291.055,
  291.445, 292.043, 292.044, 293.790, 293.812, 294.311, 320.100,
  321.185, 326.011, 326.031, 326.041, 326.051, 329.085, 329.489,
  337.521, 340.310, 341.009, 341.430, 341.455, 341.527, 342.147,
  342.447, 343.961, 344.259, 344.557, 345.010, 345.015, 345.017,
  345.020, 345.030, 345.040, 345.060, 345.070, 345.080, 345.110,
  345.115, 345.117, 345.120, 345.325, 345.330, 345.340, 345.400,
  345.430, 345.450, 345.995, 348.010, 348.040, 348.070, 348.205,
  348.210, 348.282, 348.520, 348.597, 348.601, 348.603, 348.604,
  348.605, 348.606, 348.607, 348.608, 348.609, 348.611, 348.612,
  348.615, 348.849, 348.890, 348.900, 348.910, 351.011, 351.047,
  351.052, 351.054, 351.057, 351.060, 351.062, 351.063, 351.065,
  351.067, 351.070, 351.072, 351.075, 351.077, 351.085, 351.086,
  351.087, 351.088, 351.092, 351.094, 351.096, 351.097, 351.105,
  351.110, 351.117, 351.130, 351.140, 351.150, 351.155, 351.160,
  351.165, 351.170, 351.180, 351.190, 351.203, 351.205, 351.210,
  351.220, 351.230, 351.240, 351.250, 351.260, 351.267, 351.277,
  351.282, 351.284, 351.287, 351.310, 351.320, 351.340, 351.345,
  351.350, 351.353, 351.356, 351.460, 351.476, 351.505, 351.506,
  351.590, 351.615, 351.627, 351.633, 351.638, 351.642, 351.643,
  351.644, 351.646, 351.647, 351.653, 351.658, 351.663, 351.666,
  351.668, 351.692, 351.697, 351.708, 351.735, 351.810, 351.820,
  351.830, 351.840, 351.870, 351.875, 351.880, 351.885, 352.002,
  352.004, 352.010, 352.021, 352.035, 352.051, 352.230, 352.360,
  352.383, 352.385, 352.390, 352.510, 352.530, 352.580, 352.610,
  353.040, 353.050, 353.080, 353.108, 353.330, 353.370, 353.440,
  354.090, 357.004, 358.575, 366.785, 390.235, 418.658, 430.241,
  458.558, 461.543, 468A.245, 471.580, 471.810, 526.215, 526.225,
  542.710, 542.720, 561.364, 566.210, 567.025, 567.030, 567.035,
  567.205, 567.210, 567.220, 567.230, 567.235, 567.255, 567.260,
  567.270, 567.275, 567.325, 567.330, 567.405, 567.410, 567.430,
  567.455, 567.475, 567.480, 567.505, 567.510, 567.515, 567.520,
  567.575, 567.580, 576.035, 659.850, 659.855, 659.860, 678.425,
  690.225, 696.182, 815.080, 820.100, 820.110, 820.120, 820.130,
  820.150 and 825.017 and section 3, chapter 797, Oregon Laws
  2001, sections 5, 10, 11, 12 and 13, chapter 904, Oregon Laws
  2009, section 11, chapter 519, Oregon Laws 2011, sections 8,
  12, 13 and 14, chapter 615, Oregon Laws 2011, section 14,
  chapter 36, Oregon Laws 2012, section 9, chapter 79, Oregon
  Laws 2012, and section 1, chapter 96, Oregon Laws 2012;
  repealing ORS 326.021, 326.300, 351.015, 351.020, 351.040,
  351.045, 351.049, 351.064, 351.715, 351.718, 351.722, 351.725,
  351.728, 351.732 and 351.738 and section 2, chapter 637, Oregon
  Laws 2011; and prescribing an effective date.
Be It Enacted by the People of the State of Oregon:

                               { +
STATE BOARD OF EDUCATION + }

  SECTION 1.  { + (1) The State Board of Education shall consist
of 11 members.
  (2) The members of the board shall be appointed by the Governor
from among the residents of this state as follows:
  (a) Five members representing kindergarten through grade 12,
one from each of the five congressional districts. When selecting
the members, the Governor shall consider a list of persons that
is jointly submitted by an organization representing school
employees, an organization representing school administrators and
an organization representing school district boards. The list
shall consist of a total of 15 persons and shall provide the
names of three persons from each congressional district.
  (b) Three members representing public universities listed in
ORS 352.002. When selecting the members, the Governor shall
consider a list of persons that is submitted by an organization
representing public universities. The list shall consist of a
total of five persons.
  (c) Three members representing community colleges. When
selecting the members, the Governor shall consider a list of
persons that is submitted by an organization representing
community colleges. The list shall consist of a total of five
persons.
  (3) A member of the board shall serve for a term of four years
and may not serve more than two consecutive full terms.
Appointments are subject to confirmation by the Senate in the
manner provided in ORS 171.562 and 171.565.
  (4) Before the expiration of the term of a member, the Governor
shall appoint a successor whose term begins on the following July
1.
  (5) The Governor may remove a member of the board for cause at
any time after notice and public hearing. A vacancy occurring in
a position shall be filled as provided in ORS 326.031.
  (6) The members of the board shall be nonpartisan.
  (7) A member of the board may not engage in teaching or
participate in the administration or operation of any school,
community college or public university listed in ORS 352.002
while serving on the board. + }

  SECTION 2.  { + Notwithstanding section 1 of this 2013 Act, the
members first appointed to the State Board of Education as
provided by section 1 of this 2013 Act shall determine by lot the
length of their terms such that:
  (1) Five shall serve a term expiring on July 1, 2017; and
  (2) Six shall serve a term expiring on July 1, 2019. + }
  SECTION 3.  { + (1) On June 30, 2015, the terms of office of
the current members of the State Board of Education expire.
  (2) Notwithstanding the prohibition under section 1 of this
2013 Act against a person serving more than two consecutive full
terms as a board member, a member is eligible for reappointment
to the board if the member's term of office is terminated
pursuant to this section. + }
  SECTION 4. ORS 326.031 is amended to read:
  326.031.   { - Appointments made to fill vacancies of the State
Board of Education occurring prior to expiration of a term of an
appointed member shall be for the remainder of the unexpired
term.  When a vacancy occurs in an appointment made from a
congressional district, the successor shall be appointed from the
congressional district for which the vacancy exists. - }  { +  A
vacancy occurring in a position on the State Board of Education
before the expiration of the term of the position shall be filled
by appointment by the Governor, subject to confirmation by the
Senate in the manner provided in ORS 171.562 and 171.565. An
appointee for a vacancy must comply with the membership
requirements of section 1 (2) of this 2013 Act. The term of an
appointee for a vacancy under this section expires at the end of
the unexpired term. + }
  SECTION 5. ORS 326.041 is amended to read:
  326.041. (1) The State Board of Education shall meet at least
six times each year on dates determined by the board, and at such
other times as may be designated by the chairperson
 { - agreeable to - }  { + that are agreed to by + } a majority
of the board, or at the call of a majority of the board members.
  (2) The board shall elect one of its members to serve as
chairperson of the board for  { + a term of + } one year
 { - commencing July 1 - } . In case the office of chairperson of
the board is permanently vacated for any reason, the board may
elect a new chairperson to serve   { - until the June 30 next
following - }  { +  for the remainder of the term + }.
  (3) A member is entitled to compensation and expenses as
provided in ORS 292.495.
  SECTION 6.  { + ORS 326.021 is repealed. + }

                               { +
APPOINTMENT OF SUPERINTENDENT OF PUBLIC INSTRUCTION + }

  SECTION 7. ORS 326.051 is amended to read:
  326.051. Subject to ORS 417.300 and 417.305:
  (1) In addition to such other duties as are prescribed by law
and pursuant to the requirement of ORS chapter 183, the State
Board of Education shall:
   { +  (a) Appoint the Superintendent of Public Instruction. + }
    { - (a) - }   { + (b) + } Establish state standards for
public kindergartens and public elementary and secondary schools
consistent with the policies stated in ORS 326.011.
    { - (b) - }   { + (c) + } Adopt rules for the general
governance of public kindergartens and public elementary and
secondary schools and public community colleges.
    { - (c) - }   { + (d) + } Prescribe required or minimum
courses of study.
    { - (d) - }   { + (e) + } Adopt rules regarding school and
interscholastic activities.
    { - (e) - }   { + (f) + } Adopt rules that provide that
 { - no - }   { + a + } public elementary or secondary school
 { - shall discriminate - }   { + may not engage in an act of
discrimination + } in determining participation in
interscholastic activities. As used in this paragraph, '
discrimination' has the meaning given that term in ORS 659.850.
    { - (f) - }   { + (g) + } Adopt rules that will eliminate the
use and purchase of elemental mercury, mercury compounds and
mercury-added instructional materials by public elementary and
secondary schools.
  (2) The State Board of Education may:
  (a) Consistent with the laws of this state  { - , - }  { + :
  (A) + } Accept money or property not otherwise provided for
under
  { - paragraph (b) of this subsection, which - }  { +
subparagraph (B) of this paragraph that + } is donated for the
use or benefit of the public kindergartens { + , + }
 { - and - }  public elementary and secondary schools and public
community colleges { + ; + } and
   { +  (B) + } Use such money or property for the purpose for
which   { - it - }  { + the money or property + } was donated
 { - . Until it is used, the board shall - }   { + and + }
deposit any money received   { - under this paragraph - }  in a
special fund with the State Treasurer as provided in ORS 293.265
to 293.275 { + , until the money is used + }.
  (b) Apply for federal funds and accept and enter into any
contracts or agreements on behalf of the state for the receipt of
such funds from the federal government or its agencies for:
  (A) Educational purposes, including but not limited to any
funds available for the school lunch program;
  (B) Career and technical education programs;
  (C) Adult education programs;
  (D) Workforce training programs; and
  (E) Any grants available to the state or its political
subdivisions for general federal aid for public kindergartens,
public elementary schools, public secondary schools and public
community colleges and their auxiliary services, improvement of
teacher preparation, teacher salaries, construction of school
buildings, administration of the Department of Education and any
other educational activities under the jurisdiction of the State
Board of Education.
  (c) Adopt rules to administer the United States Department of
Agriculture's National School Lunch Program and School Breakfast
Program for public and private prekindergarten through grade 12
schools and residential child care facilities.
  (3) The State Board of Education shall provide a separate,
identifiable place on its agenda six times a year for community
college issues. The state board may also consider matters
affecting community colleges at any regular or special meeting.
  SECTION 8. ORS 329.085 is amended to read:
  329.085. (1) To facilitate the attainment and successful
implementation of educational standards under ORS 326.051
 { - (1)(a) - }  { + (1)(b) + } and 329.025, the State Board of
Education or its designee shall assess the effectiveness of each
public school, public charter school and school district. The
findings of the assessment shall be reported to the school or
school district within six months.
  (2) The board shall establish the standards, including
standards of accessibility to educational opportunities, upon
which the assessment is based.
  (3) On a periodic basis, the board shall review school and
school district standards and credit and performance
requirements.  The board shall seek public input in this process.
  SECTION 9.  { + Until the State Board of Education appoints a
Superintendent of Public Instruction, as provided by ORS 326.051
(1)(a), the Governor shall continue to serve as the
Superintendent of Public Instruction. + }
  SECTION 10. ORS 171.735 is amended to read:

  171.735. ORS 171.740 and 171.745 do not apply to the following
persons:
  (1) News media, or their employees or agents, that in the
ordinary course of business directly or indirectly urge
legislative action but that engage in no other activities in
connection with the legislative action.
  (2) Any legislative official acting in an official capacity.
  (3) Any individual who does not receive compensation or
reimbursement of expenses for lobbying, who limits lobbying
activities solely to formal appearances to give testimony before
public sessions of committees of the Legislative Assembly, or
public hearings of state agencies, and who, when testifying,
registers an appearance in the records of the committees or
agencies.
  (4) A person who does not spend more than an aggregate amount
of 24 hours during any calendar quarter lobbying and who does not
spend an aggregate amount in excess of $100 lobbying during any
calendar quarter.
  (5) The Governor, chief of staff for the Governor, deputy chief
of staff for the Governor, legal counsel to the Governor, deputy
legal counsel to the Governor, Secretary of State, Deputy
Secretary of State appointed pursuant to ORS 177.040, State
Treasurer, Deputy State Treasurer appointed pursuant to ORS
178.060, chief of staff for the office of the State Treasurer,
Attorney General, Deputy Attorney General appointed pursuant to
ORS 180.130,   { - Deputy - }  Superintendent of Public
Instruction appointed pursuant to ORS   { - 326.300 - }  { +
326.051 + }, Commissioner of the Bureau of Labor and Industries,
deputy commissioner of the Bureau of Labor and Industries
appointed pursuant to ORS 651.060, members and staff of the
Oregon Law Commission who conduct the law revision program of the
commission or any judge.
  SECTION 11. ORS 240.205 is amended to read:
  240.205. The unclassified service shall comprise:
  (1) One executive officer and one secretary for each board or
commission, the members of which are elected officers or are
appointed by the Governor.
  (2) The director of each department of state government, each
full-time salaried head of a state agency required by law to be
appointed by the Governor and each full-time salaried member of a
board or commission required by law to be appointed by the
Governor.
  (3) The administrator of each division within a department of
state government required by law to be appointed by the director
of the department with the approval of the Governor.
  (4) Principal assistants and deputies and one private secretary
for each executive or administrative officer specified in ORS
240.200 (1) and in subsections (1) to (3) of this section.  '
Deputy' means the deputy or deputies to an executive or
administrative officer listed in subsections (1) to (3) of this
section who is authorized to exercise that officer's authority
upon absence of the officer. 'Principal assistant' means a
manager of a major agency organizational component who reports
directly to an executive or administrative officer listed in
subsections (1) to (3) of this section or deputy and who is
designated as such by that executive or administrative officer
with the approval of the Director of the Oregon Department of
Administrative Services.
  (5) Employees in the Governor's office and the principal
assistant and private secretary in the Secretary of State's
division.
  (6) The director, principals, instructors and teachers in the
school operated under ORS 346.010.
  (7) Apprentice trainees only during the prescribed length of
their course of training.

  (8) Licensed physicians and dentists employed in their
professional capacities and student nurses, interns, and patient
or inmate help in state institutions.
  (9) Lawyers employed in their professional capacities.
  (10) All members of the Oregon State Police appointed under ORS
181.250.
  (11) The   { - Deputy - }  Superintendent of Public Instruction
appointed under ORS   { - 326.300 - }   { + 326.051 + } and
associate superintendents in the Department of Education.
  (12) Temporary seasonal farm laborers engaged in single phases
of agricultural production or harvesting.
  (13) Any individual employed and paid from federal funds
received under a federal program intended primarily to alleviate
unemployment. However, persons employed under this subsection
shall be treated as classified employees for purposes of ORS
243.650 to 243.782.
  (14) Managers, department heads, directors, producers and
announcers of the state radio and television network.
  (15) Employees, including managers, of the foreign trade
offices of the Oregon Business Development Department located
outside the country.
  (16) Any other position designated by law as unclassified.
  SECTION 12. 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.
  (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 13. 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.
  (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 14. ORS 430.241, as amended by section 62, chapter 37,
Oregon Laws 2012, is amended to read:
  430.241. (1) As used in this section and ORS 430.242:
  (a) 'Local government' means a local government as defined in
ORS 174.116 that receives state or federal funding for programs
that provide alcohol or drug prevention or treatment services.
  (b) 'Participating state agency' means the Youth Development
Council, the Department of Corrections, the Department of Human
Services, the Oregon Health Authority, the Department of
Education, the Oregon Criminal Justice Commission, the Oregon
State Police, the Oregon Youth Authority or any other state
agency that is approved by the Alcohol and Drug Policy Commission
to license, contract for, provide or coordinate alcohol or drug
prevention or treatment services.
  (c) 'Provider' means any person that is licensed by the Oregon
Health Authority to provide alcohol or drug prevention or
treatment services.
  (2) There is created the Alcohol and Drug Policy Commission,
which is charged with planning, evaluating and coordinating
policies for the funding and effective delivery of alcohol and
drug prevention and treatment services.
  (3) The membership of the commission consists of:
  (a) Sixteen members appointed by the Governor, subject to
confirmation by the Senate in the manner prescribed in ORS
171.562 and 171.565, including:
  (A) An elected district attorney;
  (B) An elected county sheriff;
  (C) A county commissioner;
  (D) A representative of an Indian tribe;
  (E) A provider;
  (F) A chief of police;
  (G) An alcohol or drug treatment researcher or epidemiologist;
  (H) A criminal defense attorney;
  (I) A representative of the health insurance industry;
  (J) A representative of hospitals;
  (K) An alcohol or treatment professional who is highly
experienced in the treatment of persons with a dual diagnosis of
mental illness and substance abuse;
  (L) An alcohol or drug abuse prevention representative;
  (M) A consumer of alcohol or drug treatment who is in recovery;
  (N) A representative of the business community;

  (O) An alcohol or drug prevention representative who
specializes in youth; and
  (P) A person with expertise in and experience working with
information technology systems used in complex intergovernmental
or corporate settings.
  (b) Two members of the Legislative Assembly appointed to the
commission as nonvoting members of the commission, acting in an
advisory capacity only and including:
  (A) One member from among members of the Senate appointed by
the President of the Senate; and
  (B) One member from among members of the House of
Representatives appointed by the Speaker of the House of
Representatives.
  (c) The following voting ex officio members:
  (A) The Governor or the Governor's designee;
  (B) The Attorney General;
  (C) The Director of the Oregon Health Authority;
  (D) The Director of the Department of Corrections;
  (E) The   { - Deputy - }  Superintendent of Public Instruction
or the
  { - deputy - }  superintendent's designee;
  (F) The Director of Human Services;
  (G) The Director of the Oregon Youth Authority;
  (H) The chairperson of the Youth Development Council; and
  (I) The administrator of the Oregon Liquor Control Commission.
  (d) A judge of a circuit court appointed to the commission as a
nonvoting member by the Chief Justice of the Supreme Court.
  (4) The Alcohol and Drug Policy Commission shall select one of
its members as chairperson and another as vice chairperson, for
such terms and with duties and powers necessary for the
performance of the functions of such offices as the commission
determines.
  (5) A majority of the voting members of the commission
constitutes a quorum for the transaction of business.
  (6) Official action of the commission requires the approval of
a majority of a quorum.
  (7) The commission may establish a steering committee and
subcommittees. These committees may be continuing or temporary.
  (8) The term of office of each commission member appointed by
the Governor is four years, but a member serves at the pleasure
of the Governor. If there is a vacancy for any cause, the
Governor shall make an appointment to become immediately
effective.
  (9) The Oregon Health Authority shall provide staff support to
the commission. Subject to available funding, the commission may
contract with a public or private entity to provide staff
support.
  (10) Members of the commission who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses shall be paid out of funds appropriated
to the Oregon Health Authority or funds appropriated to the
commission for purposes of the commission.
  (11) The commission shall establish a budget advisory committee
composed of the individuals listed in subsection (3)(a)(C),
(c)(B) to (I) and (d) of this section. The individual described
in subsection (3)(d) of this section is a nonvoting member of the
committee. The committee shall recommend budget policy priorities
to the commission:
  (a) Regarding the allocation of funding for alcohol and drug
prevention and treatment services across state agencies and
throughout this state;
  (b) That identify additional funding from federal and private
sources for alcohol and drug prevention and treatment services;
and
  (c) For authorizing a suspension of the payment of state funds,
or funds administered by this state, to programs that do not
comply with the commission's rules or the budget priority policy
or that do not provide effective prevention or treatment
services.
  (12)(a) The Governor shall appoint a Director of the Alcohol
and Drug Policy Commission who shall serve at the pleasure of the
Governor and be responsible for the dissemination and
implementation of the commission's policies and the performance
of the duties, functions and powers of the commission that are
delegated to the director by the commission.
  (b) The director shall be paid a salary as provided by law or,
if not so provided, as prescribed by the Governor.
  SECTION 15. ORS 458.558, as amended by section 6, chapter 97,
Oregon Laws 2012, is amended to read:
  458.558. (1) The members of the Oregon Volunteers Commission
for Voluntary Action and Service must be citizens of this state
who have a proven commitment to community service and who have a
demonstrated interest in fostering and nurturing citizen
involvement as a strategy for strengthening communities and
promoting the ethic of service in all sectors of this state.
  (2) The Governor shall appoint as members of the commission at
least one of each of the following:
  (a) An individual with experience in educational, training and
development needs of youth, particularly disadvantaged youth.
  (b) An individual with experience in promoting involvement of
older adults in service and volunteerism.
  (c) A representative of community-based agencies or
organizations within this state.
  (d) The   { - Deputy - }  Superintendent of Public Instruction
or designee.
  (e) A representative of local governments in this state.
  (f) A representative of local labor unions in this state.
  (g) A representative of business.
  (h) A person at least 16, but not more than 25, years of age
who is a participant or supervisor in a national service program.
  (i) A representative of a national service program described in
42 U.S.C. 12572(a).
  (3) In addition to appointing members under subsection (2) of
this section, the Governor may appoint as members individuals
from the following groups:
  (a) Educators.
  (b) Experts in the delivery of human, educational,
environmental or public safety services to communities and
individuals.
  (c) Members of Native American tribes.
  (d) At-risk youths who are out of school.
  (e) Entities that receive assistance under the Domestic
Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.).
  (f) A director or representative of a CASA Volunteer Program.
  (g) A court appointed special advocate.
  (4) In making appointments of members described in subsections
(2) and (3) of this section, the Governor shall ensure that:
  (a) No more than 50 percent of the appointed members are from
the same political party; and
  (b) No more than 25 percent of the appointed members are state
employees.
  SECTION 16.  { + ORS 326.300 is repealed. + }

                               { +
STATE BOARD OF HIGHER EDUCATION ABOLISHED + }

  SECTION 17.  { + (1) The State Board of Higher Education is
abolished. On March 15, 2016, the terms of office of the members
of the State Board of Higher Education ceases.

  (2) All the duties, functions and powers of the State Board of
Higher Education are imposed upon, transferred to and vested in
the State Board of Education. + }
  SECTION 18.  { + (1) The president of the State Board of Higher
Education shall:
  (a) Deliver to the Superintendent of Public Instruction all
records and property within the jurisdiction of the State Board
of Higher Education that relate to the duties, functions and
powers transferred by section 17 of this 2013 Act; and
  (b) Transfer to the Superintendent of Public Instruction those
employees engaged primarily in the exercise of the duties,
functions and powers transferred by section 17 of this 2013 Act.
  (2) The Superintendent of Public Instruction shall take
possession of the records and property, and shall take charge of
the employees and employ them in the exercise of the duties,
functions and powers transferred by section 17 of this 2013 Act,
without reduction of compensation but subject to change or
termination of employment or compensation as provided by law.
  (3) The Governor shall resolve any dispute relating to
transfers of records, property and employees under this section,
and the Governor's decision is final. + }
  SECTION 19.  { + (1) The unexpended balances of amounts
authorized to be expended by the State Board of Higher Education
for the biennium beginning July 1, 2015, from revenues dedicated,
continuously appropriated, appropriated or otherwise made
available for the purpose of administering and enforcing the
duties, functions and powers transferred by section 17 of this
2013 Act are transferred to and are available for expenditure by
the State Board of Education for the biennium beginning July 1,
2015, for the purpose of administering and enforcing the duties,
functions and powers transferred to the State Board of Education
by section 17 of this 2013 Act.
  (2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the State Board of
Higher Education remain applicable to expenditures by the State
Board of Education under this section. + }
  SECTION 20.  { + The transfer of duties, functions and powers
to the State Board of Education by section 17 of this 2013 Act
does not affect any action, proceeding or prosecution involving
or with respect to such duties, functions and powers begun before
and pending at the time of the transfer, except that the State
Board of Education is substituted for the State Board of Higher
Education in the action, proceeding or prosecution. + }
  SECTION 21.  { + (1) Nothing in this 2013 Act relieves a person
of a liability, duty or obligation accruing under or with respect
to the duties, functions and powers transferred by section 17 of
this 2013 Act. The State Board of Education may undertake the
collection or enforcement of any such liability, duty or
obligation.
  (2) The rights and obligations of the State Board of Higher
Education legally incurred under contracts, leases and business
transactions executed, entered into or begun before March 15,
2016, are transferred to the State Board of Education. For the
purpose of succession to these rights and obligations, the State
Board of Education is a continuation of the State Board of Higher
Education and not a new authority. + }
  SECTION 22.  { + Notwithstanding the transfer of duties,
functions and powers by section 17 of this 2013 Act, the rules of
the State Board of Higher Education in effect on March 15, 2016,
continue in effect until superseded or repealed by rules of the
State Board of Education. References in rules of the State Board
of Higher Education to the State Board of Higher Education or an
officer or employee of the State Board of Higher Education are
considered to be references to the State Board of Education, when
used in reference to the duties, functions and powers described
in section 17 of this 2013 Act. + }
  SECTION 23.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the State Board of Higher Education or an officer or
employee of the State Board of Higher Education, the reference is
considered to be a reference to the State Board of Education,
when used in reference to the duties, functions and powers
described in section 17 of this 2013 Act. + }
  SECTION 24.  { + For the purpose of harmonizing and clarifying
statutory law, the Legislative Counsel may substitute for words
designating the 'State Board of Higher Education' or its
officers, wherever they occur in statutory law, words designating
the 'State Board of Education' or its officers, when used in
reference to the duties, functions and powers described in
section 17 of this 2013 Act. + }
  SECTION 25.  { + During the period between the effective date
of the amendment to the Oregon Constitution proposed by Senate
Joint Resolution 4 (2013), and March 15, 2016, the State Board of
Education may take such action as is essential in order that the
duties, functions and powers that are transferred as described in
section 17 of this 2013 Act may be completed to the extent that
the members of the State Board of Education may carry out their
required functions when they take office on March 15, 2016. + }
  SECTION 26. ORS 326.011 is amended to read:
  326.011. In establishing policy for the administration and
operation of the public elementary and secondary
schools { + , + }   { - and - } public community colleges
 { + and public universities + } in the State of Oregon and in
carrying out its duties as prescribed by law, the State Board of
Education shall consider the goals of modern education, the
requirements of a sound, comprehensive curriculum best suited to
the needs of the students and the public and any other factors
consistent with the maintenance of a modern and efficient
elementary and secondary school system { + , + }   { - and - }
community college program { +  and university system + }.
  SECTION 27. ORS 326.051, as amended by section 7 of this 2013
Act, is amended to read:
  326.051. Subject to ORS 417.300 and 417.305:
  (1) In addition to such other duties as are prescribed by law
and pursuant to the requirement of ORS chapter 183, the State
Board of Education shall:
  (a) Appoint the Superintendent of Public Instruction.
   { +  (b) Establish policies that allow for a seamless
educational system transition between public kindergartens,
public elementary and secondary schools, public community
colleges and public universities. + }
    { - (b) - }   { + (c) + } Establish state standards for
public kindergartens and public elementary and secondary schools
consistent with the policies stated in ORS 326.011.
    { - (c) - }   { + (d) + } Adopt rules for the general
governance of public kindergartens { + , + }   { - and - }
public elementary and secondary schools { + , + }
  { - and - }  public community colleges { +  and public
universities + }.
    { - (d) - }   { + (e) + } Prescribe required or minimum
courses of study.
    { - (e) - }   { + (f) + } Adopt rules regarding school and
interscholastic activities.
    { - (f) - }   { + (g) + } Adopt rules that provide that a
public elementary or secondary school may not engage in an act of
discrimination in determining participation in interscholastic
activities. As used in this paragraph, 'discrimination' has the
meaning given that term in ORS 659.850.
    { - (g) - }   { + (h) + } Adopt rules that will eliminate the
use and purchase of elemental mercury, mercury compounds and

mercury-added instructional materials by public elementary and
secondary schools.
  (2) The State Board of Education may:
  (a) Consistent with the laws of this state:
  (A) Accept money or property not otherwise provided for under
subparagraph (B) of this paragraph that is donated for the use or
benefit of the public kindergartens, public elementary and
secondary schools { + , + }   { - and - }  public community
colleges { +  and public universities + }; and
  (B) Use such money or property for the purpose for which the
money or property was donated and deposit any money received in a
special fund with the State Treasurer as provided in ORS 293.265
to 293.275, until the money is used.
  (b) Apply for federal funds and accept and enter into any
contracts or agreements on behalf of the state for the receipt of
such funds from the federal government or its agencies for:
  (A) Educational purposes, including but not limited to any
funds available for the school lunch program;
  (B) Career and technical education programs;
  (C) Adult education programs;
  (D) Workforce training programs; and
  (E) Any grants available to the state or its political
subdivisions for general federal aid for public kindergartens,
public elementary schools, public secondary schools { + , + }
 { - and - }  public community colleges  { + and public
universities + } and their auxiliary services, improvement of
teacher preparation, teacher salaries, construction of school
buildings, administration of the Department of Education and any
other educational activities under the jurisdiction of the State
Board of Education.
  (c) Adopt rules to administer the United States Department of
Agriculture's National School Lunch Program and School Breakfast
Program for public and private prekindergarten through grade 12
schools and residential child care facilities.
  (3) The State Board of Education shall provide a separate,
identifiable place on its agenda six times a year for
 { - community college - }  issues { +  related to community
colleges and public universities + }. The state board may also
consider matters affecting community colleges  { + and public
universities + } at any regular or special meeting.
  SECTION 28. ORS 329.085, as amended by section 8 of this 2013
Act, is amended to read:
  329.085. (1) To facilitate the attainment and successful
implementation of educational standards under ORS 326.051
 { - (1)(b) - }  { + (1)(c) + } and 329.025, the State Board of
Education or its designee shall assess the effectiveness of each
public school, public charter school and school district. The
findings of the assessment shall be reported to the school or
school district within six months.
  (2) The board shall establish the standards, including
standards of accessibility to educational opportunities, upon
which the assessment is based.
  (3) On a periodic basis, the board shall review school and
school district standards and credit and performance
requirements.  The board shall seek public input in this process.
  SECTION 29. ORS 352.002 is amended to read:
  352.002.  { + (1) + } 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) - }   { + (a) + } University of Oregon.
    { - (2) - }   { + (b) + } Oregon State University.
    { - (3) - }   { + (c) + } Portland State University.
    { - (4) - }   { + (d) + } Oregon Institute of Technology.
    { - (5) - }   { + (e) + } Western Oregon University.
    { - (6) - }   { + (f) + } Southern Oregon University.
    { - (7) - }   { + (g) + } Eastern Oregon University.
   { +  (2) The Oregon University System shall function under the
direction and control of the State Board of Education, with the
Chancellor of the Oregon University System serving as the
executive head of the Oregon University System and directing and
supervising all activities of the system. + }
  SECTION 30. ORS 30.264 is amended to read:
  30.264. (1) 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.
  (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 31. 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 - }  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 32. ORS 36.155 is amended to read:
  36.155. The Dean of the University of Oregon School of Law
shall award grants for the purpose of providing dispute
resolution services in counties. Grants under this section shall
be made from funds appropriated to the Oregon University System
on behalf of the University of Oregon School of Law for
distribution under this section. The State Board of
 { - Higher - }  Education may adopt rules for the operation of
the grant program.
  SECTION 33. ORS 62.720 is amended to read:
  62.720. (1) All intangible personal property distributable in
the course of a voluntary or involuntary dissolution of a
cooperative that is unclaimed by the owner within two years after
the date for final distribution is presumed abandoned. Such
property shall be subject to the provisions of ORS 98.302 to
98.436 and 98.992, except that with respect to agricultural
cooperatives, the report of unclaimed property shall be filed
with the Department of State Lands as set forth in ORS 98.352. A
copy of the report shall also be filed with the State Board of
 { - Higher - } Education.
  (2) All unclaimed property specified in the report required by
ORS 98.352 shall be delivered within the time specified in ORS
98.362 to the Department of State Lands which shall assume
custody and shall be responsible for the safekeeping thereof. The
department shall reconcile the report to the delivered funds,
deduct the costs as provided for in subsection (3) of this
section, and forward the funds to the State Board of
 { - Higher - } Education within 14 working days of receipt of
the funds. Any person who pays or delivers unclaimed property to
the Department of State Lands under this section is relieved of
all liability to the extent of the value of the property so paid
or delivered for any claim which then exists or which thereafter
may arise or be made in respect to the property.

  (3) All funds received under this section shall be used for the
benefit of Oregon State University in such programs related to
agricultural research as the university may determine except for:
  (a) The payment of claims which may be made pursuant to this
section; and
  (b) The payment of expenses of mailing and publication in
connection with any unclaimed property, reasonable service
charges and expenses of the Department of State Lands in
connection with claims made pursuant to ORS 98.392 to 98.402.
  (4) The provisions of ORS 98.392 to 98.402 are applicable to
claims against unclaimed property delivered to the State Board of
  { - Higher - }  Education pursuant to this section. The State
Board of
  { - Higher - }  Education shall pay such claims from funds
delivered to it pursuant to this section within 30 days of
receipt of a verified copy of a finding and decision of the
Department of State Lands made pursuant to ORS 98.396 or a
certified copy of a judgment made pursuant to ORS 98.402.
  (5) As used in this section, an agricultural cooperative is any
cooperative in which farmers act together in producing,
processing, preparing for market, handling or marketing the
agricultural products of such farmers, and any cooperative in
which farmers act together in purchasing, testing, grading,
processing, distributing and furnishing farm supplies or farm
business services.
  (6) The provisions of this section are applicable with respect
to the voluntary or involuntary dissolution of any cooperative,
which dissolution commenced on or after January 1, 1970.
  SECTION 34. 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
 { + in relation to higher education + } or  { + with + } any
public university listed in ORS 352.002; and
  (b)(A) Gaming systems and networks operated by the Oregon State
Lottery or its contractors; or

  (B) The results of Oregon State Lottery reviews, evaluations
and vulnerability assessments of computer systems outside the
state's shared computing and network infrastructure.
  (10) The Oregon Department of Administrative Services shall
adopt rules to carry out its responsibilities under this section.
  SECTION 35. 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.
  (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 36. ORS 190.510 is amended to read:
  190.510. As used in ORS 190.510 to 190.610  { - , unless the
context requires otherwise - } :
  (1) 'Board' means the State Board of   { - Higher - }
Education
  { - established under ORS 351.015 - } .
  (2) 'City' means any incorporated city or town.
  SECTION 37. ORS 190.520 is amended to read:
  190.520. (1) The State Board of   { - Higher - }  Education
shall:
  (a) Annually estimate the population as of July 1 of each city
and county within the state and no later than December 15 of each
year prepare a certificate of population showing the board's
estimate of the population of each city and county within the
state as of July 1. The board's estimate may be based upon
statistical or other pertinent data or upon an actual count. The
certificate shall also indicate the results of any enumeration of
cities or annexed areas made after July 1.
  (b) Annually estimate the number of persons between the ages of
4 and 20 who resided in each county as of October 25. The board
shall certify such estimate to the Superintendent of Public
Instruction and to the executive officer of the administrative
office of each county, as defined in ORS 328.001, by January 1 of
each year.
  (c) Upon an official request from a city, county, political
subdivision, public corporation or state agency, cause to be
conducted at the expense of the requesting party an actual count
of the population of the area specified in the request and
prepare a certificate of population based upon such count.
  (d) Upon the incorporation of a city, cause to be conducted at
the expense of the city an actual count of the population of the
city. The board shall prepare a certificate of population based
upon such count. If the election of officers of the newly
incorporated city is held 40 days or more before the end of the
calendar quarter, the certificate shall be prepared before the
end of the calendar quarter. If the election is held less than 40
days before the end of the calendar quarter, the certificate
shall be prepared before the end of the calendar quarter next
following the election.
  (2) All certificates prepared under this section shall be filed
with the Portland State University Population Research Center.
  SECTION 38. ORS 190.530 is amended to read:
  190.530. Upon petition from a city, county, political
subdivision, public corporation or state agency for
reconsideration, or upon its own motion, the State Board of
  { - Higher - }  Education may revise its determination of the
population of a city, county or other area. Payment of funds to a
city, county or other area under ORS 323.455, 366.785 to 366.820
or 471.810 shall be affected by a subsequent filing of a
corrected certificate under this section in the manner provided
by ORS 190.620.
  SECTION 39. ORS 190.540 is amended to read:
  190.540. (1) The population shown in the certificate of
population of the State Board of   { - Higher - }  Education
filed pursuant to ORS 190.520 or 190.530 shall be the official
population of the city, county or other area covered by the
certificate until a later certificate covering such city, county
or other area is filed by the board.
  (2) After a certificate of population is filed pursuant to ORS
190.520 or 190.530, the population of a city, county or other
area as shown in the certificate shall be the official and
exclusive basis for determining per capita allocation and payment
of funds to such city, county or other area under ORS 366.785 to
366.820 and 471.810 until the filing by the board of a later
certificate for such city, county or other area.
  SECTION 40. ORS 190.580 is amended to read:
  190.580. The State Board of   { - Higher - }  Education may
adopt such rules and regulations as it considers desirable and
expedient in the conduct of its duties under ORS 190.510 to
190.610.
  SECTION 41. ORS 190.590 is amended to read:
  190.590. Any state agency, or officer thereof, and any city, or
department, officer or employee thereof, shall, upon request of
the State Board of   { - Higher - }  Education, furnish such
available information as may be required by the board in securing
accurate data and information upon which to base its estimates.
The board may prescribe the form for reporting such information.
  SECTION 42. ORS 190.610 is amended to read:
  190.610. The State Board of   { - Higher - }  Education shall
establish a program at one or more of the public universities
  { - under its control - }  { +  listed in ORS 352.002 + },
 { + that is + } designed to perform the duties imposed
 { - upon it - }  by ORS 190.510 to 190.610.
  SECTION 43. ORS 196.438 is amended to read:
  196.438. (1) The Governor shall establish an Ocean Policy
Advisory Council that is staffed by the State Department of Fish
and Wildlife, the Department of Land Conservation and Development
and other departments as the Governor deems necessary. The
council shall be composed of:
  (a) The Governor or the Governor's designee, as a nonvoting
member;
  (b) The director or the director's designee of the following
agencies, as nonvoting members:
  (A) Department of Environmental Quality;
  (B) State Department of Fish and Wildlife;
  (C) State Department of Geology and Mineral Industries;
  (D) Department of Land Conservation and Development;
  (E) Department of State Lands;
  (F) Parks and Recreation Department;
  (G) State Department of Agriculture; and

  (H) On behalf of the State Board of   { - Higher - }
Education, the director or director's designee of Oregon State
University, Sea Grant College;
  (c) A member of the governing body of Coos, Curry, Douglas or
Lane County to be appointed by the Governor, chosen in
consultation with and with the approval of a majority of the
members of the governing bodies of Coos, Curry, Douglas and Lane
Counties;
  (d) A member of the governing body of Clatsop, Lincoln or
Tillamook County to be appointed by the Governor, chosen in
consultation with and with the approval of a majority of the
members of the governing bodies of Clatsop, Lincoln and Tillamook
Counties;
  (e) An elected city official from a coastal city bordering the
territorial sea to be appointed by the Governor with advice from
an Oregon coastal zone management association;
  (f) A representative of each of the following ocean interests,
to be appointed by the Governor, and subject to confirmation by
the Senate pursuant to section 4, Article III, Oregon
Constitution:
  (A) Commercial ocean fisheries of the North Coast from Newport
north;
  (B) Commercial ocean fisheries of the South Coast south of
Newport;
  (C) Charter, sport or recreation ocean fisheries of the North
Coast from Newport north;
  (D) Charter, sport or recreation ocean fisheries of the South
Coast south of Newport;
  (E) Ports marine navigation or transportation;
  (F) Coastal nonfishing recreation interests of surfing, diving,
kayaking or windsurfing;
  (G) A coastal conservation or environmental organization;
  (H) Oregon Indian tribes appointed after consultation with the
Commission on Indian Services;
  (I) A coastwide organization representing a majority of small
ports and local governments, as a nonvoting member; and
  (J) A statewide conservation or environmental organization; and
  (g) Two representatives of the public, at least one of whom
shall be a resident of a county bordering the territorial sea, to
be appointed by the Governor.
  (2) The term of office of each member appointed by the Governor
is four years, but a member serves at the pleasure of the
Governor. Before the expiration of the term of a member, the
Governor shall appoint a successor whose term begins on July 1
next following. A member is eligible for reappointment. If there
is a vacancy for any cause, the Governor shall make an
appointment to become immediately effective for the unexpired
term.
  (3) A majority of the voting members of the council constitutes
a quorum for the transaction of business.
  (4) The voting members of the council shall elect a person from
among the membership to chair the council.
  SECTION 44. ORS 200.025 is amended to read:
  200.025. (1) There is created, in the Office of the Governor,
the Advocate for Minority, Women and Emerging Small Business who
shall be appointed by the Governor.
  (2) There is created in the Oregon Business Development
Department the Office for Minority, Women and Emerging Small
Business, the employees of which shall be appointed by the
Director of the Oregon Business Development Department.
  (3)(a) The director may prescribe the duties and assignments of
all officers and employees of the Office for Minority, Women and
Emerging Small Business. The director shall establish the
compensation of all officers and employees of the office.

  (b) The officers and employees of the office shall be allowed
reimbursement for reasonable and necessary travel and other
expenses incurred in the performance of their duties.
  (4) The Advocate for Minority, Women and Emerging Small
Business shall:
  (a) Advise the Governor and the director on activities and
initiatives that may promote the economic integration of
minorities, women and emerging small businesses into the business
sector;
  (b) Prepare an annual report to the Governor, director and
Legislative Assembly on the status of minorities and women in the
marketplace, accomplishments and resolutions of issues of concern
to minority and women's enterprises and recommendations for
executive and legislative actions; and
  (c) Carry out other duties that may be assigned by the
Governor.
  (5) The Office for Minority, Women and Emerging Small Business
shall:
  (a) Provide information to minority, women and emerging small
businesses;
  (b) Assist in the development and implementation of an
aggressive strategy for this state, based on research and
monitoring, that encourages participation of minorities, women
and emerging small businesses in the state's economy;
  (c) Make recommendations to the director on the research,
development and implementation of the plan for the involvement of
disadvantaged and minority groups and emerging small businesses
in all state programs;
  (d) Maintain an Oregon Opportunity Register and Clearinghouse
for information on public agency and other contract solicitations
for professional services, supplies and services and other bid
opportunities, in consultation with the State Board of
 { - Higher - } Education, the Department of Transportation and
other entities;
  (e) Monitor the certification and compliance program for
disadvantaged, minority, women and emerging small businesses
under ORS 200.055;
  (f) Investigate complaints and possible abuses of the
certification program; and
  (g) Assist in the promotion and coordination of plans, programs
and operations of state government that strengthen minority and
women participation in the economic life of this state.
  SECTION 45. ORS 200.055 is amended to read:
  200.055. (1) Any disadvantaged, minority, women or emerging
small business enterprise is entitled to be certified as such
upon application to the Oregon Business Development Department.
If the application is approved by the department, the department
shall certify the applicant as a disadvantaged, minority, women
or emerging small business enterprise. The enterprise shall be
considered so certified by any public contracting agency.
  (2) In consultation with the State Board of   { - Higher - }
Education and the Department of Transportation, and with the
approval of the Advocate for Minority, Women and Emerging Small
Business, the Oregon Business Development Department by rule
shall adopt a uniform standard form and procedure designed to
provide complete documentation that a business enterprise is
certified as a disadvantaged, minority, women or emerging small
business enterprise. The department shall compile and make
available upon request a list of certified disadvantaged,
minority, women or emerging small business enterprises.
  (3) Any business enterprise that is refused certification as a
disadvantaged business enterprise or denied recertification as
such or whose certification is revoked may appeal directly to the
United States Department of Transportation.
  (4) Any business enterprise that is refused certification as a
minority, women or emerging small business enterprise or has its
certification revoked may request a contested case hearing as
provided in ORS chapter 183.
  (5) The Oregon Business Development Department shall be the
sole agency authorized to certify enterprises as disadvantaged,
minority, women or emerging small business enterprises eligible
to perform on public contracts in this state.
  (6) The Oregon Business Development Department by rule may
establish a fee not to exceed $100 for a copy of the list of
certified disadvantaged, minority, women and emerging small
business enterprises and may assess state agencies for services
under ORS 200.005 to 200.075.
  (7) The Department of Transportation may collect a fee, not to
exceed $200, from a bidder upon bidder prequalifications to cover
the costs of the Oregon Business Development Department in
administering ORS 200.005 to 200.075. The Department of
Transportation shall transfer such fees to the credit of the
account established under subsection (8) of this section.
  (8) The Oregon Business Development Department shall establish
a special account in which to deposit fees and assessments. The
special account is continuously appropriated to the department to
meet its expenses in administering ORS 200.005 to 200.075.
  SECTION 46. ORS 238.200 is amended to read:
  238.200. (1)(a) An active member of the Public Employees
Retirement System shall contribute to the Public Employees
Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
  (b) Notwithstanding paragraph (a) of this subsection, an
employee who is an active member of the system on August 21,
1981, shall contribute to the fund and there shall be withheld
from salary of the member, as long as the employee continues to
be an active member of the system, four percent of that salary if
the salary for a month is less than $500, or five percent of that
salary if the salary for a month is $500 or more and less than
$1,000. Notwithstanding subsection (2) of this section, for the
purpose of computing the percentage of salary to be withheld
under this paragraph from a member who is an employee of a school
district or of the State Board of   { - Higher - }  Education
 { + in relation to 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 47. 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 under ORS 243.920 (1), shall not
contribute to the fund on any part of the annual salary of the
employee in excess of $4,800 at any time during which the State
Board of   { - Higher - } Education 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 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 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 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 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 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 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 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 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 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 48. ORS 243.107 is amended to read:
  243.107. A person employed by a public university listed in ORS
352.002 or the Oregon Health and Science University may be
considered an eligible employee for participation in one of the
group benefit plans described in ORS 243.135 if the State Board
of

  { - Higher - }  Education, 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 49. 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 shall establish and administer an
Optional Retirement Plan for administrative and academic
employees of the Oregon University System who are eligible for
membership in the Public Employees Retirement System. The
Optional Retirement Plan must be a qualified plan under the
Internal Revenue Code, capable of accepting funds transferred
under subsection (7) of this section without the transfer being
treated as a taxable event under the Internal Revenue Code, and
willing to accept those funds.  Retirement and death benefits
shall be provided under the plan by the purchase of annuity
contracts, fixed or variable or a combination thereof, or by
contracts for investments in mutual funds.
  (2) The State Board of   { - Higher - }  Education 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
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 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 under ORS 243.920 as long as those
employees are employed in the Oregon University System and the
plan is in effect.
  (6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
  (b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
  (c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
  (d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
  (e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership

of the employee in the individual account program upon making the
transfer.
  (f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be separated
from all service with participating public employers and with
employers who are treated as part of a participating public
employer's controlled group under the federal laws and rules
governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
  (7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
  (8) An employee participating in the Optional Retirement Plan
shall contribute monthly an amount equal to the percentage of the
employee's salary that the employee would otherwise have
contributed as an employee contribution to the Public Employees
Retirement System if the employee had not elected to participate
in the Optional Retirement Plan.
  (9) The State Board of   { - Higher - }  Education 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 50. 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 or an
education service district employing an individual who performs
services for an educational institution.
  SECTION 51. ORS 243.850 is amended to read:
  243.850. (1) An eligible football coach and the State Board of
 { - Higher - }  Education 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 will
contribute monthly an amount equal to the stated amount
determined under paragraph (a) of this subsection for the month
to a designated qualified football coaches plan. The amount
contributed by the employer shall not exceed the stated amount.
  (2) The amount by which an eligible football coach's salary or
wages is reduced by reason of the salary reduction or forgoing of
a salary increase authorized by subsection (1) of this section
shall continue to be included as regular compensation for the
purpose of computing the retirement, pension and Social Security
benefits earned by the coach, but that amount shall not be
considered current taxable income for the purpose of computing
federal and state income taxes withheld on behalf of that coach.
  (3) For the purposes of this section:
  (a) 'Eligible football coach' means a staff member of the
Oregon University System who primarily coaches football as a
full-time employee of a four-year university described in 26
U.S.C. 170(b)(1)(A)(ii).
  (b) 'Qualified football coaches plan' has the meaning given
that term in 29 U.S.C. 1002(37).
  SECTION 52. 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, and
for the Oregon Health and Science University means the Oregon
Health and Science University Board of Directors.
  (2) 'Employees' means the persons appointed or employed by or
under the authority of the board who hold academic rank as
determined by the board.
  (3) 'System' means the Public Employees Retirement System
established by ORS 238.600.
  SECTION 53. ORS 244.050, as amended by section 9, chapter 90,
Oregon Laws 2012, and section 12 of this 2013 Act, is amended to
read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
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) 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) - }   { + (I) + } Oregon Investment Council.
    { - (K) - }   { + (J) + } Land Conservation and Development
Commission.
    { - (L) - }   { + (K) + } Oregon Liquor Control Commission.
    { - (M) - }   { + (L) + } Oregon Short Term Fund Board.
    { - (N) - }   { + (M) + } State Marine Board.
    { - (O) - }   { + (N) + } Mass transit district boards.
    { - (P) - }   { + (O) + } Energy Facility Siting Council.
    { - (Q) - }   { + (P) + } Board of Commissioners of the Port
of Portland.
    { - (R) - }   { + (Q) + } Employment Relations Board.
    { - (S) - }   { + (R) + } Public Employees Retirement Board.
    { - (T) - }   { + (S) + } Oregon Racing Commission.
    { - (U) - }   { + (T) + } Oregon Transportation Commission.
    { - (V) - }   { + (U) + } Wage and Hour Commission.
    { - (W) - }   { + (V) + } Water Resources Commission.
    { - (X) - }   { + (W) + } Workers' Compensation Board.
    { - (Y) - }   { + (X) + } Oregon Facilities Authority.
    { - (Z) - }   { + (Y) + } Oregon State Lottery Commission.
    { - (AA) - }   { + (Z) + } Pacific Northwest Electric Power
and Conservation Planning Council.
    { - (BB) - }   { + (AA) + } Columbia River Gorge Commission.
    { - (CC) - }   { + (BB) + } Oregon Health and Science
University Board of Directors.
    { - (DD) - }   { + (CC) + } Capitol Planning Commission.
    { - (EE) Higher Education Coordinating Commission. - }
    { - (FF) - }   { + (DD) + } Oregon Growth Board.
  (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 54. ORS 244.050, as amended by sections 9 and 29,
chapter 90, Oregon Laws 2012, and section 13 of this 2013 Act, is
amended to read:
  244.050. (1) On or before April 15 of each year the following
persons shall file with the Oregon Government Ethics Commission a
verified statement of economic interest as required under this
chapter:
  (a) The Governor, Secretary of State, State Treasurer, Attorney
General, Commissioner of the Bureau of Labor and Industries,
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) 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) - }   { + (I) + } Oregon Investment Council.
    { - (K) - }   { + (J) + } Land Conservation and Development
Commission.
    { - (L) - }   { + (K) + } Oregon Liquor Control Commission.
    { - (M) - }   { + (L) + } Oregon Short Term Fund Board.
    { - (N) - }   { + (M) + } State Marine Board.
    { - (O) - }   { + (N) + } Mass transit district boards.
    { - (P) - }   { + (O) + } Energy Facility Siting Council.
    { - (Q) - }   { + (P) + } Board of Commissioners of the Port
of Portland.
    { - (R) - }   { + (Q) + } Employment Relations Board.
    { - (S) - }   { + (R) + } Public Employees Retirement Board.
    { - (T) - }   { + (S) + } Oregon Racing Commission.
    { - (U) - }   { + (T) + } Oregon Transportation Commission.
    { - (V) - }   { + (U) + } Wage and Hour Commission.
    { - (W) - }   { + (V) + } Water Resources Commission.
    { - (X) - }   { + (W) + } Workers' Compensation Board.
    { - (Y) - }   { + (X) + } Oregon Facilities Authority.
    { - (Z) - }   { + (Y) + } Oregon State Lottery Commission.
    { - (AA) - }   { + (Z) + } Pacific Northwest Electric Power
and Conservation Planning Council.
    { - (BB) - }   { + (AA) + } Columbia River Gorge Commission.
    { - (CC) - }   { + (BB) + } Oregon Health and Science
University Board of Directors.
    { - (DD) - }   { + (CC) + } Capitol Planning Commission.
    { - (EE) Higher Education Coordinating Commission. - }
  (q) The following officers of the State Treasurer:
  (A) Deputy State Treasurer.
  (B) Chief of staff for the office of the State Treasurer.
  (C) Director of the Investment Division.
  (r) Every member of the board of commissioners of a port
governed by ORS 777.005 to 777.725 or 777.915 to 777.953.
  (s) Every member of the board of directors of an authority
created under ORS 441.525 to 441.595.
  (2) By April 15 next after the date an appointment takes
effect, every appointed public official on a board or commission
listed in subsection (1) of this section shall file with the
Oregon Government Ethics Commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (3) By April 15 next after the filing deadline for the primary
election, each candidate described in subsection (1) of this
section shall file with the commission a statement of economic
interest as required under ORS 244.060, 244.070 and 244.090.
  (4) Within 30 days after the filing deadline for the general
election, each candidate described in subsection (1) of this
section who was not a candidate in the preceding primary
election, or who was nominated for public office described in
subsection (1) of this section at the preceding primary election
by write-in votes, shall file with the commission a statement of
economic interest as required under ORS 244.060, 244.070 and
244.090.
  (5) Subsections (1) to (4) of this section apply only to
persons who are incumbent, elected or appointed public officials
as of April 15 and to persons who are candidates on April 15.
Subsections (1) to (4) of this section also apply to persons who
do not become candidates until 30 days after the filing deadline
for the statewide general election.
  (6) If a statement required to be filed under this section has
not been received by the commission within five days after the
date the statement is due, the commission shall notify the public
official or candidate and give the public official or candidate
not less than 15 days to comply with the requirements of this
section. If the public official or candidate fails to comply by
the date set by the commission, the commission may impose a civil
penalty as provided in ORS 244.350.
  SECTION 55. ORS 273.573 is amended to read:
  273.573. (1) To aid and advise the State Parks and Recreation
Director in the performance of the functions related to the
Natural Areas Program, the director may establish a natural areas
advisory committee.
  (2) The advisory committee may assist the State Parks and
Recreation Department:
  (a) In the development of policy for the Natural Areas Program
through the review and approval of the Oregon Natural Areas Plan;
  (b) By reviewing nominations for registration and the voluntary
dedication of natural areas, and instruments of dedication for
such areas;
  (c) In providing recommendations to the State Parks and
Recreation Commission, State Land Board, State Board of Forestry,
State Fish and Wildlife Commission, State Board of
 { - Higher - } Education and Oregon Transportation Commission
regarding areas under their respective jurisdictions that are
appropriate for dedication; and
  (d) In advising the State Parks and Recreation Commission in
the adoption of rules that may be considered necessary in
carrying out ORS 273.563 to 273.591.
  (3) Members of the advisory committee are not entitled to
compensation, but in the discretion of the director may be
reimbursed from funds available to the department for actual and
necessary travel and other expenses incurred by them in the
performance of their official duties in the manner and amount
provided in ORS 292.495.
  SECTION 56. ORS 273.586 is amended to read:
  273.586. (1) A private individual or organization that is the
owner of any registered natural area may voluntarily agree to
dedicate that area as a state natural area by executing with the
State Parks and Recreation Department an instrument of
dedication.  The instrument of dedication shall be effective upon
its recording in the real property records of the office of the
clerk of the county in which any or all of the state natural area
is located.
  (2) Any public agency may dedicate lands under the provisions
of ORS 273.563 to 273.591 following the providing of opportunity
for adequate public notice and hearing by the agency. The Oregon
Transportation Commission, the State Fish and Wildlife
Commission, the State Board of Forestry, the State Board of
 { - Higher - } Education, the State Parks and Recreation
Commission and the State Land Board shall, with the advice and
assistance of the department, establish procedures for the
dedication of state natural areas on land, the title of which is
held by the State of Oregon, and which is under that agency's
management and control.
  (3) The instrument of dedication shall contain any information
or provisions as the private owner, organization or agency and
department consider necessary to complete the dedication.
  (4) Dedication of a state natural area may be terminated as
follows:
  (a) The dedication of a state natural area by a public agency
may be terminated following the providing of opportunity for
adequate public notice and hearing and a finding by that agency
of an imperative and unavoidable necessity, or a finding by that
agency, with the approval of the department, that the state
natural area is no longer needed according to the guidelines of
the Oregon Natural Areas Plan.
  (b) The dedication of a state natural area by a private
individual or organization may be terminated by the private
individual or organization after the department is assured that
there has been compliance with the procedures required by the
terms of the dedication instrument.
  (c) The dedication of a state natural area may be terminated by
the State Parks and Recreation Commission upon the advice of the
department if the area is no longer needed according to the
guidelines of the plan, or has permanently lost its natural
character.
  SECTION 57. 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 - }   { + within the Oregon University
System + } that are acquired or held for the state by the State
Board of   { - Higher - } Education pursuant to ORS chapters 351
and 567. In managing mineral or geothermal resource leases, the
State Board of   { - Higher - } Education shall consult with the
Department of State Lands in accordance with an interagency
agreement established by the department and the State Board of
 { - Higher - }  Education governing consultation between the
department and the State Board of
  { - Higher - }  Education and governing management of the
mineral or geothermal resources.
  (7) Mineral or geothermal resource rights or proceeds from
those rights acquired and held by the Department of
Transportation. In managing mineral or geothermal resource
leases, the Department of Transportation shall enter into an
intergovernmental agreement with the Department of State Lands
governing consultation between the departments and governing
management of the mineral or geothermal resources.
  SECTION 58. ORS 276.610 is amended to read:
  276.610. There is established a fund in the State Treasury to
be known as the State Building Fund which shall be used for the
construction, alteration and repair of buildings required for use
of institutions and activities under the jurisdiction of the
Department of Corrections, the Department of Human Services, the
Oregon Health Authority or the State Board of Education   { - and
the State Board of Higher Education - }  and for the furnishing
and equipping of buildings so constructed, altered or repaired.
  SECTION 59. ORS 276.612 is amended to read:

  276.612. The Department of Corrections, the Department of Human
Services, the Oregon Health Authority and the State Board of
Education each shall determine the buildings to be constructed,
altered, repaired, furnished and equipped for the use of
institutions and activities under their respective jurisdictions.
  { - The State Board of Higher Education shall determine the
buildings to be constructed, altered, repaired, furnished and
equipped for the use of public universities or offices,
departments or activities under its jurisdiction. - }
  SECTION 60. ORS 282.076 is amended to read:
  282.076. (1) An athletic department of any   { - university
under the jurisdiction of the State Board of Higher Education - }
 { + public university listed in ORS 352.002 + } shall not be
required to use state printing services controlled by the
Director of the Oregon Department of Administrative Services or
the designee of the director as required by ORS 282.020 (1).
  (2) A state agency that gives to the director prior written
notice of its intent to use other printing services shall not be
required to use state printing services controlled by the
director or the director's designee as required by ORS 282.020
(1), if the agency can demonstrate that these other printing
services provide better value in the form of lower prices or
better responsiveness than those services already provided by the
Oregon Department of Administrative Services.
  SECTION 61. 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, in
conjunction with the Oregon Department of Administrative
Services, shall establish by rule vehicle operation standards and
training to promote safe vehicular travel practices in the
conduct of all travel by employees, students and official
volunteers at all public universities in the Oregon University
System.
  SECTION 62. ORS 284.540 is amended to read:
  284.540. (1) There is established the Governor's Council on
Oregon's Economy.
  (2) The members of the council are:
  (a) The presiding officer of the Oregon Business Development
Commission;
  (b) The chairperson of the Oregon Transportation Commission;
  (c) The chairperson of the State Board of Agriculture;
    { - (d) The president of the State Board of Higher Education;
and - }

   { +  (d) The chairperson of the State Board of Education;
and + }
  (e) Other persons designated by the Governor.
  (3) The council shall meet quarterly to:
  (a) Discuss and coordinate the activities of each entity
described in subsection (2) of this section that relate to
economic development and improving the economy in Oregon; and
  (b) Discuss and recommend to the Legislative Assembly methods
for creating certainty for the development process.
   { +  NOTE: + } Section 63 was deleted. Subsequent sections
were not renumbered.
  SECTION 64. ORS 284.706, as amended by sections 21 and 31,
chapter 90, Oregon Laws 2012, is amended to read:
  284.706. (1) There is created the Oregon Innovation Council
consisting of the following voting members:
  (a) The Governor or the Governor's designated representative,
who shall be chairperson of the council.
  (b) Five members appointed by the Governor who are engaged in
the operations of Oregon traded sector industries or Oregon
growth businesses.
  (c) One member appointed by the Governor who is a
representative of an Oregon-based, generally accredited,
not-for-profit private institution of higher education.
  (d) A member of the Oregon Growth Account Board, appointed by
the board, who has experience in the field of venture capital.
  (e) A member of the Engineering and Technology Industry
Council, appointed by the Engineering and Technology Industry
Council.
  (f) The Director of the Oregon Business Development Department.
  (g) The Chancellor of the Oregon University System.
  (h) The Commissioner for Community College Services.
  (i) The State Treasurer.
  (2)(a) The Speaker of the House of Representatives shall
appoint two members to the council who are members of the House
of Representatives.
  (b) The President of the Senate shall appoint two members to
the council who are members of the Senate.
  (c) Members of the Legislative Assembly appointed to the
council are nonvoting members and may act in an advisory capacity
only.
  (3) The following persons, or their representatives, shall
serve as ex officio, nonvoting members of the council:
  (a) The presiding officer of the Oregon Business Development
Commission.
    { - (b) The president of the State Board of Higher
Education. - }
    { - (c) - }   { + (b) + } The chairperson of the State Board
of Education.
    { - (d) - }   { + (c) + } An executive officer of an
association representing Oregon-based, generally accredited,
not-for-profit private institutions of higher education,
appointed by the Governor.
  (4) The term of office of each appointed voting member of the
council is three years, but an appointed member serves at the
pleasure of the appointing authority. Before the expiration of
the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next
following. An appointed member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
remainder of the unexpired term.
  (5) A majority of the voting members of the council constitutes
a quorum for the transaction of business.
  (6) Official action by the council requires the approval of a
majority of the voting members of the council.

  (7) The council shall meet at least twice per fiscal year at a
place, day and time determined by the chairperson. The council
may also meet at other times and places specified by a call of
the chairperson or by written request of a majority of the voting
members of the council.
  (8) The council may adopt rules necessary for the operation of
the council.
  (9) The council may establish committees and delegate to the
committees duties as the council considers desirable.
  (10) The Oregon Business Development Department shall provide
staff support to the council.
  (11) Members of the council who are members of the Legislative
Assembly are entitled to compensation and expense reimbursement
as provided in ORS 171.072.
  (12) Members of the council who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are
public officers shall be paid out of funds appropriated to the
public agency that employs the member. Claims for compensation
and expenses of members of the council who are not public
officers shall be paid out of funds appropriated to the Oregon
Business Development Department for that purpose.
  (13) All agencies of state government, as defined in ORS
174.111, are directed to assist the council in the performance of
its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
  SECTION 65. ORS 284.711 is amended to read:
  284.711. (1) The Oregon Innovation Council shall provide advice
to the Governor, the Legislative Assembly, research institutions,
public agencies that provide economic development and the private
sector on issues related to:
  (a) Promoting agreements between research institutions and
private industry that increase technology transfer and the
commercialization of research;
  (b) Promoting investment in specialized research facilities and
signature research centers where Oregon has a distinct or
emerging advantage for creating new products and businesses;
  (c) Stimulating seed and start-up capital investment and
entrepreneurial capacity that will promote economic growth in
Oregon traded sector industries or Oregon growth businesses;
  (d) Developing the entrepreneurial and management capacity
critical to the competitiveness of Oregon traded sector
industries or Oregon growth businesses in rapidly growing global
markets;
  (e) Enhancing the international competitiveness of Oregon
traded sector industries or Oregon growth businesses; and
  (f) Identifying workforce issues for occupations critical to
the competitiveness of Oregon traded sector industries or Oregon
growth businesses, including but not limited to scientific,
engineering, information technology, business management and
innovation-based economic development occupations.
  (2) The Oregon Innovation Council shall advise the Engineering
and Technology Industry Council established in ORS 351.663 on how
to coordinate the Engineering and Technology Industry Council's
goals and policies with the state plan developed under ORS
284.715.
  (3) The council, the Oregon Business Development Commission,
the State Board of   { - Higher - }  Education and the office of
the State Treasurer shall coordinate policies and programs
related to the duties of the council.
  (4) Based on the state plan developed under ORS 284.715 and
subject to the approval of the Oregon Business Development
Department, the council may distribute moneys in the Oregon
Innovation Fund by grant or loan or pursuant to contracts with
research institutions, the private sector and public entities.
  (5) The council may assess and charge fees for making grants or
loans under ORS 284.742.
  SECTION 66. ORS 291.002 is amended to read:
  291.002. As used in ORS 291.001 to 291.034, 291.201 to 291.222,
291.232 to 291.260, 291.261, 291.307 and 291.990, unless the
context requires otherwise:
  (1) 'Classification of expenditures' means the major groups or
categories of expenditures for the purpose of budget-making and
accounting that are established as provided in ORS 291.206.
  (2) 'Dedicated fund' means a fund in the State Treasury, or a
separate account or fund in the General Fund in the State
Treasury, that by law is dedicated, appropriated or set aside for
a limited object or purpose, but 'dedicated fund' does not
include a revolving fund or a trust fund.
  (3) 'Department' means the Oregon Department of Administrative
Services.
  (4) 'Director' means the Director of the Oregon Department of
Administrative Services.
  (5) 'Legislatively adopted budget' means the budget enacted by
the Legislative Assembly during an odd-numbered year regular
session.
  (6) 'Legislatively approved budget' means the legislatively
adopted budget as modified by the Emergency Board meeting in an
interim period or by the Legislative Assembly meeting in special
session or in an even-numbered year regular session.
  (7) 'Revolving fund' means a fund in the State Treasury,
established by law, from which is paid the cost of goods or
services furnished to or by a state agency, and which is
replenished through charges made for such goods or services or
through transfers from other accounts or funds; and specifically
includes funds derived from receipts by the State Board of
  { - Higher - }  Education of tuition, fees, dormitory earnings,
student activity receipts and sales of products and services
incident to  { +  higher + } education functions.
  (8) 'State agency' or 'agency' means every state officer,
board, commission, department, institution, branch or agency of
the state government, whose costs are paid wholly or in part from
funds held in the State Treasury, except:
  (a) The Legislative Assembly, the courts and their officers and
committees;
  (b) The Public Defense Services Commission; and
  (c) The Secretary of State and the State Treasurer in the
performance of the duties of their constitutional offices.
  (9) 'State officer' means any elected or appointed state
officer, including members of boards and commissions, except the
members and officers of the Legislative Assembly, the courts, the
Secretary of State and the State Treasurer in the performance of
the duties of their constitutional offices and the members of the
Public Defense Services Commission.
  (10) 'Trust fund' means a fund in the State Treasury in which
designated persons or classes of persons have a vested beneficial
interest or equitable ownership, or which was created or
established by a gift, grant, contribution, devise or bequest
that limits the use of the fund to designated objects or
purposes.
  SECTION 67. 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  { + in relation to higher education
functions + } or  { + to + } any public university listed in ORS
352.002.
  (9) As used in this section:
  (a) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  (b) 'Information technology' includes, but is not limited to,
present and future forms of hardware, software and services for
data processing, office automation and telecommunications.
  (c) 'Internet access service' means electronic connectivity to
the Internet and the services of the Internet.
  (d) 'Open systems' means systems that allow state agencies
freedom of choice by providing a vendor-neutral operating
environment where different computers, applications, system
software and networks operate together easily and reliably.
  (e) 'State-of-the-art services' includes equipment, facilities
and the capability to distribute digital communication signals
that transmit voice, data, video and images over a distance.
  (f) 'Telecommunications' means hardware, software and services
for transmitting voice, data, video and images over a distance.

  (g) 'Statewide integrated videoconferencing' means a statewide
electronic system capable of transmitting video, voice and data
communications.
  (h) 'Statewide online access' means electronic connectivity to
information resources such as computer conferencing, electronic
mail, databases and Internet access.
  SECTION 68. 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  { + for higher education + } and the
public universities listed in ORS 352.002.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.
  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Department of
Consumer and Business Services pursuant to ORS 731.804 or fees
charged by the Division of Finance and Corporate Securities of
the Department of Consumer and Business Services to banks, trusts
and credit unions pursuant to ORS 706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget or the legislatively approved budget for the
agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 69. ORS 291.445 is amended to read:
  291.445. (1) Before July 1 of each fiscal year, the Oregon
Department of Administrative Services shall request from the
appropriate state agency a certificate as prescribed in this
section. The request shall be made by letter to the agency.
  (2) Each state agency authorized to issue general obligation
bonds that are ordinarily to be repaid from other than General
Fund appropriations shall, on or before August 15 of each fiscal
year:
  (a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year to the bond program debt
service fund to pay bond principal and interest that has accrued
or will accrue during the current year are sufficient and will be
sufficient to pay bond program principal and interest scheduled
for payment during the current year; or
  (b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year to the bond program debt
service fund will not be sufficient to pay bond program principal
and interest scheduled for payment during the current year. A
certificate issued under this paragraph shall specify the amount
of the anticipated current year deficit. The Director of the
Oregon Department of Administrative Services shall review and
confirm the correctness of each certification made under this
paragraph.
  (3) On or before August 15 of each fiscal year, the
administrative division of the Oregon Department of
Administrative Services that has primary responsibility for
accounting for each general obligation bond program in which the
bond principal and interest is ordinarily to be repaid from
General Fund appropriations shall:
  (a) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year from General Fund
appropriations to defray program bond principal and interest that
has accrued or will accrue during the current year are sufficient
and will be sufficient to pay program bond principal and interest
scheduled for payment during the current year; or
  (b) Certify to the Director of the Oregon Department of
Administrative Services that the amounts available or that will
become available during the current year from General Fund
appropriations will not be sufficient to pay program bond
principal and interest scheduled for payment during the current
year. A certificate issued under this paragraph shall specify the
amount of the anticipated current year deficit.
  (4)(a) If a deficit in funds available to pay principal and
interest in any general obligation bond program is certified and
confirmed under subsection (2) or certified under subsection (3)
of this section, the amount of the deficit, together with any
deficit that is certified for any other general obligation bond
program shall upon certification constitute a state tax levy on
property that shall be apportioned among and charged to the
several counties in that proportion which the total assessed
value of all the taxable property in each county bears to the
total assessed value of all the taxable property of the state as
equalized.
  (b) If any agency fails to make the certification under
subsection (2) or (3) of this section with respect to any general
obligation bond fund program, the Oregon Department of
Administrative Services shall determine the amount of revenue and
other funds that are available and the amount of taxes, if any,
that should be levied in addition to the revenues and funds, to
pay bond principal and interest under the program for the fiscal
year in question. The additional amount so determined shall
thereupon constitute a state tax levy on property that shall be
apportioned, certified, collected and distributed as if
determined and certified as a deficit by the agency. The Oregon
Department of Administrative Services shall charge the agency for
cost recovery for time spent on that agency's behalf.
  (5) Immediately after the department has determined the amount
of a state tax levy on property in accordance with subsection (4)
of this section, a certificate of levy, signed by the director of
the department, shall be filed in the office of the department.
If no state levy is required for the fiscal or tax year, a
certificate so stating and signed by the director shall be filed
in the office of the department.
  (6) If, for any reason, after the close of any regular session
of the Legislative Assembly, it becomes necessary to reduce
General Fund appropriations, General Fund appropriations for a
debt service fund of a general obligation bond program described
under subsection (3) of this section may not be reduced.
  (7) For purposes of this section:
  (a) State agencies that are authorized to issue general
obligation bonds ordinarily to be repaid from other than General
Fund appropriations include but are not limited to:
  (A) The Director of Veterans' Affairs, as authorized by Article
XI-A of the Oregon Constitution and ORS chapter 407 (veterans
loans).
  (B) The State Board of   { - Higher - }  Education, as
authorized by Article XI-F(1) of the Oregon Constitution and ORS
351.350 (building projects).
  (C) The Department of Environmental Quality, as authorized by
Article XI-H of the Oregon Constitution and ORS 468.195 to
468.260 (pollution control).
  (D) The Water Resources Commission and the Water Resources
Director, as authorized by Article XI-I(1) of the Oregon
Constitution and ORS 541.700 to 541.855 (water development).

  (E) The Housing and Community Services Department, as
authorized by Article XI-I(2) of the Oregon Constitution and ORS
456.515 to 456.725 and 458.505 to 458.515 (housing).
  (F) The Director of the State Department of Energy, as
authorized by Article XI-J of the Oregon Constitution and ORS
470.220 to 470.290 (small scale energy projects).
  (G) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of
this subsection.
  (b) Each agency authorized to issue general obligation bonds
that are ordinarily to be repaid from other than General Fund
appropriations shall determine the amount of revenues or other
funds that are available and the amount of taxes, if any, that
should be levied for the ensuing year in the manner required
under rules adopted by the Oregon Department of Administrative
Services and make the certification required under subsection (2)
of this section.
  (8)(a) State agencies that are authorized to issue general
obligation bonds that are ordinarily to be repaid from General
Fund appropriations include but are not limited to:
  (A) The State Board of Forestry and the State Forester, as
authorized by Article XI-E of the Oregon Constitution and ORS
530.210 to 530.280 (state reforestation).
  (B) The State Board of   { - Higher - }  Education, as
authorized by Article XI-G of the Oregon Constitution and ORS
351.345 (higher education and community colleges).
  (C) Other agencies as required by the Oregon Department of
Administrative Services by rule adopted using the criterion of
this subsection.
  (b) Each agency authorized to issue general obligation bonds
ordinarily to be repaid from General Fund appropriations shall
furnish any data required by the Oregon Department of
Administrative Services to determine the amount of revenues or
other funds that are available and the amount of taxes, if any,
that should be levied for the ensuing year and the administrative
division of the Oregon Department of Administrative Services that
has primary responsibility for accounting shall make the
determination for purposes of the making of the certification
required under subsection (3) of this section.
  SECTION 70. 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.
  (b) 'Salary and wages' has the meaning given that term in ORS
292.014.
  (2) Any state official authorized to disburse funds in payment
of salaries or wages of the officers and employees of a state
agency, or of the officers, teachers, instructors and other
employees of the Oregon University System, is authorized, upon
written request of the individual, to deduct each month from the
salary or wages of the individual the amount of money designated
by the individual for payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency or the State Board of
 { - Higher - } Education, 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 71. ORS 292.044 is amended to read:
  292.044. (1) As used in this section:
  (a) 'Employee' means officers, faculty, teachers, instructors
and other employees of the Oregon University System as described
in ORS 352.002.
  (b) 'Nonprofit organization' means an organization described in
section 501(c)(3) of the Internal Revenue Code that is exempt
from income tax under section 501(a) of the Internal Revenue
Code.
  (2) The Chancellor of the Oregon University System or a
designee of the chancellor may approve a written request made by
a public university or office, department or activity   { - under
the jurisdiction of the State Board of Higher Education - }  { +
within the Oregon University System + }, 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.
  (3) Upon written approval of the chancellor or of a designee of
the chancellor and a written request of an employee of the public
university or office, department or activity to which the
approval applies, the state official within the Oregon University
System authorized to disburse funds in payment of salaries or
wages shall deduct from the salary or wages of the employee the
amount of money designated by the employee for payment to the
nonprofit organization.
  (4) The moneys deducted from the salaries or wages under
subsection (3) of this section shall be paid over promptly to the
nonprofit organization.
  (5) The Chancellor of the Oregon University System or a
designee of the chancellor shall prescribe procedures for
determining whether an organization qualifies as a nonprofit
organization under this section.
  SECTION 72. ORS 293.790 is amended to read:
  293.790. (1) Under authority of section 6, Article XI of the
Oregon Constitution, the state, subject to subsection (2) of this
section, may hold and dispose of the stock of any company,
association or corporation, including stock already received,
that is donated or bequeathed and the state, acting by and
through the State Board of   { - Higher - }  Education, subject
to subsection (2) of this section, may invest and reinvest in the
stock of any company, association or corporation, any funds or
moneys of the State Board of   { - Higher - }  Education that:
  (a) Are or have been donated or bequeathed for higher education
purposes;
  (b) Are the proceeds from the disposition of stock that is
donated or bequeathed for higher education purposes, including
stock already received; or
  (c) Are dividends paid with respect to stock that is donated or
bequeathed for higher education purposes, including stock already
received.
  (2) The state, including any of its agencies having control of,
or authority to invest and reinvest in, any stock described in
subsection (1) of this section, in holding, disposing of or
investing and reinvesting in such stock, shall be governed by ORS
130.750 to 130.775, notwithstanding the date of acquisition of
such stock. Moneys received from the disposition of such stock,
including dividends, shall be maintained separate and distinct
from the General Fund, and those moneys, including interest
earned thereon, are appropriated continuously for the purposes of
the donation or bequest and of the investments and reinvestments
authorized by subsection (1) of this section and by ORS 351.130.
Except as specifically authorized by law, the state or any of its
agencies may not purchase stock.
  (3)(a) This section does not apply to investment and
reinvestment of moneys in the Public Employees Retirement Fund,
the Industrial Accident Fund, the Deferred Compensation Fund and
the Education Stability Fund or to acquisition, retention,
management and disposition of investments of those funds as
provided in ORS 293.701 to 293.820.
  (b) This section does not apply to investment or reinvestment
of moneys or stock resulting from the holding and disposing of
stock by the state as allowed under section 6 (2), Article XI of
the Oregon Constitution.
  SECTION 73. ORS 293.812 is amended to read:
  293.812. As used in ORS 293.811 to 293.817:
  (1) 'Company' means any sole proprietorship, organization,
firm, association, corporation, utility, partnership, venture,
public franchise, franchisor, franchisee or its wholly owned
subsidiary that exists for profit-making purposes or otherwise to
secure economic advantage.
  (2) 'Doing business' means maintaining equipment, facilities,
personnel or any other apparatus of business or commerce in
Sudan, including the ownership or possession of real or personal
property located in Sudan.
  (3) 'Investment' or 'invest' means the commitment of funds or
other assets to a company, including a loan or other extension of
credit made to that company, or the ownership or control of a
share or interest in that company or of a bond or other debt
instrument issued by that company.
  (4) 'Subject investment funds' means:
  (a) The Public Employees Retirement Fund referred to in ORS
238.660;
  (b) The Industrial Accident Fund referred to in ORS 656.632;
  (c) The Common School Fund referred to in ORS 327.405;
  (d) The Oregon War Veterans' Fund referred to in ORS 407.495;
and
  (e) Investment funds of the State Board of   { - Higher - }
Education available for investment or reinvestment by the Oregon
Investment Council.
  (5) 'Sudan' means the Republic of the Sudan and any territory
under the administration, legal or illegal, of Sudan, including
but not limited to the Darfur region.
  SECTION 74. ORS 294.311 is amended to read:
  294.311. As used in ORS 294.305 to 294.565, unless the context
requires otherwise:
  (1) 'Accrual basis' means the recording of the financial
effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the
municipal corporation in the periods in which those transactions,
events and circumstances occur, rather than only in the periods
in which cash is received or paid by the municipal corporation.
  (2) 'Activity' means a specific and distinguishable service
performed by one or more organizational components of a municipal
corporation to accomplish a function for which the municipal
corporation is responsible.
  (3) 'Appropriation' means an authorization granted by the
governing body to make expenditures and to incur obligations for
specific purposes. An appropriation is limited to a single fiscal
year for municipal corporations preparing annual budgets, or to
the budget period for municipal corporations preparing biennial
budgets.
  (4) 'Basis of accounting' means the cash basis, the modified
accrual basis or the accrual basis.
  (5) 'Budget' means a plan of financial operation embodying an
estimate of expenditures for a given period or purpose and the
proposed means of financing the estimated expenditures.
  (6) 'Budget document' means the estimates of expenditures and
budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
  (7) 'Budget period' means, for municipal corporations with the
power to levy a tax upon property, the two-year period commencing
on July 1 and closing on June 30 of the second calendar year next
following, and for all other municipal corporations, an
accounting period of 24 months ending on the last day of any
month.
  (8) 'Budget resources' means resources to which recourse can be
had to meet obligations and expenditures during the fiscal year
or budget period covered by the budget.
  (9) 'Cash basis' means a basis of accounting under which
transactions are recognized only in the period during which cash
is received or disbursed.
  (10) 'Current budget period' means the budget period in
progress.
  (11) 'Current year' means the fiscal year in progress.
  (12) 'Encumbrance accounting' means the method of accounting
under which outstanding encumbrances are recognized as reductions
of appropriations and the related commitments are carried in a
reserve for encumbrances until liquidated, either by replacement
with an actual liability or by cancellation. This method of
accounting may be used as a modification to the accrual basis of
accounting in accordance with generally accepted accounting
principles.
  (13) 'Encumbrances' means obligations in the form of purchase
orders, contracts or salary commitments which are chargeable to
an appropriation and for which a part of the appropriation is
reserved. Obligations cease to be encumbrances when paid or when
the actual liability is set up.
  (14) 'Ensuing budget period' means the budget period following
the current budget period.
  (15) 'Ensuing year' means the fiscal year following the current
year.
  (16) 'Expenditure' means, if the accounts are kept on the
accrual basis or the modified accrual basis, decreases in net
financial resources and may include encumbrances. If the accounts
are kept on the cash basis, the term covers only actual
disbursement, the drawing of the check or warrant for these
purposes and not encumbrances, except that deferred employee
compensation shall be included as a personnel service expenditure
where an approved deferred employee compensation plan is in
effect for a municipal corporation.
  (17) 'Fiscal year' means for municipal corporations with the
power to impose ad valorem property taxes, the fiscal year
commencing on July 1 and closing on June 30, and for all other
municipal corporations, an accounting period of 12 months ending
on the last day of any month.
  (18) 'Fund balance' means the excess of the assets of a fund
over its liabilities and reserves except in the case of funds
subject to budgetary accounting where, prior to the end of a
fiscal period, it represents the excess of the fund's assets and
estimated revenues for the period over its liabilities, reserves
and appropriations for the period.
  (19) 'General county resources' means resources from property
taxes, state and federal shared revenue, beginning balances
available for expenditure and interest not required to be
allocated to specific programs or activities.
  (20) 'Governing body' means the city council, board of
commissioners, board of directors, county court or other managing
board of a municipal corporation including a board managing a
municipally owned public utility or a dock commission.
  (21) 'Grant' means a donation or contribution of cash to a
governmental unit by a third party.
  (22) 'Intergovernmental entity' means an entity created under
ORS 190.010 (5). The term includes any council of governments
created prior to the enactment of ORS 190.010 (5).
  (23) 'Internal service fund' means a fund properly authorized
to finance, on a cost reimbursement basis, goods or services
provided by one organizational unit of a municipal corporation to
other organizational units of the municipal corporation.
  (24) 'Liabilities' means probable future sacrifices of economic
benefits, arising from present obligations of a municipal
corporation to transfer assets or provide services to other
entities in the future as a result of past transactions or
events.  The term does not include encumbrances.
  (25)(a) 'Modified accrual basis' means the accrual basis of
accounting adapted to the governmental fund-type measurement
focus. Under this basis of accounting, revenues and other
financial resource increments, such as bond proceeds, are
recognized when they become susceptible to accrual, that is, when
they become both measurable and available to finance expenditures
in the current period.
  (b) As used in this subsection, 'available' means collectible
in the current period or soon enough thereafter to be used to pay
liabilities of the current period. Under this basis of
accounting, expenditures are recognized when the fund liability
is incurred except for:
  (A) Inventories of material and supplies that may be considered
expenditures either when purchased or when used; and
  (B) Prepaid insurance and similar items that may be considered
expenditures either when paid for or when consumed.
  (26) 'Municipal corporation' means any county, city, port,
school district, union high school district, community college
district and all other public or quasi-public corporations
including a municipal utility or dock commission operated by a
separate board or commission. 'Municipal corporation' includes an
intergovernmental entity or council of governments that proposes
to impose or imposes ad valorem property taxes.
  (27) 'Net working capital' means the sum of the cash, cash
equivalents, investments, accounts receivable expected to be
converted to cash during the ensuing year or ensuing budget
period, inventories, supplies and prepaid expenses less current
liabilities and, if encumbrance accounting is adopted, reserve
for encumbrances. The term is not applicable to the cash basis of
accounting.
  (28) 'Object' means, as used in expenditure classification,
articles purchased including, but not limited to, land,
buildings, equipment and vehicles, or services obtained
including, but not limited to, administrative services, clerical
services, professional services, property services and travel, as
distinguished from the results obtained from expenditures.
  (29) 'Object classification' means a grouping of expenditures
on the basis of goods or services purchased, including, but not
limited to, personnel services, materials, supplies and
equipment.
  (30) 'Operating taxes' has the meaning given that term in ORS
310.055.
  (31) 'Organizational unit' means any administrative subdivision
of a municipal corporation, especially one charged with carrying
on one or more functions or activities.
  (32) 'Population' means the number of inhabitants of a
municipal corporation according to certified estimates of
population made by the State Board of   { - Higher - }
Education.
  (33) 'Program' means a group of related activities aimed at
accomplishing a major service or function for which the
municipality is responsible.
  (34) 'Public utility' means those public utility operations
authorized by ORS chapter 225.
  (35) 'Publish' or 'publication' means any one or more of the
following methods of giving notice or making information or
documents available to members of the general public:
  (a) Publication in one or more newspapers of general
circulation within the jurisdictional boundaries of the municipal
corporation.

  (b) Posting through the United States Postal Service by first
class mail, postage prepaid, to each street address within the
jurisdictional boundaries of the municipal corporation and to
each post office box and rural route number belonging to a
resident within the jurisdictional boundaries of the municipal
corporation.
  (c) Hand delivery to each street address within the
jurisdictional boundaries of the municipal corporation.
  (36) 'Receipts' means cash received unless otherwise qualified.
  (37) 'Reserve for encumbrances' means a reserve representing
the segregation of a portion of a fund balance to provide for
unliquidated encumbrances.
  (38) 'Revenue' means the gross receipts and receivables of a
governmental unit derived from taxes, licenses, fees and from all
other sources, but excluding appropriations, allotments and
return of principal from investment of surplus funds.
  (39) 'Special revenue fund' means a fund properly authorized
and used to finance particular activities from the receipts of
specific taxes or other revenues.
  SECTION 75. ORS 320.100 is amended to read:
  320.100. (1) All moneys received from the taxes imposed under
ORS 320.011 and 320.012, including penalties, shall be paid by
the Department of Revenue in the following manner:
  (a) Seventy-five percent (75%) of the moneys shall be credited,
appropriated or remitted as follows:
  (A) Forty-three and two-tenths percent (43.2%) thereof shall be
credited to the General Fund to be available for payment of
general governmental expenses.
  (B) Nine and seven-tenths percent (9.7%) is continuously
appropriated to pay the expenses of state and local programs of
the Oregon Youth Conservation Corps established under ORS 418.650
to 418.663.
  (C) Forty-seven and one-tenth percent (47.1%) thereof shall be
remitted to the county treasurers of the several counties of the
state. Each county shall receive such share of the moneys as its
population, determined by the State Board of   { - Higher - }
Education, bears to the total population of the counties of the
state, as determined by the census last preceding such
apportionment.
  (b) Twenty-five percent (25%) of the moneys shall be
continuously appropriated to pay the expenses of the state and
local programs of the Oregon Youth Conservation Corps established
under ORS 418.650 to 418.663.
  (2) All revenues received under this section by the treasurers
of the several counties shall be placed in the general fund of
each county to be expended by the county courts or the board of
county commissioners of the several counties for general
governmental expenses.
  SECTION 76. ORS 321.185 is amended to read:
  321.185. (1) There hereby is established in the State Treasury
in the General Fund an account to be known as the Forest Research
and Experiment Account, which account hereby is appropriated
continuously to the State Board of   { - Higher - }  Education
for the purposes of ORS 526.215 and 526.225.
  (2) The Forest Research and Experiment Account shall consist of
allocations from harvest taxes as provided in ORS 321.015 (1).
  SECTION 77. ORS 329.489 is amended to read:
  329.489. (1) Within the State of Oregon's kindergarten through
grade 12 education system, proficiency for students in American
Sign Language shall be in accordance with rules adopted by the
State Board of Education pursuant to ORS chapter 329 and any
other applicable state or federal law.
  (2) The State Board of Education is encouraged to continue to:
  (a) Coordinate with   { - the State Board of Higher Education
and - } the Oregon School for the Deaf to develop curricula for
American Sign Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and
  (c) Assist public high schools in identifying local and
regional needs and resources available for American Sign Language
courses.
  SECTION 78. ORS 337.521 is amended to read:
  337.521. (1) The State Board of   { - Higher - }  Education may
work with publishers, recognized national organizations of
publishers, representatives of post-secondary education
institutions, the system described in ORS 192.517 and other
interested parties to:
  (a) Develop unified, statewide guidelines consistent with ORS
337.511 to 337.524;
  (b) Administer ORS 337.511 to 337.524; and
  (c) Review guidelines annually and revise the guidelines as
necessary due to changes in technology or other changes.
  (2) The guidelines may address the following:
  (a) The procedures and standards relating to the distribution
of files and materials pursuant to ORS 337.511 to 337.524;
  (b) Available electronic formats;
  (c) Procedures for granting exceptions when it is determined
that a publisher is not able to comply with the requirements of
ORS 337.511 to 337.524 due to technical, economic or other
practical impediments; and
  (d) Other matters deemed necessary or appropriate to carry out
the purposes of ORS 337.511 to 337.524.
  (3) The State Board of   { - Higher - }  Education shall review
the recommendations, published on or after July 1, 2007, of the
Association of American Publishers' Alternative Formats Solutions
Initiative, and determine whether the recommendations should be
incorporated into ORS 337.511 to 337.524.
  SECTION 79. ORS 342.147 is amended to read:
  342.147. (1) After considering recommendations of the State
Board of Education, the Teacher Standards and Practices
Commission shall establish by rule standards for approval of
teacher education institutions and teacher education programs.
Public teacher education institutions shall be approved for
programs of more than four years' duration only if teacher
education programs which are reasonably attainable in a four-year
period are also available in the system of higher education and
are designed to culminate in a baccalaureate degree that
qualifies its graduates for entry-level teaching licenses.
  (2) The commission shall establish rules that allow teacher
education programs leading to graduate degrees to commence prior
to the student's completion of baccalaureate degree requirements
and that allow the combined use of undergraduate and graduate
level course work in achieving program completion.
  (3) Whenever any teacher education institution or program is
denied approved status or has such status withdrawn, such denial
or withdrawal must be treated as a contested case within the
meaning of ORS chapter 183.
  (4) Nothing in this section is intended to grant any authority
to the commission relating to granting degrees or establishing
degree requirements that are within the authority of the State
Board of   { - Higher - }  Education  { + in relation to higher
education + } or any of the public universities listed in ORS
352.002, or that are within the authority of the governing board
of any private institution of higher education.
  SECTION 80. ORS 342.447 is amended to read:
  342.447. (1) The State Board of   { - Higher - }  Education
shall require each public teacher education program in this state
to prepare a plan with specific goals, strategies and deadlines
for the recruitment, admission, retention and graduation of
minority teachers.

  (2) The   { - state - }  board shall review the plans for the
adequacy and feasibility of the plans and, after making necessary
revisions, shall adopt the plans.
  (3) The   { - state - }  board shall adopt rules governing:
  (a) The contents of the plans;
  (b) The   { - state - }  board's initial and biennial review
process, including timetables for revising plans; and
  (c) Other matters necessary for carrying out the provisions of
ORS 342.433 to 342.449 and 351.077.
  SECTION 81. ORS 343.961 is amended to read:
  343.961. (1) As used in this section:
  (a) 'Day treatment program' means a public or private program
that provides treatment of children with a mental illness, an
emotional disturbance or another mental health issue.
  (b) 'Eligible day treatment program' means a day treatment
program with which the Oregon Health Authority contracts for long
term care or treatment. 'Eligible day treatment program' does not
include residential treatment programs or programs that provide
care or treatment to juveniles who are in detention facilities.
  (c) 'Eligible residential treatment program' means a
residential treatment program with which the Oregon Health
Authority, the Department of Human Services or the Oregon Youth
Authority contracts for long term care or treatment. 'Eligible
residential treatment program' does not include psychiatric day
treatment programs or programs that provide care or treatment to
juveniles who are in detention facilities.
  (d) 'Residential treatment program' means a public or private
residential program that provides treatment of children with a
mental illness, an emotional disturbance or another mental health
issue.
  (e) 'Student' means a child who is placed in an eligible day
treatment program or eligible residential treatment program by a
public or private entity or by the child's parent.
  (2) The Department of Education shall be responsible for
payment of the costs of education of students in eligible day
treatment programs and eligible residential treatment programs by
contracting with the school district in which the eligible day
treatment program or eligible residential treatment program is
located. The costs of education do not include transportation,
care, treatment or medical expenses.
  (3)(a) The school district in which an eligible day treatment
program or eligible residential treatment program is located is
responsible for providing the education of a student, including
the identification, location and evaluation of the student for
the purpose of determining the student's eligibility to receive
special education and related services.
  (b) A school district that is responsible for providing an
education under this subsection may provide the education:
  (A) Directly or through another school district or an education
service district; and
  (B) In the facilities of an eligible day treatment program or
eligible residential treatment program, the facilities of a
school district or the facilities of an education service
district.
  (c) When a student is no longer in an eligible day treatment
program or eligible residential treatment program, the
responsibilities imposed by this subsection terminate and become
the responsibilities of the school district where the student is
a resident, as determined under ORS 339.133 and 339.134.
  (4) A school district may request the Department of Education
to combine several eligible day treatment programs or eligible
residential treatment programs into one contract with another
school district or an education service district.
  (5) The Oregon Health Authority, the Department of Human
Services or the Oregon Youth Authority shall give the school
district providing the education at an eligible day treatment
program or an eligible residential treatment program 14 days'
notice, to the extent practicable, before a student is dismissed
from the program.
  (6) The Department of Education may make advances to school
districts responsible for providing an education to students
under this section from funds appropriated for that purpose based
on the estimated agreed cost of educating the students per school
year.  Advances equal to 25 percent of the estimated cost may be
made on September 1, December 1 and March 1 of the current year.
The balance may be paid whenever the full determination of cost
is made.
  (7) School districts that provide the education described in
this section on a year-round plan may apply for 25 percent of the
funds appropriated for that purpose on July 1, October 1, January
1, and 15 percent on April 1. The balance may be paid whenever
the full determination of cost is made.
  (8) In addition to the payment methods described in this
section, the Department of Education may:
  (a)   { - Negotiate interagency agreements to - }  Pay for the
cost of education in day treatment programs and residential
treatment programs operated   { - under the auspices of the State
Board of Higher Education - }  { +  by a public university listed
in ORS 352.002 + }; and
  (b) Negotiate intergovernmental agreements to pay for the cost
of education in day treatment programs and residential treatment
programs operated under the auspices of the Oregon Health and
Science University Board of Directors.
  SECTION 82. 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 - }  { +  listed in ORS 352.002 + }.
  (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) - }   { + (b) + } Community college districts.
    { - (d) - }   { + (c) + } Independent colleges.
    { - (e) - }   { + (d) + } Proprietary schools.
  (3) In the event the affected parties fail to reach a written
agreement within 120 days following receipt of written notice of
the allegation, either party may request the Education and
Workforce Policy Advisor to review and to recommend resolution.
  (4) Nothing in this section prohibits the offering of upper
division or graduate programs within 30 miles of the campus of
the Oregon University System university offering the program, or
the offering of lower division programs within 30 miles of the
campus offering the program in areas outside a community college
district. Such programs are entitled to the same college credit
and financial support as programs offered on the campus of the
university.
  SECTION 83. 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 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 84. 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 - }  { +  listed
in ORS 352.002 + }, the average cost of education of attending a
public university   { - under the direction of the board - }
 { +  listed in ORS 352.002 + };
  (c) For a student attending a two-year Oregon-based, generally
accredited, not-for-profit institution of higher education, the
average cost of education of attending a community college in
this state; and
  (d) For a student attending the Oregon Health and Science
University or a four-year Oregon-based, generally accredited,
not-for-profit institution of higher education, the average cost
of education of attending an institution   { - under the
direction of the board - }  { +  listed in ORS 352.002 + }.
  (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 85. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student Access Commission may award scholarships
at Eastern Oregon University to resident undergraduate students
applying for enrollment in the university or who are pursuing
courses therein. The number of students who receive scholarships
under this subsection may not exceed two and one-half percent of
the number of students who are enrolled at the university. The
scholarships shall be awarded upon the basis of a record of high
intellectual standing and deportment in the school or institution
where the applicant has received or is receiving preparatory
training, the necessity for financial assistance and other
qualifications of such nature that the awarding of scholarships
will operate not only to the advantage of the applicant but to
the people of Oregon. A scholarship awarded under this subsection
may not exceed in value the amount of the tuition and other fees,
including the fees that are levied against the recipient of the
scholarship by the State Board of   { - Higher - } Education at
the university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
public universities listed in ORS 352.002. A student may not
receive a scholarship under this subsection that exceeds the
amount of tuition and fees owed by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the Oregon University System by students
enrolled in public universities listed in ORS 352.002 who were
not Oregon residents.
  SECTION 86. 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 - }  { +  listed in ORS 352.002 + };
and
  (b) A community college operated under ORS chapter 341.
  (3) 'Veteran' has the meaning given that term in ORS 408.225.
  SECTION 87. ORS 348.603 is amended to read:
  348.603. (1) The   { - Higher Education Coordinating
Commission - }  { + Department of Education + } shall:
  (a) Authorize approved schools to offer academic degree
programs;
  (b) Authorize approved degree-granting schools to offer
nondegree programs leading to a certificate or diploma;
  (c) Validate claims of degree possession;
  (d) Terminate substandard or fraudulent degree activities;
  (e) Terminate activities of diploma mills operating in or from
Oregon;
  (f) Except as provided in subsection (4) of this section,
terminate the operation in or from Oregon of post-secondary
accrediting bodies that are not recognized by the United States
Department of Education or by the   { - commission - }  { +
Department of Education + }; and
  (g) Review proposed new publicly funded post-secondary programs
and locations.
  (2)(a) Following review of a proposed new publicly funded
post-secondary program or location that is not a career pathways
certificate of completion program described in ORS 348.611, the
  { - commission - }   { + Department of Education  + }shall
recommend resolution to the appropriate governing boards and
mediate between the boards to seek a negotiated resolution if:
  (A) There is a detrimental duplication of programs; or
  (B) The program or location would have a significantly adverse
impact on one or more other segments of education.
  (b) If the boards do not resolve the issue raised under
paragraph (a) of this subsection within 90 days of the date when
the issue was recommended to the boards for mediation, the
  { - commission - }   { + Department of Education + } shall have
final authority for approval or disapproval of the program or
location. If the boards do not resolve the issue, the
 { - commission - }   { + Department of Education + } shall
approve or disapprove the program or location within 180 days of
the date when the review began.
  (c) If the boards do not resolve the issue, the
 { - commission - }  { +  Department of Education + } shall
approve the program or location if the   { - commission - }
 { + department  + }finds that the program or location meets an
unmet workforce need in the state.
  (d) The   { - commission - }   { + State Board of Education + }
shall establish by rule a fair and neutral decision-making
process in consultation with representatives designated by
 { - the State Board of Education, the State Board of Higher
Education, - }  associations representing Oregon independent
colleges, associations representing Oregon career colleges, and
the governing boards of otherwise unrepresented post-secondary
schools.
  (3) The   { - commission - }  { +  State Board of
Education + }, by rule, may impose a fee on any school or person
requesting information from the   { - commission - }  { +
Department of Education + }. The amount of the fee shall be
established to recover designated expenses incurred by the
 { - commission - }   { + Department of Education + } in carrying
out the administration of ORS 348.594 to 348.615. Any fees
collected under this subsection shall be deposited in the Degree
Authorization Account established under ORS 348.601.
  (4) Subsection (1)(f) of this section does not apply to a body
the role of which is to accredit schools that offer only
associate, bachelor's or master's degrees with titles in theology
or religious occupations or, if the schools also offer doctoral
degrees, offer doctoral degrees only in theology or religious
occupations that have been approved by a federally recognized
accrediting organization.
  SECTION 88. ORS 348.849 is amended to read:
  348.849. (1) There is established the Oregon 529 College
Savings Board to administer ORS 348.841 to 348.873.
  (2) The board shall consist of:
  (a) The State Treasurer or a designee of the State Treasurer;
  (b) A member of the State Board of   { - Higher - }  Education
 { +  representing public universities + }, to be selected by the
State Board of   { - Higher - }  Education;
  (c) A representative of accredited private colleges and
universities located in this state, who shall be appointed by the
State Treasurer; and
  (d) Two public members, who by reason of their education and
experience are qualified to serve, and who shall be appointed by
the State Treasurer.
  (3) The State Treasurer shall designate the board chairperson
from among the members of the board. The chairperson shall serve
at the pleasure of the State Treasurer.
  (4)(a) The board member who is a member of the State Board of
  { - Higher - }  Education shall serve at the pleasure of the
State Board of   { - Higher - }  Education but may not serve on
the board following the end of the member's term on the State
Board of   { - Higher - }  Education.
  (b) The representative of private colleges and universities and
the public members of the board shall serve at the pleasure of
the State Treasurer for a term of office of three years. These
members of the board may be reappointed to subsequent terms.
  (5) The State Treasurer and the Oregon University System shall
provide staff and assistance to the board in the administration
of the Oregon 529 College Savings Network as directed by the
board.
  (6) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495.
  (7) A majority of the members of the board constitutes a quorum
for the transaction of business.
  SECTION 89. ORS 348.890 is amended to read:
  348.890. (1) The   { - Higher Education Coordinating
Commission - }  { + State Board of Education + } 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 - }
 { +  board + }.
  (2) Notwithstanding ORS 351.063 (3), the Department of
Community Colleges and Workforce Development and the Oregon
University System may use appropriations from the General Fund to
implement agreements approved by the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + }
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 90. 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 - }   { + State Board of Education + }
shall inform the community colleges, public universities listed
in ORS 352.002, Oregon Health and Science University and health
care industry employers of the identified statewide needs and
invite the development of health care education programs that are
responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education  { - , the State Board of Higher Education - }
and the Oregon Health and Science University Board of Directors
shall use the statewide needs assessment to evaluate whether a
program fulfills statewide needs. If a board determines there is
a statewide need, the board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges, public universities, Oregon Health
and Science University, the State Board of Education  { - , the
State Board of Higher Education - }  and the Oregon Health and
Science University Board of Directors shall consider issues
related to statewide access, student transferability between
programs, course articulation and common student learning
outcomes for health care education programs. The community
colleges, public universities, Oregon Health and Science
University and   { - boards - }   { + board + } shall continue to
provide and improve upon an effective articulation and transfer
framework for students in Oregon's post-secondary sectors.
  SECTION 91. ORS 351.011 is amended to read:
  351.011. The Oregon University System is established as a
public university system, consisting of the office of the
Chancellor of the Oregon University System, the public
universities listed in ORS 352.002 and any related offices,
departments or activities. The State Board of   { - Higher - }
Education, on behalf of the Oregon University System, shall
exercise and carry out all of the powers, rights and duties that
are expressly conferred upon the board or that are implied by law
or incident to such powers, rights and duties. The Oregon
University System is an instrumentality of the state and a
government entity performing governmental functions and
exercising governmental powers.  Notwithstanding the status of
the Oregon University System as an instrumentality of the state,
the Oregon University System is not eligible to request or
receive legal services from the Attorney General and the
Department of Justice pursuant to ORS chapter 180, except as
otherwise expressly provided by law. The Oregon University System
is not considered a unit of local or municipal government.
  SECTION 92. 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
  (2) Approve all academic programs offered at the public
universities, and shall ensure that the academic programs:

  (a) Are consistent with the mission statement of the respective
public university;
  (b) Do not unnecessarily duplicate academic programs offered by
other public universities   { - listed in ORS 352.002 - } ; and
  (c) Are allocated among the public universities   { - in the
Oregon University System - }  to maximize the achievement of
statewide needs and requirements.
  SECTION 93. 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 an agreement between the State Board of
 { - Higher - } Education and the State of Oregon to achieve
certain performance targets in order to enhance the success of
Oregon University System students in exchange for consideration
of the appropriations sought in a funding request submitted by
the State Board of   { - Higher - }  Education to the Oregon
Department of Administrative Services.
  (2) On or before September 1 of each even-numbered year, the
State Board of   { - Higher - }  Education shall submit the
funding request and performance compact to the Oregon Department
of Administrative Services for the Oregon University System.
  (3) The Governor's biennial budget submitted to the Legislative
Assembly may include the State Board of   { - Higher - }
Education's funding request submitted to the Oregon Department of
Administrative Services for the Oregon University System. Any
funding request approved by the Legislative Assembly must specify
that the moneys be appropriated to the Oregon Department of
Administrative Services for allocation to the Oregon University
System.
  (4) The funding request must include, in addition to the
performance compact, a report on performance from the previous
biennium's performance compact.
  (5) The State Board of   { - Higher - }  Education shall, by
rule, establish a framework for the development of a performance
compact that must accompany the funding request to the Oregon
Department of Administrative Services. The framework must
address, among other issues, the issue of tuition affordability
for students.
  SECTION 94. ORS 351.054 is amended to read:
  351.054. The State Board of   { - Higher - }  Education is
authorized to:
  (1) Request, as part of the funding request under ORS 351.052,
appropriations for budgetary items, including but not limited to
education and general operations, statewide public services,
state funded debt service, capital improvements and other special
initiatives and investments; and
  (2) Allocate moneys, from funds appropriated to the board and
other available moneys, among the office of the Chancellor of the
Oregon University System, public universities listed in ORS
352.002 and offices, departments and activities   { - under the
control of the board - }  { +  within the Oregon University
System + }.
  SECTION 95. ORS 351.057 is amended to read:
  351.057. The State Board of   { - Higher - }  Education is not
required to seek expenditure limitation approval from the
Legislative Assembly to spend any available moneys, including but
not limited to moneys from enrollment fees collected pursuant to
ORS 351.063.
  SECTION 96. ORS 351.060 is amended to read:
  351.060. The State Board of   { - Higher - }  Education may:
  (1) Control and provide for, subject to the conditions of this
section, the custody and occupation of the grounds, buildings,
books, papers and documents belonging to each and all of the
public universities and offices, departments or activities
  { - under the control of the State Board of Higher
Education - }  { +  within the Oregon University System + }.
  (2) Manage, control and apply all property of whatever nature
given to or appropriated for the use, support or benefit of any
or all of the public universities or offices, departments or
activities   { - under the control of the State Board of Higher
Education - }  { +  within the Oregon University System + },
according to the terms and conditions of such gift or
appropriation. Moneys received under this section shall be
deposited in a designated account in the Oregon University System
Fund established by ORS 351.506. Interest earned by the account
shall be credited to the account.
  (3) Design, acquire, erect, improve, repair, maintain, lease,
renovate, demolish, equip, furnish and dispose of buildings,
structures and lands necessary for carrying out its powers,
rights and duties.
  (4) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lend, license, improve and develop any and all
property, real or personal:
  (a) Given to any of the public universities or offices,
departments or activities   { - under the control of the State
Board of Higher Education - }   { + within the Oregon University
System + } by private donors, whether such gifts are made to the
State Board of   { - Higher - } Education or to the State of
Oregon; or
  (b) Acquired by any other method or from any source by the
State Board of   { - Higher - }  Education for the benefit of any
of the public universities or offices, departments or activities
 { - under the control of the board - }  { +  within the Oregon
University System + }, except for any structure, equipment or
asset encumbered by a certificate of participation.
  (5) Exercise the power of eminent domain for the condemnation
of property of any kind and all water rights, easements and
appurtenances thereto that the State Board of   { - Higher - }
Education considers necessary for carrying out the powers, rights
and duties of the board.
  (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers, rights and duties of the
State Board of   { - Higher - }  Education.
  (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of such mortgages or for the purpose
of carrying into effect any and all of the powers, rights and
duties of the State Board of   { - Higher - }  Education. Except
as otherwise provided by ORS 30.260 to 30.300, the board has the
authority to defend and indemnify its employees, officers and
agents when they are acting in good faith within the course and
scope of their duties for public purposes.
  (8) Acquire, receive, hold, control, sell, manage, operate,
lease, license or lend any goods, supplies, materials, equipment,
services and information technology, for the use, support or
benefit of any of the public universities or offices, departments
or activities   { - under the control of the State Board of
Higher Education - }  { +  within the Oregon University
System + }.
  (9) With the approval of the State Treasurer, request that the
Oregon Department of Administrative Services enter into financing
agreements in accordance with ORS 283.085 to 283.092 on behalf of
the Oregon University System. The Oregon University System shall
be considered a state agency for purposes of ORS 286A.730.
  (10) Own, control and operate Oregon University System motor
vehicles for use by public universities and offices, departments
and activities   { - under the control of the State Board of
Higher Education - }  { +  within the Oregon University
System + }. The  { + State + } Board  { + of Education + } shall,
by rule, establish requirements governing the use and operation
of Oregon University System motor vehicles.
  (11) Hire or retain attorneys for the provision of legal
services, including but not limited to general advice,
representation in litigation and representation in appellate
matters. The State Board of   { - Higher - }  Education shall
reimburse the State Treasurer for legal fees incurred in
connection with borrowings done at the request of the Oregon
University System.
  SECTION 97. ORS 351.062 is amended to read:
  351.062. Except for the power to prescribe enrollment fees
under ORS 351.063 and the power to adopt rules, the State Board
of
  { - Higher - }  Education may delegate any of the powers,
duties or functions of the board to a committee of the board, the
Chancellor of the Oregon University System or a president of a
public university listed in ORS 352.002.
  SECTION 98. ORS 351.063 is amended to read:
  351.063. (1) The State Board of   { - Higher - }  Education
shall set enrollment fees for each public university listed in
ORS 352.002.  Enrollment fees include tuition for education and
services and any other charges found by the State Board of
 { - Higher - }  Education to be necessary to carry out the
educational program of the Oregon University System.
  (2) The State Board of   { - Higher - }  Education shall, by
rule, establish a process under which each public university may
develop and submit proposed enrollment fees for board
consideration. The process must provide for participation of
enrolled students and the recognized student government of the
public university.
  (3) Each public university   { - listed in ORS 352.002 - }  is
authorized to offer fee remissions to its students, including
remissions offered on the basis of need, from any authorized
source of revenue. Moneys appropriated from the General Fund may
not be used to fund fee remissions to students of the public
university.
  SECTION 99. 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 - }  { +  within the Oregon University
System + }, adopt rules and specific orders by or through the
president of each public university governing access to personnel
records of the public university or office, department or
activity that are less than 25 years old.
  (2) Rules adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless upon a finding by the president of the public
university that the public interest in maintaining individual
rights to privacy in an adequate educational environment would
not suffer by disclosure of such records. Access to such records
may be limited to designated classes of information or persons,
or to stated times and conditions, or to both, but cannot be
limited for records more than 25 years old.
  (3) No rule or order promulgated pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the board or its public universities or
offices, departments or activities, except as provided in
subsections (7) and (8) of this section.
  (4) The number of files relating to the evaluation of a faculty
member shall be limited to three, to be kept in designated,
available locations.
  (5) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (6) A faculty member shall be entitled to submit, for placement
in the three files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that

the member believes might be of assistance in the evaluation
process.
  (7) Letters and other information submitted in confidence to
the board or its public universities, offices, departments or
activities prior to July 1, 1975, shall be maintained in the
files designated. However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected.  The full text shall be made available except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the three prescribed by subsection (4)
of this section.
  (8) Confidential letters and other information submitted to or
solicited after July 1, 1975, by the board or its public
universities, offices, departments or activities prior to the
employment of a prospective faculty member are exempt from the
provisions of this section. However, if the member is employed by
the board or its public universities, offices, departments or
activities, the confidential preemployment materials shall be
placed in the three authorized files. If a faculty member
requests access to the member's files, the anonymity of the
contributor of confidential preemployment letters and other
preemployment information shall be protected. The full text shall
be made available, except that portions of the text that would
serve to identify the contributor shall be excised and retained
in a file other than the three designated in subsection (4) of
this section.
  (9) Classroom survey evaluation by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated in subsection (4) of this section. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (10) After July 1, 1975, the board and its public universities,
offices, departments or activities, when evaluating its employed
faculty members, may not solicit or accept letters, documents or
other materials, given orally or in written form, from
individuals or groups who wish their identity kept anonymous or
the information they provide kept confidential.
  (11) No rule or order promulgated pursuant to this section
limits the authority of the public universities, offices,
departments or activities   { - under the control of the
board - }   { + within the Oregon University System + } 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 100. ORS 351.067 is amended to read:
  351.067. (1) In carrying out its authority under ORS 351.070,
the State Board of   { - Higher - }  Education may authorize
receipt of compensation for any officer or employee of the Oregon

University System from private or public resources, including,
but not limited to, income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the Oregon University
System;
  (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
Oregon University System and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates, that augments an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies and rules
established by the board.
  (2) The board may not authorize compensation, as described in
subsection (1) of this section, that, in the board's judgment,
does not comport with the mission of a public university listed
in ORS 352.002 and the Oregon University System or substantially
interferes with an officer's or employee's duties to the Oregon
University System.
  (3) Any compensation described and authorized under subsection
(1) of this section is considered official compensation or
reimbursement of expenses for purposes of ORS 244.040 and is not
considered an honorarium prohibited by ORS 244.042. If
authorization or receipt of the compensation creates a potential
conflict of interest, the officer or employee shall report the
potential conflict in writing in accordance with rules of the
board. The disclosure is a public record subject to public
inspection.
  (4) The board shall adopt by rule standards governing employee
outside employment and activities, including potential conflict
of interest, as defined by board rule and consistent with ORS
244.020, and the public disclosure thereof, and procedures for
reporting and hearing potential or actual conflict of interest
complaints.
  SECTION 101. ORS 351.070 is amended to read:
  351.070. (1) The State Board of   { - Higher - }  Education
shall, by rule, implement a personnel system for the Oregon
University System and may engage in collective bargaining with
the employees.  All collective bargaining with any certified or
recognized exclusive employee representative shall be under the
direction and supervision of the Chancellor of the Oregon
University System. The board and the Oregon University System
shall have payroll authority.
  (2)(a) The board shall establish competitive procedures for the
purchasing, procurement and contracting of goods, services and
information technology, for the benefit of the Oregon University
System and all the public universities and offices, departments
and activities   { - under the control of the board - }  { +
within the Oregon University System + }. The board may also
establish exemptions from the competitive procedures when
appropriate.
  (b) The board shall ensure that the hourly rate of wage paid by
any contractor upon all public improvements contracts undertaken
for the board shall not be less than the same rate of wage as
determined by the Bureau of Labor and Industries for an hour's
work in the same trade or occupation in the locality where such
labor is performed. Claims or disputes arising under this
subsection shall be decided by the Commissioner of the Bureau of
Labor and Industries.
  (c) The board shall adopt policies and procedures that achieve
results equal to or better than the standards existing on July
17, 1995, regarding affirmative action, pay equity for comparable
work, recycling, the provision of workers' compensation insurance
to workers on contract and the participation of emerging small
businesses and businesses owned by minorities and women.
  (3) The board may, for each public university listed in ORS
352.002:
  (a) Appoint and employ a president and the requisite number of
employees and prescribe their compensation and tenure of office
or employment.
  (b) Demand and receive the interest mentioned in ORS 352.510
and all sums due and accruing for admission and tuition, and
apply the same, or so much thereof as is necessary, to the
payment of the compensation referred to in paragraph (a) of this
subsection and the other current expenses.
  (c) Prescribe incidental fees for programs   { - under the
supervision or control of the board - }   { + within the Oregon
University System + } 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 - }  { + within the Oregon University System + } and found
to be advantageous to the cultural or physical development of
students by the president upon the recommendation of the
recognized student government.
  (d) Upon recommendation of the recognized student government,
collect optional fees for student activities not included in
paragraph (c) of this subsection or ORS 351.063 as authorized by
the president. The payment of such optional fees is at the option
and selection of the student and is not a prerequisite of
enrollment.
  (e) Confer, consistent with the mission and programs of each
public university and on the recommendation of the faculty of the
public university, such degrees as usually are conferred by
public universities, or as the faculty deems appropriate.
  (f) Prescribe the qualifications for admission.
  (4) Subject to such delegation as the board may decide to make
to the public universities and offices, departments and
activities   { - under its control - }  { +  within the Oregon
University System + }, the board, for each public university,
office, department or activity   { - under its control - }  { +
within the Oregon University System + }:
  (a) Shall supervise the general course of instruction therein,
and the research, extension, educational and other activities
thereof.
  (b) Shall adopt rules and bylaws for the government thereof,
including the faculty, teachers, students and employees therein.
  (c) Shall maintain cultural and physical development services
and facilities therefor and, in connection therewith, may
cooperate and enter into agreements with any person or
governmental agency.
  (d) May contract to provide health services at student health
centers.
  (e) Shall provide health services at student health centers to
students.
  (f) May provide health services at student health centers to
any of the following:
  (A) Dependents of students.
  (B) Staff.
  (C) Faculty.
  (g) Shall prescribe and collect charges.
  (h) Shall adopt rules relating to the creation, use, custody
and disclosure, including access, of student education records
that are consistent with the requirements of applicable state and
federal law. Whenever a student has attained 18 years of age or
is attending a public university listed in ORS 352.002, the
permission or consent required of and the rights accorded to a
parent of the student regarding education records shall
thereafter be required of and accorded to only the student.
  (5) For each public university listed in ORS 352.002, the board
shall provide opportunities for part-time students to obtain
complete undergraduate degrees at unconventional times, which
include but are not limited to early morning and noon hours,
evenings and weekends. In administering these degree programs,
the public university may use any educational facility available
for the use of the public university.
  (6) For all public universities listed in ORS 352.002, the
board shall, to the extent feasible and cost beneficial, develop
and implement a common admissions process that permits applicants
to be considered for admission to more than one public
university.
  SECTION 102. ORS 351.072 is amended to read:
  351.072. (1) Notwithstanding ORS chapter 183, the following
actions may be taken by the State Board of   { - Higher - }
Education  { + in relation to higher education + } or  { + to + }
the public universities   { - under its control - }   { + listed
in ORS 352.002 + } without compliance with the rulemaking
provisions of ORS chapter 183:
  (a) Adoption of standards, regulations, policies or practices
relating primarily to admissions, academic advancement, classroom
grading policy, the granting of academic credits, granting of
degrees, scholarships and similar academic matters.
  (b) Adoption of fees or fee schedules relating to charges for
symposiums, conferences, short courses, food, books or other
retail goods, prices of admission to athletic, entertainment or
cultural events or advertising rates in student or university
publications. However, student loan service charges, charges
levied as penalties for prohibited conduct, general tuition,
building fees, incidental fees, health service fees and residence
hall and housing charges shall be adopted in accordance with the
provisions of ORS chapter 183.
  (2) Any standards, regulations, policies, practices or fees
adopted under this section by the State Board of   { - Higher - }
Education or by any of the public universities   { - under its
control - }  { + listed in ORS 352.002 + } shall be reduced to
writing and made available to interested persons upon request.
  SECTION 103. ORS 351.075, as amended by section 4, chapter 36,
Oregon Laws 2012, is amended to read:
  351.075. (1) The State Board of   { - Higher - }  Education
shall appoint a chief executive officer  { + of the Oregon
University System + } who shall be known as the Chancellor of the
Oregon University System.
  (2) The chancellor shall:
  (a) Serve at the pleasure of the board.
  (b) Serve under the direction and control of the Chief
Education Officer appointed under section 2, chapter 519, Oregon
Laws 2011, for matters related to the design and organization of
the state's education system.
  SECTION 104. ORS 351.075, as amended by sections 4 and 10,
chapter 36, Oregon Laws 2012, is amended to read:
  351.075. (1) The State Board of   { - Higher - }  Education
shall appoint a chief executive officer  { + of the Oregon
University System + } who shall be known as the Chancellor of the
Oregon University System.
  (2) The chancellor shall serve at the pleasure of the board.
  SECTION 105. ORS 351.077 is amended to read:
  351.077. (1) Pursuant to ORS 342.447, the Chancellor of the
Oregon University System shall ensure the implementation of the
plans developed for recruitment of minority teachers.
  (2) The chancellor shall report biennially to the State Board
of   { - Higher - }  Education and the Legislative Assembly on
the implementation and results of the plans. The report may
include recommendations on ways in which the Legislative Assembly
can assist in increasing the number of minority teachers.
  SECTION 106. ORS 351.085 is amended to read:
  351.085. The Chancellor of the Oregon University System shall
exercise, under the direction of the State Board of
 { - Higher - } Education, the administrative and management
authority necessary to carry out the policies and directives of
the board with respect to the public universities and offices,
departments and activities
  { - under the control of the board - }  { +  within the Oregon
University System + }. In carrying out the duties of the
chancellor, the chancellor shall:
  (1) Serve as chief executive officer of the Oregon University
System   { - and administrative officer of the State Board of
Higher Education - } .
  (2) Supervise the presidents of the public universities listed
in ORS 352.002 and recommend the terms and conditions of their
employment to the board, including but not limited to
appointment, compensation and termination.
  (3) Maintain a centralized service program for all public
universities and offices, departments and activities   { - under
the control of the board - }  { +  within the Oregon University
System + }, including but not limited to accounting, statistical
services, capital construction, management analysis, legal
services, academic affairs and educational research.
  (4) Collect and compile information and statistics relative to
the operation of the public universities and offices, departments
and activities   { - under the control of the board - }  { +
within the Oregon University System + }.
  (5) Prepare and submit to the board an annual operating budget
for all public universities and offices, departments and
activities   { - under the control of the board - }  { +  within
the Oregon University System + }, including but not limited to
budget allocations to the public universities and offices,
departments and activities.
  (6) Oversee the preparation and submission to the board of the
funding request for the Oregon University System for
consideration by the board as the funding request under ORS
351.052.
  (7) Appoint such personnel as may be necessary for the
performance of the duties of the chancellor.
  (8) Designate, if the chancellor wishes, one or more suitable
persons to sign or countersign warrants, vouchers, certificates
or other papers and documents requiring the signature of the
chancellor.
  (9) Prepare the agendas for board meetings and provide an
analysis of proposals made to the board, including such
alternatives as may be necessary or desirable for their
consideration, and make recommendations thereon.
  (10) Prepare and submit to the board on or about December 31 of
each year an annual report in which the chancellor describes the
principal activities of the Oregon University System during the
fiscal year ending June 30.
  (11) Keep a record of the transactions of the   { - board - }
 { +  Oregon University System + }.
  (12) Have the custody of all books, papers, documents and other
property belonging to the   { - board - }  { +  Oregon University
System + }.
  (13) Give such instructions as may be necessary to carry out
the directives of the board and forward them to the various
institution presidents and heads of offices, departments and
activities.
  (14) Provide for meetings of the presidents and principal
executives of the public universities and offices, departments
and activities   { - under the control of the board - }  { +
within the Oregon University System + }, at such times as the
board may direct. The meetings shall be open to any member of the
board.
  (15) Perform such other administrative or management assistance
and consider other administrative or management matters as the
board may require.
  SECTION 107. ORS 351.086, as amended by section 48, chapter
104, Oregon Laws 2012, is amended to read:
  351.086. (1) Except as otherwise provided in this chapter and
ORS chapter 352, the provisions of ORS chapters 182, 240, 270,
273, 276, 278, 279A, 279B, 279C, 282, 283, 291 and 292 and ORS
180.060, 180.160, 180.210, 180.220, 180.225 and 180.230 do not
apply to the Oregon University System.
  (2) Notwithstanding subsection (1) of this section, the
provisions of ORS 182.100, 182.109, 240.167, 276.073 to 276.090,
279A.065 (2), 279B.055 (3), 279C.380 (1)(a) and (3), 279C.600 to
279C.625, 279C.800, 279C.810, 279C.825, 279C.830, 279C.835,
279C.840, 279C.845, 279C.850, 279C.855, 279C.860, 279C.865,
279C.870, 283.085 to 283.092, 291.200, 291.201 to 291.222,
291.223, 291.224 (2) and (6), 291.226, 291.272 to 291.278,
291.322 to 291.334, 291.405, 291.407, 291.445, 292.043 and
292.044 apply to the Oregon University System.
  (3) Notwithstanding subsection (1) of this section, ORS 273.413
to 273.456 apply to any structure, equipment or asset owned by
the Oregon University System that is encumbered by a certificate
of participation.
  (4) Notwithstanding subsection (6) of this section:
  (a) The provisions of ORS chapters 35, 190, 192, 244 and 297
and ORS 30.260 to 30.460, 184.480, 184.483, 184.486, 184.488,
200.005 to 200.025, 200.045 to 200.090, 200.100 to 200.120,
200.160 to 200.200, 236.605 to 236.640, 243.650 to 243.782,
243.800, 243.820, 243.830, 243.850, 243.910 to 243.945, 307.090
and 307.112 apply to the Oregon University System under the same
terms as they apply to other public bodies other than the State
of Oregon.
  (b) The provisions of ORS chapter 286A and ORS 293.115,
293.117, 293.130, 293.169, 293.171, 293.205 to 293.225, 293.250,
293.265 to 293.280, 293.285, 293.295, 293.321, 293.353, 293.375,
293.406, 293.465 to 293.485, 293.490, 293.495, 293.525, 293.701
to 293.820, 293.875, 293.880 and 293.990 apply to the Oregon
University System under the same terms as they apply to state
agencies with moneys held by the State Treasurer, to the Oregon
University System Fund established in ORS 351.506 and to any
other moneys deposited with or held by the State Treasurer for
the Oregon University System.
  (5) Notwithstanding subsections (1) and (6) of this section,
the Oregon University System and its agents and employees remain
subject to all statutes and administrative rules of this state
that create rights, benefits or protections in favor of military
veterans, service members and families of service members to the
same extent as an agency of this state would be subject to such
statutes and administrative rules.
  (6)(a) Except as provided by paragraph (b) of this subsection,
the Oregon University System, as a distinct governmental entity,
is not subject to any provision of law enacted after January 1,
2011, with respect to any governmental entity, that is unique to
governmental entities, unless the provision specifically provides
that it applies to the Oregon University System.
  (b) To the same extent as state agencies that borrow through
the State Treasurer or that have moneys held in the State
Treasury, the Oregon University System is subject to any
provision of law enacted after January 1, 2011, that relates to
or affects the borrowings of the Oregon University System through
the State Treasurer or the deposit, payment or investment of
moneys held in the Oregon University System Fund or any other
moneys held for the Oregon University System in the State
Treasury.
  (7) In carrying out the duties, functions and powers imposed by
law upon the Oregon University System, the State Board of
  { - Higher - }  Education or the Chancellor of the Oregon
University System may contract with any public agency for the
performance of such duties, functions and powers as the board or
chancellor considers appropriate.
  SECTION 108. ORS 351.087 is amended to read:
  351.087. (1) The State Board of   { - Higher - }  Education
shall establish policies for the operation of the Oregon
University System, consistent with ORS 351.086.
  (2) For the purpose of clarifying areas of oversight and in
accordance with subsection (1) of this section, wherever the
Oregon Department of Administrative Services would otherwise have
authority over administrative matters concerning the performance,
operating policies or structure of the Oregon University System,
that authority shall be transferred to the State Board of
 { - Higher - } Education.
  SECTION 109. ORS 351.088 is amended to read:
  351.088. Notwithstanding ORS chapter 183, the State Board of
  { - Higher - }  Education or any public university listed in
ORS 352.002 may, by rule, establish adjudicative procedures that
are consistent with federal and state constitutional requirements
and other provisions of law. The adjudicative procedures shall be
consistent with ORS 183.413 to 183.497 and 183.502 whenever the
type of hearing or procedure required is substantially of the
character that would necessitate the procedures required by ORS
183.413 to 183.470.
  SECTION 110. ORS 351.092 is amended to read:
  351.092. Notwithstanding ORS 293.595, the State Board of
  { - Higher - }  Education shall control and supervise the
acquisition, installation and use of all data processing
equipment to be used primarily for the purposes of the accounting
records and accounting system of the Oregon University System.
The board may authorize use of that equipment for other purposes
to the extent that use for those other purposes does not conflict
with use for the primary purpose of the Oregon University
System's accounting records and accounting system.
  SECTION 111. ORS 351.094 is amended to read:
  351.094. (1) The State Board of   { - Higher - }  Education
shall provide group insurance to employees of the Oregon
University System through the Public Employees' Benefit Board or
may elect to provide alternative group health and welfare
insurance benefit plans to employees of the Oregon University
System if the same level of benefits is available at a lower cost
than through the Public Employees' Benefit Board.
  (2) For the purposes of ORS 243.555 to 243.575, if the State
Board of   { - Higher - }  Education chooses not to participate
in the benefit plans offered through the Public Employees'
Benefit Board, the State Board of   { - Higher - }  Education may
have the authority granted to the Public Employees' Benefit Board
under ORS 243.555 to 243.575 for the administration of an
appropriate expense reimbursement plan.
  (3) The State Board of   { - Higher - }  Education shall offer
one or more deferred compensation plans to employees of the
Oregon University System. The Oregon University System shall, at
the discretion of the board, choose whether to offer its
employees the state deferred compensation plan established under
ORS 243.401 to 243.507 or another deferred compensation plan that
the board elects to make available to the employees of the Oregon
University System.
  SECTION 112. ORS 351.096 is amended to read:
  351.096. The State Board of   { - Higher - }  Education may
purchase any insurance, operate a self-insurance program or
otherwise arrange for the equivalent of insurance coverage of any
nature.
  SECTION 113. ORS 351.097 is amended to read:
  351.097. (1) The payment of salary or compensation of the
officers, teachers, instructors and other employees of the Oregon
University System, where such salary or compensation is payable
out of the State Treasury and is fixed by law or the State Board
of   { - Higher - }  Education at a definite rate per hour, day,
week, month or year, shall be made weekly, biweekly, semimonthly
or monthly with any necessary adjustments, as provided in this
section.
  (2) With the approval of the board, the Chancellor of the
Oregon University System shall make out, certify and transmit to
the board at the end of each pay period a payroll, duly verified
by the chancellor or other designated officer and approved by the
proper auditing committee or officer, showing the names of the
several officers, teachers, instructors and other employees
during the preceding payroll period, the rate of compensation of
each by the hour, day, week, month or year, the time employed,
the amount due and any other facts the board requires. The board,
if it approves the payroll, shall draw a warrant on the State
Treasurer for the aggregate amount allowed in favor of the
chancellor, who shall immediately pay over the moneys received to
the several parties entitled thereto and take receipts therefor,
which shall be transmitted to the board.
  (3) Notwithstanding subsection (2) of this section and pursuant
to ORS 293.330, the State Board of   { - Higher - }  Education
may authorize the chancellor to designate a person employed by
and located at each public university   { - under the
jurisdiction of the board - }   { + listed in ORS 352.002 + } to
implement and administer the payroll system selected by the board
to pay employees designated by the board. The person shall be
under bond to the State of Oregon.
  (4) When an employee receives payment of salary or compensation
in an amount greater than the employee's entitlement, the amount
of the overpayment may be deducted from salary or compensation
earned by the employee. The deduction may be in such form and
manner as the State Board of   { - Higher - }  Education may
prescribe.
  SECTION 114. ORS 351.105 is amended to read:
  351.105. In order to carry out the duties described in ORS
352.008, the State Board of   { - Higher - }  Education, in
consultation with the Oregon Health Authority and the Alcohol and
Drug Policy Commission, shall adopt by rule, as a minimum,
descriptions of the content of what shall be included in the
policy and plan described in ORS 352.008.
  SECTION 115. ORS 351.110 is amended to read:
  351.110. All relationships and negotiations between the
Legislative Assembly and its various committees and a public
university listed in ORS 352.002 must be carried on through the
office of the Chancellor of the Oregon University System. An
employee representing any of the public universities may not
appear before the Legislative Assembly or any committee except
upon the written authority of the State Board of   { - Higher - }
Education or the chancellor.
  SECTION 116. ORS 351.117 is amended to read:
  351.117. (1) If the State Board of   { - Higher - }  Education
determines that enrollment is sufficient to make an American Sign
Language class economically viable and if qualified instructors
are available, the board may offer to students courses for credit
in American Sign Language at a public university. Such courses
shall satisfy any second language elective requirement.
  (2) The State Board of   { - Higher - }  Education is
encouraged to continue to:
  (a)   { - Coordinate with the State Board of Education to - }
Develop curricula for American Sign Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and

  (c) Assist public universities in identifying local and
regional needs and resources available for American Sign Language
courses.
  SECTION 117. ORS 351.130 is amended to read:
  351.130. (1) The State Board of   { - Higher - }  Education
shall encourage gifts and donations to the board and the Oregon
University System. For purposes of the public universities listed
in ORS 352.002, the board, to encourage gifts and donations,
shall faithfully devote the gifts or donations to the public
university for which the gift or donation is intended.
  (2) The Higher Education Donation Fund is established in the
State Treasury, separate and distinct from the General Fund.
Moneys in the Higher Education Donation Fund are continuously
appropriated to the State Board of   { - Higher - }  Education
for the purpose for which the moneys were donated. Moneys in the
fund may be invested as provided in ORS 293.701 to 293.820,
subject to the terms or restrictions of any gifts or donations.
Any interest or other income derived from the investment of the
fund shall be credited to the fund.
  (3) All gifts and donations received shall be used in
accordance with the terms of the gift or donation. Gifts or
donations may be deposited in the Oregon University System Fund
established by ORS 351.506 or in the Higher Education Donation
Fund. The board shall consider the amount, nature and purpose of,
and any restriction placed on, gifts and donations, and determine
whether to deposit the gift or donation in the Oregon University
System Fund or the Higher Education Donation Fund. Gifts and
donations may be split or transferred between the Oregon
University System Fund and the Higher Education Donation Fund.
  (4) The interest, income, dividends or profits received on any
property or funds of the State Board of   { - Higher - }
Education or the Oregon University System derived from gifts and
donations, including legacies, devises, bequests or endowments,
are continuously appropriated to the use, maintenance and support
of the Oregon University System in the same manner as the
principal or corpus of each such gift or donation in accordance
with the terms of the gift or donation.
  (5) As used in this section, 'gifts or donations' includes
funds donated to the State Board of   { - Higher - }  Education
or the Oregon University System to which by agreement the donor
receives consideration in return for the gift or donation or
retains a reversionary interest but does not include grant or
contract funds received from government sources.
  SECTION 118. ORS 351.140 is amended to read:
  351.140. (1) The State Board of   { - Higher - }  Education may
purchase such real property as in its sole discretion may be
necessary for the present or future development of any of the
public universities and offices, departments and activities
 { - under its control - }  { +  within the Oregon University
System + }. The board may enter into contracts of purchase or
agreements that the board deems necessary in carrying out this
authorization.
  (2) The board may apply any funds coming into its hands, and
applicable thereto, toward the purchase of property authorized
under this section. The board may also mortgage or pledge any
property so purchased, or its contracts to purchase, or in
relation thereto, together with the income from such property, to
secure the payment of the purchase price thereof.
  (3) The State Board of   { - Higher - }  Education is
authorized, without seeking specific approval from the
Legislative Assembly, to purchase real property or undertake
capital construction projects that do not require the use of
moneys appropriated from state funds or obtained through general
obligation bonds, for purposes consistent with the promotion and
enhancement of public higher education.
  SECTION 119. ORS 351.150 is amended to read:
  351.150. (1) As used in this section, 'university lands ' means
lands granted to this state under the Act of February 14, 1859
(11 Stat. 383), for the support and maintenance of the University
of Oregon.
  (2) Legal title to all real property acquired by any of the
public universities   { - under the control of the State Board of
Higher Education - }   { + listed in ORS 352.022 + } shall be
taken and held in the name of the State of Oregon. Legal title to
all real property heretofore or hereafter conveyed to any of the
public universities is deemed to be conveyed to and vested in the
State of Oregon.  Authorized conveyances of all real property,
other than university lands, acquired by or vested in the State
of Oregon for the use or benefit of any of the public
universities shall be executed in the name of the State of Oregon
by   { - the president and secretary of - } the board. Nothing in
this section or in ORS 351.060 shall be considered as exempting
such property from taxation.
  (3) The Oregon University System shall have custody and control
of and shall care for all real property used for public
university purposes. Management, maintenance and preservation of
all real property used for public university purposes is the
responsibility of the Oregon University System.
  SECTION 120. ORS 351.155 is amended to read:
  351.155. Notwithstanding the applicable provisions of ORS
279.835 to 279.855, 279A.140 to 279A.155, 279A.250 to 279A.290,
279A.990, 279B.200 to 279B.240, 279B.270, 279B.275, 279B.280,
279C.360, 279C.365, 279C.370, 279C.375, 279C.380, 279C.385,
279C.500 to 279C.530, 279C.540, 279C.545, 279C.600 to 279C.625,
279C.650 to 279C.670 and 279C.800 to 279C.870, the State Board of
  { - Higher - }  Education may, in the management of all
forestlands under its control and supervision, sell the forest
products on such lands in the same manner as is provided in ORS
530.059, and for that purpose the board shall have the same
powers with respect to experimental or research projects in the
field of forestland management or for forest product utilization
on forestlands under its control as the State Forester has
pursuant to the provisions of ORS 530.050 and 530.059.
  SECTION 121. ORS 351.160 is amended to read:
  351.160. (1) The State Board of   { - Higher - }  Education may
undertake the construction of any building or structure for
higher education when the board conservatively estimates that the
Oregon University System will have sufficient revenues to pay the
operating costs and any indebtedness for the building or
structure. For purposes of this section, 'revenues' includes all
funds available to the board except amounts appropriated by the
Legislative Assembly from the General Fund. The board may enter
into contracts for the acquisition, erection, improvement,
repair, equipping and furnishing of buildings and structures for
dormitories, housing, boarding, off-street motor vehicle parking
facilities and other purposes for higher education pursuant to
Article XI-F(1) of the Oregon Constitution, ORS 351.160 to
351.190, 351.350 to 351.460 and 351.505.
  (2) The board may also undertake the acquisition or
construction of those buildings and structures that the
Legislative Assembly has determined will benefit higher education
institutions or activities, and may enter into contracts with
persons, firms or corporations for the acquisition, erection,
improvement, repair, equipping and furnishing of such buildings
and structures pursuant to Article XI-G of the Oregon
Constitution and ORS 351.345.
  SECTION 122. ORS 351.165 is amended to read:
  351.165. No later than March 1 of each odd-numbered year, the
State Board of   { - Higher - }  Education shall submit a report
to the Legislative Assembly concerning the status of all
previously approved Oregon University System capital construction
projects that have not been completed or have been completed
within the preceding 24-month period. The report shall include
the project title, funding sources, the amount of the original
appropriation or expenditure limitation, the amount of unexpected
funds, the construction status and the anticipated completion
date.
  SECTION 123. ORS 351.170 is amended to read:
  351.170. (1) The State Board of   { - Higher - }  Education may
establish rates, charges and fees for use of buildings,
structures and projects   { - under its control - }  { +  within
the Oregon University System + }. The rates and charges shall be
sufficient, in the judgment of the board and with other available
revenues, as defined in ORS 351.160, to pay the operating costs
and any indebtedness for the buildings, structures and projects.
  (2) The board shall charge and collect from each regular
student a building fee at a rate not to exceed $45 for each
regular term, for not less than three terms in each regular
academic year, and not to exceed $67.50 if instruction is on a
semester basis, or an equivalent rate of charge when instruction
is on a different basis. The board is authorized to maintain
adequate accounts for bonds outstanding. The fee shall be in
addition to tuition and other fees charged to students and shall
be deposited in the appropriate subaccount of the account
maintained in the Oregon University System Fund under ORS
351.460.
  SECTION 124. ORS 351.180 is amended to read:
  351.180. The State Board of   { - Higher - }  Education may
cause the buildings, structures or projects referred to in ORS
351.160 and 351.170 and the equipment and furnishings therein and
the appurtenances thereto to be insured against fire and other
hazards in such sums as will protect the holders of the
outstanding bonds issued to finance the cost thereof. Such
insurance shall be in lieu of that afforded by the Insurance
Fund, without right of insurers, in the event of loss, to
subrogation to or contribution from said fund.
  SECTION 125. ORS 351.190 is amended to read:
  351.190. The State Board of   { - Higher - }  Education may
obtain, by donation, purchase, agreement or condemnation, the
title to any land authorized to be acquired by ORS 351.345,
351.350 and 351.450. Condemnation proceedings instituted by the
board shall be conducted in accordance with ORS chapter 35.
  SECTION 126. ORS 351.203 is amended to read:
  351.203. (1) The State Board of   { - Higher - }  Education
shall cooperate with the Education and Workforce Policy Advisor
in the development of a state comprehensive education plan
including post-secondary education and in review of the board's
programs and budget. The board shall submit in timely fashion to
the advisor such data as is appropriate in a form prescribed by
the advisor.
  (2) The board shall cooperate with the mediation process
administered by the   { - Higher Education Coordinating
Commission - }  { + Department of Education + } pursuant to ORS
348.603 and, if a negotiated resolution cannot be reached by
mediation, comply with the decisions   { - of the commission - }
regarding proposed new post-secondary programs and proposed new
post-secondary locations, including those proposed by Oregon
Health and Science University
  { - in cooperation with the State Board of Higher Education - }
under ORS 353.440.
  SECTION 127. ORS 351.205 is amended to read:
  351.205. The State Board of   { - Higher - }  Education may
allow interchange of members of the faculties of public
universities listed in ORS 352.002 with faculty members of
comparable institutions of other states or countries for a period
of one year. Such exchange service shall, for all purposes, be
deemed continued service with the Oregon public university
covered, with salary paid to the absent faculty member
accordingly. Salary for the visiting faculty member shall not be
paid by the Oregon public university covered.
  SECTION 128. ORS 351.210 is amended to read:
  351.210. (1) The State Board of   { - Higher - }  Education may
sell or otherwise dispose of any worn out, obsolete or otherwise
unsuitable equipment, goods, supplies, material or information
technology, the disposal of which would in the board's judgment
be to the financial benefit of the public universities
 { - under the board's control - }  { +  listed in ORS
352.002 + }. This section does not apply to any equipment, goods,
supplies, material or information technology encumbered by a
certificate of participation.
  (2) The proceeds from any sales or disposals made pursuant to
authority granted in this section shall be deposited in a
designated account in the Oregon University System Fund
established by ORS 351.506 and may be expended by the board for
any purpose authorized by law in the same manner as the board is
authorized to make other expenditures.
  SECTION 129. ORS 351.220 is amended to read:
  351.220. The State Board of   { - Higher - }  Education may
acquire by gift or by purchase interests in intellectual property
of any kind, whether patentable or copyrightable or not,
including patents, copyrights, inventions, discoveries, processes
and ideas.  The board may also agree to aid in the development of
property acquired pursuant to ORS 351.220 to 351.250 and to pay
an assignor of any interest in intellectual property a share of
any moneys received on account of the board's ownership or
management of the property.
  SECTION 130. ORS 351.230 is amended to read:
  351.230. The State Board of   { - Higher - }  Education may
manage, develop or dispose of, by assignment, sale, lease,
license or other action deemed advisable by the board, property
acquired under ORS 351.220, and may contract with any person or
agency, board, commission or department of this or any other
state or with the federal government regarding the management,
development or disposition thereof. The board may make gratuitous
assignments of such property to any trust or fund, the sole
beneficiary of which is the board or any of the public
universities or offices, departments or activities   { - under
its control - }  { +  within the Oregon University System + },
subject to the share, if any, agreed to be paid to the assignor.
The board may reassign such property to the inventor, author or
discoverer.
  SECTION 131. ORS 351.240 is amended to read:
  351.240. The State Board of   { - Higher - }  Education may
determine the terms and conditions of any transaction authorized
by ORS 351.220 to 351.250 and need not require competitive bids
in connection therewith. No formal publicity or advertising is
required regarding property for the development of which the
board wishes to contract, but the board shall make reasonable
efforts to disseminate such information in appropriate research
and industrial circles.
  SECTION 132. ORS 351.250 is amended to read:
  351.250. Moneys received by the board as a result of ownership
or management of property acquired under ORS 351.220 to 351.250
or of transactions regarding such property shall be credited to a
designated account in the Oregon University System Fund
established by ORS 351.506 and shall only be applied by the State
Board of   { - Higher - }  Education to payment of the agreed
share, if any, to assignors, and for the advancement of research
or for the acquisition and development of intellectual property,
or both.  Interest earned by the account shall be credited to the
account.
  SECTION 133. ORS 351.260 is amended to read:
  351.260. The State Board of   { - Higher - }  Education may
establish and maintain planning facilities and undertake planning
work for the provision of, or related to, local planning services
and may:
  (1) Upon the request of the governing body of any municipality,
county, Indian reservation or of a regional or joint planning
agency in the state, provide planning assistance to such
municipality, county, Indian reservation or planning agency
(including surveys, land use studies, urban renewal plans,
technical services and other planning work) and make or assist in
making a study or report upon any planning problem of such
municipality, county, Indian reservation or planning agency.
  (2) Agree with such governing body or planning agency as to the
amount to be paid to the board for such service.
  (3) Apply for and accept grants from the federal government and
other sources in connection with any such planning work.
  (4) Contract with respect thereto.
  SECTION 134. ORS 351.267 is amended to read:
  351.267. (1) The State Board of   { - Higher - }  Education
shall give individual, written notice of reasonable assurance of
continued employment to all employees who are to perform services
in the same or a similar capacity during a subsequent academic
year or term or in the period immediately following a recess
period. Such notice shall be given by June 15 of each year for
employees employed as of that date and as of the date of hire for
employees employed subsequent to June 15.
  (2) Academic staff members on annual or indefinite tenure and
all other employees on regular status are considered to have been
given notice for the purposes of this section.
  (3) No liability shall accrue from failure to give the notice
required by subsection (1) of this section or from the timing or
contents thereof on the part of the board. However, the board
shall enforce the provisions of subsection (1) of this section.
  SECTION 135. ORS 351.277 is amended to read:
  351.277. (1) The State Board of   { - Higher - }  Education
shall establish by rule procedures to identify officially
sanctioned programs for purposes of ORS 283.310 (3).
  (2) As used in this section, 'officially sanctioned program' is
a program identified by the state board through the procedures
established pursuant to subsection (1) of this section.
  SECTION 136. ORS 351.282 is amended to read:
  351.282. Except for risk management and insurance functions,
the State Board of   { - Higher - }  Education and the Oregon
University System shall assume responsibility, in accordance with
agreements entered into with the Department of Justice and the
State Treasurer, for the indemnity and defense of their officers,
agents and employees or other persons designated by the board or
the system to carry out or further their missions with regard to
claims asserted and actions commenced as of January 1, 2012.
  SECTION 137. ORS 351.284 is amended to read:
  351.284. For risk management and insurance functions, the State
Board of   { - Higher - }  Education and the Oregon University
System shall assume responsibility, in accordance with agreements
entered into with the Oregon Department of Administrative
Services regarding its risk management function and the manager
of the Insurance Fund established in ORS 278.425, for the
indemnity and defense of their officers, agents and employees or
other persons designated by the board or the system to carry out
or further their missions with regard to claims asserted and
actions commenced as of July 1, 2012.
  SECTION 138. ORS 351.287 is amended to read:
  351.287. Except as otherwise provided by law, all liabilities,
known and unknown, of the State Board of   { - Higher - }
Education and the Oregon University System existing on or arising
after January 1, 2012, or, for liabilities related to risk
management or insurance functions, arising after July 1, 2012,
are the sole responsibility of the board and system. Damages,
costs and other expenses arising out of and related to
liabilities of the board and the system after January 1, 2012,
shall be payable from the Oregon University System Fund or from
insurance purchased, a self-insurance program established or
another insurance equivalent arranged for under ORS 351.096.
  SECTION 139. ORS 351.310 is amended to read:
  351.310. (1) The State Board of   { - Higher - }  Education
shall control the use, distribution and disbursement of all
funds, appropriations and taxes now or hereafter in possession,
levied and collected, received or appropriated for the use,
benefit, support and maintenance of the public universities
listed in ORS 352.002 and offices, departments and activities
 { - under the control of the board - }  { +  within the Oregon
University System + }, including the authorization of individuals
to sign vouchers for the disbursement of funds for the various
public universities, offices, departments and activities.
  (2) All moneys, except moneys appropriated from the State
Treasury for expenditure within a specified period of time,
heretofore or hereafter received by or on behalf of the board, or
any public university or office, department or activity
 { - under the control of the board - }  { +  within the Oregon
University System + }, that are not otherwise appropriated by
law, hereby are appropriated continuously to the State Board of
 { - Higher - }  Education for the purposes for which such moneys
were donated, granted or received, in accordance with any
applicable law governing the use of such moneys.
  SECTION 140. ORS 351.320 is amended to read:
  351.320. The State Board of   { - Higher - }  Education may
prorate all expenses not otherwise provided for, incurred under
authority of ORS   { - 351.040, 351.045, - }  351.100, 351.110,
351.130 and 351.310 to the public universities   { - under its
control - }  { +  listed in ORS 352.002 + }, and pay the same
from the funds available for the general expenses of those
universities.
  SECTION 141. ORS 351.340 is amended to read:
  351.340. All sums of money provided by law for the support and
maintenance of the public universities listed in ORS 352.002 and
offices, departments and activities   { - under the control of
the State Board of Higher Education - }   { + within the Oregon
University System + } may be used for the payment of salaries of
instructors and employees, current expenses, construction of
additional buildings, purchase of lands, purchase of equipment,
purchase of library books and periodicals, purchase of laboratory
supplies and apparatus and making necessary repairs and, in
general, for the payment of all such expenses connected with the
management of the public universities and offices, departments
and activities, as the  { + State + } Board  { + of Education + }
may from time to time determine.  However, such moneys in the
instruction budget of the board shall not be used to support
hobby or recreation courses.
  SECTION 142. ORS 351.345 is amended to read:
  351.345. In order to provide funds for the purposes specified
in Article XI-G of the Oregon Constitution, the State Board of
  { - Higher - }  Education may request the State Treasurer to
issue bonds in accordance with the provisions of ORS chapter
286A.
  SECTION 143. ORS 351.350 is amended to read:
  351.350. In order to provide funds for the purposes specified
in Article XI-F(1), Oregon Constitution, the State Board of
  { - Higher - }  Education may request the State Treasurer to
issue bonds in accordance with the provisions of ORS chapter
286A.
  SECTION 144. ORS 351.353 is amended to read:
  351.353. (1) The State Board of   { - Higher - }  Education may
undertake the construction of an off-street motor vehicle parking
facility in Portland, Oregon, for higher education pursuant to
Article XI-F(1), Oregon Constitution, ORS 351.160 to 351.190,
351.350 to 351.460 and 351.505. The parking facility shall be for
the use of the students and staff members of the board. The board
shall establish the rates, charges and fees for use of the
parking facility in accordance with the provisions of ORS
351.170.
  (2) Bonds may be sold to finance the facility described in this
section, in an amount authorized and under the conditions
prescribed by ORS 351.350.
  SECTION 145. ORS 351.356 is amended to read:
  351.356. (1) As used in this section:
  (a) 'Bond' means a bond issued under Article XI-F(1) of the
Oregon Constitution.
  (b) 'Credit enhancement device' means a letter of credit, line
of credit, bond insurance policy, standby purchase agreement,
surety bond or other device or facility used to enhance the
creditworthiness, liquidity or marketability of a bond.
  (c) 'Financial agreement' means an agreement for exchange of
interest rates, as defined in ORS 286A.001, a credit enhancement
device or an agreement made in connection with a credit
enhancement device, that is executed for one or more bonds.
  (2) The State of Oregon, acting through the State Board of
  { - Higher - }  Education or the State Treasurer, may:
  (a) Enter into financial agreements.
  (b) Identify, segregate, pledge and agree to pay amounts due
under financial agreements entered into under this section from:
  (A) The revenues described in section 2, Article XI-F(1) of the
Oregon Constitution; or
  (B) The unexpended proceeds of the bonds for which financial
agreements are executed.
  (c) To the extent permitted by Article XI-F(1) of the Oregon
Constitution, issue bonds to secure the state's obligation to
make payments under a financial agreement. If a bond is issued
under this paragraph, the bond amount shall count toward the
limit described in section 1, Article XI-F(1) of the Oregon
Constitution, only to the extent that it increases the amount the
state is obligated to pay under other bonds.
  SECTION 146. ORS 351.460 is amended to read:
  351.460. (1) The State Board of   { - Higher - }  Education
shall maintain an account within the Oregon University System
Fund established by ORS 351.506 to provide for the payment of the
principal of and the interest upon:
  (a) The bonds issued under authority of Article XI-F(1) of the
Oregon Constitution and ORS 351.350;
  (b) The bonds issued under authority of Article XI-G of the
Oregon Constitution and ORS 351.345; and
  (c) Amounts due under financial agreements entered into under
ORS 351.356.
  (2) The account maintained under this section comprises one
subaccount for each of the purposes of the account identified in
subsection (1) of this section.
  (3) Income and interest derived from moneys in the subaccounts
of the account maintained under this section are credited to the
appropriate subaccount.
  (4) The sources of moneys for the account maintained under this
section are:
  (a) All moneys received from ad valorem taxes levied pursuant
to ORS 291.445;
  (b) All moneys that the Legislative Assembly may provide in
lieu of ad valorem taxes;
  (c) The revenues transferred to the account maintained under
this section pursuant to subsection (6) of this section;
  (d) All moneys received as accrued interest upon bonds sold;
  (e) All earnings from investments of the account;
  (f) Net proceeds of the sale of refunding bonds; and

  (g) All moneys that the State of Oregon has agreed to hold in
the account to pay amounts due under financial agreements entered
into under ORS 351.356.
  (5) The board may credit the account maintained under this
section with moneys received from either a sale or interfund
transfer of buildings, structures, land or other projects. When
the buildings, structures, land or other projects are sold or the
use of the buildings, structures, land or other projects is
rededicated so that a transfer from one subaccount to another
subaccount is appropriate, the moneys received shall be credited
to the appropriate subaccount.
  (6)(a) The board shall transfer revenues to the account
maintained under this section in amounts sufficient to pay, when
due, the principal of and the interest and any premium upon the
bonds issued under authority of Article XI-F(1) of the Oregon
Constitution. Revenues not required for the account as described
in this subsection shall be transferred to other accounts and
subaccounts within the Oregon University System Fund that are
designated by the Chancellor of the Oregon University System. The
portion of student building fees that are imposed under ORS
351.170 to provide the funds with which to amortize the principal
of and pay the interest on bonds issued under Article XI-F(1) of
the Oregon Constitution shall be applied only to pay those bonds.
  (b) For purposes of this subsection, 'revenues' includes all
funds available to the board except:
  (A) Amounts appropriated by the Legislative Assembly from the
General Fund; and
  (B) Lottery funds allocated for debt service.
  (7)(a) The board may not use the account maintained under this
section for any purpose other than the purposes for which the
account was created.
  (b) Notwithstanding paragraph (a) of this subsection, if the
balance in any subaccount exceeds the amount required to pay debt
service during a fiscal period, the board may transfer the
surplus in the subaccount to other accounts in the Oregon
University System Fund. This paragraph does not apply to any
surplus consisting of General Fund moneys appropriated for debt
service or lottery funds allocated for debt service. Any surplus
consisting of General Fund moneys appropriated for debt service
shall revert to the General Fund as provided in ORS 293.190.
  SECTION 147. 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) Refund bonds issued for the projects; and
  (c) Pay bond-related costs.
  (2)(a) Before pledging all or a portion of higher education
revenues, pursuant to ORS 286A.102, to secure higher education
revenue bonds, higher education credit enhancement devices or
agreements for exchange of interest rates related to such revenue
bonds or credit enhancement devices, the chancellor shall reserve
sufficient funds each biennium to satisfy any payment or reserve
requirements relating to:
  (A) General obligation bonds or certificates of participation
issued for the benefit of the Oregon University System;
  (B) Credit enhancement devices or agreements for exchange of
interest rates entered into in connection with obligations
related to general obligation bonds or certificates of
participation issued for the benefit of the Oregon University
System; and
  (C) Loans to the Oregon University System funded by state
general obligation bonds.
  (b) Pursuant to ORS 286A.010, the Oregon University System
shall provide cash flow projections and other information
requested by the State Treasurer to determine the sufficiency of
higher education revenues to satisfy the requirements of
paragraph (a) of this subsection and any proposed revenue bonds.
  (c) For purposes of the issuance of bonds and ORS chapter 286A,
the Oregon University System shall be considered a related agency
as defined in ORS 286A.001 (9).
  (d) The chancellor shall identify the specific higher education
revenues that will be pledged to secure each series of higher
education revenue bonds and specify the status of the lien of
each pledge.
  (3) The chancellor may enter into covenants, pursuant to ORS
286A.025 (4)(c), on behalf of the State of Oregon for the benefit
of holders of higher education revenue bonds, providers of credit
enhancement for higher education revenue bonds and counterparties
to agreements for exchange of interest rates to:
  (a) Adjust the rates, charges or fees that produce higher
education revenues so that higher education revenues equal or
exceed specified levels during specified periods.
  (b) Create only those pledges or liens on higher education
revenues that are permitted by the covenants authorized by this
section.
  (c) Budget and apply higher education revenues, or otherwise
allow higher education revenues to be applied, in amounts that,
when added to other moneys lawfully available for the purpose,
will be sufficient:
  (A) To pay in full and when due the principal, interest and
premium on outstanding higher education revenue bonds;
  (B) To pay amounts due in connection with agreements for
exchange of interest rates and credit enhancement devices for
higher education revenue bonds; and
  (C) To maintain the balance required by covenants in any debt
service reserves established for the higher education revenue
bonds.
  (4) The chancellor shall operate the properties of the Oregon
University System in compliance with the higher education revenue
bond covenants until all higher education revenue bonds are paid
or defeased.
  (5) Higher education revenue bonds are not a general obligation
of the State of Oregon, and neither the full faith and credit nor
the taxing power of the State of Oregon may be pledged to secure
or pay the higher education revenue bonds.
  (6) The State Treasurer and the Oregon University System do not
have an obligation to pay bond-related costs except as provided
in ORS 351.473 to 351.485. A holder of higher education revenue
bonds issued under this section does not have the right to compel
the exercise of the taxing power of the State of Oregon to pay
bond-related costs.
  (7) As long as any higher education revenue bonds issued under
this section are outstanding, covenants related to the higher
education revenue bonds are deemed to be contracts between the
State of Oregon and holders of the higher education revenue
bonds. The State of Oregon may not give force or effect to a
statute or initiative or referendum measure approved by the
electors of this state if doing so would unconstitutionally
impair existing covenants made with the holders of existing
higher education revenue bonds or would unconstitutionally impair
other obligations or agreements regarding the security of higher
education revenue bonds to which the moneys deposited in the
accounts established by ORS 351.479, 351.482 and 351.485 are
pledged and assigned.
  (8) The principal, interest and any premium and any issuance
costs on a financing agreement under ORS 283.085 to 283.092, any
general obligation bond, any revenue bond and any related credit
enhancement device or interest rate exchange agreement shall be
paid from the sources specified in the laws and documents
authorizing the financing agreement, bond, credit enhancement
device or interest rate exchange agreement. The Oregon University
System shall pay any other expenses and liabilities, including
but not limited to legal expenses, costs of settling claims,
judgments, federal arbitrage rebates and penalties and expenses
arising from an inquiry, audit or other action by a federal or
state regulatory body, unless the expense or liability results
solely from the negligence or willful misconduct of a state
agency.
  (9) Pursuant to ORS chapter 180, on behalf of the State
Treasurer or any other state agency, the Attorney General shall
appear, commence, prosecute or defend any action, suit, matter,
cause or proceeding arising from any financing agreement under
ORS 283.085 to 283.092, any bond issued for the benefit of the
Oregon University System and any related credit enhancement
device or interest rate exchange agreement.
  SECTION 148. ORS 351.505 is amended to read:
  351.505. The State Board of   { - Higher - }  Education may, in
its discretion, accept financial assistance and grants, either in
the form of money or labor, from the United States or any of its
agencies, subject to the terms and conditions thereof, regardless
of any laws of this state in conflict with the regulations of the
federal government with respect thereto, and may also accept from
others any donation or grant of land or gift of money or other
valuable gift or thing, for any of the purposes contemplated by
Article XI-F(1) and Article XI-G of the Oregon Constitution, ORS
351.160 to 351.190, 351.345 to 351.460, 351.500 and 351.505.
Unless enjoined by the terms or conditions of any such gift or
grant, the board may convert the same, or any of them, into
money, through sale or disposal thereof.
  SECTION 149. ORS 351.506 is amended to read:
  351.506. (1) The Oregon University System Fund is established
in the State Treasury, separate and distinct from the General
Fund. Any interest or other investment income derived from moneys
in the Oregon University System Fund is credited to the fund.
  (2) Except for moneys otherwise designated by statute or
federal law, all moneys received by the State Board of
 { - Higher - } Education  { + for higher education + } or the
Oregon University System shall be paid into the State Treasury
and credited to the Oregon University System Fund. All moneys in
the fund are continuously appropriated to the State Board of
 { - Higher - }  Education for purposes authorized by law.
  (3) The moneys in the Oregon University System Fund may be
invested as provided in ORS 293.701 to 293.820.
  (4) The board may establish accounts and subaccounts within the
Oregon University System Fund when the board determines that
accounts or subaccounts are necessary or desirable. Except when
otherwise specified by a statute establishing an account, the
board may credit any interest or income derived from moneys in
the fund to any account or subaccount within the fund.
  (5) The board shall keep a record of all moneys deposited into
the Oregon University System Fund. The record shall indicate by
separate cumulative accounts and subaccounts the sources from
which the moneys are derived and the individual activity or
program against which each withdrawal is charged.
  SECTION 150. ORS 351.590 is amended to read:
  351.590. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
receiving all revenue from incidental fees, optional fees, health
services fees and all operating revenue from intercollegiate
athletics, student unions and educational activities.
  (2) Disbursements from the account designated by this section,
including any interest credited to the account, may be made for
necessary expenses for supplies, services and equipment
associated with student activities including but not limited to
recruiting, training and grant-in-aid to intercollegiate
athletes.
  (3) Income and interest derived from moneys in the account
designated by this section are credited to the account. The State
Board of   { - Higher - }  Education shall distribute annually
the total interest earnings proportionately to each public
university listed in ORS 352.002 based on each university's
average cash balance in the account.
  SECTION 151. ORS 351.615 is amended to read:
  351.615. Moneys set aside by higher education auxiliary
activities for repair and alteration of buildings and replacement
of equipment shall be credited to an account designated for that
purpose in the Oregon University System Fund established by ORS
351.506. Income and interest derived from moneys in the account
are credited to the account for distribution to the several
auxiliary activities in accord with rules adopted by the State
Board of   { - Higher - }  Education. The moneys in the account
may be used only for the repair and alteration of auxiliary
enterprise buildings and replacement of equipment as designated
by the board, after hearing any recommendations by recognized
student governments.
  SECTION 152. ORS 351.627 is amended to read:
  351.627. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
capital construction.
  (2) The account designated by this section consists of moneys
credited to the account, including moneys from the Administrative
Services Economic Development Fund. Interest earned on moneys in
the account is credited to the account.
  (3) A building, facility or project to be funded from the
account designated by this section may not be commenced and an
expenditure for the building, facility or project may not be made
or incurred except for land purchases and architectural or
engineering planning until a plan for the building, facility or
project has been submitted by the State Board of   { - Higher - }
Education to and approved by the Emergency Board.
  SECTION 153. ORS 351.633 is amended to read:
  351.633. Any contract entered into by the State Board of
  { - Higher - }  Education to be paid from the account
designated by ORS 351.627 for which there are insufficient funds
in the account at the time the contract is entered into must
contain a provision authorizing cancellation of the contract if
the funds do not become available.
  SECTION 154. ORS 351.638 is amended to read:
  351.638. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
attracting new, outstanding faculty members to the public
universities listed in ORS 352.002. This purpose includes payment
of costs incurred in relocating new faculty, retraining necessary
teaching assistants for new faculty, acquisition of equipment
such as laboratory equipment and facilities to support research
by new faculty, payment of other costs incurred in recruiting new
faculty and payment of costs associated with committing salary
supplements to newly recruited faculty over a period of more than
one year.
  (2) The State Board of   { - Higher - }  Education shall seek
funds from private sources for deposit to the credit of the
account designated by this section.
  SECTION 155. 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 - }  { +  listed in ORS 352.002 + }.
  (3) The State Board of   { - Higher - }  Education 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 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 156. 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 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 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 157. ORS 351.644 is amended to read:
  351.644. (1)(a) The amount of the credit specified in ORS
351.643 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at a public
university listed in ORS 352.002 or from the public university,
the student must elect to claim the credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the public university under ORS 351.643
(1)(c); or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
public university from which the student withdraws.
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the public university that the student died while
serving on active duty.
  (5) The State Board of   { - Higher - }  Education 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 158. ORS 351.646 is amended to read:
  351.646. A public university listed in ORS 352.002 shall give
credit for education and training obtained by a person while
serving in the Armed Forces of the United States, as defined in
ORS 351.642. The education and training for which credit may be
given must meet the standards adopted by the State Board of
  { - Higher - }  Education by rule.
  SECTION 159. ORS 351.647 is amended to read:
  351.647. The Legislative Assembly finds that:
  (1) It is in the interest of this state and its people that
Oregon residents have access to the post-secondary institutions
in the Northwest which best provide for the educational needs of
those students;
  (2) The people of Oregon and their post-secondary institutions
benefit through the provision of access to Oregon colleges and
universities for students from the state of Washington and from
the enhanced economic and cultural well-being of the northwest
region;
  (3) The state should reduce or eliminate the nonresident
tuition barriers which might exist between the states of Oregon
and Washington to restrict or inhibit enrollment of residents of
one of these states in a community college or public college or
university in the other state;
  (4) The general policy statement on reduction of admission and
tuition barriers between the states of Oregon and Washington
shall not apply to students at the Oregon Health and Science
University, where enrollment priority shall continue to be given
to qualified Oregon residents; and
  (5) The State Board of   { - Higher - }  Education   { - and
the Higher Education Coordinating Commission - }  shall develop
plans to carry out the intent of this policy within the
appropriations available, and shall report to the appropriate
legislative review agency before implementing the plan.
  SECTION 160. 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 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 161. ORS 351.663 is amended to read:
  351.663. (1) The Engineering and Technology Industry Council is
established. A majority of the council members are
representatives of high technology companies in Oregon. The
council shall be consulted on the work plans and resource
allocations for engineering education.
  (2) The council shall establish criteria and measurements that
will be used for determining investments made from the account
designated by ORS 351.666.
  (3) The criteria and measurements established by the council
include:
  (a) Responding to the urgent engineering educational needs of
Oregon's fast growing high technology industry, especially in the
Portland metropolitan area.
  (b) Increasing this state's faculty and program capacity to
meet the graduate level, professional education needs of
engineers working in Oregon's high technology industry through
investments in public and private institutions.
  (c) Creating additional opportunities for Oregonians to pursue
education in electrical engineering, computer engineering and
other engineering disciplines critical to the advancement of
Oregon's high technology industry.
  (d) Investing relatively scarce state financial resources to:
  (A) Address the high technology industry's most demonstrated
and pressing needs;
  (B) Produce the greatest amount of educational benefits with
the least short-term and long-term costs to the public;
  (C) Avoid duplicating existing public or private resources; and
  (D) Leverage existing and future private resources for the
public benefit.
  (e) Making all investments in public and private institutions
through performance-based contracts with measurable outcomes in
order to ensure strong linkage between the most urgent
engineering education needs and implemented solutions.
  (f) Maximizing the leverage of state investment funds to build
faculty and program capacity and share existing and new faculty
and program resources.
  (4) Priority is given to investments where private financial
resources from Oregon high technology companies or individuals
with significant interests in the growth of high technology in
Oregon are made available to augment public funds.
  (5) The council must submit biennial performance reviews of all
investments made to improve engineering education with public
funds in public and private institutions. The reviews must be
submitted to the Chancellor of the Oregon University System and
the State Board of   { - Higher - }  Education.
  SECTION 162. ORS 351.666 is amended to read:
  351.666. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
investments in engineering education. Interest earned on moneys
in the account is credited to the account.
  (2) The State Board of   { - Higher - }  Education shall use
the moneys in the account designated by this section solely for
the purpose of investing in engineering education. The board
shall follow the criteria and measurements established by the
Engineering and Technology Industry Council in allocating moneys
for investments in engineering education.
  SECTION 163. ORS 351.668 is amended to read:
  351.668. The State Board of   { - Higher - }  Education shall
use the money from the account designated by ORS 351.666 solely
for the purpose of investing in engineering education. The board
shall follow the criteria and measurements established by the

Engineering and Technology Industry Council in allocating money
for investments in engineering education.
  SECTION 164. ORS 351.692 is amended to read:
  351.692. The State Board of   { - Higher - }  Education shall
adopt policies that prescribe the requirements for a venture
grant program and the requirements that a grant applicant must
meet in order to receive grant moneys from a university venture
development fund, including requirements:
  (1) That a grant recipient remain within this state for at
least five years following the receipt of a grant or repay the
grant plus interest;
  (2) That each university that establishes a university venture
development fund report amounts of tax credit certificates issued
by the university and maintain records of income realized by the
university as the result of grants made from the fund and records
of amounts paid to the General Fund; and
  (3) Under which the Oregon University System is to maintain
records and issue directions to universities that have
established university venture development funds relating to when
universities must cease issuing certificates, in order to ensure
that the total amount owed to the General Fund by the Oregon
University System at any one time under ORS 351.697 (6) does not
exceed $6 million.
  SECTION 165. ORS 351.697 is amended to read:
  351.697. (1) Each university in the Oregon University System
and Oregon Health and Science University may elect to establish a
university venture development fund as provided in this section
for the purpose of facilitating the commercialization of
university research and development. A university shall direct
that the university venture development fund be administered, in
whole or in part, by the university or by the university's
affiliated foundation.
  (2) The purposes of a university venture development fund are
to provide:
  (a) Capital for university entrepreneurial programs;
  (b) Opportunities for students to gain experience in applying
research to commercial activities;
  (c) Proof-of-concept funding for transforming research and
development concepts into commercially viable products and
services;
  (d) Entrepreneurial opportunities for persons interested in
transforming research into viable commercial ventures that create
jobs in this state; and
  (e) Tax credits for contributors to university research
commercialization activities.
  (3) Each university that elects to establish a university
venture development fund shall:
  (a) Notify the Department of Revenue of the establishment of
the fund;
  (b) Either directly or through its affiliated foundation,
solicit contributions to the fund and receive, manage and
disburse moneys contributed to the fund;
  (c) Subject to ORS 315.521 (1), 351.692 (3) and 353.445 (3),
issue tax credit certificates to contributors to the fund in the
amount of the contributions;
  (d) Establish a grant program that meets the requirements for a
venture grant program under policies adopted by the State Board
of   { - Higher - }  Education under ORS 351.692 or under
policies adopted by the Oregon Health and Science University
Board of Directors under ORS 353.445; and
  (e) Subject to available moneys from the fund, provide
qualified grant applicants with moneys for the purpose of
facilitating the commercialization of university research and
development.

  (4) Except as provided in subsection (5) of this section,
moneys in a university venture development fund shall be
disbursed only as directed by a university.
  (5) A university or its affiliated foundation may charge its
customary administrative assessment to manage its university
venture development fund in an amount not to exceed three percent
of the fund's average balance during the fiscal year of the
university or its affiliated foundation. The administrative
assessment may be paid from the assets in the fund. Except as
authorized by law, no other fees or indirect costs shall be
charged against the university venture development fund or any
associated grants or other disbursements from the fund.
  (6) A university that has established a university venture
development fund shall monitor the use of grants made from the
fund and identify the income realized by the university as the
result of the use of the grants. Income consists of cash realized
from royalties, milestone and license fee payments and cash from
the sale of equity. The university shall cause the transfer of 20
percent of the income realized from the grants to the General
Fund, but not to exceed the amount of the tax credits issued by
the university as a result of contributions to its university
venture development fund. Immediately upon deposit of the
transferred amount into the General Fund, the university may
issue new tax credits to equal the transferred amount.
  (7) A university that has established a university venture
development fund shall report annually to the Legislative
Assembly or, if the Legislative Assembly is not in session, to
the interim legislative committees on revenue. The report shall
be at the end of the fiscal year of the university or of its
affiliated foundation and provide information for that fiscal
year. The university shall include in the report the following
information pertaining to its university venture development
fund:
  (a) The amount of donations received for the fund;
  (b) The amount of income received from the fund;
  (c) The amount of disbursements and grants paid from the fund;
  (d) The amount of income and royalties received from
disbursements from the fund; and
  (e) The amount of moneys transferred from the fund to the
General Fund.
  SECTION 166. ORS 351.708 is amended to read:
  351.708. The State Board of Education   { - and the State Board
of Higher Education - }  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 - }
 { + board + } 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 167. 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 for the Oregon Student
Access Commission.
  (2) Under the direction and control of the Oregon Education
Investment Board, the Higher Education Coordinating Commission
shall:
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;
  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of   { - Higher - }  Education,
with the goal of encouraging tuition affordability for students;
  (C) Tuition rates set by each community college governing board
for community colleges in this state;
  (D) Recommended biennial appropriations for student financial
aid; and
  (E) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System;
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
  (3) In addition to the duties described in subsections (1) and
(2) of this section, the Higher Education Coordinating Commission
shall:
  (a) Develop and recommend policies to ensure or improve access
to higher education by underserved populations.
  (b) Recommend and encourage student success and completion
initiatives.
  (c) Develop and recommend policies to improve the coordination
of the provision of educational services, including:
  (A) Transfers and other movements throughout the higher
education system;
  (B) Accelerated college credit programs for high school
students;
  (C) Applied baccalaureate and other transfer degrees; and
  (D) Reciprocity agreements with other states.
  (d) Review research efforts among the public universities of
this state to improve economic development in this state.
  (e) Coordinate education initiatives with the State Workforce
Investment Board, the Department of Community Colleges and
Workforce Development, local workforce investment boards, the
Oregon Health and Science University and independent institutions
of post-secondary education.
  SECTION 168. 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 for the Oregon Student
Access Commission. - }
    { - (2) Under the direction and control of the Oregon
Education Investment Board, the Higher Education Coordinating
Commission shall: - }
   { +  (1) The State Board of Education shall: + }
  (a) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (A) Increasing the educational attainment of the population;
  (B) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (C) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (D) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (b) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (c) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (A) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (B) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of   { - Higher - }  Education,
with the goal of encouraging tuition affordability for students;
  (C) Tuition rates set by each community college governing board
for community colleges in this state;
  (D) Recommended biennial appropriations for student financial
aid; and
  (E) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (d) Each biennium, recommend to the Oregon Education Investment
Board a consolidated higher education budget request consistent
with the finance model, including appropriations for:
  (A) Ongoing operations of the Oregon Student Access Commission;
  (B) Ongoing operations for the Oregon University System;
  (C) Ongoing operations for community colleges;
  (D) Needed new facilities or programs; and
  (E) Capital improvements.
  (e) Coordinate with the Oregon Student Access Commission to
maximize the effectiveness of student financial assistance
programs, including the Oregon Opportunity Grant program under
ORS 348.260.
  (f) Approve and authorize degrees for the Oregon University
System.
  (g) Authorize degrees to be offered in this state in accordance
with ORS 348.594 to 348.615, and adopt any rules to implement
that authority.
    { - (3) - }   { + (2) + } In addition to the duties described
in   { - subsections (1) and (2) - }   { + subsection (1) + } of
this section, the   { - Higher Education Coordinating
Commission - }   { + State Board of Education + } 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 169. 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 - }
 { + State Board of Education + } 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 for
the Oregon Student Access Commission.
  (2) Develop a strategic plan for achieving state higher
education goals, identifying priority areas for attention and
taking into consideration the contributions of this state's
independent institutions and other organizations dedicated to
helping Oregonians reach state goals. Goals should include, but
need not be limited to:
  (a) Increasing the educational attainment of the population;
  (b) Increasing this state's global economic competitiveness and
the quality of life of its citizens;
  (c) Ensuring affordable access for qualified Oregon students at
each college or public university; and
  (d) Ensuring that public higher education in this state is
provided in a cost-effective manner.
  (3) Evaluate and recommend changes to statutory goals and
missions described for community colleges in ORS 341.009 and for
public universities in ORS 351.003 and 351.009 after receiving
recommendations from the appropriate governing board. The
appropriate governing board shall have decision-making authority
over program offerings to implement established goals and
missions.
  (4) Develop a finance model for higher education aligned with
the goals in the system strategic plan, including:
  (a) Recommended biennial appropriations to institutions,
including a component specifically tied to institutional
contributions to state educational priorities;
  (b) Recommended limits regarding the setting of tuition rates
at public universities listed in ORS 352.002 in accordance with
criteria set by the State Board of   { - Higher - }  Education,
with the goal of encouraging tuition affordability for students;
  (c) Tuition rates set by each community college governing board
for community colleges in this state;
  (d) Recommended biennial appropriations for student financial
aid; and
  (e) Recommended biennial appropriations for any future
statewide higher education initiatives.
  (5) Each biennium, recommend to the Governor and the
Legislative Assembly a consolidated higher education budget
request consistent with the finance model, including
appropriations for:
  (a) Ongoing operations of the Oregon Student Access Commission;
  (b) Ongoing operations for the Oregon University System;
  (c) Ongoing operations for community colleges;
  (d) Needed new facilities or programs; and
  (e) Capital improvements.
  (6) 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.
  (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 170. ORS 351.810 is amended to read:
  351.810. The State Board of   { - Higher - }  Education, 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 171. 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 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 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 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 172. ORS 351.830 is amended to read:
  351.830. (1) Any Oregon resident desiring to take advantage of
the Western Regional Higher Education Compact may make
application to the State Board of   { - Higher - }  Education for
out-of-state educational service. From such applicants the board
shall select students to fill the quotas determined under ORS
351.820.
  (2) The board and the Oregon members of the Western Interstate
Commission for Higher Education shall jointly establish criteria
to be observed by the board in making such selections.
  (3) The board shall certify the names of the students selected
to the Western Interstate Commission for Higher Education and to
the out-of-state institution to which each student desires
admission.
  SECTION 173. ORS 351.840 is amended to read:
  351.840. (1) The State Board of   { - Higher - }  Education and
the Oregon Health and Science University Board of Directors may
contract with the Western Interstate Commission for Higher
Education to furnish educational service in their respective
Oregon public universities to out-of-state students.
  (2) The State Board of   { - Higher - }  Education and the
Oregon Health and Science University Board of Directors shall
determine the number of out-of-state students that should be
accepted into their respective universities, and shall make final
decisions on admission of individual applicants.
  (3) Payments made by the commission under such contracts shall
be deposited in and credited to a designated account in the
Oregon University System Fund established by ORS 351.506 for
students enrolled in public universities   { - under the
jurisdiction of the State Board of Higher Education - }
 { + listed in ORS 352.002 + } 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  { + State + } Board  { + of Education + } in making its
biennial budgetary requests. Payments made by the commission
under such contracts must be deposited with the Oregon Health and
Science University for students who enroll in that university
under the terms of such contracts.
  SECTION 174. ORS 351.870 is amended to read:
  351.870. (1) The Legislative Assembly finds and declares that
basic research is fundamental to the continuation and expansion
of applied research and is thus a necessary ingredient in
economic growth. The Legislative Assembly further finds that
basic research is itself an important activity which should be
promoted.
  (2) It is the policy of this state that basic research is an
appropriate and necessary activity of our public universities.
Further, the State of Oregon has an obligation with other states
and the federal government to encourage and finance basic
research if the state and nation are to be active participants in
a future which will require ever increasing levels of knowledge
and understanding.
  (3) The Legislative Assembly acknowledges that a characteristic
of basic research is that no defined result can be guaranteed and
asserts that only through scholarly investigation can knowledge
be advanced to be later developed and applied.
  (4) The Legislative Assembly believes that moneys for basic
research should be regularly appropriated and that such moneys
should be used for support of qualified investigators and funding
of research projects.
  (5) The Legislative Assembly intends that in implementing the
policy on basic research or any other research policy, the State
Board of   { - Higher - }  Education, in keeping with the
principle of academic freedom, shall ensure open and free inquiry
and publication in all public universities   { - under its
jurisdiction - }  { +  listed in ORS 352.002 + }.
  SECTION 175. ORS 351.875 is amended to read:
  351.875. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated to provide grants for
research.
  (2) The account designated by this section may consist of
moneys from any public or private source. Interest earned on the
account is credited to the account.
  (3) The account designated by this section shall be
administered by the State Board of   { - Higher - }  Education
according to policies and procedures adopted pursuant to ORS
351.880 and 351.885.
  (4) Expenditures from the account designated by this section
shall take the form of grants for a time certain and may extend
beyond the biennium in which the expenditure is made. Grants may
not be used for capital construction.
  SECTION 176. ORS 351.880 is amended to read:
  351.880. For the purpose of recommending policies and
procedures for the administration of the account designated by
ORS 351.875, the State Board of   { - Higher - }  Education shall
establish a Council for Research Policy Recommendations.
  SECTION 177. ORS 351.885 is amended to read:
  351.885. (1) With the advice and recommendations of the Council
for Research Policy Recommendations established by ORS 351.880,
the State Board of   { - Higher - }  Education shall adopt
policies and procedures for the administration of the account
designated by ORS 351.875.
  (2) The policies and procedures shall give consideration to:
  (a) The promotion of basic research of the highest caliber at
public universities within the Oregon University System;
  (b) The identification of areas of inquiry that should be
supported so as to recognize both the intrinsic value and
extrinsic economic value of basic research;
  (c) The capacity of each public university to decide where
basic research moneys could best be spent within that public
university;
  (d) Administrative and accounting requirements that place upon
the public university receiving moneys from the account
designated by ORS 351.875 a minimum burden sufficient to
guarantee an appropriate degree of public accountability; and
  (e) Methods of ensuring nondiscriminatory access to the account
designated by ORS 351.875.
  SECTION 178. ORS 352.004 is amended to read:
  352.004. The president of each public university within the
Oregon University System is also president of the faculty. The
president is also the executive and governing officer of the
public university, except as otherwise provided by statute or
action of the State Board of   { - Higher - }  Education. Subject
to the supervision of the board, the president of the public
university has authority to control and give general directions
to the practical affairs of the public university.
  SECTION 179. ORS 352.010 is amended to read:
  352.010. The president and professors constitute the faculty of
each of the public universities listed in ORS 352.002 and as such
have the immediate government and discipline of the public
university and the students therein, except as otherwise provided
by statute or action of the State Board of   { - Higher - }
Education. The faculty may, subject to the supervision of the
board under ORS 351.070, prescribe the course of study to be
pursued in the public university and the textbooks to be used.
  SECTION 180. ORS 352.021 is amended to read:
  352.021. (1) As used in this section, 'internment camp ' means
a relocation center to which persons were ordered evacuated by
Presidential Executive Order 9066, signed on February 19, 1942.
  (2) A person who meets the requirements of subsection (4) of
this section may request a public university listed in ORS
352.002 to award the person an honorary post-secondary degree.
  (3) A representative of a deceased person who meets the
requirements of subsection (4) of this section may request a
public university to award an honorary post-secondary degree on
behalf of the deceased person.
  (4) Notwithstanding the requirements for a post-secondary
degree established by a public university or by the State Board
of
  { - Higher - }  Education, 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 181. ORS 352.035 is amended to read:
  352.035. The State Board of   { - Higher - }  Education may
open, establish, lay out and dedicate to the public use such
streets through the lands situated within the corporate limits of
the City of Eugene, owned by or belonging to the University of
Oregon, upon such terms and conditions as may be agreed upon by
the State Board of   { - Higher - }  Education and the common
council of the City of Eugene. When such streets are so opened,
laid out and established, they hereby are declared to be
dedicated to the public use and are further declared to be public
streets of the City of Eugene.
  SECTION 182. ORS 352.051 is amended to read:
  352.051. The State Board of   { - Higher - }  Education shall
adopt rules necessary to carry out the provisions of ORS 352.048
to 352.053.
  SECTION 183. ORS 352.230 is amended to read:
  352.230. (1) Oregon State University is designated and
permanently adopted as the agricultural college of the state and
shall provide, in accordance with the objectives sought by
Congress in the establishment of state agricultural colleges,
instruction in agriculture and the mechanic arts. The university
is also a Sea Grant College dedicated to education and research
in the marine sciences.
  (2) The State Board of   { - Higher - }  Education is
authorized to enter into agreements with its counterpart in the
State of Idaho and with the Board of Regents of Washington State
University for cooperative development of the program in
Veterinary Medicine.
  SECTION 184. ORS 352.360 is amended to read:
  352.360. (1) The State Board of   { - Higher - }  Education may
enact such regulations as the board deems convenient or necessary
to provide for the policing, control and regulation of traffic
and parking of vehicles on the property of any public university
listed in ORS 352.002. The regulations may provide for the
registration of vehicles, the designation of parking areas and
the assessment and collection of reasonable fees and charges for
parking. The board may require that before a quarterly or yearly
parking privilege for any vehicle is granted to any full-time or
part-time student to use board property, the student must show
that the vehicle is operated by a student holding a valid driver
license, that the vehicle is currently registered and that the
student driving the vehicle is insured under a motor vehicle
liability insurance policy that meets the requirements described
under ORS 806.080 or that the student or owner of the vehicle has
provided the Department of Transportation with other satisfactory
proof of compliance with the financial responsibility
requirements of this state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by the board for each public university. Administrative
and disciplinary sanctions may be imposed upon students, faculty
and staff for violation of the regulations, including but not
limited to, a reasonable monetary penalty which may be deducted
from student deposits, and faculty or staff salaries or other
funds in the possession of the public university. The board shall
provide opportunity for hearing for the determination of
controversies in connection with imposition of fines or
penalties.  The board may prescribe procedures for such hearings
despite the provisions of ORS 183.413 to 183.470. Persons other
than students, faculty or staff may voluntarily submit to the
hearing procedures prescribed by the board, and shall be bound by
the results of the hearing. The powers granted to the board by
this section are supplemental to the existing powers of the board
with respect to the government of activities of students, faculty
and staff and the control and management of property   { - under
its jurisdiction - }  { +  within the Oregon University
System + }.
  (3) The regulations enacted pursuant to subsection (1) of this
section may also be enforced by the impoundment of vehicles, and
a reasonable fee may be enacted for the cost of impoundment and
storage, if any, prior to the release of the vehicles to their
owners.
  (4) All fees and charges for parking privileges and violations
are deposited in a designated account in the Oregon University
System Fund established by ORS 351.506 for the purpose of
defraying the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations and maintenance and operation of parking facilities
and for the purpose of acquiring and constructing additional
parking facilities for vehicles at the various public
universities and offices, departments and activities   { - under
the control of the board - }  { +  within the Oregon University
System + }. Fees and charges may also be credited to the account
in the Oregon University System Fund designated by ORS 351.460.
Parking fees shall be established at levels no greater than those
required to finance the construction, operation and maintenance
of parking facilities on the same campus of the public university
for which the parking is provided. Notwithstanding ORS 351.072,
parking fees or changes in fees shall be adopted by rule of the
board subject to the procedure for rules adopted in ORS chapter
183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section. The board, for the
purpose of enforcing its rules and regulations governing traffic
control, may appoint peace officers who have the same authority
as other peace officers as defined in ORS 133.005.
  (6) The board and any municipal corporation or any department,
agency or political subdivision of this state may enter into
agreements or contracts with each other for the purpose of
providing a uniform system of enforcement of the rules and
regulations of the board enacted pursuant to subsection (1) of
this section.
  (7) In proceedings brought to enforce regulations enacted
pursuant to subsection (1) of this section, it shall be
sufficient to charge the defendant by an unsworn written notice
in accordance with the provisions of ORS 221.333. In any case in
which the defendant is not subject to and does not voluntarily
submit to the hearing procedures prescribed under subsection (2)
of this section, proceedings to enforce regulations enacted
pursuant to subsection (1) of this section shall be brought in
the name of the board in a circuit court, a justice court or a
city court for offenses committed within the territorial
jurisdiction of such court. Such courts shall have concurrent
jurisdiction over offenses committed within their respective
jurisdictions. All fines, penalties and court costs recovered
shall be paid to the clerk of the court involved and shall be
disposed of as provided in ORS 153.640 to 153.680.
  SECTION 185. ORS 352.383 is amended to read:
  352.383. (1) The State Board of   { - Higher - }  Education
may, at the request of a public university   { - under its
control - }  { +  listed in ORS 352.002 + }, authorize the
university to establish a police department and commission one or
more employees as police officers. A police department
established under this section has all of the authority and
immunity of a municipal police department of this state.
  (2) Police officers commissioned under this section:
  (a) May enforce criminal laws and any administrative rules and
policies adopted by the board or the commissioning university;
and
  (b) Have all the authority and immunity of a peace officer or
police officer of this state.
  (3) When a university establishes a police department and
commissions one or more employees as police officers, the
president of the university, in cooperation with the chief of the
police department, shall establish a process by which the
university will receive and respond to complaints involving the
policies of the police department and the conduct of the police
officers.
  (4) The board may:
  (a) Enter into an agreement, or authorize a university under
its control to enter into an agreement, with a municipal
corporation or any department, agency or political subdivision of
this state for the provision of mutual aid by their respective
police officers.
  (b) Adopt rules to carry out the provisions of this section.
  SECTION 186. ORS 352.385 is amended to read:
  352.385. (1) The State Board of   { - Higher - }  Education
may, at the request of a public university   { - under its
control - }  { +  listed in ORS 352.002 + }, authorize the
university to commission one or more of its employees as special
campus security officers. The total number of special campus
security officers commissioned at the public universities in the
Oregon University System may not exceed 50. Special campus
security officers shall have stop and frisk authority as set
forth in ORS 131.605 to 131.625 and probable cause arrest
authority and the accompanying immunities as set forth in ORS
133.310 and 133.315 when acting in the scope of their employment
as defined by the State Board of   { - Higher - }  Education.
Special campus security officers shall not be authorized to carry
firearms as police officers and, except as provided in subsection
(3) of this section, shall not be considered police officers for
purposes of ORS 181.610, 238.005, 243.005 or 243.736.
  (2) The Department of Public Safety Standards and Training
shall train special campus security officers at the expense of
the State Board of   { - Higher - }  Education.

  (3) The State Board of   { - Higher - }  Education, acting by
and through its special campus security officers, is a criminal
justice agency for purposes of rules adopted pursuant to ORS
181.730 (3).
  SECTION 187. ORS 352.390 is amended to read:
  352.390. (1) The State Board of   { - Higher - }  Education
shall cause to have prepared and submitted to the Legislative
Assembly a program and time schedule for the establishment of
regional services institutes at appropriate public universities.
The program shall include academic curriculum and practical
training appropriate to train students in various aspects of
economic and community services planning, with particular
emphasis on economic services planning for areas of the state
that have common geographic, economic and social characteristics
but that do not have sufficient population to qualify as
metropolitan statistical areas.
  (2) In carrying out its duties under subsection (1) of this
section, the board shall consult with the Oregon Business
Development Department and shall rely on the department for
technical advice and, as necessary, technical services. The board
shall also consult with community colleges, the Oregon State
University Extension Service, economic development districts and
special districts providing community and economic development
services in the region in order to prepare curriculum and
programs with particular emphasis on streamlining existing
programs, avoiding duplication and overlap of programs, better
utilizing students and resources and identifying needs in the
region that are currently unaddressed.
  (3) In preparing programs for establishing regional services
institutes, the board shall give priority to establishing
institutes at Eastern Oregon University and Southern Oregon
University. The board may also direct the hiring of an institute
director and other staff as may be from time to time required.
  SECTION 188. ORS 352.510 is amended to read:
  352.510. The interest that may accrue on an account arising
from the sale of lands for public universities that were donated
to the state by Act of Congress of February 14, 1859, may be
deposited in and credited to an account in the Oregon University
System Fund established by ORS 351.506 for the purpose of the
maintenance, use and support of the University of Oregon. No part
of the interest may be expended otherwise than in the payment of
the salaries of the president, professors and teachers of the
University of Oregon and other current expenses of the University
of Oregon. If at the close of any fiscal year an amount equal to
or greater than $500 of the interest remains unexpended after the
full payment of the salaries and expenses for the fiscal year,
the amount shall be added to and become a part of the principal
of the account. The State Board of   { - Higher - }  Education or
the faculty or other officers of the University of Oregon may not
pledge the faith or credit of the University of Oregon in excess
of the interest annually accruing on the account, together with
the receipts from tuitions and other sources during the current
year.
  SECTION 189. ORS 352.530 is amended to read:
  352.530. The Department of State Lands shall pay the interest
received on loans from the account designated by ORS 352.510 to
the State Board of   { - Higher - }  Education semiannually.
  SECTION 190. ORS 352.580 is amended to read:
  352.580. The Department of State Lands shall pay the interest
received on loans from the account designated by ORS 352.560 to
the State Board of   { - Higher - }  Education semiannually.
  SECTION 191. ORS 352.610 is amended to read:
  352.610. (1) Oregon State University shall execute the trust
created by the last will and testament of John T. Apperson,
deceased. The university shall administer the trust fund provided

for and designated in the will as the J. T. Apperson Agricultural
College Educational Fund.
  (2) Oregon State University may accept, receive, own, hold,
sell and dispose of any and all real and personal property given,
devised or bequeathed to the State Land Board by John T. Apperson
in trust for the purpose of creating the J. T. Apperson
Agricultural College Educational Fund. The university shall
manage and use it in accordance with the directions contained in
the will of John T. Apperson, deceased, for the purpose of
defraying the expenses and assisting in the education at Oregon
State University of deserving young men and women who are
residents of Oregon and are unable to bear the expense of a
collegiate course at that institution.
  (3) All necessary expenses incurred by Oregon State University
in connection with the administration of the trust fund shall be
payable out of the fund. The State Board of   { - Higher - }
Education or the university, if authority is delegated under ORS
351.070, may adopt any necessary rules for the transaction of
business related to and the carrying out of this section and ORS
352.620.
  SECTION 192. ORS 353.040 is amended to read:
  353.040. (1) There is established an Oregon Health and Science
University Board of Directors consisting of 10 members.  The
directors, except for the president of the university, shall be
appointed by the Governor and shall be confirmed by the Senate in
the manner prescribed in ORS 171.562 and 171.565.
  (2) Except for the president of the university, the term of
office of each nonstudent member is four years. The term of
office of the student member is two years. Before the expiration
of the term of a member, the Governor shall appoint a successor
whose term begins on October 1 next following. A member is
eligible for reappointment for one additional term. If there is a
vacancy for any cause, the Governor shall make an appointment to
become effective immediately for the unexpired term. The board
shall nominate a slate of candidates whenever a vacancy occurs or
is announced and shall forward the recommended candidates to the
Governor for consideration. To assist the Governor in appointing
the student member, the duly organized and recognized entity of
student government shall submit a list of nominees to the
Governor for consideration.
  (3) The membership of the board shall be as follows:
  (a) One representative who is a   { - nonstudent - }  member of
the State Board of   { - Higher - }  Education.
  (b) Seven representatives who, in the discretion of the
Governor, have experience in areas related to the university
missions or that are important to the success of Oregon Health
and Science University, including but not limited to higher
education, health care, scientific research, engineering and
technology and economic and business development.
  (c) One representative who is a student enrolled at the
university.
  (d) The president of the university, who shall be an ex officio
voting member.
  (4) Directors must be citizens of the United States. Except for
the president of the university, no voting member may be an
employee of the university.
  (5) The board shall select one of its members as chairperson
and another as vice chairperson for such terms and with such
duties and powers as the board considers necessary for
performance of the functions of those offices. The board shall
adopt bylaws concerning how a quorum shall be constituted and
when a quorum shall be necessary.
  (6) The board shall meet at least once every three months at
Oregon Health and Science University. The board shall meet at
such other times and places specified by the chairperson or by a
majority of the members of the board.
  (7) The Governor may remove any member of the board at any time
for cause, after notice and public hearing, but not more than
three members shall be removed within a period of four years,
unless it is for corrupt conduct in office.
  SECTION 193. ORS 353.050 is amended to read:
  353.050. Except as otherwise provided in this chapter, the
Oregon Health and Science University Board of Directors, or
university officials acting under the authority of the board,
shall exercise all the powers of the Oregon Health and Science
University and shall govern the university. In carrying out its
powers, rights and privileges, the university shall be a
governmental entity performing governmental functions and
exercising governmental powers. The university or the board may
either within or outside the state:
  (1) Determine or approve policies for the organization,
administration and development of the university.
  (2) Appoint and employ any instructional, administrative,
professional, trade, occupational and other personnel as are
necessary or appropriate to carry out the missions of the
university, and prescribe their compensation and terms of office
or employment.
  (3) Make any and all contracts and agreements, enter into any
partnership, joint venture or other business arrangement, create
and participate fully in the operation of any business structure,
including but not limited to the development of business
structures for health care delivery systems and networks with any
public or private government, nonprofit or for-profit person or
entity that in the judgment of the university or the board is
necessary or appropriate to carry out the university's missions
and goals.
  (4) Acquire, purchase, receive, hold, control, convey, sell,
manage, operate, lease, license, lend, invest, improve, develop,
use, dispose of and hold title to real and personal property of
any nature, including intellectual property, in its own name.
  (5) Sue in its own name and be sued, plead and be impleaded in
all actions, suits or proceedings in any forum brought by or
against it by any and all private or state, local, federal or
other public entities, agencies or persons.
  (6) Encourage gifts and donations for the benefit of the
university, and subject to the terms of the gift, retain, invest
and use such gifts as deemed appropriate by the university or the
board.
  (7) Acquire, receive, hold, keep, pledge, control, convey,
manage, use, lend, expend and invest all funds, appropriations,
gifts, bequests, stock and revenue from any source to the
university.
  (8) Borrow money for the needs of the university, in such
amounts and for such time and upon such terms as may be
determined by the university or the board.
  (9) Erect, construct, improve, develop, repair, maintain,
equip, furnish, lease, lend, convey, sell, manage, operate, use,
dispose of and hold title to buildings, structures and lands for
the university.
  (10) Purchase any and all insurance, operate a self-insurance
program or otherwise arrange for the equivalent of insurance
coverage of any nature and the indemnity and defense of its
officers, agents and employees or other persons designated by the
university to carry out or further the missions of the
university.
  (11) Create, develop, supervise, control and adopt academic
programs, including standards, qualifications, policies or
practices relating to admissions, curriculum, academic
advancement, grading policy, student conduct, credits and
scholarships and the granting of academic degrees, certificates
and other forms of recognition.

  (12) Authorize, create, eliminate, establish, operate,
reorganize, reduce or expand any program, school, institute,
health care facility or other unit of operation.
  (13) Establish, charge, collect and use charges for enrollment
into the university, including charges such as tuition for
education and general services, incidental fees and such other
charges found by the university to be necessary to carry out its
educational programs. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students of the university
upon the recommendation of the recognized student government of
the university.
  (14) Establish, charge, collect and use charges and fees for
university services and the use of university facilities.
  (15) Impose charges, fines, fees and such other regulations
considered convenient or necessary to control and regulate
traffic and parking of vehicles to the same extent allowed the
State Board of   { - Higher - }  Education. This authority
includes the authority to enforce the regulations of the
university in a court to the extent allowed the State Board of
 { - Higher - }  Education in enforcing the state board's
regulations as provided in ORS 352.360 (7).
  (16) Commission special campus security officers to be known as
university police. University police commissioned under this
subsection have all the powers and authority given by statute to
peace officers and police officers of this state. University
police shall complete training necessary for certification as
police officers at an academy operated or authorized by the
Department of Public Safety Standards and Training at the expense
of the Oregon Health and Science University Board of Directors.
University police are not authorized to carry firearms as police
officers and are not police officers for purposes of ORS 238.005,
243.005 or 243.736. The university is a criminal justice agency
for purposes of ORS 181.715 and 181.720 and a law enforcement
unit within the meaning of ORS 181.610 (12).
  (17) Enforce and recover for payment to the university any
fines that are authorized by this chapter.
  (18) Adopt, amend or repeal bylaws, administrative rules,
regulations and orders applicable to the matters that are the
subject of this chapter.
  (19) Contract with any state agency for the performance of such
duties, functions and powers as is appropriate. A state agency
shall not charge the university for such services an amount that
is greater than the actual cost of the services.
  (20) Purchase, receive, subscribe for or otherwise acquire,
own, hold, vote, use, sell, mortgage, lend, pledge, invest in or
otherwise dispose of and deal in or with the shares, stock or
other equity or interests in or obligations of any other entity.
Separate funds may be established for such investments. The State
of Oregon shall have no proprietary or other interest in such
investments or such funds.
  (21) Make available, by lease or otherwise, or control access
to any health care facilities or services or other of its
properties and assets to such persons, firms, partnerships,
associations or corporations and on such terms as considered
appropriate, charge and collect rent or other fees or charges
therefor and terminate or deny any such access or any such lease
or other agreement for such reasons as considered appropriate and
as may be consistent with its obligations under any such lease or
other agreement.
  (22) Contract for the operation of any department, section,
equipment or holdings of the university and enter into any
agreements with any person, firm or corporation for the
management by said person, firm or corporation on behalf of the
university of any of its properties or for the more efficient or
economical performance of clerical, accounting, administrative
and other functions relating to its health care facilities.
  (23) Select and appoint faculty as medical and dental staff
members and others licensed to practice the healing arts,
delineate and define the privileges granted each such individual,
adopt and direct a plan for faculty clinical income and set the
terms and conditions of that plan (including such modifications
to any such existing plan as considered necessary or appropriate
upon expiration of the term of such plan), and determine the
extent to which and the terms upon which each such individual may
provide teaching, research, consulting or other services at the
university or any other health care facility.
  (24) Enter into affiliation, cooperation, territorial,
management or other similar agreements with other public or
private universities or health care providers for the sharing,
division, allocation or furnishing of services on an exclusive or
a nonexclusive basis, referral of patients, management of
facilities, formation of health care delivery systems and other
similar activities.
  (25) Perform any other acts that in the judgment of the board
or university are requisite, necessary or appropriate in
accomplishing the purposes described in or carrying out the
powers granted by this chapter.
  (26) Exercise these powers, notwithstanding that as a
consequence of the exercise of such powers, the university
engages in activities that might otherwise be deemed
anticompetitive within the contemplation of state or federal
antitrust laws.
  SECTION 194. ORS 353.108 is amended to read:
  353.108. (1) Legal title to real property and facilities
acquired by the State of Oregon prior to July 1, 1995, and
utilized by Oregon Health and Science University shall remain
with the State of Oregon. However, the university shall have the
exclusive care, custody and control of such real property and
facilities pursuant to an exclusive leasehold interest in the
real property and facilities for a term of 99 years. The term of
the leasehold shall begin on July 1, 1995, and shall renew
automatically and perpetually for consecutive 99-year terms.
  (2) Notwithstanding any other provisions of Oregon law
concerning the authority of state agencies to lease real property
and facilities, the Oregon Department of Administrative Services
acting on behalf of the State of Oregon shall execute a ground
lease for all real property and facilities utilized by the
university consistent with the provisions of this section.
  (3) The ground lease shall not be subject to any termination
unless:
  (a) The State of Oregon causes all outstanding obligations of
the university to be defeased under the terms of any applicable
master indenture or financing agreement; and
  (b) There are no other conditions placed on the university.
  (4) Upon execution of the ground lease, the university shall
pay the State of Oregon the sum of $99 in consideration for the
ground lease.
  (5) The ground lease executed under this section shall
supersede the lease entered into between the State of Oregon and
the university in December 1995, with respect to the real
property and facilities, including but not limited to provisions
in the lease relating to or setting forth:
  (a) Purported limitations on the authority of the State Board
of   { - Higher - }  Education to bind the State of Oregon;
  (b) The term of the lease and the absence of any renewal
provisions; and
  (c) Any circumstances under which the lease may be terminated.
  (6) The university shall manage and maintain all real property
and facilities utilized by the university. Real property and
facilities of the State of Oregon leased to the university
pursuant to this section shall not be sold by the university but
may be encumbered by the university. Such real property and
facilities shall only be encumbered by the State of Oregon in
accordance with state law and in a manner that would not impair
the financial condition of the university or the rights of the
holders of any obligations of the university issued or incurred
under any master indenture or other financing agreement.
  SECTION 195. ORS 353.330 is amended to read:
  353.330. (1) Nothing in chapter 162, Oregon Laws 1995, shall be
construed in any way to impair the obligations or agreements of
the State of Oregon or the State Board of   { - Higher - }
Education with respect to bonds, certificates of participation,
financing agreements or other agreements for the borrowing of
money issued prior to July 1, 1995, by the State of Oregon
 { - on behalf of the State Board of Higher Education - }  for
equipment or projects for Oregon Health and Science University.
The university and the Oregon University System shall take all
actions necessary to ensure full compliance with all indentures,
resolutions, declarations, agreements and other documents issued
with respect to the bonds, certificates of participation,
financing agreements or other agreements for the borrowing of
money issued prior to July 1, 1995, by the State of Oregon
 { - on behalf of the State Board of Higher Education - }  for
equipment or projects for the university.  The Oregon University
System and the university shall establish, in a written agreement
that shall be subject to the approval of the State Treasurer, the
responsibility of the university for the payment to the Oregon
University System of moneys sufficient to pay when due all
principal, interest and any other charges on bonds, certificates
of participation, financing agreements or other agreements for
the borrowing of money issued prior to July 1, 1995, by the State
of Oregon   { - on behalf of the State Board of Higher
Education - }  for equipment or projects for the university.
  (2) Holders of obligations issued by the university on or after
July 1, 1995, may be paid pari passu with the obligations issued
by the State of Oregon   { - on behalf of the State Board of
Higher Education - }  for equipment or projects for the
university prior to July 1, 1995, from the rents, revenues,
receipts, appropriations or other income of the university, but
only to the extent that:
  (a) Such holders have no rights, liens or other interests with
respect to such rents, revenues, receipts, appropriations or
other income of the university that are senior or superior to the
rights granted to the holders of obligations issued prior to July
1, 1995, by the State of Oregon   { - on behalf of the State
Board of Higher Education - }  for equipment or projects for the
university; and
  (b) The State Board of   { - Higher - }  Education, the Oregon
Department of Administrative Services or the State of Oregon,
acting for the benefit of such holders of obligations, is granted
a lien or other security interest in the rents, revenues,
receipts, appropriations or other income of the university that
is not junior to and is at least pari passu with any lien or
other security interest granted to the holders of obligations
issued by the university.
  (3) Any expenses, including legal expenses, judgments,
liabilities and federal arbitrage and rebate penalties arising
from the actions of the university, if incurred with respect to
bonds, certificates of participation, financing agreements or
other agreements for the borrowing of money issued prior to July
1, 1995, by the State of Oregon   { - on behalf of the State
Board of Higher Education - }  for equipment or projects for the
university, shall be paid when due by the university, subject to
the university's right to reasonably contest such charges,
judgments, liabilities or penalties. The university shall assist
the Controller of the Oregon University System in making any
necessary calculations and filing any necessary reports related
to arbitrage and rebate on such indebtedness.
  (4) Any amounts deposited with the State Treasurer, the
Controller of the Oregon University System, the Oregon Department
of Administrative Services or its designated agents in any debt
service in reserve accounts for the debt service associated with
any bonds, certificates of participation, financing agreements or
other agreements for the borrowing of money issued prior to July
1, 1995, by the State of Oregon   { - on behalf of the State
Board of Higher Education - }  for equipment or projects for the
university shall remain with the State Treasurer, the Controller
of the Oregon University System, the Oregon Department of
Administrative Services or its designated agents until such time
as the bonds, certificates of participation, financing agreements
or other agreements for the borrowing of money for which such
reserve accounts have been established have been retired or
defeased. The university shall be credited with the investment
earnings on such reserve accounts.
  SECTION 196. ORS 353.370 is amended to read:
  353.370. In addition to, and not in limitation of, the means of
satisfying state general obligation bond obligations under ORS
291.445, Oregon Health and Science University, promptly upon the
discovery of any shortfall in moneys available to the university
for the payment when due of amounts under any bonds, certificates
of participation, financing agreements or other agreements for
the borrowing of moneys issued prior to July 1, 1995, by the
State of Oregon   { - on behalf of the State Board of Higher
Education - }  for equipment or projects for the university,
shall notify in writing the Legislative Assembly, or if the
Legislative Assembly is not in session, the Emergency Board, of
the existence and amount of the shortfall. The Legislative
Assembly or the Emergency Board, as the case may be, may provide
funds to satisfy the payment of any such amount. By enacting this
provision, the Legislative Assembly acknowledges its current
intention to provide, from funds other than those appropriated or
otherwise made available to the Oregon University System, funds
to pay such amount. However, except as may be required by the
Oregon Constitution or ORS 291.445, neither the Legislative
Assembly nor the Emergency Board shall have any legal obligation
to provide funds under this section.
  SECTION 197. ORS 353.440 is amended to read:
  353.440. The Legislative Assembly finds that:
  (1) Public universities in the Oregon University System and
other educational sectors have academic programs that are related
to or integrated with the programs of Oregon Health and Science
University.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.
  (3) In order to best ensure the continued harmony of such
academic programs, the Oregon Health and Science University and
the Oregon University System shall coordinate such programs and
shall advise each other of the following proposed changes to such
academic programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
  (4) The Oregon Health and Science University and the
 { - Higher Education Coordinating Commission - }   { + State
Board of Education + } 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 198. ORS 354.090 is amended to read:
  354.090. The State Board of   { - Higher - }  Education is
declared the managing agency of the FM radio station KTEC,
licensed to the Oregon Institute of Technology, and as such shall
prescribe rules and regulations in conformity with the
regulations and laws of the United States Government relating to
educational FM radio stations. By such rules and regulations the
State Board of
  { - Higher - }  Education shall make the facilities of the
radio station available in the training programs of the Oregon
Institute of Technology.
  SECTION 199. ORS 357.004 is amended to read:
  357.004. As used in ORS 357.001 to 357.200, unless the context
requires otherwise:
  (1) 'Depository library' means a library that is designated as
such under ORS 357.095.
  (2)(a) 'Issuing agency' means state government, as that term is
defined in ORS 174.111.
  (b) 'Issuing agency' does not include the State Board of
  { - Higher - }  Education or any public university or office,
department or activity   { - under the control of the board - }
 { +  within the Oregon University System + }.
  (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 200. ORS 358.575 is amended to read:
  358.575. (1) The voting members of the Oregon Heritage
Commission shall be representatives of:
  (a) Heritage interests, including Indian tribes with federal
recognition, that reflect the cultural and geographic diversity
of this state; and
  (b) Heritage interests reflected in community institutions,
libraries, museums, architecture, archaeology and historic
preservation.
  (2) The advisory members of the commission shall be:
  (a) One member designated by the Director of the Department of
Land Conservation and Development;
  (b) One member designated by the Trustees of the State Library;
  (c) One member designated by the   { - State Board of Higher
Education - }  { +  Chancellor of the Oregon University
System + };
  (d) One member designated by the Oregon Tourism Commission;
  (e) One member designated by the Superintendent of Public
Instruction;
  (f) The Executive Director of the Oregon Historical Society or
a designee of the executive director;
  (g) The State Archivist or a designee of the archivist;
  (h) The Coordinator of the State Historical Records Advisory
Board or a designee of the coordinator; and
  (i) The State Historic Preservation Officer or a designee of
the officer.
  SECTION 201. ORS 366.785 is amended to read:
  366.785. As used in ORS 366.785 to 366.820, unless the context
requires otherwise:
  (1) 'Year' means a calendar year.
  (2) 'City' means only cities of this state which are regularly
operating as such through elected governmental officers.
  (3) 'Population' means population as given in the latest
determination of the State Board of   { - Higher - }  Education,
except that for a city of more than 100,000 population according
to the latest such determination, the term means 74 percent of
the number of population given for the city in the determination
for computation of its share for 1964, 78 percent for computation
of its share for 1965, 82 percent for 1966, 86 percent for 1967,
90 percent for 1968, 94 percent for 1969, 98 percent for 1970;
and for 1971 and subsequent years computation shall be made on
the basis of full number of population.
  SECTION 202. ORS 390.235 is amended to read:
  390.235. (1)(a) A person may not excavate or alter an
archaeological site on public lands, make an exploratory
excavation on public lands to determine the presence of an
archaeological site or remove from public lands any material of
an archaeological, historical, prehistorical or anthropological
nature without first obtaining a permit issued by the State Parks
and Recreation Department.
  (b) If a person who obtains a permit under this section intends
to curate or arrange for alternate curation of an archaeological
object that is uncovered during an archaeological investigation,
the person must submit evidence to the State Historic
Preservation Officer that the Oregon State Museum of Anthropology
and the appropriate Indian tribe have approved the applicant's
curatorial facilities.
  (c) No permit shall be effective without the approval of the
state agency or local governing body charged with management of
the public land on which the excavation is to be made, and
without the approval of the appropriate Indian tribe.
  (d) The State Parks and Recreation Director, with the advice of
the Oregon Indian tribes and Executive Officer of the Commission
on Indian Services, shall adopt rules governing the issuance of
permits.
  (e) Disputes under paragraphs (b) and (c) of this subsection
shall be resolved in accordance with ORS 390.240.
  (f) Before issuing a permit, the State Parks and Recreation
Director shall consult with:
  (A) The landowning or land managing agency; and
  (B) If the archaeological site in question is associated with a
prehistoric or historic native Indian culture:
  (i) The Commission on Indian Services; and
  (ii) The most appropriate Indian tribe.
  (2) The State Parks and Recreation Department may issue a
permit under subsection (1) of this section under the following
circumstances:
  (a) To a person conducting an excavation, examination or
gathering of such material for the benefit of a recognized
scientific or educational institution with a view to promoting
the knowledge of archaeology or anthropology;

  (b) To a qualified archaeologist to salvage such material from
unavoidable destruction; or
  (c) To a qualified archaeologist sponsored by a recognized
institution of higher learning, private firm or an Indian tribe
as defined in ORS 97.740.
  (3) Any archaeological materials, with the exception of Indian
human remains, funerary objects, sacred objects and objects of
cultural patrimony, recovered by a person granted a permit under
subsection (2) of this section shall be under the stewardship of
the State of Oregon to be curated by the Oregon State Museum of
Anthropology unless:
  (a) The Oregon State Museum of Anthropology with the approval
from the appropriate Indian tribe approves the alternate
curatorial facilities selected by the permittee;
  (b) The materials are made available for nondestructive
research by scholars; and
  (c)(A) The material is retained by a recognized scientific,
educational or Indian tribal institution for whose benefit a
permit was issued under subsection (2)(a) of this section;
  (B) The State Board of   { - Higher - }  Education with the
concurrence of the appropriate Indian tribe grants approval for
material to be curated by an educational facility other than the
institution that collected the material pursuant to a permit
issued under subsection (2)(a) of this section; or
  (C) The sponsoring institution or firm under subsection (2)(c)
of this section furnishes the Oregon State Museum of Anthropology
with a complete catalog of the material within six months after
the material is collected.
  (4) The Oregon State Museum of Anthropology shall have the
authority to transfer permanent possessory rights in subject
material to an appropriate Indian tribe.
  (5) Except for sites containing human remains, funerary objects
and objects of cultural patrimony as defined in ORS 358.905, or
objects associated with a prehistoric Indian tribal culture, the
permit required by subsection (1) of this section or by ORS
358.920 shall not be required for forestry operations on private
lands for which notice has been filed with the State Forester
under ORS 527.670.
  (6) As used in this section:
  (a) 'Private firm' means any legal entity that:
  (A) Has as a member of its staff a qualified archaeologist; or
  (B) Contracts with a qualified archaeologist who acts as a
consultant to the entity and provides the entity with
archaeological expertise.
  (b) 'Qualified archaeologist' means a person who has the
following qualifications:
  (A) A post-graduate degree in archaeology, anthropology,
history, classics or other germane discipline with a
specialization in archaeology, or a documented equivalency of
such a degree;
  (B) Twelve weeks of supervised experience in basic
archaeological field research, including both survey and
excavation and four weeks of laboratory analysis or curating; and
  (C) Has designed and executed an archaeological study, as
evidenced by a Master of Arts or Master of Science thesis, or
report equivalent in scope and quality, dealing with
archaeological field research.
  (7) Violation of the provisions of subsection (1)(a) of this
section is a Class B misdemeanor.
  SECTION 203. 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. 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 204. ORS 468A.245 is amended to read:
  468A.245. The Oregon Global Warming Commission shall develop an
outreach strategy to educate Oregonians about the scientific
aspects and economic impacts of global warming and to inform
Oregonians of ways to reduce greenhouse gas emissions and ways to
prepare for the effects of global warming. The commission, at a
minimum, shall work with state and local governments, the State
Department of Energy, the Department of Education,   { - the
State Board of Higher Education - }   { + the Oregon University
System + } and businesses to implement the outreach strategy.
  SECTION 205. 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, 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 206. 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 - }  { +  Department 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, 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 207. ORS 471.810 is amended to read:
  471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of moneys available
for distribution in the Oregon Liquor Control Commission Account
and, after withholding such moneys as it may deem necessary to
pay its outstanding obligations, shall within 35 days of the
month for which a distribution is made direct the State Treasurer
to pay the amounts due, upon warrants drawn by the Oregon
Department of Administrative Services, as follows:
  (a) Fifty-six percent, or the amount remaining after the
distribution under subsection (4) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
  (b) Twenty percent to the cities of the state in such shares as
the population of each city bears to the population of the cities
of the state, as determined by the State Board of

 { - Higher - } Education last preceding such apportionment,
under ORS 190.510 to 190.610;
  (c) Ten percent to counties in such shares as their respective
populations bear to the total population of the state, as
estimated from time to time by the State Board of
 { - Higher - } Education; and
  (d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
  (2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030 and 473.035 to the Mental
Health Alcoholism and Drug Services Account in the General Fund
to be paid monthly as provided in ORS 430.380.
  (3) If the amount of revenues received from the taxes imposed
by ORS 473.030 for the preceding month was reduced as a result of
credits claimed under ORS 473.047, the commission shall compute
the difference between the amounts paid or transferred as
described in subsections (1)(b), (c) and (d) and (2) of this
section and the amounts that would have been paid or transferred
under subsections (1)(b), (c) and (d) and (2) of this section if
no credits had been claimed. The commission shall direct the
Oregon Department of Administrative Services to pay or transfer
amounts equal to the differences computed for subsections (1)(b),
(c) and (d) and (2) of this section from the General Fund to the
recipients or accounts described in subsections (1)(b), (c) and
(d) and (2) of this section.
  (4) Notwithstanding subsection (1) of this section, no city or
county shall receive for any fiscal year an amount less than the
amount distributed to the city or county in accordance with ORS
471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.
  SECTION 208. ORS 526.215 is amended to read:
  526.215. To aid in the economic development of the State of
Oregon, the State Board of   { - Higher - }  Education shall
institute and carry on research and experimentation to develop
the maximum yield from the forestlands of Oregon, to obtain the
fullest utilization of the forest resource, and to study air and
water pollution as it relates to the forest products industries.
  SECTION 209. ORS 526.225 is amended to read:
  526.225. (1) The State Board of   { - Higher - }  Education
shall establish a Forest Research Laboratory at Oregon State
University and shall cooperate with individuals, corporations,
associations and public agencies wherever and whenever advisable
to further the purposes of ORS 526.215, and may enter into any
necessary agreements therefor.
  (2) In order that there may be close coordination between the
research and experimentation programs and the wise management and
use of Oregon's forests for the production of goods and services
that benefit all its citizens, the State Board of
 { - Higher - } Education shall appoint a Forest Research
Laboratory Advisory Committee composed of 15 members. Nine
members shall be individuals who are actively and principally
engaged in timber management on forestlands, harvesting or the
processing of forest products, one of whom shall be from a small
woodland owner's association, three members shall be individuals
who are the heads of state and federal public forestry agencies
and three members shall be individuals from the public at large.
No individual who is a public member may have any relationship or
pecuniary interest that would interfere with that individual
representing the public interest. The advisory committee shall
render practical counsel in the fields of forest management and
use and forest harvest and utilization as they relate to the
economic and social well-being of the people of Oregon.
  SECTION 210. ORS 542.710 is amended to read:
  542.710. (1) The Oregon University System, under the direction
of the State Board of   { - Higher - }  Education acting through
the Agricultural Experiment Station of Oregon State University,
is authorized to conduct a test stream and watershed study in
order to ascertain in a scientific manner the interrelation
between all factors operating in watersheds upon maximum resource
productivity of the area for the greatest public benefit.
  (2) In conducting the study the Oregon University System, under
the direction of the State Board of   { - Higher - }  Education
acting through the Agricultural Experiment Station of Oregon
State University, may:
  (a) Enlist the cooperation of other state agencies concerned
with fields under study and may reimburse such agencies for use
made of facilities and personnel.
  (b) Acquire the services of other persons as necessary for the
purposes of this section.
  SECTION 211. ORS 542.720 is amended to read:
  542.720. For purposes of ORS 542.710, the State Board of
  { - Higher - }  Education may accept assistance and grants in
the form of real or personal property, money, labor, equipment or
technical assistance from the United States or any of its
agencies, political subdivisions or from other persons subject to
the conditions imposed thereon regardless of conflicting state
law and may, unless enjoined by the terms of the grant or
donation, convert the same into money to be used for the purposes
of ORS 542.710.
  SECTION 212. ORS 561.364 is amended to read:
  561.364. (1) In order to eliminate unnecessary duplication of
effort and expense, there shall be the fullest cooperation
between Oregon State University and the State Department of
Agriculture, including the interchange of statistical information
between the university and the department.
  (2) If, in the interest of economy and efficiency, either
temporary or permanent, it appears advisable to have any of the
laboratory or statistical work of the department performed by
Oregon State University, the Director of Agriculture and the
director of the experiment station shall work out a cooperative
plan of operation and shall agree upon such a division of the
funds available for such work as may meet with the approval of
the Governor and the State Board of   { - Higher - }  Education.
  SECTION 213. ORS 566.210 is amended to read:
  566.210. (1) The State Board of   { - Higher - }  Education may
hold institutes for the instruction of citizens of this state in
the various branches of agriculture at such times and at such
places as the board may direct. The board shall make such rules
and regulations as it deems proper for organizing and conducting
the institutes, and shall employ an agent or agents to perform
such work in connection therewith as it deems best.
  (2) The course of instruction at the institutes shall be so
arranged as to present to those in attendance results of the most
recent investigations in theoretical and practical agriculture.
  SECTION 214. ORS 567.025 is amended to read:
  567.025. The State Board of   { - Higher - }  Education, acting
through the Oregon agricultural experiment station, shall use
moneys in the Gorse Control Account established in ORS 567.030 to
defray the expenses of research, including salaries of
investigators, supplies and apparatus, traveling expenses, and
other expenses necessary in conducting the research, and
publication of reports and bulletins upon results of the research
for investigating problems relating to gorse with special
reference to determining methods of controlling gorse.
  SECTION 215. ORS 567.030 is amended to read:
  567.030. There is established a Gorse Control Account in the
General Fund for the purposes described in ORS 567.025. All funds
made available for the purposes of ORS 567.025 shall be credited
to the Gorse Control Account and are continuously appropriated to
the State Board of   { - Higher - }  Education for the purposes
of ORS 567.025.
  SECTION 216. ORS 567.035 is amended to read:
  567.035. (1) The State Board of   { - Higher - }  Education,
acting through the Oregon agricultural experiment station, shall
take the action necessary to eradicate and control anacharis
densa and other algae, including all detrimental weeds and
grasses which are found growing in the waters, lakes and streams
of this state.
  (2) In administering this section the board, acting through the
Oregon agricultural experiment station, may cooperate with the
United States Government, and may utilize the services of, and
cooperate with any state or private agency or agencies, and may
accept and expend funds therefrom in carrying out its duties
imposed by this section.
  SECTION 217. ORS 567.205 is amended to read:
  567.205. (1) In order to investigate and demonstrate the
conditions under which useful plants may be grown on dry, arid or
nonirrigated lands of this state and to determine the kinds of
plants best adapted for growth on these lands, there is
established in the manner provided for in ORS 567.205 to 567.240,
an experiment station in this state for such purpose.
  (2) The experiment station shall be located on such part of
dry, arid or nonirrigated lands of this state as shall be
selected by the State Board of   { - Higher - }  Education acting
in cooperation with a representative of the United States
Department of Agriculture.
  SECTION 218. ORS 567.210 is amended to read:
  567.210. The station shall be under the management and control
of the State Board of   { - Higher - }  Education as a branch
station of Oregon State University.
  SECTION 219. ORS 567.220 is amended to read:
  567.220. The State Board of   { - Higher - }  Education shall
cause to be prepared and published full and complete annual
reports of the work undertaken and accomplished by the station,
and an edition of such number of copies as the board shall
determine shall be published annually and distributed free of
charge. The cost of such publication and distribution shall be
deemed a part of the general expense of the station.
  SECTION 220. ORS 567.230 is amended to read:
  567.230. The county court of the county in which the
experimental station may be located may acquire by purchase or
lease sufficient suitable land to be selected by the State Board
of   { - Higher - }  Education, acting in cooperation with a
representative of the United States Department of Agriculture. In
case the land is acquired by purchase, the purchase price shall
be paid from the general funds of the county upon the order of
the county court by a warrant, in the manner in which other
claims against the county are paid. In case the site for the
station is acquired by lease, the lease shall be made in favor of
the State of Oregon for such term of years and upon such
conditions as shall be required by the State Board of
 { - Higher - }  Education, and the rent shall be paid out of the
county treasury of the county in which the station is located by
warrant drawn upon the county treasury by an order of the county
court.
  SECTION 221. ORS 567.235 is amended to read:
  567.235. The county court of the county in which the station is
located is authorized and directed to place upon the land
acquired as provided in ORS 567.230 such buildings and other
improvements, including a well, as may be required by the State
Board of   { - Higher - }  Education. The expenses incurred
thereby shall be paid in the manner provided by ORS 567.230 for
payment of the purchase price or rent of the land.
  SECTION 222. ORS 567.255 is amended to read:
  567.255. In order to investigate and demonstrate the conditions
under which useful plants, grains and fruits may be grown on
submersible lands, reclaimed swamp lands and logged-off lands in
this state and to determine the kinds of plants, grains and
fruits best adapted for growth on such lands, there is
established an agricultural experimental station in Clatsop
County in such place as may be selected by the State Board of
 { - Higher - } Education. The station shall be known as the John
Jacob Astor Agricultural Experiment Station.
  SECTION 223. ORS 567.260 is amended to read:
  567.260. The Astor experiment station shall be under the
control and management of the State Board of   { - Higher - }
Education as a branch of Oregon State University.
  SECTION 224. ORS 567.270 is amended to read:
  567.270. The State Board of   { - Higher - }  Education shall
cause to be prepared and published at least once every two years
a full and complete report of the work undertaken and
accomplished by the Astor experiment station. The reports shall
be distributed free of charge. The cost of the publication and
distribution shall be deemed a part of the general expense of the
station.
  SECTION 225. ORS 567.275 is amended to read:
  567.275. The State Board of   { - Higher - }  Education may
cooperate in the special work of the Astor experiment station
with the United States Department of Agriculture, or of any
bureau or officer thereof, and may enter into any necessary
agreement therefor with said department, or any bureau or office
thereof.
  SECTION 226. ORS 567.325 is amended to read:
  567.325. The State Board of   { - Higher - }  Education may
cooperate in work in any special field of the experiment station
with the federal government or any department, bureau, or office
thereof, and may enter into any necessary agreement therefor with
said government, department, bureau or office.
  SECTION 227. ORS 567.330 is amended to read:
  567.330. The State Board of   { - Higher - }  Education shall
cause to be prepared and published at least once every two years,
full and complete reports of the work undertaken and accomplished
by the station. The reports shall be distributed free of charge.
The cost of such publication and distribution shall be deemed
part of the general expenses of the station.
  SECTION 228. ORS 567.405 is amended to read:
  567.405. In order to investigate and demonstrate methods for
improving agricultural and livestock conditions in the range
areas in southeastern Oregon, an agricultural experiment station
is established and shall be located in Harney County in such
place as may be selected by the State Board of   { - Higher - }
Education.
  SECTION 229. ORS 567.410 is amended to read:
  567.410. The station shall be under the control and management
of the State Board of   { - Higher - }  Education through its
director of the Oregon agricultural experiment station, as a
branch station of the Oregon agricultural experiment station.
  SECTION 230. ORS 567.430 is amended to read:
  567.430. The State Board of   { - Higher - }  Education shall
cause to be prepared and published at least once every two years
a full and completed report of the work undertaken and
accomplished by the Harney County station. The reports shall be
distributed free of charge and the cost of such publication and
distribution shall be deemed a part of the general expense of the
station.
  SECTION 231. ORS 567.455 is amended to read:
  567.455. To study and carry on investigations in horticultural,
pathological and other agricultural problems as affects the
interests of this state, there is established an agricultural
experimental area in Hood River and Wasco Counties to be operated
as the Mid-Columbia Experiment Station under the control and
management of the State Board of   { - Higher - }  Education
through the Agricultural Experiment Station of Oregon State
University.
  SECTION 232. ORS 567.475 is amended to read:
  567.475. The State Board of   { - Higher - }  Education shall
cause to be prepared and published once every two years a full
and complete report of the work accomplished by the station. The
report shall be distributed free of charge. The cost of such
publication and distribution shall be deemed a part of the
general expense of the station.
  SECTION 233. ORS 567.480 is amended to read:
  567.480. The State Board of   { - Higher - }  Education may
cooperate in the special work of the station with the United
States Department of Agriculture or any office or bureau thereof,
and may enter into any agreement therefor with said department,
bureau or office.
  SECTION 234. ORS 567.505 is amended to read:
  567.505. There is established a branch agricultural experiment
station of Oregon State University in southern Oregon, located in
such part of southern Oregon as may be determined by the State
Board of   { - Higher - }  Education.
  SECTION 235. ORS 567.510 is amended to read:
  567.510. The station shall be under the management and control
of the State Board of   { - Higher - }  Education as a branch
station of Oregon State University.
  SECTION 236. ORS 567.515 is amended to read:
  567.515. The State Board of   { - Higher - }  Education shall
cause to be prepared and published at least once every two years
a full and complete report of the work undertaken and
accomplished by the station. The reports shall be distributed
free of charge. The cost of such publication and distribution
shall be deemed a part of the general expenses of the station.
  SECTION 237. ORS 567.520 is amended to read:
  567.520. The State Board of   { - Higher - }  Education may
cooperate in work in any special field of the station with the
federal government or any department, bureau or office thereof,
and may enter into any necessary agreement therefor with said
government, department, bureau or office.
  SECTION 238. ORS 567.575 is amended to read:
  567.575. All revenues derived from the land and experiment
station not necessarily used in connection with the experiment
station may be used by the State Board of   { - Higher - }
Education in the improvement of the property referred to in this
section and ORS 567.580 in repairing structures thereon, for the
use and benefit of the experiment station generally and for
conducting agricultural experiments in eastern Oregon and not
otherwise.
  SECTION 239. ORS 567.580 is amended to read:
  567.580. The station shall at all times be under the exclusive
management and control of the State Board of   { - Higher - }
Education and shall be deemed a branch of the experiment station
of Oregon State University.
  SECTION 240. ORS 576.035 is amended to read:
  576.035. The State Board of   { - Higher - }  Education, acting
through the Federal Cooperative Extension Service of Oregon State
University, shall cooperate with the Agriculture Marketing
Service of the United States Department of Agriculture and with
the appropriate offices of adjoining states to establish and
maintain a food product market news service in the Klamath Basin
and provide such services for the central Oregon and Malheur
areas.
  SECTION 241. 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 - }  shall establish rules necessary to ensure
compliance with subsection (2) of this section in the manner
required by ORS chapter 183.
  SECTION 242. ORS 659.855 is amended to read:
  659.855. (1) Any public elementary or secondary school
determined by the Superintendent of Public Instruction or any
community college determined by the Commissioner for Community
College Services to be in noncompliance with provisions of ORS
659.850 and this section shall be subject to appropriate
sanctions, which may include withholding of all or part of state
funding, as established by rule of the State Board of Education.
  (2) Any public university listed in ORS 352.002 determined by
the Chancellor of the Oregon University System to be in
noncompliance with provisions of ORS 659.850 and this section
shall be subject to appropriate sanctions, which may include
withholding of all or part of state funding, as established by
rule of the State Board of   { - Higher - }  Education.
  (3) Any public charter school determined by the sponsor of the
school or the superintendent 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 243. ORS 659.860 is amended to read:
  659.860. (1) Any person claiming to be aggrieved by unlawful
discrimination as prohibited by ORS 659.850 may file a civil
action in circuit court for equitable relief or, subject to the
terms and conditions of ORS 30.265 to 30.300, damages, or both.
The court may order such other relief as may be appropriate.
Damages shall be $200 or actual damages, whichever is greater.
  (2) The action authorized by this section shall be filed within
one year of the filing of a grievance.
  (3) No action shall be filed unless, within 180 days of the
alleged discrimination, a grievance has been filed with the
school district board, public charter school governing body,
community college board of education or State Board of
 { - Higher - }  Education.
  (4) No action may be filed until 90 days after filing a
grievance unless only injunctive relief is sought pursuant to
ORCP 79. The right to temporary or preliminary injunctive relief
shall be independent of the right to pursue any administrative
remedy available to complainants pursuant to ORS 659.850.
  (5) No action may be filed if the school district board, public
charter school governing body, community college board of
education or State Board of   { - Higher - }  Education 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 244. 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.
  (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 245. 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  { + used in relation to elementary
and secondary schools + } 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 may adopt
and enforce separate rules of the type described under this
section for school buses and school activity vehicles that are
 { - under the board's jurisdiction - }  { +  used for community
colleges and institutes of higher education + }, 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 246. 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 { +  used for elementary and secondary schools + }.
  (2) The State Board of   { - Higher - }  Education may adopt
and enforce separate rules of the type described under this
section for school buses and school activity vehicles that are
 { - under its jurisdiction - }  { +  used for community colleges
and institutes of higher education + }.
  (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 247. 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 - }   { + used for
elementary and secondary schools to 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 may adopt
and enforce separate rules of the type described under this
section for school buses and school activity vehicles that are
 { - under its jurisdiction - }  { +  used for community colleges
and institutes of higher education + }.
  (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 248. 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. - }
  SECTION 249. 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  { + used for elementary and secondary schools + } that
are not subject to regulation under the Oregon Vehicle Code
either partially or completely.
  (2) The State Board of   { - Higher - }  Education may adopt
separate rules of the type described under this section for
vehicles that are   { - under its jurisdiction - }  { +  used for
community colleges and institutes of higher education + }.
  (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 - }  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 - }  { + board + } shall consider the need to assure
student safety.
  SECTION 250. ORS 825.017 is amended to read:
  825.017. Except as provided in ORS 825.026 and 825.030, this
chapter does not apply to the persons or vehicles described in
this section. The exemption under this section applies to the
following persons and vehicles:
  (1) Vehicles being used by, or under contract with, any school
board, district or person responsible for the administration of
elementary or secondary school activities, and engaged
exclusively in transporting students or combinations of students
and other persons to or from school, to or from authorized school
activities or other activities sponsored by the State Board of
 { - Higher - }  Education, or for purposes provided under ORS

332.427. This exemption shall not be affected by the charging of
a fee to cover the costs of the transportation.
  (2) Vehicles being used in a taxicab operation if the vehicle:
  (a) Is a passenger vehicle with a passenger seating capacity
that does not exceed five;
  (b) Carries passengers for hire where the destination and route
traveled may be controlled by a passenger and the fare is
calculated on the basis of any combination of an initial fee,
distance traveled or waiting time; and
  (c) Is transporting persons or property, or both, between
points in Oregon.
  (3) Vehicles being used for the transportation of property by
private carrier by means of a single vehicle or combination of
vehicles with a combined weight that does not exceed 8,000
pounds.
  (4) Vehicles being used in operating implements of husbandry.
  (5) Vehicles being used as a hearse or ambulance.
  (6) Vehicles being used over any private road or thoroughfare.
  (7) Vehicles being used on any road, thoroughfare or property,
other than a state highway, county road or city street, for the
removal of forest products as defined in ORS 321.005, or the
product of forest products converted to a form other than logs at
or near the harvesting site, or when used for the construction or
maintenance of the road, thoroughfare or property, pursuant to a
written agreement or permit authorizing the use, construction or
maintenance of the road, thoroughfare or property, with:
  (a) An agency of the United States;
  (b) The State Board of Forestry;
  (c) The State Forester; or
  (d) A licensee of an agency named in this subsection.
  (8) Vehicles being used on any county road for the removal of
forest products as defined in ORS 321.005, or the products of
forest products converted to a form other than logs at or near
the harvesting site, if:
  (a) The use is pursuant to a written agreement entered into
with the State Board of Forestry, the State Forester or an agency
of the United States, authorizing the owner of the motor vehicle
to use the road and requiring the owner to pay for or to perform
the construction or maintenance of the county road, including any
operator of a motor vehicle retained to transport logs, poles and
piling for the owners who are exempt under this section;
  (b) The board, officer or agency that entered into the
agreement or granted the permit, by contract with the county
court or board of county commissioners, has assumed the
responsibility for the construction or maintenance of the county
road; and
  (c) Copies of the agreements or permits required by this
subsection are filed with the Director of Transportation.
  (9) Vehicles being used in the transportation of persons for
hire if the operation:
  (a) Is performed by a nonprofit entity;
  (b) Is not in competition with a regular route full-service
scheduled carrier of persons that is subject to the provisions of
this chapter or a service provided by a mass transit district
formed under ORS chapter 267;
  (c) Is performed by use of vehicles operating in compliance
with ORS 820.020 to 820.070; and
  (d) Is approved by the Department of Transportation as
complying with paragraphs (a) to (c) of this subsection.
  (10) Vehicles being used in transporting persons with
disabilities, with or without their supervisors or assistants, to
or from rehabilitation facilities or child care services if the
motor vehicle is a passenger motor vehicle with a seating
capacity of not more than 12 passengers. The exemption provided
by this subsection applies only when the motor vehicle is
operated by or under contract with any person responsible for the
administration of rehabilitation facilities as defined in ORS
344.710 to 344.730 or child care services provided by a facility
licensed under ORS 657A.030 and 657A.250 to 657A.450.
  (11) Vehicles owned or operated by the United States or by any
governmental jurisdiction within the United States except when
owned or operated as a carrier of property for hire.
  (12) Vehicles owned or operated by a mass transit district
created under ORS chapter 267.
  (13) Vehicles owned or operated by, or under contract with, a
person responsible for the construction or reconstruction of a
highway under contract with the Department of Transportation or
with an agency of the United States when operated within the
immediate construction project as described in the governmental
agency contract during the construction period.
  (14) Vehicles owned or operated by, or under contract with, a
charitable organization when exclusively engaged in performing
transportation, either one way or round trip, necessary to the
operation of the charitable organization. As used in this
subsection, 'charitable organization' means an organization that
has no capital stock and no provision for making dividends or
profits, but derives its funds principally from public and
private charity and holds them in trust for the promotion of the
welfare of others and not for profit. Any organization claiming
an exemption under this subsection shall file an affidavit with
the department stating that it is organized and operated in
accordance with the requirements of this subsection.
  (15) Vehicles with a maximum speed that does not exceed 35
miles per hour that are designed for off-road use and that are
operated on the public highways in any one calendar year a number
of miles that does not exceed 15 percent of the total number of
miles the vehicle is operated for that calendar year.
  (16) Passenger vehicles with a passenger seating capacity that
does not exceed five when used in the transportation of new
telephone books.
  (17) A vehicle that is used in a limousine service operation in
which the destination and route traveled may be controlled by the
passenger and the fare is calculated on the basis of any
combination of initial fee, distance traveled and waiting time if
the vehicle:
  (a) Is a passenger vehicle with a passenger seating capacity
that does not exceed eight;
  (b) Carries passengers for hire between points in Oregon; and
  (c) Operates on an irregular route basis.
  (18) Fire trucks and rescue vehicles that are designated as
emergency vehicles by the Department of Transportation under ORS
801.260, while involved in emergency and related operations.
  (19) A person who provides services related to the packing or
loading of household goods if the person does not:
  (a) Provide or operate a motor vehicle for the movement of the
household goods; and
  (b) Act as an agent for any person who does provide or operate
a motor vehicle for the movement of the household goods.
  SECTION 251. Section 5, chapter 904, Oregon Laws 2009, is
amended to read:
   { +  Sec. 5. + } The State Board of   { - Higher - }
Education shall determine the capital renewal, code compliance
and safety projects to be undertaken with moneys made available
under section 6 (1)(a)   { - of this 2009 Act - }  { + , chapter
904, Oregon Laws 2009, + } on the basis of the board's
determination of the most critical capital renewal, code
compliance and safety needs. In determining the capital renewal,
code compliance and safety needs, the board shall give priority
to projects that protect the health and safety of occupants and
maintain the structural integrity of facilities.

  SECTION 252. Section 10, chapter 904, Oregon Laws 2009, as
amended by section 7, chapter 99, Oregon Laws 2010, and section
3, chapter 15, Oregon Laws 2011, is amended to read:
   { +  Sec. 10. + } (1) Pursuant to Article XI-G of the Oregon
Constitution and ORS 351.345 and ORS chapter 286A, the State
Board of   { - Higher - }  Education may sell, with the approval
of the State Treasurer, general obligation bonds of the State of
Oregon of the kind and character and within the limits prescribed
by Article XI-G of the Oregon Constitution, as the board
determines, but in no event may the board sell more than the
aggregate principal sum of $139,900,479 par value for the
biennium beginning July 1, 2009.  The moneys realized from the
sale of the bonds shall be appropriated and may be expended for
the purposes set forth in section 2 (3)(h), chapter 845, Oregon
Laws 2001, section 2 (6)(h) and (p), chapter 787, Oregon Laws
2005, section 2 (4)(a) and (L), (5)(h) and (6)(g) and (h),
chapter 761, Oregon Laws 2007, and section 6 (1)(b) and (d),
(2)(a), (3), (4)(b), (c) and (d), (5)(a), (6)(b) and (7)(a),
chapter 904, Oregon Laws 2009, and for payment for capitalized
interest and costs incidental to issuance of the bonds.
  (2) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (1)(b), chapter 904, Oregon Laws
2009, are matched pursuant to section 14, chapter 904, Oregon
Laws 2009.
  (3) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (1)(d), chapter 904, Oregon Laws
2009, are matched pursuant to section 15, chapter 904, Oregon
Laws 2009.
  (4) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (2)(a), chapter 904, Oregon Laws
2009, are matched pursuant to section 16, chapter 904, Oregon
Laws 2009.
  (5) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (3), chapter 904, Oregon Laws
2009, are matched pursuant to section 18, chapter 904, Oregon
Laws 2009.
  (6) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (4)(b), chapter 904, Oregon Laws
2009, are matched pursuant to section 19, chapter 904, Oregon
Laws 2009.
  (7) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (4)(c), chapter 904, Oregon Laws
2009, are matched pursuant to section 20, chapter 904, Oregon
Laws 2009.
  (8) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (4)(d), chapter 904, Oregon Laws
2009, are matched pursuant to section 21, chapter 904, Oregon
Laws 2009.
  (9) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (5)(a), chapter 904, Oregon Laws
2009, are matched pursuant to section 22, chapter 904, Oregon
Laws 2009.
  (10) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (6)(b), chapter 904, Oregon Laws
2009, are matched pursuant to section 23, chapter 904, Oregon
Laws 2009.
  (11) In compliance with the requirements of Article XI-G of the
Oregon Constitution, funds available under the expenditure
limitation for bonds issued pursuant to Article XI-G of the
Oregon Constitution in section 6 (7)(a), chapter 904, Oregon Laws
2009, are matched pursuant to section 24, chapter 904, Oregon
Laws 2009.
  SECTION 253. Section 11, chapter 904, Oregon Laws 2009, is
amended to read:
   { +  Sec. 11. + } Notwithstanding the expenditure limitations
established under sections 6 and 12   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } the State Board of
 { - Higher - }  Education may increase any limit for
expenditures from other revenues, including federal funds,
prescribed by sections 6 and 12   { - of this 2009 Act - }  { + ,
chapter 904, Oregon Laws 2009, + } for a specific project, if the
expenditure limitation for bonds issued pursuant to Article
XI-F(1) or XI-G of the Oregon Constitution for the project is
reduced by the board in the same amount.
  SECTION 254. Section 12, chapter 904, Oregon Laws 2009, is
amended to read:
   { +  Sec. 12. + } (1) Notwithstanding the expenditure
limitations established under section 6   { - of this 2009
Act - } ,  { + chapter 904, Oregon Laws 2009, + } and subject to
subsection (3) of this section, the State Board of
 { - Higher - }  Education may expend amounts that exceed the
expenditure limitations established under section 6 (1) to (7)
 { - of this 2009 Act - }  { + , chapter 904, Oregon Laws
2009, + } for bonds issued pursuant to Article XI-F(1) of the
Oregon Constitution by the following percentage amounts:
  (a) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $500,000 to
$999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to 12 percent of the
expenditure limitation for bonds issued pursuant to Article
XI-F(1) of the Oregon Constitution.
  (b) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $1,000,000 to
$4,999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to eight percent of
the expenditure limitation for bonds issued pursuant to Article
XI-F(1) of the Oregon Constitution.
  (c) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $5,000,000 to
$9,999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to five percent of the
expenditure limitation for bonds issued pursuant to Article
XI-F(1) of the Oregon Constitution.
  (d) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $10,000,000 or
more under section 6   { - of this 2009 Act - } ,  { + chapter
904, Oregon Laws 2009, + } up to three percent of the expenditure
limitation for bonds issued pursuant to Article XI-F(1) of the
Oregon Constitution.
  (2) Notwithstanding the expenditure limitations established
under section 6   { - of this 2009 Act - } ,  { + chapter 904,
Oregon Laws 2009, + } and subject to subsection (3) of this
section, the State Board of

  { - Higher - }  Education may expend amounts that exceed the
expenditure limitations established under section 6 (1) to (7)
 { - of this 2009 Act - }  { + , chapter 904, Oregon Laws
2009, + } for other revenues, including federal funds, by the
following percentage amounts:
  (a) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $500,000 to
$999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to 12 percent of the
expenditure limitation for other revenues, including federal
funds.
  (b) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $1,000,000 to
$4,999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to eight percent of
the expenditure limitation for other revenues, including federal
funds.
  (c) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $5,000,000 to
$9,999,999 under section 6   { - of this 2009 Act - } ,
 { + chapter 904, Oregon Laws 2009, + } up to five percent of the
expenditure limitation for other revenues, including federal
funds.
  (d) For a project with a combined approved General Fund
appropriation and total expenditure limitation of $10,000,000 or
more under section 6   { - of this 2009 Act - } ,  { + chapter
904, Oregon Laws 2009, + } up to three percent of the expenditure
limitation for other revenues, including federal funds.
  (3) The total amount by which the expenditure limitations
established under section 6   { - of this 2009 Act - }  { + ,
chapter 904, Oregon Laws 2009, + } are exceeded under subsections
(1) and (2) of this section may not be greater than the sum of
the amounts established under section 6 (8)   { - of this 2009
Act - }  { + , chapter 904, Oregon Laws 2009 + }.
  (4) Notwithstanding the expenditure limitations established
under section 6   { - of this 2009 Act - }  { + , chapter 904,
Oregon Laws 2009, + } and subsection (3) of this section, the
State Board of   { - Higher - } Education may expend an
additional amount in excess of the expenditure limitations
established under section 6   { - of this 2009 Act - }  { + ,
chapter 904, Oregon Laws 2009, + } to pay the cost of accrued and
unpaid interest attributable to short term borrowing under
Article XI-F(1) of the Oregon Constitution for a project listed
in section 6 (1) to (7)   { - of this 2009 Act - } ,  { + chapter
904, Oregon Laws 2009, + } if the short term borrowing has been
refunded by another borrowing. The amount of such accrued and
unpaid interest shall not exceed the amount established under
section 6 (9)   { - of this 2009 Act - }  { + , chapter 904,
Oregon Laws 2009, + } and may be treated as an allowable project
cost related to the acquisition of land, improvements to land and
acquisition, planning, constructing, altering, repairing,
furnishing and equipping of buildings, facilities and other
projects within the Oregon University System that may be paid
from bond proceeds and other revenues, including federal funds,
collected or received by the Oregon University System.
  SECTION 255. Section 13, chapter 904, Oregon Laws 2009, is
amended to read:
   { +  Sec. 13. + } Notwithstanding ORS 351.345 and section 6
 { - of this 2009 Act - } ,  { + chapter 904, Oregon Laws
2009, + } the State Board of
  { - Higher - }  Education may issue bonds for a project listed
in section 6 (1)(b) and (d), (2), (3), (4)(b), (c) and (d),
(5)(a), (6)(b) and (7)(a)   { - of this 2009 Act - }  { + ,
chapter 904, Oregon Laws 2009 + }:
  (1) If the total amount from other revenues, including federal
funds, identified for the project in the expenditure limitation
in section 6   { - of this 2009 Act - }  { + , chapter 904,
Oregon Laws 2009, + } has been received by the State Board of
 { - Higher - } Education; or
  (2) After reporting to the Emergency Board or the Joint
Committee on Ways and Means, if the total amount from other
revenues, including federal funds, identified for the project in
the expenditure limitation in section 6   { - of this 2009
Act - }  { + , chapter 904, Oregon Laws 2009, + } has not been
received by the State Board of   { - Higher - }  Education.
  SECTION 256. Section 8, chapter 615, Oregon Laws 2011, is
amended to read:
   { +  Sec. 8. + } The State Board of   { - Higher - }
Education shall determine the capital renewal, code compliance
and safety projects to be undertaken with moneys made available
under section 9 (1)(a)   { - of this 2011 Act - }  { + , chapter
615, Oregon Laws 2011, + } on the basis of the board's
determination of the most critical capital renewal, code
compliance and safety needs. In determining the capital renewal,
code compliance and safety needs, the board shall give priority
to projects that protect the health and safety of occupants and
maintain the structural integrity of facilities. Capital renewal,
code compliance and safety projects do not include acquisition of
buildings, structures or land.
  SECTION 257. Section 12, chapter 615, Oregon Laws 2011, is
amended to read:
   { +  Sec. 12. + } Pursuant to Article XI-G of the Oregon
Constitution, and ORS 286A.025 to 286A.095 and 351.345, the State
Board of
  { - Higher - }  Education may sell, with the approval of the
State Treasurer, general obligation bonds of the State of Oregon
of the kind and character and within the limits prescribed by
Article XI-G of the Oregon Constitution, as the board determines,
but in no event may the board sell more than the aggregate
principal sum of $17,608,000 par value for the biennium beginning
July 1, 2011.  The moneys realized from the sale of the bonds
shall be appropriated and may be expended for the purposes set
forth in section 6 (1)(d), (2)(a), (3), (4)(b) and (6)(b),
chapter 904, Oregon Laws 2009, and for payment for capitalized
interest and costs incidental to issuance of the bonds.
  SECTION 258. Section 13, chapter 615, Oregon Laws 2011, is
amended to read:
   { +  Sec. 13. + } Notwithstanding the expenditure limitations
established under section 9   { - of this 2011 Act - } ,
 { + chapter 615, Oregon Laws 2011, + } the State Board of
 { - Higher - }  Education may increase any limit for
expenditures from other revenues, including federal funds,
prescribed by section 9   { - of this 2011 Act - }  { + , chapter
615, Oregon Laws 2011, + } for a specific project, if the
expenditure limitation for bonds issued pursuant to Article
XI-F(1) of the Oregon Constitution, for the same project is
reduced by the board in the same amount.
  SECTION 259. Section 14, chapter 615, Oregon Laws 2011, is
amended to read:
   { +  Sec. 14. + } (1) Notwithstanding the expenditure
limitations established in section 9   { - of this 2011 Act - } ,
 { + chapter 615, Oregon Laws 2011, + } and subject to subsection
(2) of this section, the State Board of   { - Higher - }
Education may expend amounts that exceed the expenditure
limitations established under section 9 (1) to (8)
  { - of this 2011 Act - }  { + , chapter 615, Oregon Laws
2011, + } for other revenues, including federal funds, by the
following percentage amounts:
  (a) For a project with a total expenditure limitation of
$500,000 to $999,999 under section 9 (1) to (8)   { - of this
2011 Act - } ,  { + chapter 615, Oregon Laws 2011, + } up to 12

percent of the expenditure limitation for other revenues,
including federal funds.
  (b) For a project with a total expenditure limitation of
$1,000,000 to $4,999,999 under section 9 (1) to (8)   { - of this
2011 Act - } ,  { + chapter 615, Oregon Laws 2011, + } up to
eight percent of the expenditure limitation for other revenues,
including federal funds.
  (c) For a project with a total expenditure limitation of
$5,000,000 to $9,999,999 under section 9 (1) to (8)   { - of this
2011 Act - } ,  { + chapter 615, Oregon Laws 2011, + } up to five
percent of the expenditure limitation for other revenues,
including federal funds.
  (d) For a project with a total expenditure limitation of
$10,000,000 or more under section 9 (1) to (8)   { - of this 2011
Act - } ,  { +  chapter 615, Oregon Laws 2011, + } up to three
percent of the expenditure limitation for other revenues,
including federal funds.
  (2) The total amount by which the expenditure limitations
established in section 9 (1) to (8)   { - of this 2011 Act - }
 { + , chapter 615, Oregon Laws 2011, + } are exceeded under this
section may not be greater than the sum of the amounts
established under section 9 (9)   { - of this 2011 Act - }  { + ,
chapter 615, Oregon Laws 2011 + }.
  SECTION 260. 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)   { - of this 2001 Act - }  { + ,
chapter 797, Oregon Laws 2001, + } is found by a board to pose an
undue risk to life safety during a seismic event, the State Board
of   { - Higher - }  Education, 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 261. Section 1, chapter 96, Oregon Laws 2012, is
amended to read:
   { +  Sec. 1. + } (1)   { - The Higher Education Coordinating
Commission shall work with the State Board of Higher
Education, - }   { + The State Board of Education shall work
with + } community college districts and independent for-profit
and not-for-profit institutions of higher education to carry out
the following goals:
  (a) Increase the number of students who receive academic credit
for prior learning and the number of students who receive
academic credit for prior learning that counts toward their major
or toward earning their degree, certificate or credential, while
ensuring that credit is awarded only for high quality
course-level competencies;
  (b) Increase the number and type of academic credits accepted
for prior learning in institutions of higher education, while
ensuring that credit is awarded only for high quality
course-level competencies;
  (c) Develop transparent policies and practices in awarding
academic credit for prior learning to be adopted by the governing
boards of public universities, community colleges and independent
institutions of higher education;
  (d) Improve prior learning assessment practices across all
institutions of higher education;
  (e) Create tools to develop faculty and staff knowledge and
expertise in awarding academic credit for prior learning and to
share exemplary policies and practices among institutions of
higher education;
  (f) Develop articulation agreements when patterns of academic
credit for prior learning are identified for particular programs
and pathways; and
  (g) Develop outcome measures to track progress on the goals
outlined in this section.
  (2) The   { - Higher Education Coordinating Commission - }
 { + State Board of Education + } shall appoint an advisory
committee to coordinate implementation of the goals in subsection
(1) of this section. The committee shall include:
  (a) A member recommended for appointment by the State Board of
 { - Higher - }  Education representing public universities in
this state.
  (b) A member recommended for appointment by the State Board of
Education representing community colleges in this state.
  (c) A member representing independent not-for-profit
institutions of higher education located in this state.
  (d) A member representing for-profit institutions of higher
education offering degree programs to students in this state.
  (e) A member representing the business community.
  (f) A member representing the labor community.
  (g) A member who is a student at a two-year or four-year
institution of higher education located in this state.
  (h) Other members appointed by the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + }
based upon a demonstrated interest in and knowledge of prior
learning programs.
  (3) The   { - Higher Education Coordinating Commission - }
 { + State Board of Education + } shall submit an annual report
to the Legislative Assembly no later than December 31 of each
calendar year, in the manner prescribed by ORS 192.245, reporting
on progress toward meeting the goals set forth in subsection (1)
of this section.
  (4) For the purposes of this section, 'prior learning ' means
the knowledge and skills gained through work and life experience,
through military training and experience and through formal and
informal education and training from institutions of higher
education in the United States and in other nations.
  SECTION 262. 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) 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 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) 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) 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 263. Section 9, chapter 79, Oregon Laws 2012, is
amended to read:
   { +  Sec. 9. + } Notwithstanding the expenditure limitations
established under section 7   { - of this 2012 Act - }  { + ,
chapter 79, Oregon Laws 2012, + } and section 9, chapter 615,
Oregon Laws 2011, the State Board of   { - Higher - }  Education
may increase the limit for expenditures from other revenues,
including federal funds, prescribed by section 9 (8)(b), chapter
615, Oregon Laws 2011, for the Natural Sciences Laboratory Annex
project at Western Oregon University, if the expenditure
limitation for bonds issued pursuant to Article XI-F(1) of the
Oregon Constitution for the same project is reduced by the board
in the same amount.

                               { +
HIGHER EDUCATION COORDINATING COMMISSION ABOLISHED + }

  SECTION 264.  { + (1) The Higher Education Coordinating
Commission is abolished. On March 15, 2016, the tenure of office
of the members of the Higher Education Coordinating Commission
ceases.
  (2) All the duties, functions and powers of the Higher
Education Coordinating Commission are imposed upon, transferred
to and vested in the State Board of Education. + }
  SECTION 265.  { + (1) The executive officer of the Higher
Education Coordinating Commission shall:
  (a) Deliver to the Superintendent of Public Instruction all
records and property within the jurisdiction of the Higher
Education Coordinating Commission that relate to the duties,
functions and powers transferred by section 264 of this 2013 Act;
and
  (b) Transfer to the Superintendent of Public Instruction those
employees engaged primarily in the exercise of the duties,
functions and powers transferred by section 264 of this 2013 Act.
  (2) The Superintendent of Public Instruction shall take
possession of the records and property, and shall take charge of
the employees and employ them in the exercise of the duties,
functions and powers transferred by section 264 of this 2013 Act,
without reduction of compensation but subject to change or
termination of employment or compensation as provided by law.
  (3) The Governor shall resolve any dispute relating to
transfers of records, property and employees under this section,
and the Governor's decision is final. + }
  SECTION 266.  { + (1) The unexpended balances of amounts
authorized to be expended by the Higher Education Coordinating
Commission for the biennium beginning July 1, 2015, from revenues
dedicated, continuously appropriated, appropriated or otherwise
made available for the purpose of administering and enforcing the
duties, functions and powers transferred by section 264 of this
2013 Act are transferred to and are available for expenditure by
the State Board of Education for the biennium beginning July 1,
2015, for the purpose of administering and enforcing the duties,
functions and powers transferred to the State Board of Education
by section 264 of this 2013 Act.
  (2) The expenditure classifications, if any, established by
Acts authorizing or limiting expenditures by the Higher Education
Coordinating Commission remain applicable to expenditures by the
State Board of Education under this section. + }
  SECTION 267.  { + The transfer of duties, functions and powers
to the State Board of Education by section 264 of this 2013 Act
does not affect any action, proceeding or prosecution involving
or with respect to such duties, functions and powers begun before
and pending at the time of the transfer, except that the State
Board of Education is substituted for the Higher Education
Coordinating Commission in the action, proceeding or
prosecution. + }
  SECTION 268.  { + (1) Nothing in this 2013 Act relieves a
person of a liability, duty or obligation accruing under or with
respect to the duties, functions and powers transferred by
section 264 of this 2013 Act. The State Board of Education may
undertake the collection or enforcement of any such liability,
duty or obligation.
  (2) The rights and obligations of the Higher Education
Coordinating Commission legally incurred under contracts, leases
and business transactions executed, entered into or begun before
March 15, 2016, are transferred to the State Board of Education.
For the purpose of succession to these rights and obligations,
the State Board of Education is a continuation of the Higher
Education Coordinating Commission and not a new authority. + }
  SECTION 269.  { + Notwithstanding the transfer of duties,
functions and powers by section 264 of this 2013 Act, the rules
of the Higher Education Coordinating Commission in effect on
March 15, 2016, continue in effect until superseded or repealed
by rules of the State Board of Education. References in rules of
the Higher Education Coordinating Commission or an officer or
employee of the Higher Education Coordinating Commission are
considered to be references to the State Board of Education, when
used in reference to the duties, functions and powers described
in section 264 of this 2013 Act. + }
  SECTION 270.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, reference is
made to the Higher Education Coordinating Commission or an
officer or employee of the Higher Education Coordinating
Commission, the reference is considered to be a reference to the
State Board of Education, when used in reference to the duties,
functions and powers described in section 264 of this 2013
Act. + }
  SECTION 271.  { + For the purpose of harmonizing and clarifying
statutory law, the Legislative Counsel may substitute for words
designating the 'Higher Education Coordinating Commission' or its
officers, wherever they occur in statutory law, words designating
the 'State Board of Education' or its officers, when used in
reference to the duties, functions and powers described in
section 264 of this 2013 Act. + }

  SECTION 272.  { + During the period between the effective date
of the amendment to the Oregon Constitution proposed by Senate
Joint Resolution 4 (2013), and March 15, 2016, the State Board of
Education may take such action as is essential in order that the
duties, functions and powers that are transferred as described in
section 264 of this 2013 Act may be completed to the extent that
the members of the State Board of Education may carry out their
required functions beginning on March 16, 2016. + }
  SECTION 273. 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 - }  { + State Board of Education + } shall develop
statewide standards for dual credit programs to be implemented by
public high schools, community colleges and state institutions of
higher education within the Oregon University System. The
standards must establish the manner by which:
  (a) A student may, upon completion of a course, earn course
credit both for high school and for a community college or state
institution of higher education within the Oregon University
System; and
  (b) Teachers of courses that are part of a dual credit program
will work together to determine the quality of the program and to
ensure the alignment of the content, objectives and outcomes of
individual courses.
  (2) Each public high school, community college and state
institution of higher education within the Oregon University
System that provides a dual credit program must implement the
statewide standards developed under subsection (1) of this
section.
  (3) Each school district, community college and state
institution of higher education within the Oregon University
System that provides a dual credit program shall submit an annual
report to the   { - Higher Education Coordinating Commission - }
 { + State Board of Education + } on the academic performance of
students enrolled in a dual credit program. The   { - Higher
Education Coordinating Commission - }   { + State Board of
Education + } shall establish the required contents of the
report, which must provide sufficient information to allow the
 { - commission - }   { + board + } to determine the quality of
the dual credit program.
  SECTION 274. ORS 341.009 is amended to read:
  341.009. The Legislative Assembly finds that:
  (1) The community college is an educational institution that is
intended to fill the institutional gap in education by offering
broad, comprehensive programs in academic subjects and in career
and technical education subjects. It is primarily designed to
provide associate or certificate degree programs for some, serve
a transitional purpose for others who will continue baccalaureate
or other college work, provide the ability to enter the workforce
immediately and serve to determine future educational needs for
other students. It can provide means for continuation of academic
education, career and technical education or the attainment of
entirely new skills as demands for old skills and old occupations
are supplanted by new technologies. It may also provide the means
to coordinate courses and programs with high schools to
accommodate successful transition to college degree programs.
  (2) Each community college should be so located as to be within
commuting time of a substantial majority of its students.  As an
economical method of providing education close to the student's
home, the community college should remain a commuting
institution.
  (3) The community college should establish its organizational
patterns to maintain a unique quality of flexibility and the
ability to change to meet changing needs.
  (4) The community college is a post-high-school institution
under the general supervision of the State Board of Education. It
should not be a 'starter' institution intended to evolve into a
four-year baccalaureate institution. It should be concerned with
programs terminating before reaching the baccalaureate degree.
  (5) The community college should continue to be prohibited by
law from becoming a baccalaureate degree granting institution.
  (6) Admission to the community college should be open to high
school graduates or to persons who have not graduated from high
school who can profit from the instruction offered.
  (7) There should be close cooperation between those directing
the community college program and those responsible for higher
education, so that lower-division college transfer programs of
the community college will provide adequate preparation for
entering baccalaureate degree granting programs, and so that
students will be able to transfer with a minimum of difficulty.
  (8) The community college should offer as comprehensive a
program as the needs and resources of the area that it serves
dictate. Cost to student and quality of instruction in
established private institutions should be among the factors in
determining necessary duplication of effort.
  (9) It should be the policy of the community college to open
its facilities and make available its resources to the high
schools of its area on a sound contractual basis, for appropriate
secondary or transitional courses, either academic or as part of
career and technical education, when it is within its ability to
provide facilities and it is determined that the high school
cannot or does not offer them.
  (10) Programs designed to meet the needs of the area served
should be based on the actual educational and service needs of
the district. Specific career and technical education courses
should be related not only to the employment opportunities of the
area but of the state and nation as well. Such determination
should be made in consultation with representatives of labor,
business, industry, agriculture and other interested groups.
  (11) The State Board of Education should be responsible for
coordinating the community college program of the state and
should have general supervisory responsibilities for that
program.   { - With the advice of the Higher Education
Coordinating Commission, - }  The State Board of Education should
prepare estimates and make the requests for legislative
appropriations for a reasonable and consistent basis of support
and establish standards for the distribution of that support.
  (12) The initiative for the establishment of new community
colleges should come from the localities to be served, as a
response to demonstrated educational needs of an area. However,
these localities must not only be willing to assume the
responsibility for the institutions but must be able to provide
resources needed for an adequate educational and service program.
  (13) The governing board of the community college should be
charged with the policy-making function. With respect to
educational programming, the governing board should in
cooperation with the State Board of Education:
  (a) Identify educational needs of the district; and
  (b) Bring together the resources necessary to meet the needs.
  (14) The state should maintain a policy of substantial state
participation in community college building costs and the
maintenance of an adequate level of state support for operation.
However, no state funds should be appropriated for buildings such
as dormitories or athletic facilities for spectator sports. The
district should provide a substantial portion of the funds for
capital improvement as well as for operation of a community
college.
  (15) State appropriations for community colleges shall be made
separately from those for other segments of education.
  (16) The formula for the distribution of funds for operating
costs should reflect the heavier operating costs and capital
outlay for certain career and technical education courses.
Federal funds received for career and technical education, adult
basic education, workforce development or other federal
initiatives should be used for those purposes only and be
distributed separately from funds appropriated by the state and
should be exempted from the computations of the present
distribution formula for operating costs.
  (17) The cost of education to the individual should be
sufficiently low to permit students of low-income families to
attend. This is particularly true of tuition costs. However,
students should pay an amount sufficient to provide an incentive
to profit from the instructional program offered.
  (18) Any eligible Oregon resident should have the right to
attend a community college even though not residing in a district
operating one, subject to the right of the governing board to
limit the size of classes and to give preference to students
residing in the district. Local school districts and education
service districts should have the authority to negotiate the
terms and conditions with the governing boards for the enrollment
of students residing in such areas.
  SECTION 275. 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.
  (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 - }
 { + State Board of Education + } 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 - }   { + State Board of Education + }
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 - }   { + State Board of
Education + } 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 276. ORS 341.455, as amended by section 40, chapter
104, Oregon Laws 2012, is amended to read:
  341.455. (1) A community college may give credit for courses or
programs taken in a career school. The courses or programs for
which credit may be given must meet the standards adopted by the
  { - Higher Education Coordinating Commission - }   { + State
Board of Education + } under ORS 345.325, must be taken at a
career school domiciled in this state and must be approved for
credit by the Commissioner for Community College Services.
  (2) A community college may charge a transcripting fee to a
student for courses taken at a career school and accepted by the
community college under subsection (1) of this section. Such a
fee is to be set by the   { - commission - }   { + board + } and
is to be consistent with other student fees.
  (3) Time spent by students on such courses shall not be
considered as clock hours of instruction in determining full-time
equivalency for purposes of ORS 341.626.
  SECTION 277. ORS 341.527 is amended to read:
  341.527. (1) Community colleges in Oregon shall admit students
from other states at the same tuition rate assessed against
Oregon residents who are residents of the community college
district if:
  (a) The state in which the student resides agrees to pay and
pays its per capita state aid for comparable students in the
state to the community college;
  (b) The state in which the students reside agrees to permit and
permits one-for-one full-time enrollment exchange arrangements
that allow an equal number of Oregon residents to be admitted to
community colleges or comparable institutions in the state at the
same tuition rate assessed against residents of the state and
community colleges or comparable institutions in the state in
which the students reside agree to admit and admit approved
Oregon residents without assessing nonresident tuition; or
  (c) The board of the community college determines out-of-state
residents are essential to providing the critical mass to offer
programs that would otherwise be unavailable to Oregon residents.
  (2) The Department of Community Colleges and Workforce
Development shall enter into agreements with such other states as
are willing to agree to the provisions of this section to
establish reimbursement procedures or one-for-one exchange
procedures.
  (3) In cases described in subsection (1)(a) of this section,
the Department of Community Colleges and Workforce Development
shall pay from funds available therefor to the state that agrees
to pay and does pay its per capita state aid to eligible Oregon
community colleges to the credit of the community college or
comparable institution educating the Oregon resident an amount
equal to the amount that would be available under ORS 341.626 if
the Oregon resident were enrolled in a community college in this
state. From these same funds, the Department of Community
Colleges and Workforce Development shall pay to the Oregon
community colleges admitting approved one-for-one exchange
students as provided by subsection (1)(b) of this section, from
other states, an amount equal to the amount that would be
available under ORS 341.626 as if the enrolled one-for-one
students were Oregon residents. The Department of Community
Colleges and Workforce Development shall not reimburse Oregon
community colleges who admit students from other states under
subsection (1)(c) of this section.
  (4) If a state that has entered into the agreement to pay the
per capita state aid to eligible Oregon community colleges as
described in subsections (1) and (2) of this section does not
make any payment agreed to, the agreement terminates after the
affected community college notifies the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + } of
the lack of payment. The termination is effective 30 days after
the State Board  { + of Education + } notifies the appropriate
agency of the other state that the agreement is terminated if no
payment is received by the end of the academic period for which
tuition is assessed and no payment is received at that time. The
agreement may be reinstated by mutual consent of the parties.
  (5) The   { - Higher Education Coordinating Commission - }
 { + State Board of Education + } shall adopt rules governing
attendance in community colleges or comparable institutions in
other states for purposes of the reimbursement authorized under
subsections (1) and (2) of this section to assure that Oregon
residents shall not be the object of such reimbursement if they
can obtain the same education within the state without undue
hardship.
  SECTION 278. 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 - }   { + Department of
Education  + }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) A career school licensed under ORS 345.010 to 345.450.
  (g) An apprenticeship program that is registered with the State
Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 279. ORS 345.010, as amended by section 20, chapter
104, Oregon Laws 2012, is amended to read:
  345.010. As used in ORS 345.010 to 345.450 and 345.992 to
345.997:
  (1) 'Agent' means a person employed by or for a career school
for the purpose of procuring students, enrollees or subscribers
by solicitation in any form, made at a place or places other than
the school office or place of business of such school.
  (2) 'Barbering' has the meaning given that term in ORS 690.005.
  (3) 'Career school' or 'school' means any private proprietary
professional, technical, home study, correspondence, business or
other school instruction, organization or person that offers any
instruction or training for the purpose or purported purpose of
instructing, training or preparing persons for any profession.
  (4) 'Esthetics' has the meaning given in ORS 690.005.
  (5) 'Hair design' has the meaning given in ORS 690.005.
  (6) 'License' means the authority the career school has been
granted to operate under ORS 345.010 to 345.450.
  (7) 'Nail technology' has the meaning given in ORS 690.005.
  (8) 'Registration' means the approval by the   { - Higher
Education Coordinating Commission - }   { + Department of
Education + } of a teacher or agent to instruct in or to
represent the school.
  SECTION 280. ORS 345.015, as amended by section 21, chapter
104, Oregon Laws 2012, is amended to read:
  345.015. ORS 345.010 to 345.450 do not apply to:
  (1) Instruction or training solely avocational or recreational
in nature or to institutions offering such education exclusively.
  (2) Instruction or training sponsored or offered by a bona fide
trade, business, professional or fraternal organization or by a
business solely for the organization's membership or the
business's employees.
  (3) Instruction or training sponsored, offered or contracted by
organizations, institutions or agencies, if the instruction or
training is advertised or promoted to be in the nature of
professional self-improvement or personal self-improvement and
the instruction or training is not:
  (a) Advertised or promoted as leading to or fulfilling the
requirements for licensing, certification, accreditation or
education credentials; or
  (b) Leading to an occupation, employment or other activity for
which a person may reasonably expect financial compensation.
  (4) Courses offered in hospitals that meet standards prescribed
by the American Medical Association or national accrediting
associations for nursing.
  (5) Courses, instruction or training offered for a limited
number of hours, as defined by rule of the   { - Higher Education
Coordinating Commission - }  { +  State Board of Education + }.
  (6) Schools offering only courses of an advanced training or
continuing educational nature when offered solely to licensed
practitioners and people previously qualified or employed in the
profession for which a course is being offered.
  (7) Schools that the   { - Higher Education Coordinating
Commission - }   { + Department of Education + } determines are
adequately regulated by other means that guarantee the school
meets the standards of ORS 345.325.
  (8) Schools offering only review instruction to prepare a
student to take an examination to enter a profession, where the
student has completed prior training related to the profession.
  (9) Schools described in ORS 348.597 and, except as provided in
ORS 345.017, schools approved by the   { - Higher Education
Coordinating Commission - }   { + Department of Education  + }to
confer or offer to confer academic degrees under ORS 348.606.
  (10) Any parochial or denominational institution providing
instruction or training relating solely to religion and that does
not grant degrees.
  SECTION 281. ORS 345.017, as amended by section 22, chapter
104, Oregon Laws 2012, is amended to read:
  345.017. When a school that is licensed under ORS 345.010 to
345.450 is approved by the   { - Higher Education Coordinating
Commission - }   { + Department of Education  + }to confer or
offer to confer an academic degree under ORS 348.606 and the
school continues to offer a course or program that does not lead
to an academic degree:
  (1) The school must continue to be licensed as a career school
and meet the requirements of ORS 345.010 to 345.450 until:
  (a) All courses or programs offered by the school are approved
by the   { - commission - }  { +  Department of Education + };
and
  (b) All students who were first enrolled in the school when the
school was licensed as a career school have:
  (A) Completed the course or program for which the student
contracted with the career school; or
  (B) Terminated enrollment in the career school for any reason.
  (2) A student who is enrolled in a course or program for which
a school must be licensed under ORS 345.010 to 345.450 is
eligible for moneys from the Tuition Protection Fund established
under ORS 345.110 if the student:
  (a) Qualifies for moneys under rules adopted by the
 { - Higher Education Coordinating Commission - }   { + State
Board of Education + } under ORS 345.110; and
  (b) Was first admitted to the school when the school was
licensed as a career school under ORS 345.010 to 345.450.
  (3) When a course or program that did not lead to an academic
degree is approved by the   { - Higher Education Coordinating
Commission - }   { + Department of Education  + }to lead to an
academic degree, the regulatory authority for that course or
program transfers to the   { - commission - }
 { + department + } upon the approval.
  SECTION 282. ORS 345.020, as amended by section 23, chapter
104, Oregon Laws 2012, is amended to read:
  345.020. (1) The   { - Higher Education Coordinating
Commission - }  { + Department of Education + } shall administer
ORS 345.010 to 345.450 and 345.992 to 345.997 and shall enforce
all laws and rules relating to the licensing of career schools
and agents.
  (2) The   { - commission - }   { + department + } may establish
procedures whereby schools become eligible to participate in
federal student assistance programs if approved by the United
States Department of Education.
  (3)   { - Members and - }  Employees of the
 { - commission - }   { + Department of Education + } may not
have financial interests in any career school and may not act as
agents or employees thereof.
  SECTION 283. ORS 345.030, as amended by section 24, chapter
104, Oregon Laws 2012, is amended to read:
  345.030. (1) A person may not open, conduct or do business as a
career school in this state without obtaining a license under ORS
345.010 to 345.450.
  (2) Except as provided in subsection (8) of this section, the
  { - Higher Education Coordinating Commission - }
 { + Department of Education + } may issue a license to conduct a
career school only after the applicant has presented proof
satisfactory to the   { - commission - }  { + department + } that
the applicant complies with applicable standards adopted under
ORS 345.325 and 670.280. For the purpose of this subsection, ORS
670.280 applies to individuals who hold positions of authority or
control in the operation of the school and to its faculty members
and agents.
  (3) A career school licensed in any other state must be
licensed in this state before establishing a physical presence in
this state such as offices or agents, or both, for the purpose of
solicitation of students.
  (4) In determining whether to issue a license to a career
school, the   { - commission - }   { + department + } may
consider the prior history of the applicant in operating other
career schools. The prior history of operating other career
schools includes, but is not limited to:
  (a) Conduct by the applicant that is cause for probation of a
licensee or for suspension or revocation of a license as provided
in ORS 345.120 (2);
  (b) Failure to comply with ORS 345.010 to 345.450 or rules
adopted under ORS 345.010 to 345.450; and
  (c) The history of the applicant in operating career schools in
other states.
  (5) The   { - commission - }   { + department + } may not issue
a license to or renew the license of a career school until the
applicant provides all of the following to the
 { - commission - }  { +  department + }:
  (a) A financial statement, certified true and accurate and
signed by the owner of the school;
  (b) Proof of compliance with the tuition protection policy
established by the   { - commission - }   { + department + }
pursuant to ORS 345.110; and
  (c) Fingerprints of individuals as described in subsection (6)
of this section.
  (6)(a) Except as provided in paragraph (c) of this subsection,
an applicant for an initial issuance of a license or a renewal of
a license must provide to the   { - commission - }
 { + department + } the fingerprints of faculty members and
agents of the school and individuals who hold positions of
authority or control in the operation of the school if the career
school will be enrolling or does enroll persons under 18 years of
age.
  (b) In addition to requirements provided under paragraph (a) of
this subsection, the   { - commission - }   { + department + }
may require a career school to provide the fingerprints of any
agents of the school who will have contact with persons under 18
years of age on behalf of the career school.
  (c) An applicant is not required to provide fingerprints under
paragraph (a) or (b) of this subsection if the
 { - commission - }  { + department + } has conducted a state or
nationwide criminal records check on the person within the three
years preceding the date of the application.
  (d) Fingerprints acquired under this subsection may be used
only for the purpose of requesting a state or nationwide criminal
records check under ORS 181.534.
  (7) Notwithstanding ORS 345.325 (10), the   { - commission - }
 { + department + } may place a school on probation or deny,
suspend or revoke a license if the   { - commission - }
 { + department + } finds that an individual who holds a position
of authority or control in the operation of the school was
convicted of a crime listed in ORS 342.143.
  (8) The   { - commission - }   { + department + } may issue a
conditional license to a career school that meets the
requirements of subsection (5) of this section but that does not
comply with the applicable standards adopted by rule under ORS
345.325. A conditional license issued under this subsection is
effective for a period prescribed by the   { - commission - }
 { +  department + }, which may not exceed 90 days.
  (9)(a) Except as provided in paragraph (b) of this subsection,
a career school license is nontransferable. The licensee must
give 30 days of notice to the   { - commission - }
 { + department + } when transferring ownership of a career
school.
  (b) The   { - commission - }   { + department + } may transfer
a career school license or allow the ownership of a career school
to transfer with less than 30 days of notice if:
  (A) The owner of the school dies, is incapacitated or is
incarcerated; or
  (B) Other circumstances render the owner unable to operate the
career school.
  (10) Each career school shall display its license in a
prominent place.
  SECTION 284. ORS 345.040, as amended by section 25, chapter
104, Oregon Laws 2012, is amended to read:
  345.040. (1) A person may not act in this state as an agent for
a career school domiciled within or outside this state, unless
the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } has approved the agent's
registration as a part of the school's license under ORS 345.010
to 345.450. No person shall act as an agent for a career school
unless and until the career school has obtained a license.
  (2) For the purposes of licensing and student protection,
persons acting as agents for a career school domiciled within or
outside this state are employees of the school and shall be
included under the school's bonding or student protection policy,
or both. Agents shall perform their duties and conduct their
business in accordance with ORS 345.010 to 345.450.
  (3) An agent shall be a person who has attained the age of 18
years, is of good moral character and is otherwise competent and
qualified to safeguard and protect the interests of the public.
  SECTION 285. ORS 345.060, as amended by section 26, chapter
104, Oregon Laws 2012, is amended to read:
  345.060. (1) Every agent for a career school not domiciled in
this state shall be held to have appointed the   { - executive
officer of the Higher Education Coordinating Commission - }
 { + Superintendent of Public Instruction + } as agent to accept
service of all summonses, pleadings, writs and processes in all
actions or proceedings brought against the applicant in this
state. Service upon the executive officer shall be taken and held
in all courts to be as valid and binding as if personal service
thereof had been made upon the applicant within this state.
  (2) When any summons, pleading, writ or process is served on
the executive officer, service shall be by duplicate copies. One
of the duplicates shall be filed in the office of the executive
officer and the other immediately forwarded by certified mail to
the agent thereby affected or therein named, at the agent's
last-known post-office address. If service is of a summons, the
plaintiff therein also shall cause the agent to be served
therewith in a manner provided by ORCP 7.
  SECTION 286. ORS 345.070, as amended by section 27, chapter
104, Oregon Laws 2012, is amended to read:
  345.070. The employing school shall issue an identification
credential to each agent registered under ORS 345.010 to 345.450
in the form and size prescribed by the   { - Higher Education
Coordinating Commission - }  { +  Department of Education + }.
Each agent shall carry the credential at all times while engaged
as an agent of the school.
  SECTION 287. ORS 345.080, as amended by section 28, chapter
104, Oregon Laws 2012, is amended to read:
  345.080. (1) Before issuing any licenses under ORS 345.010 to
345.450, the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } shall collect the following
nonrefundable, annual license fees:
_________________________________________________________________

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

 In-State Schools
Tuition Income Range       Fee

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

   $    0 -15,000        $ 450
   15,001 -50,000          600
   50,001 125,000          750
  125,001 250,000        1,050
  250,001 500,000        1,350
  500,001 750,000        1,650
  750,001,000,000        1,950
     Ove1,000,000        2,250

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

Out-of-State Schools
Tuition Income Range       Fee

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

   $    0 -50,000        1,350
   50,001 250,000        1,650
  250,001 500,000        1,950
  500,001 750,000        2,250
  750,001,000,000        2,550
     Ove1,000,000        2,850
_________________________________________________________________

____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
  (2) The   { - commission - }   { + State Board of Education + }
may adopt, by rule, fees for teacher registration and fees for
providing copies of student transcripts maintained by the
 { - commission - }  { +  Department of Education + }.
  (3) The   { - commission - }   { + State Board of Education + }
may adopt, by rule, fees for conducting a state or nationwide
criminal background check under ORS 181.534 and may collect fees
for each criminal records check. Fees collected as provided by
this subsection are in addition to any other fees collected by
the
  { - commission - }  { +  Department of Education + }.
  (4) All fees collected under this section shall be paid to the
credit of the   { - commission - }  { +  department + }. Such
moneys are continuously appropriated to the   { - commission - }
 { + department + } and shall be used for the administration of
the licensing program under ORS 345.010 to 345.450.
  SECTION 288. ORS 345.110, as amended by section 29, chapter
104, Oregon Laws 2012, is amended to read:
  345.110. (1) The Tuition Protection Fund is established
separate and distinct from the General Fund. Interest earned by
the fund shall be credited to the fund. Proceeds of the fund are
continuously appropriated to the   { - Higher Education
Coordinating Commission - }   { + Department of Education + } to
protect students when a career school ceases to provide
educational services and for administrative expenses incurred
under subsection (5) of this section.
  (2) The   { - commission - }   { + department + } shall
maintain and administer the fund and shall adopt by rule
procedures governing the administration and maintenance of the
fund, including requirements relating to contributions to and
claims against the fund.

  (3) Each career school shall pay to the Tuition Protection Fund
an initial capitalization deposit in amounts and within time
limits established by rule of the   { - commission - }  { +
State Board of Education + }. Thereafter, each school shall make
installment payments based on a matrix adopted by rule of the
 { - commission - }  { +  board + }. In establishing the amount
and frequency of payments, the
  { - commission - }   { + board  + }may consider the enrollment
and financial condition of each school and such other factors as
the
  { - commission - }   { + board + } considers appropriate. The
 { - commission - }  { + Department of Education + } may deny,
suspend or revoke the license of a school which fails to make
payments or fails to conform to other requirements of this
section or rules adopted by the   { - commission - }  { + State
Board of Education + } under this section.
  (4) The   { - commission - }   { + Department of Education + }
shall deposit moneys received under this section with the State
Treasurer in the Tuition Protection Fund.
  (5) The   { - commission - }   { + Department of Education + }
may disburse moneys from the fund by checks or orders drawn upon
the State Treasurer in conformance with rules of the
 { - commission - }   { + State Board of Education + } and only
for tuition protection purposes, including the
 { - commission's - }   { + department's + } costs in
administering and maintaining the fund.
  (6) The   { - commission - }   { + department + } may enter
into contracts to carry out the purposes of the fund. The
provisions of ORS 279.835 to 279.855 and ORS chapters 279A and
279B do not apply to contracts entered into under this
subsection.
  SECTION 289. ORS 345.115, as amended by section 30, chapter
104, Oregon Laws 2012, is amended to read:
  345.115. (1) The enrollment agreement entered into between a
person and a career school for the purpose of obtaining
instruction or training shall contain a schedule for the refund
of tuition, deposits and fees when the person does not complete
the course or program of instruction or training which was the
subject of the contract. No action or suit may be brought by a
career school or its assigns if the enrollment agreement does not
contain this refund schedule. This provision shall not limit the
career school's right to defend any action or suit brought by any
person on a contract which does not contain such a schedule.
  (2) The refund schedule required by subsection (1) of this
section shall be established by the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + } in
consultation with the advisory committee appointed under ORS
345.330. In establishing the refund schedule, the
 { - commission - }   { + board + } shall consider:
  (a) The reasonable, obligated and fixed costs of the career
school, including but not limited to rent, personnel and
nonreturnable supplies.
  (b) The method of instruction.
  (c) The reasonable value of services performed prior to
cancellation of the course or program.
  (3) The   { - commission - }   { + board + } may establish
varying refund schedules when the difference in services
performed necessitates separate schedules.
  (4) Nothing in this section is intended to prevent a career
school from requiring an advance deposit of tuition on behalf of
the person intending to enroll in a course or program offered by
or through the career school. However, the advance deposit shall
be limited to 20 percent of the total tuition and fees, excluding
federal and state financial aid, unless the   { - commission - }
 { + board + } determines by rule that larger advance deposits
are appropriate.
  (5) A school shall be considered in default of the enrollment
agreement when a course or program is discontinued or canceled or
the school closes prior to completion of contracted services.
When a school is in default, student tuition may be refunded on a
pro rata basis if the   { - commission - }   { + Department of
Education + } determines that the school has made provision for
students enrolled at the time of default to complete a comparable
program at another institution at no additional tuition cost to
the student beyond the original contract with the defaulting
school. If the school does not make such provision, a total
refund of all tuition and fees shall be made to the students.
  SECTION 290. ORS 345.117, as amended by section 31, chapter
104, Oregon Laws 2012, is amended to read:
  345.117. Any enrollment agreement used within this state as a
contract for instruction between a career school and a student
shall have printed or stamped upon it: 'Any inquiry a student may
have regarding this contract may be made in writing to the school
(name and address), or to the   { - Higher Education Coordinating
Commission - }   { + Department of Education + } (current
address).  '
  SECTION 291. ORS 345.120, as amended by section 32, chapter
104, Oregon Laws 2012, is amended to read:
  345.120. (1) On the written complaint of any person, the
  { - Higher Education Coordinating Commission - }
 { + Department of Education + } shall, and on the
 { - commission's - }   { + department's + } own motion may,
investigate the actions of any career school or agent, or any
person who assumes to act in either capacity within this state.
  (2) As a result of the investigation, and in addition to any
penalty that may be imposed under ORS 345.992, the
 { - commission - }  { + department + } may place a licensee on
probation or may suspend or revoke any license issued under ORS
345.010 to 345.450 when the licensee has:
  (a) Obtained a license by misrepresentation.
  (b) Violated ORS 345.010 to 345.450 or any applicable rule.
  (c) Ceased to engage in the business authorized by the license.
  (d) Willfully used or employed any method, act or practice
declared unlawful by ORS 646.608.
  (3) When notice of suspension or revocation is issued, the
licensee shall be notified and, upon request, shall be granted a
contested case hearing under ORS 183.310 (2).
  (4) A licensee placed on probation must be formally notified by
the   { - commission - }   { + department + } that it has
deficiencies that must be corrected within a time specified in
the notice.
  (5) A licensee whose license is suspended is prohibited from
advertising, recruiting or enrolling students but may remain in
operation to complete training of students enrolled on the
effective date of the suspension.
  (6) A licensee whose license has been revoked is not authorized
to continue in operation on and after the effective date of the
revocation.
  SECTION 292. ORS 345.325, as amended by section 33, chapter
104, Oregon Laws 2012, is amended to read:
  345.325. The   { - Higher Education Coordinating Commission - }
 { + State Board of Education + } shall adopt by rule minimum
standards for the licensing of career schools under ORS 345.010
to 345.450 that are reasonably calculated to ensure that:
  (1) The quality and content of each course or program of
instruction can achieve its stated objective;
  (2) The facilities, instructional equipment and materials are
sufficient to enable students to achieve the program goals and
are adequate for the purposes of the program;
  (3) The directors, administrators and instructors are properly
qualified;

  (4) Prior to an applicant signing an enrollment agreement, the
school provides the applicant with a catalog or brochure that
includes an accurate description of the program for which the
applicant is enrolling, total costs of tuition and fees and other
information specified by rule;
  (5) Upon satisfactory completion of instruction and training,
the student is given appropriate educational credentials;
  (6) Adequate records and standard transcripts are maintained;
  (7) The career school is maintained and operated in compliance
with all applicable ordinances and laws;
  (8) The career school is financially sound and capable of
fulfilling its commitments to students;
  (9) Neither the career school nor its agents engage in
advertising, sales, collection, credit or other practices of any
type which are unlawful under ORS 646.608;
  (10) The directors, administrators, supervisors and instructors
of the school are of good reputation and character, except that a
school shall not be placed on probation or a license shall not be
denied, suspended or revoked because a faculty member has been
convicted of a crime except as authorized under ORS 670.280;
  (11) Any student housing owned, maintained or approved by the
career school is appropriate, safe and adequate;
  (12) The school has a written placement assistance plan; and
  (13) A license application from a new school or an application
for approval of a new program from an existing school shall
include labor market information that identifies the need for the
new school or program.
  SECTION 293. ORS 345.330, as amended by section 34, chapter
104, Oregon Laws 2012, is amended to read:
  345.330. (1) The   { - Higher Education Coordinating
Commission - }  { + State Board of Education + } shall appoint a
representative advisory committee consisting of 11 members who
shall serve for terms of three years ending June 30. Of the
membership of the committee:
  (a) Seven members shall be persons affiliated with career
schools as owners, directors, administrators, instructors or
representatives, but not more than one member shall represent an
out-of-state career school.
  (b) Four members shall be persons who are not eligible under
paragraph (a) of this subsection. At least one of these members
shall have graduated from a career school.
  (2) The advisory committee appointed under subsection (1) of
this section shall:
  (a) Make recommendations to the   { - commission - }
 { + board + } concerning the need for professional and technical
instructional and training facilities, the types of instruction
and training needed and by whom these can best be provided.
  (b) Recommend standards for career schools as provided in ORS
345.325 which are consistent with the purposes of such schools.
  (c) Investigate and present findings to the
 { - commission - }  { + board + } on the administration and
operation of laws relating to career schools. However, the
investigations and findings of the advisory committee do not
affect the authority of the   { - commission - }  { + Department
of Education + } to issue, deny, suspend or revoke the license of
any career school.
  (d) Consult with the   { - commission - }   { + board + } in
determining the refund schedule under ORS 345.115.
  (e) Make recommendations to the   { - commission - }
 { + board + } concerning rule development for ORS 345.010 to
345.450 and 345.992 to 345.997.
  (3) Members of the advisory committee are entitled to
compensation and expenses as provided in ORS 292.495 from funds
appropriated to the   { - commission - }   { + department + } for
purposes of administering ORS 345.010 to 345.450.

  SECTION 294. ORS 345.340, as amended by section 35, chapter
104, Oregon Laws 2012, is amended to read:
  345.340. Consistent with the requirements of ORS 345.325, the
advisory committee shall recommend to the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + }
minimum standards for the operation of career schools. In making
its recommendations, the committee shall consider changes in
technological, economic and social conditions which affect
employment needs, opportunities and skills.
  SECTION 295. ORS 345.400, as amended by section 36, chapter
104, Oregon Laws 2012, is amended to read:
  345.400. In addition to the other requirements of ORS 345.010
to 345.450, the rules adopted by the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + } to
regulate schools teaching hair design, barbering, esthetics or
nail technology:
  (1) May include rules the   { - commission - }   { + board + }
considers necessary to protect the economic or physical health
and safety of the public and of the students attending the school
including compliance with ORS 345.110.
  (2) Shall include rules that set standards for teachers
teaching in schools licensed to teach hair design, barbering,
esthetics or nail technology pursuant to ORS 345.010 to 345.450.
  (3) Shall require the schools to teach, and require for
graduation from the school, courses that meet the following
minimum standards:
  (a)(A) A minimum hourly training requirement for:
  (i) Hair design, 1,450 hours;
  (ii) Barbering, 1,100 hours;
  (iii) Esthetics, 250 hours; and
  (iv) Nail technology, 350 hours; and
  (B) In addition to the programs listed in this subsection, a
student is also required to successfully complete the following
requirements once:
  (i) Safety and sanitation, 150 hours; and
  (ii) Career development, 100 hours.
  (b) A student competency-based training requirement for hair
design, barbering, esthetics or nail technology, if the school
has developed written requirements for graduation that are
approved by the   { - commission - }  { +  board + }.
  SECTION 296. ORS 345.430, as amended by section 37, chapter
104, Oregon Laws 2012, is amended to read:
  345.430. At the request of the Board of Cosmetology, the
  { - Higher Education Coordinating Commission - }
 { + Department of Education + } shall determine whether a person
from out-of-state or out-of-country seeking a certificate in hair
design, barbering, esthetics or nail technology is qualified to
take the test of the Board of Cosmetology. A determination shall
be made by an evaluation of academic transcripts, apprenticeship
records and work experience documentation. If documentation is
not available, the   { - commission - }   { + department + } may
refer the person to a career school for evaluation and
recommendation.
  SECTION 297. ORS 345.450, as amended by section 38, chapter
104, Oregon Laws 2012, is amended to read:
  345.450. (1) In addition to the fees required by ORS 345.080,
before issuing any license under ORS 345.010 to 345.450 to a
school teaching hair design, barbering, esthetics or nail
technology, and annually thereafter, the   { - Higher Education
Coordinating Commission - }   { + Department of Education + }
shall collect a nonrefundable annual inspection fee of $100.
  (2) The inspection fee collected under subsection (1) of this
section shall be transferred to the Oregon Health Licensing
Agency for inspections performed under ORS 345.440.
  SECTION 298. ORS 345.995, as amended by section 39, chapter
104, Oregon Laws 2012, is amended to read:
  345.995. (1) After consultation with the advisory committee
established under ORS 345.330, the   { - Higher Education
Coordinating Commission - }   { + State Board of Education + }
shall adopt by rule a schedule or schedules establishing the
amount of civil penalty that may be imposed for a particular
violation of ORS 345.010 to 345.450. No civil penalty shall
exceed $500 per violation. The
  { - commission - }   { + board + } shall consult with the
Attorney General before adopting the schedule of penalties for
violations of ORS 345.120 (2)(d).
  (2) In imposing a penalty for violation of ORS 345.010 to
345.450 pursuant to the schedule or schedules authorized by this
section, the   { - commission - }   { + board + } shall consider
the following factors:
  (a) The past history of the person incurring a penalty in
taking all feasible steps or procedures necessary or appropriate
to correct any violation.
  (b) Any prior violations of ORS 345.010 to 345.450 or rules
adopted pursuant thereto.
  (c) The economic and financial conditions of the person
incurring a penalty.
  (3) The penalty imposed under this section may be remitted or
mitigated upon such terms and conditions as the
 { - commission - }   { + board + } considers proper and
consistent with the public welfare.
  (4) The   { - commission - }   { + board + } may impose
penalties which may be remitted or mitigated on condition that a
particular violation not continue or occur after a certain period
not to exceed 15 days.
  SECTION 299. ORS 348.040, as amended by section 41, chapter
104, Oregon Laws 2012, is amended to read:
  348.040. As used in ORS 348.040 to 348.070, unless the context
requires otherwise:
  (1) 'Eligible student' means a person who is a resident of this
state, as determined by the Oregon Student Access Commission, at
the time of application for a loan under ORS 348.040 to 348.070:
  (a) Who is enrolled in or has applied for enrollment in a
qualified school;
  (b) Who has demonstrated a satisfactory level of achievement in
the high school or other school on the record of which the
application for enrollment is based or in which the applicant is
enrolled; and
  (c) Who can show the necessity for financial assistance in
order to continue the applicant's education.
  (2) 'Qualified school' means a school within this state that is
a:
  (a) Four-year, nonprofit, generally accredited institution of
higher education;
  (b) Accredited public or private community college or education
center, or one recognized by a state educational agency;
  (c) Career school that is approved by the   { - Higher
Education Coordinating Commission - }  { +  Department of
Education + };
  (d) Medical or dental program offered by the Oregon Health and
Science University;
  (e) Veterinary program offered by Oregon State University; or
  (f) Institution that is, in the opinion of the
 { - commission - }  { +  department + }, comparable to such
institutions, colleges, centers or schools.
  (3) 'Qualified school' may include an institution, college,
center or school not located in this state if the commission
certifies that the course is not available in this state.
  SECTION 300. ORS 348.070, as amended by section 42, chapter
104, Oregon Laws 2012, is amended to read:
  348.070. To assist the Oregon Student Access Commission and the
Department of State Lands in determining the qualification of
schools, the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } shall maintain a listing of
career schools offering professional and technical training that
meets the occupational needs of the student.
  SECTION 301. ORS 348.520 is amended to read:
  348.520. The Oregon Student Access Commission shall:
  (1) Make available to qualified persons financial aid from
financial sources available to the commission.
  (2) Determine qualifications of persons to receive financial
aid.
  (3) Maintain reports and records on persons applying for and
receiving financial aid from the commission.
  (4) Withhold any financial aid if the recipient thereof fails
to maintain the standards established for receipt of that aid.
  (5) Recommend to the Legislative Assembly not less than once
every biennium matters relating to the establishment,
administration, modification, transfer, reduction or cancellation
of financial aid.
  (6) Prior to implementing changes to the Oregon Opportunity
Grant program, report to the   { - Higher Education Coordinating
Commission - }   { + State Board of Education + } and the
Legislative Assembly or the Emergency Board any proposed change:
  (a) That increases or decreases the total amount awarded as
Oregon Opportunity Grants that was approved as part of the budget
enacted by the Legislative Assembly for the Oregon Student Access
Commission; and
  (b) To the methodology used to determine the student share,
family share or state share under ORS 348.205.
  (7) Encourage the establishment of financial aid programs by
private agencies.
  (8) Collect and disseminate information pertaining to all types
of available financial aid.
  (9) Review the administrative practices and evaluate the
effectiveness of all public and private post-secondary financial
aid programs in Oregon.
  (10) Disburse state appropriations for financial aid in such a
manner as to maximize its role in cooperative coordination of
financial aid programs.
  SECTION 302. 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) A school, or a separately accredited campus of a school, if
the school:
  (A) Is a nonprofit school that is exempt from federal income
tax under section 501(c)(3) of the Internal Revenue Code;
  (B) Conferred degrees in this state under the same control for
at least five consecutive years; and
  (C) Is accredited by a regional accrediting association or its
national successor;
  (e) A school that, on 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) A school that is exempt from ORS 348.594 to 348.615 under
ORS 348.604.
  (3) The   { - Higher Education Coordinating Commission - }
 { + Department of Education + } 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) of this section. The license shall remain in effect if the
school continues to meet the requirements of subsection (2)(d) of
this section.
  SECTION 303. ORS 348.601 is amended to read:
  348.601. The Degree Authorization Account is established
separate and distinct from the General Fund. All moneys received
by the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } under ORS 348.603, 348.606 and
348.609 shall be deposited into the account and are continuously
appropriated to the   { - Higher Education Coordinating
Commission - }   { + Department of Education + } to carry out the
duties, functions and powers of the
  { - commission - }   { + department + } under ORS 348.594 to
348.615.
  SECTION 304. ORS 348.604 is amended to read:
  348.604. Upon application from a school, as defined in ORS
348.594, the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } shall grant an exemption from
ORS 348.594 to 348.615 to the school if the school:
  (1) Is, or is operated by, a nonprofit corporation;
  (2) Offers only associate, bachelor's or master's degrees with
titles in theology or religious occupations, or, if the school
also offers doctoral degrees, offers doctoral degrees in theology
or religious occupations that have been approved by a federally
recognized accrediting organization;
  (3) Teaches students with faculty members who:
  (a) Hold degrees:
  (A) From a school that, at the time of the conferral of the
degrees, was accredited by a federally recognized accrediting
organization, held an exemption under this section, or was a
school that, on July 14, 2005, 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;
  (B) That are at least one level above the degree level of the
program in which the faculty members teach or that are the
terminal degrees in the field in which the faculty members teach;
and
  (C) That are not honorary degrees; or
  (b) Possess sufficient compensatory qualifications to
substitute for academic degrees in the fields in which the
faculty members teach;
  (4) Offers a curriculum:
  (a) Of a duration and level that is comparable to the
curriculums offered by schools that are not exempt under this
section; and
  (b) That, with higher degrees, increases the difficulty of the
work expected of students;
  (5) Requires students to complete academic assignments and to
demonstrate learning appropriate to the curriculum;
  (6) Awards credit toward degrees proportionate to the work done
by students;
  (7) Offers admission:
  (a) To a student:
  (A) With a high school diploma or an equivalent credential; or
  (B) Who completed the equivalent of a high school education
through home study; and
  (b) Based on evidence that the student can reasonably expect to
complete a degree and benefit from the education offered;
  (8) Provides or arranges for faculty members and students to
have access to information that supports instruction and
stimulates research or independent study in all areas of the
curriculum;
  (9) Provides accurate and appropriate credit transcripts to
students of the school and accurate and appropriate diplomas to
graduates of the school;

  (10) Charges tuition by the credit hour or other fixed rate for
instruction during an academic term and does not charge tuition
or fees for the award of a degree or charge a single fee for an
entire degree program;
  (11) Provides the oversight required by the
 { - commission - }  { + department  + }over a faculty member or
administrator who has:
  (a) Been convicted of a felony; or
  (b) Violated a state or federal law related to the operation of
a school;
  (12) Provides facilities that permit private communication
between faculty members and students;
  (13) Provides a number of faculty members that is adequate for
the number of students enrolled;
  (14) Provides clear and accurate information to students about
the school's expectations of students in the school's courses;
  (15) Ensures that a student who is pursuing a degree is making
continuous progress toward the degree;
  (16) Before a student enrolls in the school, informs the
student that a school to which the student might transfer retains
the discretion whether to accept the transfer of credits earned
at the school;
  (17) Provides official transcripts of faculty members to the
  { - commission - }  { +  department + }; and
  (18) Pays the fee imposed by ORS 348.607.
  SECTION 305. ORS 348.605 is amended to read:
  348.605. (1) A school that obtains an exemption under ORS
348.604 or that, on July 14, 2005, 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 may
not:
  (a) Award more than 25 percent of the credit toward a degree
for noninstructional activities, such as challenge examinations
and professional or life experiences;
  (b) Represent that the school is:
  (A) Approved by the State of Oregon; or
  (B) Accredited by an organization unless the organization is
recognized as an accreditor by the United States Department of
Education; or
  (c) Pay a faculty member a commission or otherwise base a
faculty member's compensation on the faculty member's recruitment
of students to the school.
  (2) A school that obtains an exemption under ORS 348.604 or
that, on July 14, 2005, 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 shall:
  (a) Preserve official transcripts for all faculty members and
students;
  (b) Notify the   { - Higher Education Coordinating
Commission - }  { + Department of Education + } if a faculty
member or administrator at the school has:
  (A) Been convicted of a felony; or
  (B) Violated a state or federal law related to the operation of
a school;
  (c) Place in any course catalog that is available to students
or to the public a notice that states: '(Name of school) has been
granted exempt status by the State of Oregon to offer theological
and/or religious occupations degrees.';
  (d) If the school closes, return to students tuition payments
for the current term on a prorated basis;
  (e) If the school provides placement services to a student,
describe the placement services clearly and accurately to the
student and avoid giving unrealistic expectations of placement to
the student; and
  (f) If an administrator claims to possess an academic degree:
  (A) Ensure that the administrator possesses the academic degree
that the administrator claims to possess; and
  (B) Require that the degree is from a school that, at the time
of the conferral of the degree, was accredited by a federally
recognized accrediting organization, held an exemption under this
section, or was a school that, on July 14, 2005, met the criteria
and followed procedures to obtain a religious exemption adopted
by rule by the Oregon Student Access Commission and offered only
degrees with approved titles in theology or religious
occupations.
  SECTION 306. ORS 348.606 is amended to read:
  348.606. (1) A school may not confer or offer to confer any
academic degree upon a person, or provide services purporting to
lead to a degree in whole or in part, without first obtaining
approval from the   { - Higher Education Coordinating
Commission - }  { +  Department of Education + }. The
 { - commission - }   { + State Board of Education + } shall
adopt by rule standards and procedures for the approval of
schools.
  (2)(a) The   { - commission - }  { +  State Board of
Education + }, by rule, may impose a fee on any school applying
for approval to confer or offer to confer a degree upon a person
or to provide academic credit applicable to a degree. The fee is
nonrefundable.
  (b) The amount of the fee shall be established to recover
designated expenses incurred by the   { - commission - }
 { + Department of Education + } in carrying out the
administration of ORS 348.594 to 348.615, and may not exceed the
following amounts adjusted for inflation annually, beginning on
July 1, 2007, pursuant to the increase, if any, from the
preceding year in the U.S. City Average Consumer Price Index for
All Urban Consumers (All Items) as published by the Bureau of
Labor Statistics of the United States Department of Labor:
  (A) For a doctoral degree, $5,500.
  (B) For a master's degree, $4,150.
  (C) For a bachelor's degree, $4,150.
  (D) For an associate degree, $2,750.
  (E) For a certificate or for any partial degree program,
$1,000.
  (c) In addition to the base fee described in paragraph (b) of
this subsection, the   { - commission - }   { + State Board of
Education  + }may assess the actual costs related to the use of
experts to evaluate programs leading to professional licensure by
the state, if such costs exceed 10 percent of the base fee.
  (d) Any fees collected under this subsection shall be deposited
in the Degree Authorization Account established under ORS
348.601.
  SECTION 307. ORS 348.607 is amended to read:
  348.607. (1) The   { - Higher Education Coordinating
Commission - }  { + State Board of Education + } may, by rule,
impose a fee on a school that applies for an exemption under ORS
348.604. The amount of the fee may not exceed the lesser of:
  (a) The actual cost to the   { - commission - }
 { + Department of Education + } of determining the school's
compliance with the requirements for an exemption under ORS
348.604; or
  (b) Fifty percent of the fee that the   { - commission - }
 { + department + } would impose on the school under ORS 348.606
(2) if the school were applying for approval to offer a
bachelor's degree.
  (2) Except as provided in ORS 348.604 or 348.608 or section 6,
chapter 546, Oregon Laws 2005, the   { - commission - }
 { + State Board of Education  + }may not impose requirements for
a religious exemption from ORS 348.594 to 348.615.
  SECTION 308. ORS 348.608 is amended to read:
  348.608. (1) Each year, on a date prescribed by the
 { - Higher Education Coordinating Commission - }  { +  State
Board of Education + }, a school that obtains an exemption under
ORS 348.604 or a school that, on July 14, 2005, 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, shall submit to the commission a statement that
reads: '(Name of School) hereby certifies that the school remains
in compliance with all conditions for a religious exemption from
ORS 348.594 to 348.615. '
  (2) A school that obtains an exemption under ORS 348.604 or a
school that, on the July 14, 2005, 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 remains
exempt unless the commission suspends or revokes the exemption.
  (3) The commission may suspend or revoke an exemption if:
  (a) After the notice and opportunity to cure provided in
subsection (4) of this section, a school fails to provide the
statement required by subsection (1) of this section;
  (b) The commission has received a complaint from a student or
former student of the school that the school is failing to comply
with a condition for exemption under ORS 348.604, the commission
determines that the complaint is valid, the school has been
provided with notice and opportunity to cure as required by
subsection (4) of this section and the school fails to comply
with the condition listed in the notice; or
  (c) After the notice and opportunity to cure provided in
subsection (4) of this section, a school is in violation of ORS
348.605.
  (4) The commission shall provide notice of and 90 days to cure
a school's:
  (a) Failure to provide the statement required by subsection (1)
of this section;
  (b) Failure to maintain compliance with a condition for
exemption under ORS 348.604 if the commission has received a
complaint from a student or former student of the school that the
school is failing to comply with a condition for exemption under
ORS 348.604 and the commission has determined the complaint is
valid; or
  (c) Violation of ORS 348.605.
  (5) A school may appeal the denial, suspension or revocation of
an exemption to the commission.
  (6) A school may appeal the commission's decision that a
faculty member does not possess sufficient compensatory
qualifications to substitute for an academic degree in the field
in which the faculty member teaches.
  (7) The commission shall conduct an appeal under this section
as a contested case under ORS chapter 183.
  (8)(a) If a school appeals the denial, suspension or revocation
of an exemption and the commission upholds the denial, suspension
or revocation, the commission shall provide the school 90 days to
cure the grounds for the denial, suspension or revocation. If the
school does not cure the grounds for the denial, suspension or
revocation within 90 days after the commission upholds the
denial, suspension or revocation, then the denial, suspension or
revocation becomes effective 90 days after the issuance of the
decision on the appeal by the commission.
  (b) If a school does not appeal the denial, suspension or
revocation of an exemption to the commission and the school does
not cure the grounds for the denial, suspension or revocation
within the period of time to appeal the decision to the
commission, then the denial, suspension or revocation becomes
effective upon the expiration of the period of time to appeal.
  SECTION 309. ORS 348.609 is amended to read:
  348.609. (1) A person may not claim or represent that the
person possesses any academic degree unless the degree has been
awarded to or conferred upon the person by a school that:
  (a) Has accreditation recognized by the United States
Department of Education or the foreign equivalent of such
accreditation;
  (b) Has been approved by the   { - Higher Education
Coordinating Commission - }   { + Department of Education + } to
offer and confer degrees in Oregon;
  (c) Is described in ORS 348.597; or
  (d) Is located in the United States and has been found by the
  { - commission - }   { + department + } to meet standards of
academic quality comparable to those of an institution located in
the United States that has accreditation, recognized by the
United States Department of Education, to offer degrees of the
type and level claimed by the person.
  (2)(a) A person who has been awarded a degree from a school
other than a school described in subsection (1) of this section
may claim or represent that the person possesses an academic
degree if:
  (A) The person has been awarded a degree from a school that has
the legal authority to issue degrees in the jurisdiction where
the degree is issued; and
  (B) The claim or representation is accompanied by a disclaimer
that states: '(Name of school) does not have accreditation
recognized by the United States Department of Education and has
not been approved by the   { - Higher Education Coordinating
Commission - }  { +  Department of Higher Education + }.  '
  (b) A disclaimer allowed under this subsection shall be made in
any resume, letterhead, business card, announcement or
advertisement in which the person is claiming or representing to
have an academic degree from a school that does not meet the
requirements of subsection (1) of this section.
  (c) A person may not use a disclaimer described in this
subsection for a degree received from a diploma mill.
  (d) This subsection does not alter any requirement for
obtaining a license, admission into a school, teaching or
employment or for other areas in which a degree from an
accredited school is required.
  (3) The   { - commission - }   { + State Board of Education + }
shall adopt, by rule, standards and procedures for responding to
complaints about degree claims and for validation of degree
claims. Failure of a person to provide documentation of a claimed
degree shall be prima facie evidence that the claim of such
person to such degree is a violation of this section.
  (4) The   { - commission - }  { +  State Board of
Education + }, by rule, may impose a fee on any school or person
requesting validation of degree claims. The amount of the fee
shall be established to recover designated expenses incurred by
the   { - commission - }  { + Department of Education + } in
carrying out the administration of ORS 348.594 to 348.615. Any
fees collected under this subsection shall be deposited in the
Degree Authorization Account established under ORS 348.601.
  (5)(a) The   { - commission - }   { + department + } may cause
a civil suit to be instituted in the circuit court for legal or
equitable remedies, including injunctive relief, to ensure
compliance with this section. The   { - commission - }
 { + department + } may recover attorney fees and court costs for
any such action.
  (b) The   { - commission - }   { + State Board of Education + }
shall adopt a schedule of civil penalties for violations of this
section. A civil penalty shall not exceed $1,000 per violation.
  (c) In addition to any action or penalty provided by law, any
person who violates this section shall incur a civil penalty in
an amount prescribed by the schedule adopted by the
 { - commission - }  { +  State Board of Education + }. Any civil
penalty imposed under this subsection shall be imposed in the
manner provided in ORS 183.745.  All penalties recovered under
this subsection shall be paid into the State Treasury and
credited to the General Fund.
  (6) The provisions of this section do not apply to a person who
is a graduate of a veterinary college, or a veterinary department
of a university or college, of good standing and repute, as
determined by the Oregon State Veterinary Medical Examining
Board.
  SECTION 310. ORS 348.611 is amended to read:
  348.611. (1) As used in this section:
  (a) 'Career pathways certificate of completion program ' means
a certification program that:
  (A) Is offered at a community college;
  (B) Provides a specified proficiency in specific skills to meet
an identified employment need;
  (C) Is provided in a grouping of 12 to 44 quarter credits, or
an equivalent number of credits;
  (D) Is wholly contained within an associate degree program or a
similar certification program of 45 or more quarter credits, or
an equivalent number of credits, that was reviewed and approved
as provided by ORS 348.603 (2); and
  (E) Satisfies the requirements for a career pathways
certificate of completion program, as prescribed by the
Department of Community Colleges and Workforce Development.
  (b) 'Program authority' means:
  (A) The governing body of a community college; or
  (B) The designee of the governing body of a community college
that has authority related to the offering of a career pathways
certificate of completion program at the community college.
  (2)(a) At least 30 business days prior to a community college
seeking final approval from the State Board of Education to offer
a new career pathways certificate of completion program, the
program authority shall provide notice of intent to offer the
program to the Department of Community Colleges and Workforce
Development. The notice of intent must be in the form required by
the department and may be provided electronically.
  (b) Upon receiving a notice of intent described in paragraph
(a) of this subsection, the department shall immediately provide
electronic notice to any private institution that may be affected
by the offering of a new career pathways certificate of
completion program.
  (3) A private institution that objects to the offering of a
career pathways certificate of completion program must provide a
notice of objection to the program authority within 12 business
days of receiving the notice of intent under subsection (2) of
this section.
  (4) If a program authority receives a notice of objection as
provided by subsection (3) of this section, the program authority
must:
  (a) Within three business days after the last date by which a
private institution may provide a notice of objection, offer all
private institutions that provided a notice of objection the
opportunity to participate in a meeting described in subsection
(5) of this section; and
  (b) Postpone the seeking of final approval from the State Board
of Education for the career pathways certificate of completion
program until the requirements of subsection (6) of this section
have been satisfied.
  (5)(a) A community college that provided a notice of intent
under subsection (2) of this section and a private institution
that provided a notice of objection under subsection (3) of this
section shall participate in a meeting for the purpose of
avoiding detrimental duplication or a significantly adverse
impact by:
  (A) Identifying opportunities for collaboration in programs;
  (B) Forming agreements or partnerships for offering programs;
or
  (C) Developing ideas for modifying programs.
  (b) The program authority or the private institution may invite
the   { - Higher Education Coordinating Commission - }
 { + Department of Education + } or any other third party to join
a meeting or to act as a mediator of a meeting.
  (6) A program authority may seek final approval from the State
Board of Education for a program following a postponement
described in subsection (4) of this section if:
  (a) An agreement is reached between the program authority and
all of the private institutions that participated in the meeting
described in subsection (5) of this section; or
  (b) The program authority and the private institutions that
participated in the meeting described in subsection (5) of this
section are unable to reach an agreement within 15 business days.
  (7) Notwithstanding the timelines prescribed by subsections
(3), (4) and (6) of this section, the program authority and the
private institutions may mutually agree to adjust the timelines.
  SECTION 311. ORS 348.612 is amended to read:
  348.612. The   { - Higher Education Coordinating Commission - }
 { + Department of Education + } may revoke or suspend any
approval given to a school under ORS 348.606 for proper cause
after a hearing.  Such hearing shall be held only after the
school has been given 20 days' notice in writing of the time and
place of such hearing.  Hearings shall be held in accordance with
the rules of the
  { - commission - }   { + State Board of Education + } adopted
under ORS 348.530.
  SECTION 312. ORS 348.615 is amended to read:
  348.615. If the   { - Higher Education Coordinating
Commission - }  { + Department of Education + } refuses to grant
approval to a school to confer degrees or revokes the approval to
confer degrees, the refusal or revocation shall be subject to the
right of review by an action brought in the circuit court of the
county in which the school is located. Such review shall be tried
as an action not triable by right to a jury.
  SECTION 313. 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 - }
 { + State Board of Education + } shall develop a plan for
offering applied baccalaureate degree programs at community
colleges and public universities listed in ORS 352.002. The
 { - commission - }   { + board + } 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 314. ORS 351.653 is amended to read:
  351.653. (1) In addition to any interstate agreements entered
into under ORS 351.647, the Governor shall encourage interstate
agreements with Washington, Idaho and California. Such agreements
shall be in accordance with ORS 190.410 to 190.440 and shall:
  (a) Provide for full-time equivalent reimbursement to this
state for any students from another state who enroll in an Oregon
public post-secondary institution pursuant to the agreement;
  (b) Provide that only students who reside in counties that
share a common border with this state may participate in any
program developed pursuant to such an agreement; and
  (c) Provide that the county government or other similar
county-wide public organization of any county involved in the
agreement shall provide or arrange to provide a portion of the
costs of attendance for participating students.
  (2) Any public post-secondary institution entering into an
interstate agreement under this section shall send a copy of the
agreement to the Governor and the   { - Higher Education
Coordinating Commission - }  { +  State Board of Education + }.
  (3) The provisions of this section shall not apply to
interstate agreements entered into pursuant to ORS 351.647.
  SECTION 315. ORS 353.080 is amended to read:
  353.080. Oregon Health and Science University shall file with
the Legislative Assembly,   { - the Higher Education Coordinating
Commission - }   { + the State Board of Education + } and the
Governor, not later than April 15 of each year, a report of the
university's activities and operations for the preceding year.
  SECTION 316. ORS 418.658, as amended by section 43, chapter
104, Oregon Laws 2012, is amended to read:
  418.658. (1) The program director of the Oregon Youth
Conservation Corps shall establish a separate program known as
the Oregon Community Stewardship Corps. In addition to the
established purposes of the Oregon Youth Conservation Corps, the
purpose of the Oregon Community Stewardship Corps is to promote
community service activities throughout the state for a broad
cross section of Oregon disadvantaged and at-risk youth through
programs that also include appropriate educational and job
training opportunities for participants.
  (2) In addition to projects submitted under ORS 418.660 (1),
projects of the Oregon Community Stewardship Corps may include,
but shall not be limited to:
  (a) Child care services.
  (b) Elderly and disabled care services.
  (c) Literacy education programs.
  (d) Recycling and other waste reduction services.
  (3) The Oregon Community Stewardship Corps shall offer
employment and educational opportunities of at least three but
not more than 12 months' duration for selected participants.
  (4) Under rules adopted by the   { - Higher Education
Coordinating Commission - }  { +  State Board of Education + },
participants who successfully complete any 12-month program under
this section shall be eligible for $1,500 in tuition vouchers
that can be used at any career school or post-secondary
educational institution that is qualified to receive assistance
through the Oregon Student Access Commission.
  (5) All Oregonians who are at least 13 years of age and under
25 years of age are eligible to participate in the program. To
ensure that Oregon Community Stewardship Corps participants
represent a broad cross section of Oregonians, special emphasis
shall be given to recruiting school dropouts and other
disadvantaged and at-risk youth, according to criteria
established by the Oregon Youth Conservation Corps Advisory
Committee.
  (6) To the extent practicable, the program director shall
enlist state and federal agencies, local government, nonprofit
organizations and private businesses, and any combination of such
entities, to act as sponsors for programs administered under this
section. Selection of sponsors shall be based on criteria that
include the following:
  (a) The availability of other resources on a matching basis,
including contributions from private sources, other federal,
state and local agencies, and moneys available through the
federal Workforce Investment Act of 1998 (29 U.S.C. 2801 et
seq.);
  (b) The provision of related educational and job training
programs to participants, including but not limited to school and
college coursework, General Educational Development (GED) tests
equivalency training, project-related education and professional
training;
  (c) Assurances that proposed projects will not displace
existing employees or duplicate existing private or government
programs; and
  (d) Assurances that proposed projects are devoted to the
enhancement of the community and are not based in maintenance
activities and that these projects meet an identified need.
  (7) In consultation with the advisory committee and the
Commissioner for Community College Services, the program director
shall make grants for programs administered under this section.
  SECTION 317. ORS 678.425 is amended to read:
  678.425. The Oregon Center for Nursing and the Oregon
Healthcare Workforce Institute may serve in advisory capacities
to the State Workforce Investment Board,   { - the Higher
Education Coordinating Commission - }   { + the State Board of
Education + } and other related entities. The Oregon Center for
Nursing may advise on education and workforce development issues
affecting nursing. The Oregon Healthcare Workforce Institute may
advise on education and workforce development issues affecting
doctors, dentists and other allied health professionals. The
Oregon Center for Nursing and the Oregon Healthcare Workforce
Institute may work together to develop comprehensive solutions to
the healthcare workforce shortages in Oregon.
  SECTION 318. ORS 690.225, as amended by section 45, chapter
104, Oregon Laws 2012, is amended to read:
  690.225. (1) In addition to any other duties prescribed by law,
the Oregon Health Licensing Agency shall provide for the
inspection of facilities and schools licensed to teach
practitioner skills under ORS 345.010 to 345.450.
  (2) Inspections conducted under this section shall determine
whether the facilities comply with the health, safety, infection
control and licensing rules of the Board of Cosmetology and
whether the schools comply with the health, safety and infection
control requirements under ORS 345.010 to 345.450 and rules of
the agency. A report of the results of the inspection shall be
submitted to the   { - Higher Education Coordinating
Commission - }  { +  Department of Education + }.
  SECTION 319. 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 - }   { + 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 public
university listed in ORS 352.002 or a private and independent
institution of higher education as defined in ORS 352.720;
  (h) A distance learning provider as provided by rule of the
agency; or
  (i) Another provider approved by the Real Estate Board.
  (3) The Real Estate Agency may provide continuing education
without being certified under this section.
  (4) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (5) The list of course topics developed by the agency under
subsection (4) of this section must allow for changes in the real
estate profession.
  (6) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.

                               { +
OREGON EDUCATION INVESTMENT BOARD + }

  SECTION 320. Section 11, chapter 519, Oregon Laws 2011, as
amended by section 2, chapter 37, Oregon Laws 2012, is amended to
read:
   { +  Sec. 11. + } (1) On March 15, 2016, the Chief Education
Officer of the Oregon Education Investment Board shall deliver to
the
  { - Chancellor of the Oregon University System - }
 { + Superintendent of Public Instruction + } all records and
property within the jurisdiction of the Chief Education Officer
that relate to the duties, functions and powers of the Oregon
Education Investment Board. The   { - Chancellor of the Oregon
University System - }  { + Superintendent of Public
Instruction + } shall take possession of the records and
property.
  (2) On March 15, 2016, the Chief Education Officer shall
deliver to the Early Learning System Director all records and
property within the jurisdiction of the Chief Education Officer
that relate to the duties, functions and powers of the Early
Learning Council. The Early Learning System Director shall take
possession of the records and property.
  (3) The Governor shall resolve any dispute between the Chief
Education Officer and the   { - Chancellor of the Oregon
University System - }  { +  Superintendent of Public
Instruction + }, or the Chief Education Officer and the Early
Learning System Director, relating to transfers of records and
property under this section, and the Governor's decision is
final.

                               { +
MISCELLANEOUS + }

  SECTION 321.  { + ORS 351.015, 351.020, 351.040, 351.045,
351.049, 351.064, 351.715, 351.718, 351.722, 351.725, 351.728,
351.732 and 351.738 and section 2, chapter 637, Oregon Laws 2011,
are repealed. + }
  SECTION 322.  { + (1) Sections 17 to 24 and 264 to 272 of this
2013 Act, the amendments to statutes and session laws by sections
26 to 263 and 273 to 320 of this 2013 Act and the repeals of
statutes and session law by sections 6, 16 and 321 of this 2013
Act become operative March 15, 2016.
  (2) The State Board of Education may take any action before the
operative date specified in subsection (1) of this section that
is necessary to enable the board to exercise, on or after the
operative date specified in subsection (1) of this section, the
duties, functions and powers of the board transferred by the
provisions of sections 17 and 264 of this 2013 Act. + }
  SECTION 323.  { + The unit captions used in this 2013 Act are
provided only for the convenience of the reader and do not become
part of the statutory law of this state or express any
legislative intent in the enactment of this 2013 Act. + }
  SECTION 324.  { + This 2013 Act does not take effect unless the
amendment to the Oregon Constitution proposed by Senate Joint
Resolution 4 (2013) is approved by the people at the next regular
general election held throughout this state. + }
  SECTION 325.  { + This 2013 Act takes effect July 1, 2015. + }
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