77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to SB 270

LC 977/SB 270-5

                      SENATE AMENDMENTS TO
                         SENATE BILL 270

       By COMMITTEE ON EDUCATION AND WORKFORCE DEVELOPMENT

                            April 22

  On page 1 of the printed bill, line 3, after 'provisions; '
delete the rest of the line and lines 4 through 17 and insert '
amending ORS 21.007, 30.264, 30.864, 33.710, 36.145, 36.150,
36.155, 174.117, 184.631, 192.501, 238.005, 238.200, 238.215,
238A.005, 243.107, 243.800, 243.820, 243.850, 243.910, 244.050,
270.110, 276.610, 276.612, 279A.025, 287A.001, 291.055, 291.357,
292.043, 292.044, 297.250, 307.090, 307.095, 307.110, 307.112,
340.310, 341.440, 343.961, 344.259, 344.753, 348.010, 348.205,
348.282, 348.283, 348.470, 348.603, 348.890, 348.900, 351.011,
351.015, 351.020, 351.047, 351.052, 351.054, 351.062, 351.063,
351.065, 351.067, 351.070, 351.085, 351.094, 351.105, 351.110,
351.155, 351.165, 351.205, 351.300, 351.310, 351.340, 351.509,
351.511, 351.517, 351.518, 351.519, 351.521, 351.538, 351.539,
351.590, 351.626, 351.628, 351.638, 351.642, 351.643, 351.644,
351.646, 351.658, 351.692, 351.695, 351.697, 351.718, 351.735,
352.002, 352.006, 352.010, 352.012, 352.043, 352.046, 352.066,
352.068, 352.071, 352.074, 352.245, 352.360, 353.440, 357.004,
408.095, 408.506, 430.651, 471.580, 659.850, 659.855, 659.860,
660.358, 820.100, 820.110, 820.120, 820.130, 820.140, 820.150,
820.160 and 820.180 and section 3, chapter 797, Oregon Laws 2001,
sections 13, 14, 15 and 17, chapter 761, Oregon Laws 2007,
sections 22 and 24, chapter 904, Oregon Laws 2009, and section
14, chapter 36, Oregon Laws 2012; repealing ORS 352.035, 352.048,
352.049, 352.051, 352.052 and 352.053; and declaring an
emergency.'.
  Delete lines 19 through 27 and delete pages 2 through 96 and
insert:

                                '
 { +  ESTABLISHMENT AND INDEPENDENCE OF GOVERNING BOARDS + }

  '  { +  SECTION 1. + }  { + (1) The Legislative Assembly finds
that the State of Oregon will benefit from having public
universities with governing boards that:
  ' (a) Provide transparency, public accountability and support
for the university.
  ' (b) Are close to and closely focused on the individual
university.
  ' (c) Do not negatively impact public universities that do not
have governing boards.
  ' (d) Lead to greater access and affordability for Oregon
residents and do not disadvantage Oregon students relative to
out-of-state students.
  ' (e) Act in the best interests of both the university and the
State of Oregon as a whole.
  ' (f) Promote the academic success of students in support of
the mission of all education beyond high school as described in
ORS 351.009.
  ' (2) The Legislative Assembly also finds that:

  ' (a) Even with universities with governing boards, there are
economy-of-scale benefits to having a coordinated university
system.
  ' (b) Even with universities with governing boards, shared
services may continue to be shared among universities.
  ' (c) Legal title to all real property, whether acquired before
or after the creation of a governing board, through state
funding, revenue bonds or philanthropy, shall be taken and held
in the name of the State of Oregon, acting by and through the
governing board.
  ' (d) The Legislative Assembly has a responsibility to monitor
the success of governing boards at fulfilling their missions,
their compacts and the principles stated in this section. + }
  '  { +  SECTION 2. + }  { + As used in sections 1 to 23 of this
2013 Act:
  ' (1) 'Governing board' means a governing board established by
a university under section 3 of this 2013 Act that manages the
affairs of the university by exercising and carrying out all of
the powers, rights and duties that are expressly conferred upon
the board by law, or that are implied by law or are incident to
such powers, rights and duties.
  ' (2) 'State bonds' means 'bonds' as defined in ORS 286A.001
that are issued by the State Treasurer.
  ' (3) 'University with a governing board' means a public
university listed in section 3 of this 2013 Act that has
established a governing board. + }
  '  { +  SECTION 2a. + }  { + A university with a governing
board is a governmental entity performing governmental functions
and exercising governmental powers. A university with a governing
board is not considered a unit of local or municipal government
or a state agency, board, commission or institution for purposes
of state statutes or constitutional provisions. + }
  '  { +  SECTION 2b. + }  { + (1) A university with a governing
board is created to carry out public missions and services in
keeping with principles of public accountability and fundamental
public policy, guided by the legislative findings in ORS 351.001
and 351.003 and consistent with the goals and mission described
in ORS 351.006 and 351.009.
  ' (2) A university with a governing board is an independent
public body with statewide purposes and missions and without
territorial boundaries. A university with a governing board shall
exercise and carry out all of the powers, rights and privileges,
within and outside this state, that are expressly conferred upon
the university with a governing board, or that are implied by law
or are incident to such powers, rights and duties. + }
  '  { +  SECTION 3. + }  { + (1) A governing board is
established for each of the following public universities:
  ' (a) University of Oregon;
  ' (b) Portland State University; and
  ' (c) Oregon State University, if the president of Oregon State
University notifies the Governor that the university will become
a university with a governing board in the manner set forth in
section 168 or 168b of this 2013 Act.
  ' (2)(a) The University of Oregon governing board shall be
known as the Board of Trustees of the University of Oregon.
  ' (b) The Portland State University governing board shall be
known as the Board of Trustees of Portland State University.
  ' (c) The Oregon State University governing board shall be
known as the Board of Trustees of Oregon State University, if the
president of Oregon State University notifies the Governor that
the university will become a university with a governing board in
the manner set forth in section 168 or 168b of this 2013 Act. + }
  '  { +  SECTION 4. + }  { + Upon a request to the Governor by
the president of Eastern Oregon University, Oregon Institute of
Technology, Southern Oregon University or Western Oregon
University to establish a governing board for the university, or
upon a request made by the president of Oregon State University
after January 1, 2014, to establish such a board, the Higher
Education Coordinating Commission shall:
  ' (1) Evaluate and determine whether:
  ' (a) There is clear evidence of support for a governing board
by the university community;
  ' (b) The university has the capacity and capability to be
governed by a governing board; and
  ' (c) A governing board of the university will function in
accordance with the findings set forth in section 1 of this 2013
Act.
  ' (2) Make recommendations to the Legislative Assembly as to
whether, in addition to the public universities with governing
boards listed in section 3 of this 2013 Act, a governing board
should be established for the university. + }
  '  { +  SECTION 5. + }  { + (1) On an annual basis, the Higher
Education Coordinating Commission shall submit to the Legislative
Assembly an evaluation of each university with a governing board.
The commission may make recommendations to the Legislative
Assembly regarding the ability of the university to meet academic
goals and fulfill its fiduciary responsibilities.
  ' (2) The evaluation must include:
  ' (a) A report on the university's achievement of outcomes,
measures of progress, goals and targets as described in the
university's achievement compact with the Oregon Education
Investment Board;
  ' (b) An assessment of the university's progress toward
achieving the mission of all education beyond high school as
described in ORS 351.009; and
  ' (c) An assessment as to how well the establishment of a
governing board at the university comports with the findings set
forth in section 1 of this 2013 Act. + }
  '  { +  SECTION 6. + }  { + (1) A governing board for a public
university must be formed and maintained as provided in this
section.
  ' (2)(a) Except as provided in subsection (3) of this section,
the Governor shall appoint all of the 11 to 15 members of the
governing board, subject to confirmation by the Senate in the
manner provided in ORS 171.562 and 171.565.
  ' (b) The governing board must include one person who is a
student enrolled at the university.
  ' (c) The governing board must include one person who is a
member of the faculty of the university. The faculty member shall
be a nonvoting member of the governing board.
  ' (3) The president of the university shall be an ex officio
nonvoting member of the governing board.
  ' (4)(a) The term of office for each appointed nonstudent
member of the governing board is four years.
  ' (b) The term of office of each student member of the
governing board is two years.
  ' (c) A member of the governing board may not be appointed to
serve more than two consecutive full terms.
  ' (d) The Governor may remove any appointed member of the
governing board at any time for cause, after notice and public
hearing, but may not remove more than three members within a
period of four years, unless it is for corrupt conduct in office.
  ' (e) Vacancies shall be filled by appointment by the Governor
for the remainder of the unexpired term.
  ' (5) The governing board shall select one of its members as
chairperson and another as vice chairperson for such terms and
with duties and powers as the board considers necessary for the
performance of the functions of those offices. The governing
board shall adopt bylaws concerning how a quorum is constituted
and when a quorum is necessary.

  ' (6) The governing board shall meet at least once quarterly,
and may meet at the call of the chairperson or a majority of the
voting members of the board. + }
  '  { +  SECTION 7. + }  { + Notwithstanding the term of office
specified in section 6 of this 2013 Act, the initial term of a
member appointed to a governing board by the Governor may be
adjusted so that one-half, as nearly as possible, of the members
of the board are appointed biennially. + }
  '  { +  SECTION 8. + }  { + (1) A university with a governing
board shall enter into an achievement compact with the Oregon
Education Investment Board for each fiscal year.
  ' (2) The governing board shall adopt a mission statement for
the university, and shall forward the statement to the Higher
Education Coordinating Commission for approval.
  ' (3) A university with a governing board shall submit any
significant change in the university's academic programs to the
Higher Education Coordinating Commission for approval. The
commission shall establish, by rule, what constitutes a
significant change to a university's academic program. The
commission shall further ensure that approved programs:
  ' (a) Are consistent with the mission statement of the
university;
  ' (b) Do not unnecessarily duplicate academic programs offered
by Oregon's other public universities;
  ' (c) Are not located in a geographic area that will cause
undue hardship to Oregon's other public universities; and
  ' (d) Are allocated among Oregon's public universities to
maximize the achievement of statewide needs and requirements.
  ' (4)(a) On or before May 1 of each even-numbered year, a
university with a governing board shall submit to the Higher
Education Coordinating Commission a funding request applicable to
the biennium beginning on July 1 of the following year.
  ' (b) Pursuant to ORS 351.052, the Higher Education
Coordinating Commission shall submit a funding request to the
Governor on behalf of all public universities listed in ORS
352.002.
  ' (c) The Governor's biennial budget submitted to the
Legislative Assembly may include funding requests from public
universities, including universities with governing boards. An
appropriation made by the Legislative Assembly must specify that
the moneys be appropriated to the Higher Education Coordinating
Commission for distribution to public universities listed in ORS
352.002.
  ' (5) As part of a funding request submitted under subsection
(4) of this section, a university with a governing board may
request, and appropriations may include, funding for education
and general operations, statewide public services, state-funded
debt service, capital improvements, deferred maintenance, special
initiatives and investments. Any moneys appropriated to pay debt
service for state bonds must be held by the State Treasurer
pursuant to an agreement entered into by the State Treasurer and
a university with a governing board under section 15 (2) of this
2013 Act. + }
  '  { +  SECTION 9. + }  { + (1)(a) In consultation with the
Governor, or the Governor's designee, the governing board shall
appoint and employ a president of the university.
  ' (b) The governing board shall prescribe the president's
compensation and terms and conditions of employment.
  ' (2) The president of the university is the president of the
faculty. The president is also the executive and governing
officer of the university, except as otherwise provided by
statute or action of the governing board. Subject to the
supervision of the governing board, the president of the
university has authority to direct the affairs of the university.
  ' (3) Except in the case of an interim or acting president, the
hiring committee for the president of a university with a
governing board shall include representatives of the university
community and at least one other president of a public university
based in Oregon.
  ' (4) The governing board is responsible for the reappointment
or removal of the president of the university.
  ' (5) A university with a governing board may appoint and
employ any instructional, administrative, professional, trade,
occupational and other personnel as are necessary or appropriate
and establish their compensation and terms and conditions of
employment, subject to the limitations set forth in section 14
(1) and (2) of this 2013 Act. + }
  '  { +  SECTION 10. + }  { + (1) Except as set forth in this
section, the governing board may authorize, establish, eliminate,
collect, manage, use in any manner and expend all revenue derived
from tuition and mandatory enrollment fees.
  ' (2) The governing board shall establish a process for
determining tuition and mandatory enrollment fees. The process
must provide for participation of enrolled students and the
recognized student government of the university.
  ' (3) The governing board shall request that the president of
the university transmit to the board the joint recommendation of
the president and the recognized student government before the
board authorizes, establishes or eliminates any incidental fees
for programs under the supervision or control of the board and
found by the board to be advantageous to the cultural or physical
development of students.
  ' (4) In determining tuition and mandatory enrollment fees for
undergraduate students who are enrolled in a degree program and
are qualified to pay resident tuition:
  ' (a) The governing board may not increase the total of tuition
and mandatory enrollment fees by more than five percent annually
unless the board first receives approval from:
  ' (A) The Higher Education Coordinating Commission; or
  ' (B) The Legislative Assembly.
  ' (b) The governing board shall attempt to limit annual
increases in tuition and mandatory enrollment fees for
undergraduate students who are enrolled in a degree program and
have established residency in Oregon to a percentage that is not
greater than the percentage increase in the Higher Education
Price Index, as compiled by the Commonfund Institute.
  ' (5) The governing board may not delegate authority to
determine tuition and mandatory enrollment fees for undergraduate
students who are enrolled in a degree program and are qualified
to pay resident tuition. + }
  '  { +  SECTION 11. + }  { + (1) A university with a governing
board may:
  ' (a) Acquire, receive, hold, keep, pledge, control, convey,
manage, use, lend, expend and invest all moneys, appropriations,
gifts, bequests, stock and revenue from any source.
  ' (b) 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 governing board.
  ' (c) Make any and all contracts and agreements, enter into any
partnership, joint venture or other business arrangement and
create and participate fully in the operation of any business
structure, including but not limited to the development of
business structures and networks with any public or private
government, nonprofit or for-profit person or entity, that in the
judgment of the university or the governing board is necessary or
appropriate.
  ' (d) Establish, collect and use charges, fines and fees for
services, facilities, operations and programs.
  ' (e) 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.
The State of Oregon may not have any proprietary or other
interest in investments or funds referenced in this paragraph.
  ' (f) Acquire, purchase, purchase on a contractual basis,
borrow, receive, own, hold, control, convey, sell, manage,
operate, lease, lease-purchase, license, lend, invest in, issue,
improve, develop, use, expend and dispose of personal property,
including intellectual property, of any nature, tangible or
intangible.
  ' (g) Establish employee benefit plans of any type, subject to
ORS 351.094.
  ' (h) Take, hold, grant and dispose of mortgages and other
security interests on real and personal property.
  ' (i) Spend all available moneys without appropriation or
expenditure limitation approval from the Legislative Assembly,
except for moneys received by a university with a governing board
pursuant to a funding request submitted under section 8 (4) of
this 2013 Act and the proceeds of state bonds issued for the
benefit of a university with a governing board. The proceeds of
state bonds issued for the benefit of a university with a
governing board must be held pursuant to an agreement entered
into by the State Treasurer and a university with a governing
board under section 15 (2) of this 2013 Act. The provisions of
ORS 351.450, 351.455 and 351.460 do not apply to state bonds
issued for the benefit of a university with a governing board
pursuant to Article XI-F(1) or XI-G of the Oregon Constitution.
  ' (j) Acquire, purchase, purchase on a contractual basis,
borrow, receive, own, hold, control, convey, sell, manage,
operate, lease, lease-purchase, license, lend, invest in,
improve, develop, use, expend and dispose of real property.
  ' (k) Erect, construct, improve, remodel, develop, repair,
maintain, equip, furnish, lease, lend, convey, sell, manage,
operate, use and dispose of any building, structure, land or
project.
  ' (L) Acquire, by condemnation or otherwise, private property
that is necessary or convenient. The right to acquire property by
condemnation shall be exercised as provided by ORS chapter 35.
  ' (m) Establish policies for the organization, administration
and development of the university which, to the extent set forth
in those policies, shall have the force of law and may be
enforced through university procedures that include an
opportunity for appeal and in any court of competent
jurisdiction.
  ' (n) Sue in its own name, be sued in its own name and issue
and enforce subpoenas in its own name.
  ' (o) Hire or retain attorneys for the provision of all legal
services. A university with a governing board shall reimburse the
State Treasurer for legal fees incurred in connection with state
bonds issued at the request of the university.
  ' (p) 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.
  ' (q) Subject to the procedures set forth in section 8 of this
2013 Act, establish, supervise and control academic and other
programs, units of operation and standards, qualifications,
policies and practices relating to university matters such as
admissions, curriculum, grading, student conduct, credits,
scholarships and the granting of academic degrees, certificates
and other forms of recognition.
  ' (r) Enforce and recover any fees, charges and fines,
including but not limited to mandatory enrollment fees.
  ' (s) Make available and perform any and all services on such
terms as the governing board considers appropriate.

  ' (t) Delegate and provide for the further delegation of any
and all powers and duties, subject to the limitations expressly
set forth in law.
  ' (2) The budget for a university with a governing board shall
be prepared in accordance with generally accepted accounting
principles and adopted by the governing board in accordance with
ORS 192.610 to 192.710.
  ' (3) A governing board or university with a governing board
may perform any other acts that in the judgment of the board or
university are required, necessary or appropriate to accomplish
the rights and responsibilities granted to the board or
university by law. + }
  '  { +  SECTION 12. + }  { + (1) Legal title to all real
property acquired by a university with a governing board shall be
taken and held in the name of the State of Oregon, acting by and
through the governing board. Legal title to all real property
conveyed to a university with a governing board is considered to
be conveyed to and vested in the State of Oregon, acting by and
through the governing board. Authorized conveyances of all real
property, other than university lands, acquired by or vested in
the State of Oregon for the use or benefit of the university must
be executed in the name of the State of Oregon, acting by and
through the governing board, by the chairperson of the governing
board.
  ' (2) The governing board has custody and control of and shall
care for all real property used for university purposes.
Management, maintenance, disposal and preservation of all real
property used for university purposes, whether the real property
is acquired before or after the establishment of a governing
board, is the responsibility of the governing board. Real
property taken and held under this section may 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.
  ' (3) Unless the State Treasurer has granted prior consent,
real or personal property held in the name of the State of
Oregon, or in which the State of Oregon has an ownership or other
legal interest, that was acquired, constructed, improved with or
otherwise directly benefited by the proceeds of outstanding state
bonds, may not be:
  ' (a) Used by a governing board in a manner that would give
rise to private business use; or
  ' (b) Sold, transferred, encumbered, leased or otherwise
disposed of by a governing board. The reference to leases in this
paragraph does not apply to residential leases that a governing
board enters into with students, faculty or employees of the
university. + }
  '  { +  SECTION 13. + }  { + (1) A governing board may, in its
sole discretion, do all of the following:
  ' (a) Police, control and regulate traffic and parking of
vehicles on university property.
  ' (b) Establish a police department and commission one or more
employees as police officers in the manner and with all of the
privileges and immunities set forth in ORS 352.383. When a
governing board 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.
  ' (c) Commission special campus security officers who, when
acting in the scope of their employment, 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. Special campus security
officers may not be authorized to carry firearms as police
officers and, except as provided in subsection (2) of this
section, may not be considered police officers for purposes of
ORS 181.610, 238.005, 243.005 or 243.736.
  ' (2) A university with a governing board, 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 14. + }  { + (1) A university with a governing
board shall engage in collective bargaining with local bargaining
organizations of the employees of the university.
  ' (2) A university with a governing board shall participate in
a collective bargaining partnership with other public
universities in this state for the purpose of engaging in
collective bargaining with existing statewide bargaining
organizations of the employees of the public university. The
collective bargaining partnership shall be established by written
agreement.
  ' (3) Subject to the authority of the Secretary of State to
audit public accounts, a university with a governing board may
conduct an independent audit if the governing board considers the
audit advisable. Subject to ORS 297.250, the independent audit is
subject to the exclusive discretion and control of the
university. The independent audit is subject to disclosure
pursuant to ORS 192.410 to 192.505. + }
  '  { +  SECTION 15. + }  { + (1) All moneys collected or
received by a university with a governing board, placed to the
credit of the governing board and remaining unexpended and
unobligated on the date that the board is established, and all
moneys collected or received by a university with a governing
board after the date that the governing board is established, may
be:
  ' (a) Deposited into one or more accounts established by the
board in depositories insured by the Federal Deposit Insurance
Corporation or the National Credit Union Share Insurance Fund,
and the governing board shall ensure that sufficient collateral
secures any amount of funds on deposit that exceeds the limits of
the coverage of the Federal Deposit Insurance Corporation or the
National Credit Union Share Insurance Fund; or
  ' (b) Held, kept, pledged, controlled, conveyed, managed, used,
loaned, expended and invested as set forth in sections 10 and 11
of this 2013 Act.
  ' (2) Upon a request by the State Treasurer, a university with
a governing board shall enter into a written agreement with the
state that provides for the State Treasurer to receive, hold,
keep, manage and invest any amounts under the control of the
university that the State Treasurer determines should be held by
the State Treasurer to provide for payment of state bonds and
other state obligations that are to be paid from appropriations
described in section 8 (5) of this 2013 Act, revenues of the
university or other moneys under the control of the university.
The agreement may, at the request of the State Treasurer, require
the university to pay the costs incurred by the State Treasurer
in connection with entering into and carrying out the agreement.
  ' (3) Upon a request by a university with a governing board,
the State Treasurer may receive, hold, keep, manage and invest
any or all moneys, appropriations, gifts, bequests or revenues of
the university from any source in accordance with an agreement
entered into between the State Treasurer and the university and
with the policies and procedures established by the State
Treasurer, including the recoupment of costs incurred by the
State Treasurer in carrying out these tasks.
  ' (4) As used in this section, 'depository' has the meaning
given that term in ORS 295.001. + }

  '  { +  SECTION 16. + }  { + (1) The following entities are not
subject to any provision of law enacted after January 1, 2013,
that is unique to governmental entities unless the following
entities are expressly named:
  ' (a) A university with a governing board; and
  ' (b) Any not-for-profit organization or other entity if the
equity of the entity is owned or controlled exclusively by a
university with a governing board and if the organization or
entity is created by the university to advance any of the
university's statutory missions.
  ' (2) Notwithstanding subsection (1) of this section, the
provisions of ORS 30.260 to 30.460, 33.710, 33.720, 200.005 to
200.025, 200.045 to 200.090, 236.605 to 236.640, 276.080,
279.835, 279.840, 279.850 and 297.040 and ORS chapters 35, 190,
192 and 244 apply to a university with a governing board under
the same terms as they apply to public bodies other than the
state.
  ' (3) Except as otherwise provided by law, the provisions of
ORS 35.550 to 35.575, 180.060, 180.210 to 180.235, 184.305 to
184.345, 190.480, 190.490, 200.035, 243.696, 357.805 to 357.895
and 656.017 (2) and ORS chapters 182, 183, 240, 270, 273, 276,
278, 279A, 279B, 279C, 282, 283, 291, 292, 293, 294, 295 and 297
do not apply to a university with a governing board.
  ' (4) Notwithstanding subsections (1) and (3) of this section,
ORS 240.167, 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 and 292.043 apply to a university
with a governing board under the same terms as they apply to
public bodies other than the state.
  ' (5) Notwithstanding subsection (2) of this section, ORS
190.430 and 192.105 do not apply to a university with a governing
board or any organization or other entity described in subsection
(1) of this section.
  ' (6) Except as set forth in subsection (3) of this section,
ORS 243.650 to 243.782 apply to a university with a governing
board under the same terms as they apply to the state.
  ' (7) ORS 351.065, 351.067, 351.642, 351.643, 351.644, 351.646,
351.656, 351.658, 352.012 and 352.375 apply to a university with
a governing board, except that the board or university shall
exercise the responsibilities and authorities of the State Board
of Higher Education or the Oregon University System.
  ' (8) A university with a governing board 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.
  ' (9) ORS 351.692, 351.695 and 351.697 apply to a governing
board, except that the board has the responsibilities and
authorities with respect to the university it governs that the
State Board of Higher Education and the Oregon University System
have with respect to the public universities identified in ORS
351.011. A university with a governing board may not issue a tax
credit certificate under ORS 351.692, 351.695 and 351.697 that
will cause the university to owe the General Fund more than $2.4
million at any one time under ORS 351.692, 351.695 and 351.697.
  ' (10) If state bonds are issued for the benefit of a
university with a governing board, the university shall have the
powers and duties of a related agency as defined in ORS 286A.001
to the extent necessary for the issuance of such state bonds and
the administration of the proceeds of the state bonds.
  ' (11) Nothing in this section may be construed so that
statutory provisions that are not set forth in this section apply
to a university with a governing board. + }
  '  { +  SECTION 17. + }  { + A university with a governing
board may open, establish, lay out and dedicate to the public use
any streets through lands owned by or used for the university.
When such streets are opened, established and laid out, they are
declared to be dedicated to the public use. The university may
declare that it is the road authority pursuant to ORS 810.010 (4)
for any or all roads through lands owned by or used for the
university. + }
  '  { +  SECTION 18. + }  { + The president and professors
constitute the faculty and as such have the immediate government
and discipline of a university with a governing board and the
students therein, except as otherwise provided by law or action
of the governing board. The faculty may, subject to the
supervision of the governing board and section 8 of this 2013
Act, prescribe the course of study to be pursued in the
university and the textbooks to be used. + }

                                '
 { +  BONDING AUTHORITY OF GOVERNING BOARDS + }

  '  { +  SECTION 19. + }  { + As used in sections 19 to 23 of
this 2013 Act:
  ' (1) 'Bond-related costs' means:
  ' (a) The costs of paying the principal of, the interest on and
the premium, if any, on revenue bonds.
  ' (b) The costs and expenses of issuing, administering and
maintaining revenue bonds, including, but not limited to, the
costs and expenses of:
  ' (A) Redeeming revenue bonds.
  ' (B) Paying amounts due in connection with credit enhancement
devices or agreements for exchange of interest rates.
  ' (C) Paying the fees, administrative costs and expenses of a
university with a governing board related to revenue bonds,
including, but not limited to, the costs of consultants, bond
trustees, remarketing agents, escrow agents, arbitrage rebate
consultants, calculation agents and advisers retained by the
university.
  ' (c) The costs of funding reserves for the revenue bonds.
  ' (d) Capitalized interest for the revenue bonds.
  ' (e) Rebates or penalties due to the United States in
connection with the revenue bonds.
  ' (f) Any other costs or expenses that a university with a
governing board determines are necessary or desirable in
connection with issuing and maintaining the revenue bonds.
  ' (2) 'Credit enhancement device' means an agreement or
contractual relationship between a university with a governing
board and a bank, trust company, insurance company, surety
bonding company, pension fund or other financial institution or
entity providing additional credit on or security for a revenue
bond.
  ' (3) 'For the benefit of a university with a governing board'
means, in relation to state bonds:
  ' (a) Before the effective date of this 2013 Act, the portion
of the proceeds of the state bonds that was used to finance
property, projects or liabilities on behalf of the State Board of
Higher Education and for the benefit of a university with a
governing board in pursuing the purposes and missions of the
university.
  ' (b) On or after the effective date of this 2013 Act, the
portion of the proceeds of the state bonds a university with a
governing board is eligible to receive under section 20 of this
2013 Act to finance property, projects or liabilities on behalf
of and for the benefit of a university with a governing board in
pursuing the purposes and missions of the university.
  ' (4) 'Obligation' means:
  ' (a) A revenue bond;
  ' (b) The commitment of a university with a governing board in
connection with a credit enhancement device; or
  ' (c) An agreement for exchange of interest rates.
  ' (5) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which a university with a governing board makes a pledge.
  ' (6) 'Pledge' means:
  ' (a) To create a lien on revenue or property.
  ' (b) A lien created on revenue or property.
  ' (7) 'Revenue' means tuition, fees, charges, rents, revenues,
interest, dividends, receipts and other income of a university
with a governing board, except moneys received by the university
from taxes collected by the State of Oregon.
  ' (8) 'Revenue bond':
  ' (a) Means a contractual undertaking or instrument of a
university with a governing board to repay borrowed moneys, which
undertaking or instrument is secured by a pledge of all or part
of the revenue of the university.
  ' (b) Does not mean a credit enhancement device or a state
bond. + }
  '  { +  SECTION 20. + }  { + (1) A university with a governing
board may elect to remain eligible to receive proceeds of state
bonds. If a university with a governing board requests the State
Treasurer to issue state bonds for the benefit of the university
with a governing board that are authorized under Article XI-F(1)
or XI-Q of the Oregon Constitution or ORS 283.085 to 283.092, and
the state bonds are intended to be repaid in whole or in part by
university revenues or other moneys under the control of the
university, the State Treasurer must review and approve all plans
to issue revenue bonds of the university and to execute other
obligations related to the revenue bonds.
  ' (2) The State Treasurer shall limit the scope of review and
approval under subsection (1) of this section to consideration of
periodic cash flow projections and other information necessary to
determine the sufficiency of the cash flow of the university with
a governing board to pay any loans from state agencies funded
with the proceeds of state bonds and to pay costs for:
  ' (a) State bonds issued for the benefit of the university with
a governing board pursuant to Article XI-F(1) or XI-Q of the
Oregon Constitution or ORS 283.085 to 283.092; and
  ' (b) Revenue bonds issued pursuant to sections 19 to 23 of
this 2013 Act.
  ' (3) A university with a governing board that issues revenue
bonds of the university, or executes other obligations related to
the revenue bonds, without the approval of the State Treasurer as
provided in subsection (2) of this section is not eligible to
receive proceeds of the state bonds described in subsection (1)
of this section and that are intended to be repaid in whole or in
part by university revenues or other moneys under the control of
the university on or after the effective date of this 2013 Act.
  ' (4) For the purposes of ORS chapter 286A, a university with a
governing board has the powers and duties of a related agency as
described in section 16 (10) of this 2013 Act with respect to
state bonds that:
  ' (a) Were issued before the effective date of this 2013 Act
for the benefit of a university with a governing board and that
remain outstanding; and
  ' (b) Are authorized under ORS 286A.035 and issued on or after
the effective date of this 2013 Act for the benefit of a
university with a governing board. + }
  '  { +  SECTION 21. + }  { + (1) A university with a governing
board:
  ' (a) May issue revenue bonds for any lawful purpose of the
university in accordance with ORS chapter 287A.
  ' (b) May issue under ORS 287A.360 to 287A.380 refunding bonds
of the same character and tenor as the revenue bonds replaced.
  ' (2) For the purposes of ORS chapter 287A, a university with a
governing board is a public body.
  ' (3) ORS 287A.150 does not apply to revenue bonds issued by a
university with a governing board.
  ' (4) A university with a governing board:
  ' (a) May grant leases of real property held by a trustee or
lender for a term that ends on the date on which all amounts due
under the operative documents have been paid, or provision for
payment has been made, or for a term of up to 20 years after the
last scheduled payment under the operative documents, whichever
is sooner. The leases may grant the trustee or lender the right
to evict the university and exclude the university from
possession of the real property for the term of the lease if the
university fails to pay when due the amounts scheduled to be paid
under the operative documents or otherwise defaults under the
operative documents. Upon default, the trustee or lender may
sublease the real property to third parties and apply any rents
to payments scheduled to be made under the operative documents.
  ' (b) May not mortgage, pledge or grant a security interest in,
or otherwise encumber, real or personal property that has been
pledged or leased to provide security for, or acquired,
constructed, improved with, or otherwise directly benefited by,
the proceeds of outstanding state bonds, except as provided in
section 12 (3) of this 2013 Act.
  ' (5) Revenue bonds and other obligations authorized by this
section:
  ' (a) Are revenue bonds or obligations of a political
subdivision of the State of Oregon.
  ' (b) Are not an indebtedness or obligation of the State of
Oregon and are not a charge upon revenue or property of the State
of Oregon, except as provided in subsection (4) of this section.
  ' (c) Are not a charge upon any revenue or property of a
university with a governing board unless the revenue or property
is pledged to secure the revenue bonds or other obligations.
  ' (d) Are not payable from, and may not be secured by a pledge
of or lien on, any amounts a university with a governing board is
required to:
  ' (A) Deposit with the State Treasurer pursuant to section 15
(2) of this 2013 Act; or
  ' (B) Pay to the State Treasurer pursuant to a schedule
described in section 23 of this 2013 Act. + }
  '  { +  NOTE: + } Section 22 was deleted by amendment.
Subsequent sections were not renumbered.
  '  { +  SECTION 23. + }  { + (1) Sections 19 to 23 of this 2013
Act do not impair the obligations, as defined in ORS 286A.100, or
agreements of the State of Oregon or the State Board of Higher
Education with respect to state bonds issued before the effective
date of this 2013 Act for the benefit of a university with a
governing board.
  ' (2) A university with a governing board and the Oregon
University System shall take all actions necessary to ensure full
compliance with the operative documents executed with respect to
state bonds issued before, on or after the effective date of this
2013 Act by the State Treasurer for the benefit of the university
with a governing board.
  ' (3) The State Treasurer and the Oregon University System
shall promptly provide a university that acquires a governing
board with a schedule of outstanding state bonds and other
obligations for which the university must pay, including the
payment dates and amounts, or methods for determining the
amounts.  The schedule must include amounts sufficient to pay
principal, interest and premium, if any, on the state bonds, and
to pay administrative and other costs of the State of Oregon that
are related to the state bonds or other obligations. If the State
Treasurer issues state bonds for the benefit of a university with
a governing board on or after the effective date of this 2013 Act
that are intended to be repaid in whole or in part by university
revenues or other moneys under the control of the university, the
schedule shall be amended to include such state bonds and the
amounts to be paid by the university. In the absence of manifest
error, the schedule provided by the State Treasurer and the
Oregon University System to a university with a governing board
is binding on the university. The university with a governing
board shall pay the amounts specified in the schedule provided by
the State Treasurer and the Oregon University System on or before
the dates specified in the schedule from the first legally
available revenue of the university.
  ' (4) At the request of the State Treasurer, a university with
a governing board shall provide the State Treasurer with periodic
cash flow projections and other information that allow the State
Treasurer to review and approve the sufficiency of the
university's cash flow to pay amounts specified in the schedule
described in subsection (3) of this section and to pay amounts
owed under loans from state agencies that were funded with the
proceeds of state bonds.
  ' (5) Moneys deposited with the State Treasurer, the Controller
of the Oregon University System or the Oregon Department of
Administrative Services in a debt service reserve account or
otherwise for the portion of the debt service associated with
obligations entered into before the effective date of this 2013
Act for the benefit of a university with a governing board must
remain with the State Treasurer, the Controller of the Oregon
University System or the Oregon Department of Administrative
Services until the obligations have been retired or defeased.
Earnings on moneys described in this subsection must be credited
to the account or fund in which the moneys are held.
  ' (6) The principal, interest, premium, if any, and any
issuance costs of state bonds issued before, on or after the
effective date of this 2013 Act for the benefit of a university
with a governing board, and any related credit enhancement device
or interest rate exchange agreement, shall be paid from the
sources identified in the laws and operative documents
authorizing the state bonds. The university with a governing
board for which the state bonds were issued shall pay any other
expenses and liabilities, including, but not limited to, legal
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.
  ' (7) 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 state bond issued for the
benefit of a university with a governing board and any related
credit enhancement device or interest rate exchange agreement. As
soon as practicable after a governing board is established by a
university pursuant to section 3 of this 2013 Act, the university
with a governing board and the State Treasurer shall enter into
an agreement that addresses reimbursement of reasonable costs and
expenses associated with the legal representation of the State
Treasurer in connection with state bonds issued for the benefit
of the university with a governing board before, on or after the
effective date of this 2013 Act and any other topic necessary for
the Department of Justice to provide legal representation to the
State Treasurer in connection with state bonds issued for the
benefit of the university with a governing board and to provide
representation related to funds and accounts or services provided
under section 15 of this 2013 Act.
  ' (8) A university with a governing board shall assume
responsibility, in accordance with agreements entered into with
the Department of Justice and the State Treasurer, for the
indemnity and defense of university officers, agents and
employees with regard to, as applicable, claims asserted and

actions commenced in connection with state bonds issued for the
benefit of the university with a governing board. + }

                                '
 { +  STATUTORY AMENDMENTS + }

  '  { +  SECTION 24. + } ORS 352.002 is amended to read:
  ' 352.002.   { - The Oregon University System established in
ORS 351.011 consists of the following public universities under
the jurisdiction of the State Board of Higher Education - }  { +
The following are established as public universities in the State
of Oregon + }:
  ' (1) University of Oregon.
  ' (2) Oregon State University.
  ' (3) Portland State University.
  ' (4) Oregon Institute of Technology.
  ' (5) Western Oregon University.
  ' (6) Southern Oregon University.
  ' (7) Eastern Oregon University.
  '  { +  SECTION 25. + } ORS 351.011 is amended to read:
  ' 351.011.  { + (1) + } 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. - }  { +  and the following
public universities, and any related offices, departments or
activities:
  ' (a) Oregon State University.
  ' (b) Oregon Institute of Technology.
  ' (c) Western Oregon University.
  ' (d) Southern Oregon University.
  ' (e) Eastern Oregon University.
  ' (2)  + }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.
  '  { +  (3) + } 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.
  '  { +  (4) + } The Oregon University System is not considered
a unit of local or municipal government.
  '  { +  SECTION 26. + } ORS 351.011, as amended by section 25
of this 2013 Act, is amended to read:
  ' 351.011. (1) The Oregon University System is established as a
public university system, consisting of the office of the
Chancellor of the Oregon University System and the following
public universities, and any related offices, departments or
activities:
  '  { - (a) Oregon State University. - }
  '  { - (b) - }  { +  (a) + } Oregon Institute of Technology.
  '  { - (c) - }  { +  (b) + } Western Oregon University.
  '  { - (d) - }  { +  (c) + } Southern Oregon University.
  '  { - (e) - }  { +  (d) + } Eastern Oregon University.
  ' (2) 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.
  ' (3) 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.
  ' (4) The Oregon University System is not considered a unit of
local or municipal government.
  '  { +  SECTION 27. + }  { + (1) The amendments to ORS 351.011
by section 26 of this 2013 Act become operative only if the
president of Oregon State University notifies the Governor that
the university will become a university with a governing board in
the manner set forth in section 168 or 168b of this 2013 Act.
  ' (2) If the condition specified in subsection (1) of this
section is met, the amendments to ORS 351.011 by section 26 of
this 2013 Act become operative July 1, 2014. + }
  '  { +  SECTION 28. + } ORS 287A.001 is amended to read:
  ' 287A.001. As used in this chapter:
  ' (1) 'Advance refunding bond' means a bond all or part of the
proceeds of which are to be used to pay an outstanding bond one
year or more after the advance refunding bond is issued.
  ' (2) 'Agreement for exchange of interest rates' means a
contract, or an option or forward commitment to enter into a
contract, for an exchange of interest rates for related bonds
that provides for:
  ' (a) Payments based on levels or changes in interest rates; or
  ' (b) Provisions to hedge payment, rate, spread or similar
exposure including, but not limited to, an interest rate floor or
cap or an option, put or call.
  ' (3) 'Bond':
  ' (a) Means a contractual undertaking or instrument of a public
body to repay borrowed moneys.
  ' (b) Does not mean a credit enhancement device.
  ' (4) 'Capital construction' has the meaning given that term in
ORS 310.140.
  ' (5) 'Capital improvements' has the meaning given that term in
ORS 310.140.
  ' (6) 'Credit enhancement device':
  ' (a) Means a letter of credit, line of credit, standby bond
purchase agreement, bond insurance policy, reserve surety bond or
other device or facility used to enhance the creditworthiness,
liquidity or marketability of bonds or agreements for exchange of
interest rates.
  ' (b) Does not mean a bond.
  ' (7) 'Current refunding bond' means a bond the proceeds of
which are to be used to pay or purchase an outstanding bond less
than one year after the current refunding bond is issued.
  ' (8) 'Forward current refunding' means execution and delivery
of a purchase agreement or similar instrument under which a
public body contracts to sell current refunding bonds for
delivery at a future date that is one year or more after
execution of the purchase agreement or similar instrument.
  ' (9) 'General obligation bond' means exempt bonded
indebtedness, as defined in ORS 310.140, that is secured by a
commitment to levy ad valorem taxes outside the limits of
sections 11 and 11b, Article XI of the Oregon Constitution.
  ' (10) 'Lawfully available funds' means revenues or other
moneys of a public body including, but not limited to, moneys
credited to the general fund of the public body, revenues from an
ad valorem tax and revenues derived from other taxes levied by
the public body that are not dedicated, restricted or obligated
by law or contract to an inconsistent expenditure or use.
  ' (11) 'Operative document' means a bond declaration, trust
agreement, indenture, security agreement or other document in
which a public body pledges revenue or property as security for a
bond.
  ' (12) 'Pledge' means:
  ' (a) To create a lien on property pursuant to ORS 287A.310.
  ' (b) A lien created on property pursuant to ORS 287A.310.
  ' (13) 'Public body' means:
  ' (a) A county of this state;
  ' (b) A city of this state;
  ' (c) A local service district as defined in ORS 174.116 (2);
  ' (d) A special government body as defined in ORS 174.117;
  ' (e) Oregon Health and Science University;
  '  { +  (f) A public university with a governing board listed
in section 3 of this 2013 Act; + } or
  '  { - (f) - }   { + (g) + } Any other political subdivision of
this state that is authorized by the Legislative Assembly to
issue bonds.
  ' (14) 'Refunding bond' means an advance refunding bond, a
current refunding bond or a forward current refunding bond.
  ' (15) 'Related bond' means a bond for which the public body
enters into an agreement for exchange of interest rates or
obtains a credit enhancement device.
  ' (16) 'Revenue' means all fees, tolls, excise taxes,
assessments, property taxes and other taxes, rates, charges,
rentals and other income or receipts derived by a public body or
to which a public body is entitled.
  ' (17) 'Revenue bond' means a bond that is not a general
obligation bond.
  ' (18) 'Termination payment' means the amount payable under an
agreement for exchange of interest rates by one party to another
party as a result of the termination, in whole or part, of the
agreement prior to the expiration of the stated term.
  '  { +  SECTION 29. + } 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 - }  { +  public universities listed in ORS
352.002 + } 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 30. + } 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 - } ;
  ' (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 - }  { +  a public university 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 31. + } 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 32. + } ORS 348.283 is amended to read:
  ' 348.283. (1) There is established within the Oregon Student
Access Commission the Oregon Troops to Teachers program. Through
the program, the commission shall pay for all of the resident
tuition charges of a veteran imposed by a public post-secondary
institution, provided the veteran:
  ' (a) Was discharged from the Armed Forces of the United
States;
  ' (b) Is a resident of Oregon; and
  ' (c) Agrees to teach:
  ' (A) In an Oregon school district or public charter school
classified as serving a high poverty area for not less than three
years; or
  ' (B) In the area of mathematics, science or special education
for not less than four years.
  ' (2) An award under subsection (1) of this section shall be
used for the purpose of paying resident tuition. The commission
may not award funds under subsection (1) of this section for the
purpose of paying for books, supplies, housing, food or any other
costs associated with attending a public post-secondary
institution.
  ' (3) The commission shall adopt rules necessary for the
implementation and administration of this section in consultation
with the Department of Education { + , + }   { - and - }  the
Oregon University System { +  and the public universities with
governing boards listed in section 3 of this 2013 Act + }.
  '  { +  SECTION 33. + } ORS 348.470 is amended to read:
  ' 348.470. The Legislative Assembly finds and declares that:
  ' (1) It is the policy of this state to encourage cooperation
between   { - the Oregon University System - }  { +  public
universities + }  { + listed in ORS 352.002  + }and community
colleges on issues affecting students who transfer between the
two segments; and
  ' (2) All unnecessary obstacles that restrict student transfer
opportunities between the two segments shall be eliminated.
  '  { +  SECTION 34. + } ORS 348.603 is amended to read:
  ' 348.603. (1) The Higher Education Coordinating Commission
shall:
  ' (a) Authorize approved schools to offer academic degree
programs;
  ' (b) Authorize approved degree-granting schools to offer
nondegree programs leading to a certificate or diploma;
  ' (c) Validate claims of degree possession;
  ' (d) Terminate substandard or fraudulent degree activities;
  ' (e) Terminate activities of diploma mills operating in or
from Oregon;
  ' (f) Except as provided in subsection (4) of this section,
terminate the operation in or from Oregon of post-secondary
accrediting bodies that are not recognized by the United States
Department of Education or by the commission; and
  ' (g) Review proposed new publicly funded post-secondary
programs and locations.
  ' (2)(a) Following review of a proposed new publicly funded
post-secondary program or location that is not a career pathways
certificate of completion program described in ORS 348.611, the
commission shall recommend resolution to the appropriate
governing boards and mediate between the boards to seek a
negotiated resolution if:
  ' (A) There is a detrimental duplication of programs; or
  ' (B) The program or location would have a significantly
adverse impact on one or more other segments of education.
  ' (b) If the boards do not resolve the issue raised under
paragraph (a) of this subsection within 90 days of the date when
the issue was recommended to the boards for mediation, the
commission shall have final authority for approval or disapproval
of the program or location. If the boards do not resolve the
issue, the commission shall approve or disapprove the program or
location within 180 days of the date when the review began.
  ' (c) If the boards do not resolve the issue, the commission
shall approve the program or location if the commission finds
that the program or location meets an unmet workforce need in the
state.
  ' (d) The commission shall establish by rule a fair and neutral
decision-making process in consultation with representatives
designated by the State Board of Education, the State Board of
Higher Education,  { + the governing boards of public
universities with a governing board listed in section 3 of this
2013 Act, + } associations representing Oregon independent
colleges, associations representing Oregon career colleges, and
the governing boards of otherwise unrepresented post-secondary
schools.
  ' (3) The commission, by rule, may impose a fee on any school
or person requesting information from the commission. The amount
of the fee shall be established to recover designated expenses
incurred by the commission in carrying out the administration of
ORS 348.594 to 348.615. Any fees collected under this subsection
shall be deposited in the 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 35. + } ORS 348.890 is amended to read:
  ' 348.890. (1) The Higher Education Coordinating Commission
shall provide policy direction to implement regional partnership
proposals and any other joint program or activity approved by the
State Board of Education { + , + }   { - and - }  the State Board
of Higher Education { +  and the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + }.
  ' (2) Notwithstanding ORS 351.063 (3), the Department of
Community Colleges and Workforce Development and the Oregon
University System may use appropriations from the General Fund to
implement agreements approved by the Higher Education
Coordinating Commission that provide direct aid to a student, or
other incentives that encourage shared use of facilities,

programs and other resources of public universities listed in ORS
352.002 and community colleges.
  '  { +  SECTION 36. + } ORS 348.900 is amended to read:
  ' 348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  ' (2) Based on the needs assessment, the Higher Education
Coordinating Commission shall inform the community colleges,
public universities listed in ORS 352.002, Oregon Health and
Science University and health care industry employers of the
identified statewide needs and invite the development of health
care education programs that are responsive to those needs.
  ' (3) When approving health care education programs, the State
Board of Education, the State Board of Higher Education { + , the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } and the Oregon Health
and Science University Board of Directors shall use the statewide
needs assessment to evaluate whether a program fulfills statewide
needs. If a board determines there is a statewide need, the board
shall facilitate the:
  ' (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  ' (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  ' (4) In the development and approval of health care education
programs, community colleges, public universities, Oregon Health
and Science University, the State Board of Education, the State
Board of Higher Education { + , the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + } and the Oregon Health and Science University Board
of Directors shall consider issues related to statewide access,
student transferability between programs, course articulation and
common student learning outcomes for health care education
programs. The community colleges, public universities, Oregon
Health and Science University and boards shall continue to
provide and improve upon an effective articulation and transfer
framework for students in Oregon's post-secondary sectors.
  '  { +  SECTION 37. + } ORS 351.015 is amended to read:
  ' 351.015. The Oregon University System shall be conducted
under the control of a board of 15 directors, to be known as the
State Board of Higher Education. Except as otherwise provided by
law, the board has sole authority to govern, set policy and
otherwise manage the affairs of the public universities listed in
ORS   { - 352.002 - }  { +  351.011 + }. The board shall consist
of:
  ' (1) Two students who at the time of their appointment to the
board are attending different public universities listed in ORS
 { - 352.002 - }  { +  351.011 + }.
  '  { - (2) One member of the faculty at Oregon State
University, Portland State University or University of
Oregon. - }
  '  { - (3) - }  { +  (2) + } One member of the faculty at
 { + Oregon State University, + } Eastern Oregon University,
Oregon Institute of Technology, Southern Oregon University or
Western Oregon University.

  '  { - (4) - }  { +  (3) + }   { - Eleven - }  { +  Twelve + }
members of the general public who are not students or faculty
members at the time of appointment.
  '  { +  SECTION 38. + } ORS 351.015, as amended by section 37
of this 2013 Act, is amended to read:
  ' 351.015. The Oregon University System shall be conducted
under the control of a board of 15 directors, to be known as the
State Board of Higher Education. Except as otherwise provided by
law, the board has sole authority to govern, set policy and
otherwise manage the affairs of the public universities listed in
ORS 351.011. The board shall consist of:
  ' (1) Two students who at the time of their appointment to the
board are attending different public universities listed in ORS
351.011.
  ' (2) One member of the faculty at   { - Oregon State
University, - } Eastern Oregon University, Oregon Institute of
Technology, Southern Oregon University or Western Oregon
University.
  ' (3) Twelve members of the general public who are not students
or faculty members at the time of appointment.
  '  { +  SECTION 39. + }  { + (1) The amendments to ORS 351.015
by section 38 of this 2013 Act become operative only if the
president of Oregon State University notifies the Governor that
the university will become a university with a governing board in
the manner set forth in section 168 or 168b of this 2013 Act.
  ' (2) If the condition specified in subsection (1) of this
section is met, the amendments to ORS 351.015 by section 38 of
this 2013 Act become operative July 1, 2014. + }
  '  { +  SECTION 40. + } ORS 351.020 is amended to read:
  ' 351.020. (1) The directors of the State Board of Higher
Education must be residents of Oregon and are appointed by the
Governor. The appointments are subject to the confirmation of the
Senate in the manner provided by ORS 171.562 and 171.565. No
director who is not a student or faculty member at the time of
appointment may be an employee of any of the public universities
or offices, departments or activities under the control of the
State Board of Higher Education. The faculty   { - members - }
 { + member + } appointed under this section may not participate
in any discussions or action by the board or attend any executive
session of the board involving collective bargaining issues that
affect faculty at any public university listed in ORS
 { - 352.002 - }  { +  351.011 + }.
  ' (2) To assist the Governor in making appointments of the
student members as provided in ORS 351.015, the duly organized
and recognized entities of student government at each public
university shall submit a list of nominees to the Governor. The
entities are entitled to no more than three nominees per public
university. The Governor shall consider these lists in the
selection of the student members to be appointed to the State
Board of Higher Education.
  ' (3) To assist the Governor in making appointments of the
faculty   { - members - }   { + member + } as provided in ORS
351.015, a duly organized and recognized association of faculty
members may submit a list of nominees to the Governor. The
Governor shall consider any submitted list in the selection of
the faculty   { - members - }  { +  member + } to be appointed to
the State Board of Higher Education.
  ' (4) When making an appointment of the faculty or student
members as provided in ORS 351.015, the Governor shall rotate the
appointments among representatives from various public
universities to ensure equal representation among the public
universities.
  '  { +  SECTION 41. + } ORS 351.047 is amended to read:
  ' 351.047. The   { - State Board of - }  Higher Education
 { + Coordinating Commission + } 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 not located in a geographic area that will
cause undue hardship to Oregon's other public universities;
and + }
  '  { - (c) - }  { +  (d) + } Are allocated among the public
universities   { - in the Oregon University System - }  to
maximize the achievement of statewide needs and requirements.
  '  { +  SECTION 42. + } 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 - }  { +  Higher Education Coordinating
Commission + } 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 - }
 { + commission + } to the   { - Oregon Department of
Administrative Services - }  { +  Governor + }.
   { +  ' (2) On or before May 1 of each even-numbered year:
  ' (a) Each university with a governing board shall submit to
the Higher Education Coordinating Commission a funding request
for the biennium beginning on July 1 of the following year; and
  ' (b) The State Board of Higher Education shall submit to the
commission, on behalf of all the universities in the Oregon
University System, a funding request for the biennium beginning
on July 1 of the following year. + }
  '  { - (2) - }  { +  (3) + } On or before September 1 of each
even-numbered year, the   { - State Board of Higher Education - }
 { +  Higher Education Coordinating Commission + } shall submit
 { - the - }   { + a + } funding request and performance compact
to the   { - Oregon Department of Administrative Services for the
Oregon University System - }  { +  Governor on behalf of all the
public universities listed in ORS 352.002 + }.
  '  { - (3) - }  { +  (4) + } The Governor's biennial budget
submitted to the Legislative Assembly may include the  { + Higher
Education Coordinating Commission's + }   { - State Board of
Higher Education's - }  funding request
  { - submitted to the Oregon Department of Administrative
Services for the Oregon University System - }  { +  for public
universities listed in ORS 352.002 + }. Any funding request
approved by the Legislative Assembly must specify that the moneys
be appropriated to the
  { - Oregon Department of Administrative Services - }  { +
commission  + }for allocation to the   { - Oregon University
System - }  { +  public universities listed in ORS 352.002 + }.
  '  { - (4) - }  { +  (5) + } The  { + commission's + } funding
request must include, in addition to the performance compact, a
report on performance from the previous biennium's performance
compact.
  '  { - (5) - }  { +  (6) + } The   { - State Board of Higher
Education - }   { + Higher Education Coordinating Commission + }
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 - }  { +
Governor + }. The framework must address, among other issues, the
issue of tuition affordability for students.
  '  { +  SECTION 43. + } ORS 351.054 is amended to read:
  ' 351.054. The   { - State Board of Higher Education - }
 { + Higher Education Coordinating Commission + } 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 - }  { + , deferred maintenance,  + }special
initiatives and investments; and
  ' (2) Allocate moneys, from funds appropriated to the
 { - board - }  { +  commission + } and other available moneys,
among the office of the Chancellor of the Oregon University
System  { - , - }  { +  and + } public universities listed in ORS
352.002   { - and offices, departments and activities under the
control of the board - } .
  '  { +  SECTION 44. + } 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 - }  { +
standards + }, 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 - }  { +  351.011 + }.
  '  { +  SECTION 45. + } 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 - }  { +  351.011 + }. 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  { + standard + } 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 - }
 { +  351.011 + } 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.
  '  { +  (4) In setting enrollment fees under subsection (1) of
this section for undergraduate students who are enrolled in a
degree program at a public university listed in ORS 351.011 and
are qualified to pay resident tuition:
  ' (a) The State Board of Higher Education may not increase the
total amount of enrollment fees by more than five percent
annually unless the board first receives approval from:
  ' (A) The Higher Education Coordinating Commission; or
  ' (B) The Legislative Assembly.
  ' (b) The State Board of Higher Education shall attempt to
limit annual increases in enrollment fees for undergraduate
students who are enrolled in a degree program at a public
university listed in ORS 351.011 and have established residency
in Oregon to a percentage that is not greater than the percentage
increase in the Higher Education Price Index, as compiled by the
Commonfund Institute. + }
  '  { +  SECTION 46. + } ORS 351.065 is amended to read:
  ' 351.065. (1) The State Board of Higher Education may, for
each public university or office, department or activity under
its control,  { + and a governing board as defined in section 2
of this 2013 Act may, for the public university under its
control, + } adopt
  { - rules - }  { +  standards + } 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 - }  { +  Standards + } adopted under
subsection (1) of this section shall require that personnel
records be subjected to restrictions on access unless upon a
finding by the president of the public university that the public
interest in maintaining individual rights to privacy in an
adequate educational environment would not suffer by disclosure
of such records. Access to such records may be limited to
designated classes of information or persons, or to stated times
and conditions, or to both, but cannot be limited for records
more than 25 years old.
  ' (3)   { - No - }  { +  A standard + }   { - rule - }  or
order promulgated pursuant to this section   { - shall - }  { +
may not + } deny to a faculty member full access to the member's
personnel file or records kept by the board or
  { - its public universities or offices, departments or
activities - }  { +  the public university + }, except as
provided in subsections (7) and (8) of this section.
  ' (4) The number of files relating to the evaluation of a
faculty member   { - shall be - }  { +  is + } limited to three,
to be kept in designated, available locations.
  ' (5) Any evaluation received by telephone   { - shall - }
 { +  must + } be documented in each of the faculty member's
files by means of a written summary of the conversation with the
names of the conversants identified.
  ' (6) A faculty member   { - shall be - }  { +  is + } entitled
to submit, for placement in the three files, evidence rebutting,
correcting, amplifying or explaining any document contained
therein and other material that the member believes might be of
assistance in the evaluation process.
  ' (7) Letters and other information submitted in confidence to
the board or its public universities, offices, departments or
activities prior to July 1, 1975, shall be maintained in the
files designated. However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected.  The full text shall be made available except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the three prescribed by subsection (4)
of this section.
  ' (8) { + (a) + } Confidential letters and other information
submitted to or solicited after July 1, 1975, by the board or its
public universities, offices, departments or activities prior to
the employment of a prospective faculty member are exempt from
the provisions of this section. However, if the member is
employed by the board or its public universities, offices,
departments or activities, the confidential preemployment
materials shall be placed in the three authorized files. If a
faculty member requests access to the member's files, the
anonymity of the contributor of confidential preemployment
letters and other preemployment information shall be protected.
The full text shall be made available, except that portions of
the text that would serve to identify the contributor shall be
excised and retained in a file other than the three designated in
subsection (4) of this section.
  '  { +  (b) Confidential letters and other information
submitted to or solicited by a public university with a governing
board listed in section 3 of this 2013 Act after July 1, 2014,
and 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 university, the confidential
preemployment materials shall be placed in the three authorized
files. If a faculty member requests access to the member's files,
the anonymity of the contributor of confidential preemployment
letters and other preemployment information shall be protected.
The full text shall be made available, except that portions of
the text that would serve to identify the contributor shall be
excised and retained in a file other than the three designated in
subsection (4) of this section. + }
  ' (9) Classroom survey evaluation by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated in subsection (4) of this section. All
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  ' (10)  { + A public university with a governing board listed
in section 3 of this 2013 Act and,  + }after July 1, 1975, the
 { - board - }  { +  State Board of Higher Education + } 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 - }   { + A standard + } or order
promulgated pursuant to this section   { - limits - }  { +  does
not limit + } the authority of   { - the public universities,
offices, departments or activities under the control of the
board - }   { + a public university + } 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 - }
 { +  standards + } 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 47. + } ORS 351.067 is amended to read:
  ' 351.067. (1)  { + The State Board of Higher Education, + } in
carrying out its authority under ORS 351.070,   { - the State
Board of Higher Education - }  { +  and the governing board of a
public university with a governing board listed in section 3 of
this 2013 Act + } 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 - }  { +  public university + };
  ' (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
Oregon University System { +  or public university + } and the
private entity; and
  ' (e) Performing public duties paid by private organizations,
including institution corporate affiliates, that augments an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies and

 { - rules - }  { +  standards + } established by   { - the - }
 { +  each + } board.
  ' (2)   { - The - }  { +  Each + } board may not authorize
compensation, as described in subsection (1) of this section,
that, in the board's judgment, does not comport with the mission
of   { - a - }  { +  the + } public university   { - listed in
ORS 352.002 and the Oregon University System - }  or
substantially interferes with an officer's or employee's duties
to the   { - Oregon University System - }  { +  university + }.
  ' (3) Any compensation described and authorized under
subsection (1) of this section is considered official
compensation or reimbursement of expenses for purposes of ORS
244.040 and is not considered an honorarium prohibited by ORS
244.042. If authorization or receipt of the compensation creates
a potential conflict of interest, the officer or employee shall
report the potential conflict in writing in accordance with
 { + board standards + }
  { - rules of the board - } . The disclosure is a public record
subject to public inspection.
  ' (4)   { - The - }  { +  Each + } board shall adopt   { - by
rule - }  standards governing employee outside employment and
activities, including potential conflict of interest, as defined
by board   { - rule - }  { +  standard + } 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 48. + } ORS 351.070 is amended to read:
  ' 351.070. (1) The State Board of Higher Education shall  { - ,
by rule, - }  { +  develop standards to + } 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. 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 - }  { +  351.011 + }:
  ' (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 found by the board, upon its
own motion or upon recommendation of the recognized student
government, to be advantageous to the cultural or physical
development of students. Fees realized in excess of amounts
allocated and exceeding required reserves shall be considered
surplus incidental fees and shall be allocated for programs under
the control of the board and found to be advantageous to the
cultural or physical development of students by the president
upon the recommendation of the recognized student government.
  ' (d) Upon recommendation of the recognized student government,
collect optional fees for student activities 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, the board, for each public
university, office, department or activity under its control:
  ' (a) Shall supervise the general course of instruction
therein, and the research, extension, educational and other
activities thereof.
  ' (b) Shall   { - adopt rules - }   { + develop and adopt
standards  + }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 - }  { +  standards + } 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 - }  { +  351.011 + }, 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 - }  { +  351.011 + }, 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 - }  { +  under the board's control + }, 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 49. + } 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. 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 - }  { +  351.011 + } 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, 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.
  ' (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, 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 { +  (2)(b) + }.
  ' (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.
  ' (12) Have the custody of all books, papers, documents and
other property belonging to the board.
  ' (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, 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 50. + } ORS 297.250 is amended to read:
  ' 297.250. (1) An agency of the executive department that
completes a risk assessment or internal audit under ORS 184.360,
or that prepares an independent audit under ORS 353.160 { +  or
section 14 of this 2013 Act + }, shall file the completed risk
assessment or internal audit with the Division of Audits of the
Office of the Secretary of State.
  ' (2) Nothing in this section affects the constitutional duties
and authority of the Secretary of State to audit public accounts.
  '  { +  SECTION 51. + } 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 { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + }, in consultation with
the Oregon Health Authority and the Alcohol and Drug Policy
Commission, shall adopt
  { - by rule - }  { +  standards that + }, as a minimum,
 { - descriptions of - }  { +  describe + } the content of what
shall be included in the policy and plan described in ORS
352.008.
  '  { +  SECTION 52. + } 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 - }  { +  351.011 + } 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 53. + } 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 { +  and the governing board of a public
university listed in section 3 of this 2013 Act + } may, in the
management of all forestlands under   { - its - }  { +  each
board's + } 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 - }  { +  each + } 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 54. + } ORS 174.117 is amended to read:
  ' 174.117. (1) Subject to ORS 174.108, as used in the statutes
of this state 'special government body' means any of the
following:
  ' (a) A public corporation created under a statute of this
state and specifically designated as a public corporation.
  ' (b) A school district.
  ' (c) A public charter school established under ORS chapter
338.
  ' (d) An education service district.
  ' (e) A community college district or community college service
district established under ORS chapter 341.
  ' (f) An intergovernmental body formed by two or more public
bodies.

  ' (g) Any entity that is created by statute, ordinance or
resolution that is not part of state government or local
government.
  ' (h) Any entity that is not otherwise described in this
section that is:
  ' (A) Not part of state government or local government;
  ' (B) Created pursuant to authority granted by a statute,
ordinance or resolution, but not directly created by that
statute, ordinance or resolution; and
  ' (C) Identified as a governmental entity by the statute,
ordinance or resolution authorizing the creation of the entity,
without regard to the specific terms used by the statute,
ordinance or resolution.
  '  { +  (i) A university with a governing board listed in
section 3 of this 2013 Act. + }
  ' (2) Subject to ORS 174.108, as used in the statutes of this
state 'special government body' includes:
  ' (a) An entity created by statute for the purpose of giving
advice only to a special government body;
  ' (b) An entity created by a special government body for the
purpose of giving advice to the special government body, if the
document creating the entity indicates that the entity is a
public body; and
  ' (c) Any entity created by a special government body described
in subsection (1) of this section, other than an entity described
in paragraph (b) of this subsection, unless the document creating
the entity indicates that the entity is not a governmental entity
or the entity is not subject to any substantial control by the
special government body.
  '  { +  SECTION 55. + } 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 - }  { +  Higher Education
Coordinating Commission + } 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 56. + } ORS 352.245 is amended to read:
  ' 352.245. (1) There is established an Oregon Climate Service
to be located at Oregon State University. The service shall
acquire, maintain, disseminate and interpret climate data and
information for the state.
  ' (2) The service shall:
  ' (a) Assess the needs for weather and climate information in
Oregon and establish priorities among the needs.
  ' (b) Perform a service to citizens of Oregon by managing
climate data for the state, and by disseminating such data and
information to users.
  ' (c) Assist in the coordination of existing activities within
the state and among neighboring states.
  ' (d) Advise regional, state and local government on climate
related issues.
  ' (e) Assist students and faculty   { - in the Oregon
University System - }   { + at the public universities listed in
ORS 352.002 + } by furnishing data and information needed in
education and research programs.
  ' (f) Study and analyze the relationships between climatic
phenomena and activities in areas such as agriculture, water
resources, energy production and use, air quality, building
design and construction, transportation and communication, and
business and commerce.

  ' (g) Identify emerging climatic issues and anticipate public
demand for information.
  ' (h) Inform state, federal and private groups and the public
on the availability and sources of climate-related services,
information and data.
  '  { +  SECTION 57. + } 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 - }  { +  351.011 + } 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 58. + } ORS 351.300 is amended to read:
  ' 351.300. The Legislative Assembly finds that in order to
avoid unnecessary disruption at public universities listed in ORS
352.002 and in order to provide assurance that the public
universities share in the benefits of any major reform in the
Oregon tax system, it is necessary to stabilize funding for the
  { - Oregon University System - }   { + universities + } over a
longer period than is customary with biennial budgeting.
  '  { +  SECTION 59. + } 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 - }  { +  351.011 + } and offices, departments and
activities under the control of the board, including the
authorization of individuals to sign vouchers for the
disbursement of funds for the various 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, 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 60. + } 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 - }  { +  351.011 + } and offices, departments and
activities under the control of the State Board of Higher
Education may be used for the payment of salaries of instructors
and employees, current expenses, construction of additional
buildings, purchase of lands, purchase of equipment, purchase of
library books and periodicals, purchase of laboratory supplies
and apparatus and making necessary repairs and, in general, for
the payment of all such expenses connected with the management of
the public universities and offices, departments and activities,
as the board 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 61. + } ORS 351.509 is amended to read:
  ' 351.509. (1) There is established in the General Fund an
account to be known as the Portland State University Center for
Nanoscience and Nanotechnology Account. Funds in the account
shall be used for the acquisition and expansion of microscopy and
materials characterization facilities at Portland State
University related to a signature research center.

  ' (2) The account shall consist of proceeds from lottery bonds
made available to   { - the Oregon University System - }  { +
Portland State University + } for the purpose of the Portland
State University center for nanoscience and nanotechnology
project described in subsection (1) of this section. Interest
earned on moneys in the account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } for the center for nanoscience and nanotechnology
project described in subsection (1) of this section. The account
may not be credited with more than $500,000 in interest and
proceeds from lottery bonds.
  '  { +  SECTION 62. + } ORS 351.511 is amended to read:
  ' 351.511. (1) There is established in the General Fund an
account to be known as the Portland State University Northwest
Engineering Science Center Phase I Account. Funds in the account
shall be used for acquisition or construction of an engineering
science center at Portland State University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to   { - the Oregon
University System - }  { +  Portland State University + } for the
purpose of the Portland State University Northwest Engineering
Science Center Phase I project described in subsection (1) of
this section. Interest earned on moneys in the account shall be
credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } for the purposes described in subsection (1) of
this section. The account may not be credited with more than
$26,500,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 63. + } ORS 351.517 is amended to read:
  ' 351.517. (1) There is established in the General Fund an
account to be known as the University of Oregon Education
Building and Complex Account. Funds in the account shall be used
for the acquisition, construction, remodeling, expansion and
renovation of facilities for an education building and complex at
the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the
  { - Oregon University System - }   { + University of Oregon + }
for the purpose of the education building and complex project
described in subsection (1) of this section. Interest earned on
moneys in the account shall be credited to the account. The
account may not be credited with more than $19,400,000 in
interest, donations and federal and local government funds for
purposes of this subsection.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }   { + University of
Oregon + } and may be transferred to the account designated by
ORS 351.626 for the education building and complex project
described in subsection (1) of this section.
  '  { +  SECTION 64. + } ORS 351.518 is amended to read:
  ' 351.518. (1) There is established in the General Fund an
account to be known as the University of Oregon Gilbert Hall
Account. Funds in the account shall be used for the acquisition,
construction, remodeling, expansion and renovation of facilities
for Gilbert Hall at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the
  { - Oregon University System - }   { + University of Oregon + }
for the purpose of the Gilbert Hall project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account. The account may not be
credited with more than $3,300,000 in interest, donations and

federal and local government funds for purposes of this
subsection.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }   { + University of
Oregon + } and may be transferred to the account designated by
ORS 351.626 for the Gilbert Hall project described in subsection
(1) of this section.
  '  { +  SECTION 65. + } ORS 351.519 is amended to read:
  ' 351.519. (1) There is established in the General Fund an
account to be known as the University of Oregon Integrative
Science Complex Account. Funds in the account shall be used for
the acquisition, construction, remodeling, expansion and
renovation of facilities for an integrative science complex at
the University of Oregon that includes a multiscale materials and
devices laboratory and other facilities related to a signature
research center.
  ' (2) The account shall consist of proceeds from lottery bonds
made available to the   { - Oregon University System - }
 { + University of Oregon + } for the purpose of the University
of Oregon integrative science complex project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }  { +  University of
Oregon + } for the integrative science complex project described
in subsection (1) of this section. The account may not be
credited with more than $4,750,000 in interest and proceeds from
lottery bonds.
  '  { +  SECTION 66. + } ORS 351.521 is amended to read:
  ' 351.521. (1) There is established in the General Fund an
account to be known as the University of Oregon School of Music
Account. Funds in the account shall be used for additions and
alterations to the School of Music at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the
  { - Oregon University System - }   { + University of Oregon + }
for the purpose of the University of Oregon School of Music
project described in subsection (1) of this section. Interest
earned on moneys in the account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }  { +  University of
Oregon + } for that purpose. The account may not be credited with
more than $7,600,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 67. + } ORS 351.538 is amended to read:
  ' 351.538. (1) There is established in the General Fund an
account to be known as the Museum of Art Project Account. Funds
in the account shall be used for additions to and alterations of
the Museum of Art at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the
  { - Oregon University System - }  { +  University of Oregon + }
for the purposes of the Museum of Art project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }   { + University of
Oregon + } for that purpose. The account may not be credited with
more than $6,360,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 68. + } ORS 351.539 is amended to read:
  ' 351.539. (1) There is established in the General Fund an
account to be known as the Straub Hall Project Account. Funds in
the account shall be used for the additions to and alterations of
Straub Hall at the University of Oregon.

  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the
  { - Oregon University System - }  { +  University of Oregon + }
for the purposes of the Straub Hall project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }  { +  University of
Oregon + } for that purpose. The account may not be credited with
more than $1,166,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 69. + } 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 - }  { +  351.011 + } based on each
university's average cash balance in the account.
  '  { +  SECTION 70. + } ORS 351.626 is amended to read:
  ' 351.626. An account in the Oregon University System Fund
established by ORS 351.506 is designated for the construction,
remodeling, expansion and renovation of facilities within the
Oregon University System { +  or any public university with a
governing board listed in section 3 of this 2013 Act + }. Income
and interest from moneys in the account are credited to the
account.
  '  { +  SECTION 71. + } ORS 351.628 is amended to read:
  ' 351.628. (1) There is established in the General Fund an
account to be known as the Higher Education Academic
Modernization Account. Funds in the account shall be used at
public universities listed in ORS   { - 352.002 - }  { +
351.011 + } for academic modernization, capital repair, deferred
maintenance and making facilities compliant with building and
safety codes.
  ' (2) The account shall consist of funds donated to the Oregon
University System for the purposes described in subsection (1) of
this section. The account may also consist of other funds
available to the Oregon University System for the purposes
described in subsection (1) of this section. The Oregon
University System may not deposit any moneys into the account
that were appropriated to the Department of Higher Education
under chapter 725, Oregon Laws 2003. Interest earned on moneys in
the account shall be credited to the account.
  ' (3) Moneys in the account are continuously appropriated to
the Oregon University System for the purposes described in
subsection (1) of this section. The account may not be credited
with more than $1,000,000 in interest, donations and other funds.
  '  { +  SECTION 72. + } 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 - }  { +  351.011 + }.
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 73. + } 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  { + and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act  + }may contract with the
Armed Forces of the United States to furnish educational service
 { - in the public universities - }  to active members of the
Armed Forces of the United States.
  ' (4) The State Board of Higher Education  { + and the
governing board  + }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 74. + } 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 { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } shall adopt
 { - rules - }  { +  standards + } 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 75. + } 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 { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } shall adopt
 { - rules - }  { +  standards + } for the administration of this
section, including   { - rules that determine - }  { +  standards
setting + } the amount of credit and the method by which the
credit is prorated.
  '  { +  SECTION 76. + } 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 { +  or the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + }   { - by rule - } .
  '  { +  SECTION 77. + } 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 - }  { +  shall + } 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 - }  { +
standards + } for implementation of this section, including
 { - rules - }  { +  standards + } relating to registration,
admission and fees.
  '  { +  SECTION 78. + } ORS 351.692 is amended to read:
  ' 351.692.  { + (1) + } 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) - }  { +  (a) + } 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) - }  { +  (b) + } 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) - }  { +  (c) + } 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.
  '  { +  (2) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act shall adopt
a policy that prescribes the requirements for a venture grant
program and the requirements that a grant applicant must meet in
order to receive grant moneys from the university venture
development fund operated by the university, including
requirements:
  ' (a) 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;
  ' (b) That the university report amounts of tax credit
certificates issued by the university and cease issuing
certificates until the total amount owed to the General Fund by
the university at any one time under ORS 351.697 (6) does not
exceed $2.4 million; and
  ' (c) That the university 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. + }
  '  { +  SECTION 79. + } ORS 351.695 is amended to read:
  ' 351.695. (1) A university within the Oregon University System
may deposit moneys received for its university venture
development fund in the Higher Education Donation Fund
established under ORS 351.130.
  ' (2) Notwithstanding ORS 351.697 (5), the State Treasurer, as
payment for expenses, may deduct a fee pursuant to ORS 293.718
from a university venture development fund administered by a
university   { - within the Oregon University System - }  { +
listed in ORS 352.002 + } or the Oregon Health and Science
University.
  ' (3) A university   { - within the Oregon University
System - }  { +  listed in ORS 352.002  + }or the Oregon Health
and Science University may direct that moneys credited to its
university venture development fund be held and invested by the
university's affiliated foundation. Any moneys held by an
affiliated foundation under this section or ORS 351.697 are not
subject to the provisions of ORS chapter 293 or 295 and may not
be considered public or state funds for any purpose. Moneys
transferred to an affiliated foundation under this section or ORS
351.697 may be used only as provided under ORS 351.692, 351.695,
351.697 and 353.445.
  ' (4) At the request of a university within the Oregon
University System, moneys in the Higher Education Donation Fund
that were deposited by the university under this section may be
transferred to the university's affiliated foundation.
  ' (5) A university   { - within the Oregon University
System - }  { +  listed in ORS 352.002 + } or the Oregon Health
and Science University may retain or may elect to have its
affiliated foundation retain some or all of the principal
contributed to a university venture development fund for
investment to perpetuate and increase the moneys available for
expenditure. The balance of the fund and the earnings on that
balance may be used as provided under ORS 351.692, 351.695,
351.697 and 353.445.
  '  { +  SECTION 80. + } ORS 351.697 is amended to read:
  ' 351.697. (1) Each university   { - in the Oregon University
System - }  { +  listed in ORS 352.002 + } 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  { + under ORS
351.692 + } by the State Board of Higher Education   { - under
ORS 351.692 - }  { + or the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + } 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 81. + } ORS 351.718 is amended to read:
  ' 351.718. (1) The members of the Higher Education Coordinating
Commission must be residents of this state who are well informed
on the principles of higher education.
  ' (2) A member of the State Board of Higher Education,
 { + the + } Oregon Health and Science University Board of
Directors { + , the governing board of a public university with a
governing board listed in section 3 of this 2013 Act + } or the
governing board of a community college district may not serve as
a member of the Higher Education Coordinating Commission.
  '  { +  SECTION 82. + } 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 { +  or the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + }, 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 all public universities
listed in ORS 352.002; + }
  '  { - (C) - }  { +  (D) + } Ongoing operations for community
colleges;
  '  { - (D) - }  { +  (E) + } Needed new facilities or programs;
and
  '  { - (E) - }  { +  (F) + } 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 { + , public universities
with governing boards listed in section 3 of this 2013 Act + }
and independent institutions of post-secondary education.
  '  { +  SECTION 83. + } 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:
  ' (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 { +  or the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + }, 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 all public universities
listed in ORS 352.002; + }
  '  { - (C) - }   { + (D) + } Ongoing operations for community
colleges;
  '  { - (D) - }   { + (E) + } Needed new facilities or programs;
and
  '  { - (E) - }   { + (F) + } 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 { + , public universities
with governing boards listed in section 3 of this 2013 Act + }
and independent institutions of post-secondary education.
  ' (f) Oversee the licensing of career schools under ORS 345.010
to 345.450.
  '  { +  SECTION 84. + } ORS 351.735, as amended by sections 1,
3 and 5, chapter 104, Oregon Laws 2012, is amended to read:
  ' 351.735. The Higher Education Coordinating Commission shall:
  ' (1) Develop state goals and associated achievement compacts
for the state post-secondary education system, including
community colleges and public universities listed in ORS 352.002,
and 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 { +  or the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + }, 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 all public universities
listed in ORS 352.002; + }
  '  { - (c) - }   { + (d) + } Ongoing operations for community
colleges;
  '  { - (d) - }   { + (e) + } Needed new facilities or programs;
and
  '  { - (e) - }   { + (f) + } 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 { + , public universities
with governing boards listed in section 3 of this 2013 Act + }
and independent institutions of post-secondary education.
  ' (14) Oversee the licensing of career schools under ORS
345.010 to 345.450.
  '  { +  SECTION 85. + } ORS 352.006 is amended to read:
  ' 352.006.   { - No - }  { +  A + } political or sectarian test
 { - shall ever - }  { +  may not + } be allowed or applied in
the appointment of faculty and other employees of   { - the
Oregon University System - }  { +  a public university listed in
ORS 352.002 + }.
  '  { +  SECTION 86. + } 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 - }  { +  351.011 + } 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 87. + } ORS 352.012 is amended to read:
  ' 352.012. For the purpose of requesting a state or nationwide
criminal records check under ORS 181.534,   { - the Oregon
University System - }  { +  a public university listed in ORS
352.002 + } may require the fingerprints of a person who:
  ' (1)(a) Is employed or applying for employment by the  { +
university or + } Oregon University System; or
  ' (b) Provides services or seeks to provide services to the
 { +  university or + } Oregon University System as a contractor
or volunteer; and
  ' (2) Is, or will be, working or providing services in a
position that is designated as a critical or security-sensitive
position. As used in this subsection, 'critical or
security-sensitive position' means a position in which the
person:
  ' (a) Has direct access to persons under 18 years of age or to
student residence facilities because the person's work duties
require the person to be present in the residence facility;
  ' (b) Is providing information technology services and has
control over, or access to, information technology systems that
would allow the person to harm the information technology systems
or the information contained in the systems;
  ' (c) Has access to information, the disclosure of which is
prohibited by state or federal laws, rules or regulations or
information that is defined as confidential under state or
federal laws, rules or regulations;
  ' (d) Has access to property where chemicals, hazardous
materials and other items controlled by state or federal laws or
regulations are located;
  ' (e) Has access to laboratories, nuclear facilities or utility
plants to which access is restricted in order to protect the
health or safety of the public;
  ' (f) Has fiscal, financial aid, payroll or purchasing
responsibilities as one of the person's primary responsibilities;
or
  ' (g) Has access to personal information about employees or
members of the public including Social Security numbers, dates of
birth, driver license numbers, medical information, personal
financial information or criminal background information.
  '  { +  SECTION 88. + } ORS 351.094 is amended to read:
  ' 351.094. (1) { + (a) + } 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  { + an + } alternative group health and
welfare insurance benefit
  { - plans - }   { + plan + } 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 - }  { +  on or after October 1, 2016, if the
benefit plan is offered through the health insurance exchange
under ORS 741.310, unless their participation is precluded by
federal law + }.
  '  { +  (b) The governing board of each university with a
governing board listed in section 3 of this 2013 Act shall
provide group insurance to employees of the university through
the Public Employees' Benefit Board or may elect to provide an
alternative group health and welfare insurance benefit plan to
employees of the university on or after October 1, 2016, if the
benefit plan is offered through the health insurance exchange
under ORS 741.310, unless their participation is precluded by
federal law. + }
  ' (2) For the purposes of ORS 243.555 to 243.575, if the State
Board of Higher Education  { + or the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + } chooses not to participate in the benefit plans
offered through the Public Employees' Benefit Board, the State
Board of Higher Education  { + or governing board + } 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) { + (a) + } 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.
  '  { +  (b) The governing board of each public university with
a governing board listed in section 3 of this 2013 Act shall
offer one or more deferred compensation plans to employees of the
university. The governing board shall 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 governing board elects to make available to the employees of
the university. + }
  '  { +  SECTION 89. + } ORS 352.043 is amended to read:
  ' 352.043. (1) There is created   { - within the Oregon
University System - }  the University of Oregon School of Law
 { - . The school shall - }  { + to + } be administered by the
University of Oregon.
  ' (2) The University of Oregon School of Law shall:
  ' (a) Prepare students for careers in the legal profession.
  ' (b) Perform the duties required of the school under ORS
36.100 to 36.238.
  ' (3) The president of the University of Oregon shall appoint
the Dean of the University of Oregon School of Law.
  '  { +  SECTION 90. + } ORS 352.046 is amended to read:
  ' 352.046. (1) Pursuant to ORS 351.870, there is created
  { - within the Oregon University System - }  the Center for
Brain, Biology and Machine  { - . The center shall - }  { +
to + } be administered by the University of Oregon.
  ' (2) The purpose of the center is to promote interdisciplinary
teaching and research in scientific areas, including but not
limited to brain structure, development and functions, genetics
and genomics, cognitive neuroscience, molecular biology,
computational science, computing, magnetic resonance imaging and
optics.
  ' (3) The   { - Oregon University System - }  { +  University
of Oregon + } may receive moneys from any public or private
source to support the Center for Brain, Biology and Machine
created under subsections (1) and (2) of this section. Gifts or
grants received to support the center shall be deposited in an
appropriate fund at the University of Oregon   { - by the Oregon
University System - } .
  '  { +  NOTE: + } Sections 91 through 94 were deleted by
amendment.  Subsequent sections were not renumbered.
  '  { +  SECTION 95. + } ORS 352.066 is amended to read:
  ' 352.066. (1) Pursuant to ORS 351.870, there is created
  { - within the Oregon University System - }  the Mark O.
Hatfield School of Government  { - . The Mark O. Hatfield School
of Government shall - }  { + , to + } be administered by Portland
State University. The president of Portland State University
shall appoint the director of the Mark O. Hatfield School of
Government.
  ' (2) The purposes of the Mark O. Hatfield School of Government
are:
  ' (a) To prepare students for careers in political service,
public administration and the administration of justice;
  ' (b) To perform the duties required of the school under ORS
36.179, 183.502 and 390.240; and
  ' (c) To assist the Criminal Justice Research and Policy
Institute in carrying out the duties under subsection (3) of this
section.
  ' (3) There is created within the Mark O. Hatfield School of
Government the Criminal Justice Research and Policy Institute.
The institute may assist the Legislative Assembly and state and
local governments in developing policies to reduce crime and
delinquency by:
  ' (a) Providing the Legislative Assembly with objective,
nonpartisan analyses of existing or proposed state criminal
justice policies, which analyses may not be inconsistent with
state or federal law or the Oregon or United States Constitution;
  ' (b) Evaluating programs, including but not limited to
programs dealing with public safety professionalism, ethics in
leadership and childhood development, funded directly or
indirectly by the State of Oregon that are intended to reduce
criminal and delinquent behavior or to improve professionalism in
public safety careers;
  ' (c) Managing reviews and evaluations relating to major
long-term issues confronting the state involving criminal and
juvenile justice, public safety professionalism, ethics in
leadership and early childhood development programs;
  ' (d) Initiating, sponsoring, conducting and publishing
research on criminal and juvenile justice, public safety
professionalism, ethics in leadership and early childhood
development that is peer reviewed and directly useful to
policymakers;
  ' (e) Organizing conferences on current state issues that bring
together policymakers, public agencies and leading academicians;
and
  ' (f) Seeking to strengthen the links among the Legislative
Assembly, state and local governments, the Oregon Criminal
Justice Commission, the Department of Public Safety Standards and
Training and the academic community in the interest of more
informed policymaking, the application of best practices and more
relevant academic research.
  ' (4) The Governor, the Chief Justice of the Supreme Court, the
President of the Senate, the Speaker of the House of
Representatives or the chairperson of a legislative committee
with responsibility over criminal or juvenile justice systems or
childhood development programs may request the assistance of the
Criminal Justice Research and Policy Institute in evaluating
criminal or juvenile justice programs developed for, but not
necessarily limited to, preventing delinquency, reducing crime
and improving professionalism in public safety careers.
  ' (5) Agencies, departments and officers of state and local
governments may assist the Criminal Justice Research and Policy
Institute in the performance of its functions and furnish
information, data and advice as requested by the institute.
  '  { +  SECTION 96. + } ORS 352.068 is amended to read:
  ' 352.068. (1) Pursuant to ORS 351.870, there is created
  { - within the Oregon University System - }  the Center for
Lakes and Reservoirs  { - . The Center for Lakes and Reservoirs
shall - }  { + , to + } be administered by Portland State
University.
  ' (2) The purpose of the Center for Lakes and Reservoirs is to
assist state and federal agencies in researching and mitigating
nonindigenous, invasive aquatic species in this state and to work
with communities in developing effective management of lakes and
reservoirs.
  '  { +  SECTION 97. + } ORS 352.071 is amended to read:
  ' 352.071. (1) Pursuant to ORS 351.870,   { - there is created
within the Oregon University System - }  the Graduate School of
Social Work  { - . The Graduate School of Social Work shall - }
 { + is created, to + } be administered by Portland State
University.
  ' (2) The purpose of the Graduate School of Social Work is to
provide a center for specialized education and research in the
social services for the betterment of communities in the Portland
metropolitan area, the state and the Pacific Northwest.
  '  { +  SECTION 98. + } ORS 352.074 is amended to read:
  ' 352.074. (1) Pursuant to ORS 351.870, there is created
  { - within the Oregon University System - }  the Institute of
Portland Metropolitan Studies  { - . The Institute of Portland
Metropolitan Studies shall - }  { + , to + } be administered by
Portland State University.
  ' (2) The purpose of the Institute of Portland Metropolitan
Studies is to build partnerships between Portland State
University's urban studies programs and the surrounding
communities of metropolitan Portland and to sponsor public
service research.
  '  { +  SECTION 99. + } 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 - }  { +  351.011 + }. 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.
  ' (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. 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 - }  { +  in accordance
with standards issued by + } 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 - }  { +  standards + }
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 - }  { +  standards + } 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 100. + } ORS 21.007, as amended by section 8,
chapter 48, Oregon Laws 2012, is amended to read:
  ' 21.007. It is the intent of the Legislative Assembly that
funding be provided to the following entities by appropriations
each biennium to fund programs, services and activities that were
funded through court fees before the 2011-2013 biennium:
  ' (1) To the counties of this state for the purposes of funding
mediation services, conciliation services and other services in
domestic relations cases.
  ' (2) To the counties of this state for the purposes of funding
the operation of law libraries or of providing law library
services.
  ' (3) To   { - the Oregon University System - }  { +  Portland
State University and the University of Oregon + } to fund the
programs and expenses of the Mark O. Hatfield School of
Government and the University of Oregon School of Law under ORS
36.100 to 36.238 and 183.502.

  ' (4) To the Housing and Community Services Department for the
purpose of funding programs that defray the cost of rent for
dwelling units for very low income households.
  ' (5) To the Oregon University System to fund clinical legal
education programs at accredited institutions of higher education
that provide civil legal services to victims of domestic
violence, stalking or sexual assault.
  ' (6) To the State Department of Agriculture for the purpose of
funding mediation programs established by the department, other
than individual farm credit mediations.
  ' (7) To the Judicial Department for the purposes of funding
the appellate settlement program established under ORS 2.560.
  ' (8) To the Department of Human Services for the funding of
the Office of Children's Advocate.
  '  { +  SECTION 101. + } ORS 30.264 is amended to read:
  ' 30.264. (1) { + (a) + } The State Board of Higher Education
may authorize public universities listed in ORS   { - 352.002 - }
 { +  351.011 + } to provide liability insurance coverage for
students involved in off-campus experiential activities,
including, but not limited to, student teaching, internships,
clinical experiences, capstone projects and related activities.
  '  { +  (b) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act may
authorize the university to provide liability insurance coverage
for students involved in off-campus experiential activities,
including, but not limited to, student teaching, internships,
clinical experiences, capstone projects and related
activities. + }
  ' (2) If commercial liability insurance coverage is not
available to the public universities, students participating in
the activities described in subsection (1) of this section shall
be considered to be acting within the course and scope of state
employment duties for purposes of ORS 30.260 to 30.300.
  '  { +  SECTION 102. + } 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 - }
 { +  standards issued by + } the State Board of
Education { + , + }   { - or - }  the State Board of Higher
Education { +  or the governing board of a public university with
a governing board listed in section 3 of this 2013 Act + } 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 103. + } ORS 36.145 is amended to read:
  ' 36.145. The Dispute Resolution Account is established in the
State Treasury, separate and distinct from the General Fund.  All
moneys received under ORS 36.150 shall be deposited to the credit
of the account. Notwithstanding the provisions of ORS 291.238,
all moneys in the account are continuously appropriated to the
 { - Oregon University System - }  { +  University of Oregon or
Portland State University + } for the purposes for which the
moneys were made available and shall be expended in accordance
with the terms and conditions upon which the moneys were made
available.
  '  { +  SECTION 104. + } ORS 36.150 is amended to read:
  ' 36.150.   { - The Oregon University System - }  { +  Portland
State University + }, on behalf of the Mark O. Hatfield School of
Government and the  { + University of Oregon, on behalf of
the + } University of Oregon School of Law, may accept and expend
moneys from any public or private source, including the federal
government, made available for the purpose of encouraging,
promoting or establishing dispute resolution programs in Oregon
or to facilitate and assist the schools in carrying out the
responsibilities of the schools under ORS 36.100 to 36.238 and
183.502. All moneys received by the   { - Oregon University
System - }  { +  University of Oregon and Portland State
University + } under this section shall be deposited in the
Dispute Resolution Account.
  '  { +  SECTION 105. + } 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 - }  { +  allocated + } to
the   { - Oregon University System - }  { +  University of
Oregon + } on behalf of the University of Oregon School of Law
for distribution under this section. The   { - State Board of
Higher Education - }  { +  Board of Trustees of the University of
Oregon + } may adopt   { - rules - }  { +  standards + } for the
operation of the grant program.
  '  { +  SECTION 106. + } ORS 184.631 is amended to read:
  ' 184.631. (1) The Department of Transportation shall establish
a public-private partnership research and development program.
  ' (2) As part of the program established under this section,
the department may enter into joint research and development
agreements for the purpose of developing products for market that
may reduce the cost of maintenance and preservation or extend the
useful life of the state's highways or that may improve highway
safety. The department may enter into agreements with the
following:
  ' (a) Individuals.
  ' (b) Businesses.
  ' (c) Nonprofit organizations.
  ' (d) The State Board of Higher Education.
  '  { +  (e) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act. + }
  ' (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 107. + } ORS 192.501 is amended to read:
  ' 192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  ' (1) Records of a public body pertaining to litigation to
which the public body is a party if the complaint has been filed,
or if the complaint has not been filed, if the public body shows
that such litigation is reasonably likely to occur. This
exemption does not apply to litigation which has been concluded,
and nothing in this subsection shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
  ' (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it.
  ' (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  ' (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  ' (b) The offense with which the arrested person is charged;
  ' (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  ' (d) The identity of and biographical information concerning
both complaining party and victim;
  ' (e) The identity of the investigating and arresting agency
and the length of the investigation;
  ' (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  ' (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  ' (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  ' (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  ' (6) Information relating to the appraisal of real estate
prior to its acquisition.
  ' (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  ' (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  ' (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.
  ' (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  ' (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  ' (12) A personnel discipline action, or materials or documents
supporting that action.
  ' (13) Information developed pursuant to ORS 496.004, 496.172
and 498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  ' (14) Writings prepared by or under the direction of faculty
of public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  ' (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection,
'computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  ' (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  ' (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  ' (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  ' (16) Data and information provided by participants to
mediation under ORS 36.256.
  ' (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  ' (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  ' (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  ' (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  ' (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  ' (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:

  ' (a) Personal and corporate financial statements and
information, including tax returns;
  ' (b) Credit reports;
  ' (c) Project appraisals;
  ' (d) Market studies and analyses;
  ' (e) Articles of incorporation, partnership agreements and
operating agreements;
  ' (f) Commitment letters;
  ' (g) Project pro forma statements;
  ' (h) Project cost certifications and cost data;
  ' (i) Audits;
  ' (j) Project tenant correspondence requested to be
confidential;
  ' (k) Tenant files relating to certification; and
  ' (L) Housing assistance payment requests.
  ' (22) Records or information that, if disclosed, would allow a
person to:
  ' (a) Gain unauthorized access to buildings or other property;
  ' (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  ' (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  ' (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  ' (a) An individual;
  ' (b) Buildings or other property;
  ' (c) Information processing, communication or
telecommunication systems, including the information contained in
the systems; or
  ' (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  ' (24) Personal information held by or under the direction of
officials of the Oregon Health and Science University { + , a
public university listed in ORS 352.002 + } or the Oregon
University System about a person who has or who is interested in
donating money or property to the  { + Oregon Health and
Science + } University, the system or a public university
 { - listed in ORS 352.002 - } , if the information is related to
the family of the person, personal assets of the person or is
incidental information not related to the donation.
  ' (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System { +  or a public
university listed in ORS 352.002 + }.
  ' (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  ' (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  ' (28) Social Security numbers as provided in ORS 107.840.
  ' (29) The electronic mail address of a student who attends a
public university listed in ORS 352.002 or Oregon Health and
Science University.
  ' (30) The name, home address, professional address or location
of a person that is engaged in, or that provides goods or
services for, medical research at Oregon Health and Science
University that is conducted using animals other than rodents.
This subsection does not apply to Oregon Health and Science
University press releases, websites or other publications
circulated to the general public.
  ' (31) If requested by a public safety officer, as defined in
ORS 181.610:
  ' (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  ' (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.
  ' (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  ' (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  ' (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  ' (C) Applies until the public safety officer requests
termination of the exemption;
  ' (D) Does not apply to disclosure of records among public
bodies as defined in ORS 174.109 for governmental purposes; and
  ' (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  ' (32) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, or title company
for business purposes, records described in paragraph (a) of this
subsection, if the exemption from disclosure of the records is
sought by an individual described in paragraph (b) of this
subsection using the procedure described in paragraph (c) of this
subsection:
  ' (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  ' (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  ' (B) Any public record of a public body other than the county
clerk.
  ' (b) The individual claiming the exemption from disclosure
must be a district attorney, a deputy district attorney, the
Attorney General or an assistant attorney general, the United
States Attorney for the District of Oregon or an assistant United
States attorney for the District of Oregon, a city attorney who
engages in the prosecution of criminal matters or a deputy city
attorney who engages in the prosecution of criminal matters.
  ' (c) The individual claiming the exemption from disclosure
must do so by filing the claim in writing with the public body
for which the exemption from disclosure is being claimed on a
form prescribed by the public body. Unless the claim is filed
with the county clerk, the claim form shall list the public
records in the possession of the public body to which the
exemption applies. The exemption applies until the individual
claiming the exemption requests termination of the exemption or
ceases to qualify for the exemption.
  ' (33) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.

  ' (34) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  ' (a) Apply to the formulas for determining dividends to be
paid to employers insured by the State Accident Insurance Fund
Corporation;
  ' (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  ' (c) Apply to group insurance contracts or to documents
relating to the formation of such contracts, except that employer
account records shall remain exempt from disclosure as provided
in ORS 192.502 (35); or
  ' (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  ' (35) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  ' (36) A medical examiner's report, autopsy report or
laboratory test report ordered by a medical examiner under ORS
146.117.
  ' (37) Any document or other information related to an audit of
a public body, as defined in ORS 174.109, that is in the custody
of an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
  '  { +  SECTION 108. + } ORS 192.501, as amended by section 3,
chapter 455, Oregon Laws 2005, section 7, chapter 608, Oregon
Laws 2007, section 2, chapter 687, Oregon Laws 2007, section 2,
chapter 48, Oregon Laws 2008, section 3, chapter 57, Oregon Laws
2009, section 2, chapter 135, Oregon Laws 2009, section 4,
chapter 222, Oregon Laws 2009, section 2, chapter 769, Oregon
Laws 2009, section 15, chapter 9, Oregon Laws 2011, section 2,
chapter 285, Oregon Laws 2011, and section 69, chapter 637,
Oregon Laws 2011, is amended to read:
  ' 192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  ' (1) Records of a public body pertaining to litigation to
which the public body is a party if the complaint has been filed,
or if the complaint has not been filed, if the public body shows
that such litigation is reasonably likely to occur. This
exemption does not apply to litigation which has been concluded,
and nothing in this subsection shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation.
  ' (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it.
  ' (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  ' (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  ' (b) The offense with which the arrested person is charged;
  ' (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  ' (d) The identity of and biographical information concerning
both complaining party and victim;
  ' (e) The identity of the investigating and arresting agency
and the length of the investigation;
  ' (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  ' (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice.
  ' (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected.
  ' (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding.
  ' (6) Information relating to the appraisal of real estate
prior to its acquisition.
  ' (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections.
  ' (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850.
  ' (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180.
  ' (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732.
  ' (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction.
  ' (12) A personnel discipline action, or materials or documents
supporting that action.

  ' (13) Information developed pursuant to ORS 496.004, 496.172
and 498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species.
  ' (14) Writings prepared by or under the direction of faculty
of public educational institutions, in connection with research,
until publicly released, copyrighted or patented.
  ' (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection,
'computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  ' (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  ' (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
  ' (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually.
  ' (16) Data and information provided by participants to
mediation under ORS 36.256.
  ' (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation.
  ' (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared or used by a public
body, if public disclosure of the plans would endanger an
individual's life or physical safety or jeopardize a law
enforcement activity.
  ' (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.390, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  ' (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.390, with a telecommunications carrier, as
defined in ORS 133.721.
  ' (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967.
  ' (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005, or to
an urban renewal agency as defined in ORS 457.010, by applicants
for and recipients of loans, grants and tax credits:
  ' (a) Personal and corporate financial statements and
information, including tax returns;
  ' (b) Credit reports;
  ' (c) Project appraisals;
  ' (d) Market studies and analyses;
  ' (e) Articles of incorporation, partnership agreements and
operating agreements;
  ' (f) Commitment letters;
  ' (g) Project pro forma statements;
  ' (h) Project cost certifications and cost data;
  ' (i) Audits;
  ' (j) Project tenant correspondence requested to be
confidential;
  ' (k) Tenant files relating to certification; and
  ' (L) Housing assistance payment requests.
  ' (22) Records or information that, if disclosed, would allow a
person to:
  ' (a) Gain unauthorized access to buildings or other property;
  ' (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, services; or
  ' (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body.
  ' (23) Records or information that would reveal or otherwise
identify security measures, or weaknesses or potential weaknesses
in security measures, taken or recommended to be taken to
protect:
  ' (a) An individual;
  ' (b) Buildings or other property;
  ' (c) Information processing, communication or
telecommunication systems, including the information contained in
the systems; or
  ' (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6).
  ' (24) Personal information held by or under the direction of
officials of the Oregon Health and Science University { + , a
public university listed in ORS 352.002 + } or the Oregon
University System about a person who has or who is interested in
donating money or property to the  { + Oregon Health and
Science + } University, the system or a public university
 { - listed in ORS 352.002 - } , if the information is related to
the family of the person, personal assets of the person or is
incidental information not related to the donation.
  ' (25) The home address, professional address and telephone
number of a person who has or who is interested in donating money
or property to the Oregon University System { +  or a public
university listed in ORS 352.002 + }.
  ' (26) Records of the name and address of a person who files a
report with or pays an assessment to a commodity commission
established under ORS 576.051 to 576.455, the Oregon Beef Council
created under ORS 577.210 or the Oregon Wheat Commission created
under ORS 578.030.
  ' (27) Information provided to, obtained by or used by a public
body to authorize, originate, receive or authenticate a transfer
of funds, including but not limited to a credit card number,
payment card expiration date, password, financial institution
account number and financial institution routing number.
  ' (28) Social Security numbers as provided in ORS 107.840.
  ' (29) The electronic mail address of a student who attends a
public university listed in ORS 352.002 or Oregon Health and
Science University.
  ' (30) If requested by a public safety officer, as defined in
ORS 181.610:
  ' (a) The home address and home telephone number of the public
safety officer contained in the voter registration records for
the public safety officer.
  ' (b) The home address and home telephone number of the public
safety officer contained in records of the Department of Public
Safety Standards and Training.

  ' (c) The name of the public safety officer contained in county
real property assessment or taxation records. This exemption:
  ' (A) Applies only to the name of the public safety officer and
any other owner of the property in connection with a specific
property identified by the officer in a request for exemption
from disclosure;
  ' (B) Applies only to records that may be made immediately
available to the public upon request in person, by telephone or
using the Internet;
  ' (C) Applies until the public safety officer requests
termination of the exemption;
  ' (D) Does not apply to disclosure of records among public
bodies as defined in ORS 174.109 for governmental purposes; and
  ' (E) May not result in liability for the county if the name of
the public safety officer is disclosed after a request for
exemption from disclosure is made under this subsection.
  ' (31) Unless the public records request is made by a financial
institution, as defined in ORS 706.008, consumer finance company
licensed under ORS chapter 725, mortgage banker or mortgage
broker licensed under ORS 86A.095 to 86A.198, or title company
for business purposes, records described in paragraph (a) of this
subsection, if the exemption from disclosure of the records is
sought by an individual described in paragraph (b) of this
subsection using the procedure described in paragraph (c) of this
subsection:
  ' (a) The home address, home or cellular telephone number or
personal electronic mail address contained in the records of any
public body that has received the request that is set forth in:
  ' (A) A warranty deed, deed of trust, mortgage, lien, deed of
reconveyance, release, satisfaction, substitution of trustee,
easement, dog license, marriage license or military discharge
record that is in the possession of the county clerk; or
  ' (B) Any public record of a public body other than the county
clerk.
  ' (b) The individual claiming the exemption from disclosure
must be a district attorney, a deputy district attorney, the
Attorney General or an assistant attorney general, the United
States Attorney for the District of Oregon or an assistant United
States attorney for the District of Oregon, a city attorney who
engages in the prosecution of criminal matters or a deputy city
attorney who engages in the prosecution of criminal matters.
  ' (c) The individual claiming the exemption from disclosure
must do so by filing the claim in writing with the public body
for which the exemption from disclosure is being claimed on a
form prescribed by the public body. Unless the claim is filed
with the county clerk, the claim form shall list the public
records in the possession of the public body to which the
exemption applies. The exemption applies until the individual
claiming the exemption requests termination of the exemption or
ceases to qualify for the exemption.
  ' (32) Land management plans required for voluntary stewardship
agreements entered into under ORS 541.423.
  ' (33) Sensitive business records or financial or commercial
information of the State Accident Insurance Fund Corporation that
is not customarily provided to business competitors. This
exemption does not:
  ' (a) Apply to the formulas for determining dividends to be
paid to employers insured by the State Accident Insurance Fund
Corporation;
  ' (b) Apply to contracts for advertising, public relations or
lobbying services or to documents related to the formation of
such contracts;
  ' (c) Apply to group insurance contracts or to documents
relating to the formation of such contracts, except that employer
account records shall remain exempt from disclosure as provided
in ORS 192.502 (35); or
  ' (d) Provide the basis for opposing the discovery of documents
in litigation pursuant to the applicable rules of civil
procedure.
  ' (34) Records of the Department of Public Safety Standards and
Training relating to investigations conducted under ORS 181.662
or 181.878 (6), until the department issues the report described
in ORS 181.662 or 181.878.
  ' (35) A medical examiner's report, autopsy report or
laboratory test report ordered by a medical examiner under ORS
146.117.
  ' (36) Any document or other information related to an audit of
a public body, as defined in ORS 174.109, that is in the custody
of an auditor or audit organization operating under nationally
recognized government auditing standards, until the auditor or
audit organization issues a final audit report in accordance with
those standards or the audit is abandoned. This exemption does
not prohibit disclosure of a draft audit report that is provided
to the audited entity for the entity's response to the audit
findings.
  '  { +  SECTION 109. + } ORS 238.005, as amended by section 30,
chapter 54, Oregon Laws 2012, is amended to read:
  ' 238.005. For purposes of this chapter:
  ' (1) 'Active member' means a member who is presently employed
by a participating public employer in a qualifying position and
who has completed the six-month period of service required by ORS
238.015.
  ' (2) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
  ' (3) 'Board' means the Public Employees Retirement Board.
  ' (4) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
  ' (5) 'Continuous service' means service not interrupted for
more than five years, except that such continuous service shall
be computed without regard to interruptions in the case of:
  ' (a) An employee who had returned to the service of the
employer as of January 1, 1945, and who remained in that
employment until having established membership in the Public
Employees Retirement System.
  ' (b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
  ' (6) 'Creditable service' means any period of time during
which an active member is being paid a salary by a participating
public employer and for which benefits under this chapter are
funded by employer contributions and earnings on the fund. For
purposes of computing years of 'creditable service,' full months
and major fractions of a month shall be considered to be
one-twelfth of a year and shall be added to all full years.  '
Creditable service' includes all retirement credit received by a
member.
  ' (7) 'Earliest service retirement age' means the age attained
by a member when the member could first make application for
retirement under the provisions of ORS 238.280.
  ' (8) 'Employee' includes, in addition to employees, public
officers, but does not include:
  ' (a) Persons engaged as independent contractors.
  ' (b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
  ' (c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.

  ' (d) Persons employed and paid from federal funds received
under a federal program intended primarily to alleviate
unemployment. However, any such person shall be considered an '
employee' if not otherwise excluded by paragraphs (a) to (c) of
this subsection and the public employer elects to have the person
so considered by an irrevocable written notice to the board.
  ' (e) Persons who are employees of a railroad, as defined in
ORS 824.020, and who, as such employees, are included in a
retirement plan under federal railroad retirement statutes. This
paragraph shall be deemed to have been in effect since the
inception of the system.
  ' (9) 'Final average salary' means whichever of the following
is greater:
  ' (a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
  ' (b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
  ' (10) 'Firefighter' does not include a volunteer firefighter,
but does include:
  ' (a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
  ' (b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  ' (11) 'Fiscal year' means 12 calendar months commencing on
July 1 and ending on June 30 following.
  ' (12) 'Fund' means the Public Employees Retirement Fund.
  ' (13) 'Inactive member' means a member who is not employed in
a qualifying position, whose membership has not been terminated
in the manner described by ORS 238.095 and who is not retired for
service or disability.
  ' (14) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University and a community college, as defined in ORS 341.005.
  ' (15) 'Member' means a person who has established membership
in the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
  ' (16) 'Member account' means the regular account and the
variable account.
  ' (17) 'Normal retirement age' means:
  ' (a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
  ' (b) For a person who establishes membership in the system on
or after January 1, 1996, as described in ORS 238.430, 55 years
of age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
  ' (18) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  ' (19) 'Police officer' includes:
  ' (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
  ' (b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
  ' (c) Employees of the Oregon Liquor Control Commission who are
classified as liquor enforcement inspectors by the administrator
of the commission.
  ' (d) Sheriffs and those deputy sheriffs or other employees of
a sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
  ' (e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
  ' (f) Police officers who are commissioned by a university
under ORS 352.383 and who are classified as police officers by
the university.
  ' (g) Parole and probation officers employed by the Department
of Corrections, parole and probation officers who are transferred
to county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
  ' (h) Police officers appointed under ORS 276.021 or 276.023.
  ' (i) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  ' (j) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  ' (k) Employees of the Department of Public Safety Standards
and Training who are classified by the department as other than
secretarial or clerical personnel.
  ' (L) Investigators of the Criminal Justice Division of the
Department of Justice.
  ' (m) Corrections officers as defined in ORS 181.610.
  ' (n) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
  ' (o) The Director of the Department of Corrections.
  ' (p) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
  ' (q) An employee of the Department of Corrections classified
as a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
  ' (r) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
  ' (s) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
  ' (t) Employees at youth correction facilities as defined in
ORS 420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  ' (u) Employees of the Oregon Youth Authority who are
classified as juvenile parole and probation officers.
  ' (20) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
  ' (21) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
  ' (22) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
  ' (23) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  ' (24) 'Retired member' means a member who is retired for
service or disability.
  ' (25) 'Retirement credit' means a period of time that is
treated as creditable service for the purposes of this chapter.
  ' (26)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
  ' (b) 'Salary' includes but is not limited to:
  ' (A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
  ' (B) The amount of participation in a tax-sheltered or
deferred annuity, which is deemed salary paid in each month of
participation;
  ' (C) Retroactive payments described in ORS 238.008; and
  ' (D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  ' (c) 'Salary' or 'other advantages' does not include:
  ' (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
  ' (B) Payments for insurance coverage by an employer on behalf
of employee or employee and dependents, for which the employee
has no cash option;
  ' (C) Payments made on account of an employee's death;
  ' (D) Any lump sum payment for accumulated unused sick leave;
  ' (E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;

  ' (F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
  ' (G) Payments for periods of leave of absence after the date
the employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
  ' (H) Payments for instructional services rendered to public
universities   { - of the Oregon University System - }  { +
listed in ORS 352.002 + } or the Oregon Health and Science
University when such services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months to which the contract pertains; or
  ' (I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
  ' (27) 'School year' means the period beginning July 1 and
ending June 30 next following.
  ' (28) 'System' means the Public Employees Retirement System.
  ' (29) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
  ' (30) 'Vested' means being an active member of the system in
each of five calendar years.
  ' (31) 'Volunteer firefighter' means a firefighter whose
position normally requires less than 600 hours of service per
year.
  '  { +  SECTION 110. + } ORS 238.200 is amended to read:
  ' 238.200. (1)(a) An active member of the Public Employees
Retirement System shall contribute to the Public Employees
Retirement Fund and there shall be withheld from salary of the
member six percent of that salary as an employee contribution.
  ' (b) Notwithstanding paragraph (a) of this subsection, an
employee who is an active member of the system on August 21,
1981, shall contribute to the fund and there shall be withheld
from salary of the member, as long as the employee continues to
be an active member of the system, four percent of that salary if
the salary for a month is less than $500, or five percent of that
salary if the salary for a month is $500 or more and less than
$1,000. 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 - }
 { +  a public university listed in ORS 352.002 + } whose salary
is based on an annual agreement, the agreed annual salary of the
member shall be divided into 12 equal installments, and each
installment shall be considered as earned and paid in separate,
consecutive months, commencing with the first month that payment
is actually made under the terms of the salary agreement.
  ' (2) The contributions of each member as provided in
subsection (1) of this section shall be deducted by the employer
from each payroll and transmitted by the employer to the Public
Employees Retirement Board, which shall cause them to be credited
to the member account of the member. Salary shall be considered
earned in the month in which it is paid. The date inscribed on
the paycheck or warrant shall be considered as the pay date,
regardless of when the salary is actually delivered to the
member.
  ' (3) An active member who is concurrently employed by more
than one participating public employer, and who is a member of or
entitled to membership in the system, shall make contributions to
the fund on the basis of salary paid by each employer.
  ' (4) Notwithstanding subsections (1) to (3) of this section, a
member of the system, or a participating employer acting on
behalf of the member pursuant to ORS 238.205, is not permitted or
required to make employee contributions to the fund for service
performed on or after January 1, 2004. This subsection does not
affect any contribution for the purpose of unit purchases under
ORS 238.440 or amounts paid for acquisition of creditable service
under ORS 238.105 to 238.175.
  '  { +  SECTION 111. + } ORS 238.215 is amended to read:
  ' 238.215. Notwithstanding any other provision of this chapter:
  ' (1) An employee, as defined in ORS 243.910 (2), who is an
active member of the system and who has elected, and not canceled
that election, to be assisted  { + under ORS 243.920 (1) + } by
the State Board of Higher Education   { - under ORS 243.920 (1),
shall - }  { +  or governing board of a public university with a
governing board listed in section 3 of this 2013 Act, may + } not
contribute to the fund on any part of the annual salary of the
employee in excess of $4,800 at any time during which the
 { - State Board of Higher Education - }  { +  board + } assists
the employee under ORS 243.920 (1).
  ' (2) The current service pension, whether for service or
disability retirement, under this chapter provided by the
contributions of the employers of such employee shall be:
  ' (a) If the State Board of Higher Education  { + or governing
board + } is assisting such employee under ORS 243.920 (1) at the
time of retirement, a pension equal to the annuity provided by
the employee's accumulated contributions to the fund.
  ' (b) If the   { - State Board of Higher Education - }  { +
board + } is not assisting such employee under ORS 243.920 (1) at
the time of retirement, but previously so assisted the employee:
  ' (A) For service before the date the   { - State Board of
Higher Education - }  { +  board + } last ceased to assist the
employee, a pension equal to the annuity provided by the
employee's accumulated contributions to the fund before that
date.
  ' (B) For service on and after the date the   { - State Board
of Higher Education - }  { +  board + } last ceased to so assist
the employee, a pension computed as provided in ORS 238.300 (2),
but if the employee retires before reaching the normal retirement
age, actuarially reduced and computed on the then attained age.
For the purpose of computing the pension under this subparagraph,
only the number of years of membership of the employee after the
day before that date and only the salary of the employee on which
the employee contributes to the fund for those years shall be
considered.
  ' (3) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system, who elected to be assisted by the State Board of
Higher Education  { + or governing board + } under ORS 243.920
(1) before January 1, 1968, who canceled that election within the
first 60 days of the calendar year 1968 as provided in ORS
243.940 (5) and who does not thereafter elect to be assisted by
the   { - State Board of Higher Education - }  { +  board + }
under ORS 243.920 (1).
  ' (4) Subsection (2) of this section does not apply to an
employee, as defined in ORS 243.910 (2), who is an active member
of the system and has been an active member of the system
continuously since any date before January 1, 1968; who elected
to be assisted by the State Board of Higher Education { +  or
governing board + } under ORS 243.920 (1) before January 1, 1968;
and who cancels that election in any calendar year after 1968,
but before the calendar year in which the employee retires, as
provided in ORS 243.940 (5) and does not thereafter elect to be
assisted by the   { - State Board of Higher Education - }  { +
board + } under ORS 243.920 (1).  In this case the benefit,
whether for service or disability retirement, shall be computed
as under ORS 238.300; however, for service during periods in
which the employee was assisted by the
  { - State Board of Higher Education - }  { +  board + } under
ORS 243.920 (1), a year of membership as used in ORS 238.300 (2)
shall be a portion of a year which is represented by a fraction
the numerator of which is $4,800 and the denominator of which is
the salary earned by the employee in that year. However, in no
case shall the fraction be greater than one.
  '  { +  SECTION 112. + } ORS 238A.005, as amended by section 1,
chapter 31, Oregon Laws 2012, is amended to read:
  ' 238A.005. For the purposes of this chapter:
  ' (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
  ' (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
  ' (3) 'Board' means the Public Employees Retirement Board.
  ' (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
  ' (a) Persons engaged as independent contractors;
  ' (b) Aliens working under a training or educational visa;
  ' (c) Persons, other than workers in the Industries for the
Blind Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
  ' (d) Persons categorized by a participating public employer as
student employees;
  ' (e) Any person who is an inmate of a state institution;
  ' (f) Employees of foreign trade offices of the Oregon Business
Development Department who live and perform services in foreign
countries under the provisions of ORS 285A.075 (1)(g);
  ' (g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
  ' (h) Employees of   { - the Oregon University System - }  { +
a public university listed in ORS 352.002 + } who are actively
participating in an optional retirement plan offered under ORS
243.800;
  ' (i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
  ' (j) Any person who belongs to a class of employees who are
not eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
  ' (k) Any person who is retired under ORS 238A.100 to 238A.245
or ORS chapter 238 and who continues to receive retirement
benefits while employed; and
  ' (L) Judges.
  ' (5) 'Firefighter' means:
  ' (a) A person employed by a local government, as defined in
ORS 174.116, whose primary job duties include the fighting of
fires;
  ' (b) The State Fire Marshal, the chief deputy state fire
marshal and deputy state fire marshals; and
  ' (c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  ' (6) 'Fund' means the Public Employees Retirement Fund.
  ' (7)(a) 'Hour of service' means:
  ' (A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
  ' (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
  ' (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
  ' (8) 'Inactive member' means a member of the pension program
or the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
  ' (9) 'Individual account program' means the defined
contribution individual account program of the Oregon Public
Service Retirement Plan established under ORS 238A.025.
  ' (10) 'Institution of higher education' means a public
university listed in ORS 352.002, the Oregon Health and Science
University or a community college, as defined in ORS 341.005.
  ' (11) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
  ' (12) 'Participating public employer' means a public employer
as defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
  ' (13) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  ' (14) 'Police officer' means a police officer as described in
ORS 238.005.
  ' (15) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
  ' (16) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  ' (17)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
  ' (b) 'Salary' includes the following amounts:
  ' (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  ' (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  ' (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on December 31, 2011.
  ' (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on December 31, 2011.
  ' (E) Retroactive payments described in ORS 238.008.
  ' (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
  ' (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
  ' (H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  ' (c) 'Salary' does not include the following amounts:
  ' (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
  ' (B) Payments made on account of an employee's death.
  ' (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
  ' (D) Any severance payment, accelerated payment of an
employment contract for a future period or advance against future
wages.
  ' (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
  ' (F) Payment for a leave of absence after the date the
employer and employee have agreed that no future services in a
qualifying position will be performed.
  ' (G) Payments for instructional services rendered to public
universities   { - of the Oregon University System - }  { +
listed in ORS 352.002 + } or the Oregon Health and Science
University when those services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months covered by the contract.
  ' (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
  ' (I) Any amount in excess of $200,000 for a calendar year.  If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
  ' (18) 'System' means the Public Employees Retirement System.
  '  { +  SECTION 113. + } ORS 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 governing board of the public
university + }, 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 114. + } ORS 243.800 is amended to read:
  ' 243.800. (1) Notwithstanding any provision of ORS chapter 238
or 238A or ORS 243.910 to 243.945, the State Board of Higher
Education { +  and the governing board of a public university
with a governing board listed in section 3 of this 2013 Act + }
shall establish and administer an Optional Retirement Plan for
administrative and academic employees of the Oregon University
System  { + or public university + } who are eligible for
membership in the Public Employees Retirement System. The
Optional Retirement Plan must be a qualified plan under the
Internal Revenue Code, capable of accepting funds transferred
under subsection (7) of this section without the transfer being
treated as a taxable event under the Internal Revenue Code, and
willing to accept those funds. Retirement and death benefits
shall be provided under the plan by the purchase of annuity
contracts, fixed or variable or a combination thereof, or by
contracts for investments in mutual funds.
  ' (2)   { - The State Board of Higher Education - }  { +  Each
board + } shall select at least two life insurance companies
providing fixed and variable annuities and at least two
investment companies providing mutual funds, but not more than
five companies in total, for the purpose of providing benefits
under the Optional Retirement Plan.
  { - The State Board of Higher Education - }  { +  Each
board + } shall establish selection criteria for the purpose of
this subsection.
  ' (3) An administrative or academic employee may make an
irrevocable election to participate in the Optional Retirement
Plan within six months after being employed. An election under
this subsection is effective on the first day of the month
following six full months of employment.
  ' (4) An administrative or academic employee who does not elect
to participate in the Optional Retirement Plan:
  ' (a) Remains or becomes a member of the Public Employees
Retirement System in accordance with ORS chapters 238 and 238A;
or
  ' (b) Continues to be assisted by the State Board of Higher
Education { +  or governing board + } under ORS 243.920 if the
employee is being so assisted.
  ' (5) Except as provided in subsection (6) of this section,
employees who elect to participate in the Optional Retirement
Plan are ineligible for active membership in the Public Employees
Retirement System or for any assistance by the State Board of
Higher Education  { + or governing board + } under ORS 243.920 as
long as those employees are employed in the Oregon University
System  { + or public university + } and the plan is in effect.
  ' (6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
  ' (b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
  ' (c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
  ' (d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
  ' (e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership
of the employee in the individual account program upon making the
transfer.
  ' (f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be separated
from all service with participating public employers and with
employers who are treated as part of a participating public
employer's controlled group under the federal laws and rules
governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
  ' (7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
  ' (8) An employee participating in the Optional Retirement Plan
shall contribute monthly an amount equal to the percentage of the
employee's salary that the employee would otherwise have
contributed as an employee contribution to the Public Employees
Retirement System if the employee had not elected to participate
in the Optional Retirement Plan.
  ' (9) The State Board of Higher Education { +  or governing
board + } 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 115. + } 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, { +  a public university listed in ORS 352.002, + } the
Oregon Health and Science University or an education service
district employing an individual who performs services for an
educational institution.
  '  { +  SECTION 116. + } ORS 243.850 is amended to read:
  ' 243.850. (1) An eligible football coach and the State Board
of Higher Education { +  or the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + } may enter into an agreement to provide that:
  ' (a) The coach's salary will be reduced monthly by a stated
amount that is not less than $25 a month, or the coach will forgo
monthly a salary increase of a stated amount that is not less
than $25 a month; and
  ' (b) The   { - State Board of Higher Education - }  { +
board + } will contribute monthly an amount equal to the stated
amount determined under paragraph (a) of this subsection for the
month to a designated qualified football coaches plan. The amount
contributed by the employer shall not exceed the stated amount.
  ' (2) The amount by which an eligible football coach's salary
or wages is reduced by reason of the salary reduction or forgoing
of a salary increase authorized by subsection (1) of this section
shall continue to be included as regular compensation for the
purpose of computing the retirement, pension and Social Security
benefits earned by the coach, but that amount shall not be
considered current taxable income for the purpose of computing
federal and state income taxes withheld on behalf of that coach.
  ' (3) For the purposes of this section:
  ' (a) 'Eligible football coach' means a staff member of
 { - the Oregon University System - }  { +  a public university
listed in ORS 352.002 + } 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 117. + } 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 - }  { +  351.011 + }, { +  the governing board of a
public university with a governing board listed in section 3 of
this 2013 Act + } 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 118. + } 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.
  '  { +  (t) Every member of a governing board of a public
university with a governing board listed in section 3 of this
2013 Act. + }
  ' (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.
  '  { +  NOTE: + } Section 119 was deleted by amendment.
Subsequent sections were not renumbered.
  '  { +  SECTION 120. + } ORS 270.110 is amended to read:
  ' 270.110. (1) Except as provided in subsection (2) of this
section, whenever the state or any agency thereof possesses or
controls real property not needed for public use, or whenever the
public interest may be furthered, the state or its agency may
sell, exchange, convey or lease for any period not exceeding 99
years all or any part of its interest in the property to or with
the state or any political subdivision of the state or the United
States or any agency thereof or private individual or
corporation.  Except where the state is exchanging real property,
the consideration for the transfer or lease may be cash or real
property, or both.
  ' (2) If the ownership, right or title of the state to any real
property set apart by deed, will or otherwise for a burial ground
or cemetery, or for the purpose of interring the remains of
deceased persons, is limited or qualified or the use of such real
property is restricted, whether by dedication or otherwise, the
state or its agency may, after first declaring by resolution that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease thereof will further the
public interest, file a complaint in the circuit court for the
county in which such real property is located against all persons
claiming any right, title or interest in such real property,
whether the interest be contingent, conditional or otherwise, for
authority to sell, exchange, convey or lease all or any part of
such real property. The resolution is prima facie evidence that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease will further the public
interest. The action shall be commenced and prosecuted to final
determination in the same manner as an action not triable by
right to a jury. The complaint shall contain a description of
such real property, a statement of the nature of the
restrictions, qualifications or limitations, and a statement that
the defendants claim some interest therein. The court shall make
such judgment as it shall deem proper, taking into consideration
the limitations, qualifications or restrictions, the resolution
and all other matters pertinent thereto. Neither costs nor
disbursements may be recovered against any defendant.
  ' (3) The authority to lease property granted by this section
includes authority to lease property not owned or controlled by
the state at the time of entering into the lease. Such lease
shall be conditioned upon the subsequent acquisition of the
interest covered by the lease.
  ' (4) Any lease of state real property exceeding five years
must be approved in advance by the Oregon Department of
Administrative Services, except for leases:
  ' (a) Negotiated by the Oregon Department of Aviation;
  ' (b) Of state forestlands;
  ' (c) Of property controlled by the Department of State Lands,
 { + the + } Department of Transportation or   { - Oregon
University System - }  { +  a public university listed in ORS
352.002 + }; or
  ' (d) Of property controlled by the legislative or judicial
branches of state government.
  '  { +  SECTION 121. + } ORS 276.610 is amended to read:
  ' 276.610. There is established a fund in the State Treasury to
be known as the State Building Fund which shall be used for the
construction, alteration and repair of buildings required for use
of institutions and activities under the jurisdiction of the
Department of Corrections, the Department of Human Services, the
Oregon Health Authority { + , the governing boards of public
universities with governing boards listed in section 3 of this
2013 Act + } 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 122. + } 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 { +  or the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act  + }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 123. + } ORS 279A.025 is amended to read:
  ' 279A.025. (1) Except as provided in subsections (2) to (4) of
this section, the Public Contracting Code applies to all public
contracting.
  ' (2) The Public Contracting Code does not apply to:
  ' (a) Contracts between a contracting agency and:
  ' (A) Another contracting agency;
  ' (B) The Oregon Health and Science University;
  '  { +  (C) A public university listed in ORS 352.002; + }
  '  { - (C) - }  { +  (D) + } The Oregon State Bar;
  '  { - (D) - }  { +  (E) + } A governmental body of another
state;
  '  { - (E) - }  { +  (F) + } The federal government;
  '  { - (F) - }  { +  (G) + } An American Indian tribe or an
agency of an American Indian tribe;
  '  { - (G) - }  { +  (H) + } A nation, or a governmental body
in a nation, other than the United States; or
  '  { - (H) - }  { +  (I) + } An intergovernmental entity formed
between or among:
  ' (i) Governmental bodies of this or another state;
  ' (ii) The federal government;
  ' (iii) An American Indian tribe or an agency of an American
Indian tribe;
  ' (iv) A nation other than the United States; or
  ' (v) A governmental body in a nation other than the United
States;
  ' (b) Agreements authorized by ORS chapter 190 or by a statute,
charter provision, ordinance or other authority for establishing

agreements between or among governmental bodies or agencies or
tribal governing bodies or agencies;
  ' (c) Insurance and service contracts as provided for under ORS
414.115, 414.125, 414.135 and 414.145 for purposes of source
selection;
  ' (d) Grants;
  ' (e) Contracts for professional or expert witnesses or
consultants to provide services or testimony relating to existing
or potential litigation or legal matters in which a public body
is or may become interested;
  ' (f) Acquisitions or disposals of real property or interest in
real property;
  ' (g) Sole-source expenditures when rates are set by law or
ordinance for purposes of source selection;
  ' (h) Contracts for the procurement or distribution of
textbooks;
  ' (i) Procurements by a contracting agency from an Oregon
Corrections Enterprises program;
  ' (j) The procurement, transportation or distribution of
distilled liquor, as defined in ORS 471.001, or the appointment
of agents under ORS 471.750 by the Oregon Liquor Control
Commission;
  ' (k) Contracts entered into under ORS chapter 180 between the
Attorney General and private counsel or special legal assistants;
  ' (L) Contracts for the sale of timber from lands owned or
managed by the State Board of Forestry and the State Forestry
Department;
  ' (m) Contracts for forest protection or forest related
activities, as described in ORS 477.406, by the State Forester or
the State Board of Forestry;
  ' (n) Sponsorship agreements entered into by the State Parks
and Recreation Director in accordance with ORS 565.080 (4);
  ' (o) Contracts entered into by the Housing and Community
Services Department in exercising the department's duties
prescribed in ORS chapters 456 and 458, except that the
department's public contracting for goods and services is subject
to ORS chapter 279B;
  ' (p) Contracts entered into by the State Treasurer in
exercising the powers of that office prescribed in ORS chapters
178, 286A, 287A, 289, 293, 294 and 295, including but not limited
to investment contracts and agreements, banking services,
clearing house services and collateralization agreements, bond
documents, certificates of participation and other debt repayment
agreements, and any associated contracts, agreements and
documents, regardless of whether the obligations that the
contracts, agreements or documents establish are general, special
or limited, except that the State Treasurer's public contracting
for goods and services is subject to ORS chapter 279B;
  ' (q) Contracts, agreements or other documents entered into,
issued or established in connection with:
  ' (A) The issuance of obligations, as defined in ORS 286A.100
and 287A.310, of a public body;
  ' (B) The making of program loans and similar extensions or
advances of funds, aid or assistance by a public body to a public
or private body for the purpose of carrying out, promoting or
sustaining activities or programs authorized by law; or
  ' (C) The investment of funds by a public body as authorized by
law, and other financial transactions of a public body that by
their character cannot practically be established under the
competitive contractor selection procedures of ORS 279B.050 to
279B.085;
  ' (r) Contracts for employee benefit plans as provided in ORS
243.105 (1), 243.125 (4), 243.221, 243.275, 243.291, 243.303 and
243.565;
  ' (s) Contracts for employee benefit plans as provided in ORS
243.860 to 243.886; or
  ' (t) Any other public contracting of a public body
specifically exempted from the code by another provision of law.
  ' (3) The Public Contracting Code does not apply to the
contracting activities of:
  ' (a) The Oregon State Lottery Commission;
  '  { - (b) The Oregon University System and member public
universities, except as provided in ORS 351.086; - }
  '  { - (c) - }   { + (b) + } The legislative department;
  '  { - (d) - }   { + (c) + } The judicial department;
  '  { - (e) - }   { + (d) + } Semi-independent state agencies
listed in ORS 182.454, except as provided in ORS 279.835 to
279.855 and 279A.250 to 279A.290;
  '  { - (f) - }   { + (e) + } Oregon Corrections Enterprises;
  '  { - (g) - }   { + (f) + } The Oregon Film and Video Office,
except as provided in ORS 279A.100 and 279A.250 to 279A.290;
  '  { - (h) - }   { + (g) + } The Travel Information Council,
except as provided in ORS 279A.250 to 279A.290;
  '  { - (i) - }   { + (h) + } The Oregon 529 College Savings
Network and the Oregon 529 College Savings Board;
  '  { - (j) - }   { + (i) + } The Oregon Innovation Council;
  '  { - (k) - }   { + (j) + } The Oregon Utility Notification
Center; or
  '  { - (L) - }   { + (k) + } Any other public body specifically
exempted from the code by another provision of law.
  ' (4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not
apply to contracts made with qualified nonprofit agencies
providing employment opportunities for individuals with
disabilities under ORS 279.835 to 279.855.
  '  { +  SECTION 124. + } ORS 33.710 is amended to read:
  ' 33.710. (1) As used in   { - ORS 33.710 and - }   { + this
section and ORS + } 33.720, unless the context requires
otherwise:
  ' (a) '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 { +  and a governing board established for a public
university pursuant to section 3 of this 2013 Act + }.
  ' (b) 'Municipal corporation' means any county, city, port,
school district, union high school district, community college
district { +  or public university with a governing board
established pursuant to section 3 of this 2013 Act + } and all
other public or quasi-public corporations { + , + } including a
municipal utility or dock commission operated by a separate board
or commission.
  ' (2) The governing body may commence a proceeding in the
circuit court of the county in which the municipal corporation or
the greater part thereof is located, for the purpose of having a
judicial examination and judgment of the court as to the
regularity and legality of:
  ' (a) The proceedings in connection with the establishment or
creation of the municipal corporation, including any action or
proceedings proclaiming the creation of the municipal corporation
or declaring the result of any election therein.
  ' (b) The proceedings of the governing body and of the
municipal corporation providing for and authorizing the issue and
sale of bonds of the municipal corporation, whether the bonds or
any of them have or have not been sold or disposed of.
  ' (c) Any order of the governing body levying a tax.
  ' (d) The authorization of any contract and as to the validity
of the contract, whether or not it has been executed.
  ' (e) Any decision of the governing body that raises novel or
important legal issues that would be efficiently and effectively
resolved by a proceeding before the decision becomes effective,
when the decision will:
  ' (A) Require a significant expenditure of public funds;
  ' (B) Significantly affect the lives or businesses of a
significant number of persons within the boundaries of the
governing body; or
  ' (C) Indirectly impose a significant financial burden on the
cost of conducting business within the boundaries of the
governing body.
  ' (f) The authority of the governing body to enact any
ordinance, resolution or regulation.
  ' (g) Any ordinance, resolution or regulation enacted by the
governing body, including the constitutionality of the ordinance,
resolution or regulation.
  ' (3) All proceedings of the municipal corporation may be
judicially examined and determined in one special proceeding, or
any part thereof may be separately examined and determined by the
court.
  ' (4) Nothing in this section allows a governing body to have a
judicial examination and judgment of the court without a
justiciable controversy.
  '  { +  SECTION 125. + } ORS 307.090 is amended to read:
  ' 307.090. (1) Except as provided by law, all property of the
state and all public or corporate property used or intended for
corporate purposes of the several counties, cities, towns, school
districts, irrigation districts, drainage districts, ports, water
districts, housing authorities { + , public universities listed
in ORS 352.002 + } and all other public or municipal corporations
in this state, is exempt from taxation.
  ' (2) Any city may agree with any school district to make
payments in lieu of taxes on all property of the city located in
any such school district, and which is exempt from taxation under
subsection (1) of this section when such property is outside the
boundaries of the city and owned, used or operated for the
production, transmission, distribution or furnishing of electric
power or energy or electric service for or to the public.
  '  { +  SECTION 126. + } ORS 307.112, as amended by section 2,
chapter 42, Oregon Laws 2012, is amended to read:
  ' 307.112. (1) Real or personal property of a taxable owner
held under lease, sublease or lease-purchase agreement by an
institution, organization or public body, other than the State of
Oregon,  { + or a public university listed in ORS 352.002, + }
granted exemption or the right to claim exemption for any of its
property under ORS 307.090, 307.130, 307.136, 307.140, 307.145,
307.147 or 307.181 (3), is exempt from taxation if:
  ' (a) The property is used by the lessee or, if the lessee is
not in possession of the property, by the entity in possession of
the property, in the manner, if any, required by law for the
exemption of property owned, leased, subleased or being purchased
by it; and
  ' (b) It is expressly agreed within the lease, sublease or
lease-purchase agreement that the rent payable by the
institution, organization or public body has been established to
reflect the savings below market rent resulting from the
exemption from taxation.
  ' (2) To obtain the exemption under this section, the lessee
or, if the lessee is not in possession of the property, the
entity in possession of the property, must file a claim for
exemption with the county assessor, verified by the oath or
affirmation of the president or other proper officer of the
institution or organization, or head official of the public body
or legally authorized delegate, showing:
  ' (a) A complete description of the property for which
exemption is claimed.
  ' (b) If applicable, all facts relating to the use of the
property by the lessee or, if the lessee is not in possession of
the property, by the entity in possession of the property.
  ' (c) A true copy of the lease, sublease or lease-purchase
agreement covering the property for which exemption is claimed.
  ' (d) Any other information required by the claim form.
  ' (3) If the assessor is not satisfied that the rent stated in
the lease, sublease or lease-purchase agreement has been
established to reflect the savings below market rent resulting
from the tax exemption, before the exemption may be granted the
lessor must provide documentary proof, as specified by rule of
the Department of Revenue, that the rent has been established to
reflect the savings below market rent resulting from the tax
exemption.
  ' (4)(a) The claim must be filed on or before April 1 preceding
the tax year for which the exemption is claimed, except:
  ' (A) If the lease, sublease or lease-purchase agreement is
entered into after March 1 but not later than June 30, the claim
must be filed within 30 days after the date the lease, sublease
or lease-purchase agreement is entered into if exemption is
claimed for that year; or
  ' (B) If a late filing fee is paid in the manner provided in
ORS 307.162 (2), the claim may be filed within the time specified
in ORS 307.162 (2).
  ' (b) The exemption first applies for the tax year beginning
July 1 of the year for which the claim is filed.
  ' (5)(a) An exemption granted under this section continues as
long as the use of the property remains unchanged and during the
period of the lease, sublease or lease-purchase agreement.
  ' (b) If the use changes, a new claim must be filed as provided
in this section.
  ' (c) If the use changes due to sublease of the property or any
portion of the property from the tax exempt entity described in
subsection (1) of this section to another tax exempt entity, the
entity in possession of the property must file a new claim for
exemption as provided in this section.
  ' (d) If the lease, sublease or lease-purchase agreement
expires before July 1 of any year, the exemption terminates as of
January 1 of the same calendar year.
  '  { +  SECTION 127. + } ORS 291.055 is amended to read:
  ' 291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted during the period beginning
on the date of adjournment sine die of a regular session of the
Legislative Assembly and ending on the date of adjournment sine
die of the next regular session of the Legislative Assembly:
  ' (a) Are not effective for agencies in the executive
department of government unless approved in writing by the
Director of the Oregon Department of Administrative Services;
  ' (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  ' (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  ' (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  ' (e) Are rescinded on adjournment sine die of the next regular
session of the Legislative Assembly as described in this
subsection, unless otherwise authorized by enabling legislation
setting forth the approved fees.
  ' (2) This section does not apply to:
  ' (a) Any tuition or fees charged by   { - the State Board of
Higher Education and the public universities - }  { +  a public
university + } 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 128. + } ORS 291.357 is amended to read:
  ' 291.357. (1) As used in this section, 'general governmental
purposes' means:
  ' (a) Those activities defined as governmental activities under
the accounting standards promulgated by the Governmental
Accounting Standards Board of the Financial Accounting Foundation
that are in effect on August 10, 2001; and
  ' (b) Post-secondary educational activities that are partially
funded by student tuition and fees.
  ' (2) Each biennium, state governmental appropriations for
general governmental purposes shall be no greater than eight
percent of projected personal income in Oregon for the same
biennium. Projected personal income shall be based on the United
States Department of Commerce projections used by the Oregon
Department of Administrative Services in the last forecast given
to the Legislative Assembly before adjournment sine die of the
odd-numbered year regular session on which the printed, adopted
budget is based.
  ' (3) For purposes of this section, the following are
considered to be appropriations:
  ' (a) An authorization, given by law, to expend moneys in a
biennium;
  ' (b) A limitation, imposed by law, on the expenditure in a
biennium of moneys that are continuously appropriated; and
  ' (c) An estimate of amounts of moneys that are continuously
appropriated that will be spent in a biennium without limitation.
  ' (4) The following appropriations are not subject to the
limitation on appropriations contained in this section:
  ' (a) Appropriations for the construction or acquisition of
assets that are financed by state bonds, certificates of
participation or other forms of borrowing.
  ' (b) Appropriations of moneys received directly or indirectly
from the federal government.
  ' (c) Appropriations for fee remission programs of   { - the
Oregon University System - }  { +  public universities listed in
ORS 352.002 + }.
  ' (d) Appropriations of moneys voluntarily donated to a state
agency.
  ' (e) Appropriations of moneys from revenue increases or new
revenue sources if the increases or sources result from approval
of a measure by the people at an election held on or after August
10, 2001.
  ' (f) Appropriations to fund new programs or to increase
funding for existing programs if the need for new or increased
funding results from approval of a measure by the people at an
election held on or after August 10, 2001.
  ' (5) The limitation on appropriations established by this
section may be exceeded for a biennium if the Governor declares
an emergency and three-fifths of the members serving in each
house of the Legislative Assembly affirmatively vote to exceed
the limitation for the biennium.
  '  { +  NOTE: + } Section 129 was deleted by amendment.
Subsequent sections were not renumbered.
  '  { +  SECTION 130. + } 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 { +  or the governing board of a public
university with a governing board listed in section 3 of this
2013 Act + } 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 - }  { +  a
public university listed in ORS 352.002 + }, is authorized, upon
written request of the individual, to deduct each month from the
salary or wages of the individual the amount of money designated
by the individual for payment to a foundation.
  ' (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  ' (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency { + , + }   { - or - }  the State
Board of Higher Education { +  or the governing board of the
public university + }, 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 131. + } 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 - }  { +  a public university listed + } 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) { + (a) + } The Chancellor of the Oregon University
System or a designee of the chancellor may approve a written
request made by a public university or office, department or
activity under the jurisdiction of the State Board of Higher
Education, in which an employee of the public university or
office, department or activity may designate an amount from the
salary or wages of the employee for payment to a qualifying
nonprofit organization. A request made to the chancellor under
this section must identify the nonprofit organization to whom
payments would be made.
  '  { +  (b) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act may approve
a written request made by the university or office, department or
activity under the board's jurisdiction, in which an employee of
the 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 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 { +  or public university with a
governing board listed in section 3 of this 2013 Act + }
authorized to disburse funds in payment of salaries or wages
shall deduct from the salary or wages of the employee the amount
of money designated by the employee for payment to the nonprofit
organization.
  ' (4) The moneys deducted from the salaries or wages under
subsection (3) of this section shall be paid over promptly to the
nonprofit organization.
  ' (5) The   { - Chancellor of the - }  Oregon University System
 { - or a designee of the chancellor - }  { +  and the governing
board of a public university with a governing board listed in
section 3 of this 2013 Act + } shall prescribe procedures for
determining whether an organization qualifies as a nonprofit
organization under this section.
  '  { +  SECTION 132. + } ORS 307.095 is amended to read:
  ' 307.095. (1) Any portion of state property that is used
during the tax year for parking on a rental or fee basis to
private individuals is subject to ad valorem taxation.
  ' (2) The real market value of such portion shall be computed
by determining that percentage which the total of receipts from
private use bears to the total of receipts from all use of the
property. The assessed value of such portion shall be computed as
provided in ORS 308.146. However, receipts from any use by a
state officer or employee in the performance of the official
duties of the state officer or employee shall not be considered
as receipts from private use in computing the portion subject to
ad valorem taxation.
  ' (3) This section and ORS 276.592 do not apply to state
property that is used by   { - the Oregon University System - }
 { +  a public university listed in ORS 352.002 + } or the Oregon
Health and Science University solely to provide parking for
employees, students or visitors.
  '  { +  SECTION 133. + } ORS 307.110 is amended to read:
  ' 307.110. (1) Except as provided in ORS 307.120, all real and
personal property of this state or any institution or department
thereof or of any county or city, town or other municipal
corporation or political subdivision of this state, held under a
lease or other interest or estate less than a fee simple, by any
person whose real property, if any, is taxable, except employees
of the state, municipality or political subdivision as an
incident to such employment, shall be subject to assessment and
taxation for the assessed or specially assessed value thereof
uniformly with real property of nonexempt ownerships.
  ' (2) Each leased or rented premises not exempt under ORS
307.120 and subject to assessment and taxation under this section
which is located on property used as an airport and owned by and
serving a municipality or port shall be separately assessed and
taxed.
  ' (3) Nothing contained in this section shall be construed as
subjecting to assessment and taxation any publicly owned property
described in subsection (1) of this section that is:
  ' (a) Leased for student housing by a school or college to
students attending such a school or college.
  ' (b) Leased to or rented by persons, other than sublessees or
subrenters, for agricultural or grazing purposes and for other
than a cash rental or a percentage of the crop.
  ' (c) Utilized by persons under a land use permit issued by the
Department of Transportation for which the department's use
restrictions are such that only an administrative processing fee
is able to be charged.
  ' (d) County fairgrounds and the buildings thereon, in a county
holding annual county fairs, managed by the county fair board
under ORS 565.230, if utilized, in addition to county fair use,
for any of the purposes described in ORS 565.230 (2), or for
horse stalls or storage for recreational vehicles or farm
machinery or equipment.
  ' (e) The properties and grounds managed and operated by the
State Parks and Recreation Director under ORS 565.080, if
utilized, in addition to the purpose of holding the Oregon State
Fair, for horse stalls or for storage for recreational vehicles
or farm machinery or equipment.
  ' (f) State property that is used by   { - the Oregon
University System - }  { +  a public university listed in ORS
352.002 + } or the Oregon Health and Science University to
provide parking for employees, students or visitors.
  ' (g) Property of a housing authority created under ORS chapter
456 which is leased or rented to persons of lower income for
housing pursuant to the public and governmental purposes of the
housing authority. For purposes of this paragraph, 'persons of
lower income' has the meaning given the phrase under ORS 456.055.
  ' (h) Property of a health district if:
  ' (A) The property is leased or rented for the purpose of
providing facilities for health care practitioners practicing
within the county; and
  ' (B) The county is a frontier rural practice county under
rules adopted by the Office of Rural Health.

  ' (4) Property determined to be an eligible project for tax
exemption under ORS 285C.600 to 285C.626 and 307.123 that was
acquired with revenue bonds issued under ORS 285B.320 to 285B.371
and that is leased by this state, any institution or department
thereof or any county, city, town or other municipal corporation
or political subdivision of this state to an eligible applicant
shall be assessed and taxed in accordance with ORS 307.123. The
property's continued eligibility for taxation and assessment
under ORS 307.123 is not affected:
  ' (a) If the eligible applicant retires the bonds prior to the
original dates of maturity; or
  ' (b) If any applicable lease or financial agreement is
terminated prior to the original date of expiration.
  ' (5) The provisions of law for liens and the payment and
collection of taxes levied against real property of nonexempt
ownerships shall apply to all real property subject to the
provisions of this section. Taxes remaining unpaid upon the
termination of a lease or other interest or estate less than a
fee simple, shall remain a lien against the real or personal
property.
  ' (6) If the state enters into a lease of property with, or
grants an interest or other estate less than a fee simple in
property to, a person whose real property, if any, is taxable,
then within 30 days after the date of the lease, or within 30
days after the date the interest or estate less than a fee simple
is created, the state shall file a copy of the lease or other
instrument creating or evidencing the interest or estate with the
county assessor. This section applies notwithstanding that the
property may otherwise be entitled to an exemption under this
section, ORS 307.120 or as otherwise provided by law.
  '  { +  SECTION 134. + } ORS 340.310, as amended by section 10,
chapter 104, Oregon Laws 2012, is amended to read:
  ' 340.310. (1) The Higher Education Coordinating Commission
shall develop statewide standards for dual credit programs to be
implemented by public high schools, community colleges and
 { - state institutions of higher education within the Oregon
University System - }  { +  public universities listed in ORS
352.002 + }. The standards must establish the manner by which:
  ' (a) A student may, upon completion of a course, earn course
credit both for high school and for a community college or
 { - state institution of higher education within the Oregon
University System - }  { +  public university + }; and
  ' (b) Teachers of courses that are part of a dual credit
program will work together to determine the quality of the
program and to ensure the alignment of the content, objectives
and outcomes of individual courses.
  ' (2) Each public high school, community college and
 { - state institution of higher education within the Oregon
University System - }  { +  public university + } that provides a
dual credit program must implement the statewide standards
developed under subsection (1) of this section.
  ' (3) Each school district, community college and   { - state
institution of higher education within the Oregon University
System - }  { +  public university + } that provides a dual
credit program shall submit an annual report to the Higher
Education Coordinating Commission on the academic performance of
students enrolled in a dual credit program. The Higher Education
Coordinating Commission shall establish the required contents of
the report, which must provide sufficient information to allow
the commission to determine the quality of the dual credit
program.
  '  { +  SECTION 135. + } ORS 341.440 is amended to read:
  ' 341.440. (1) A community college district may contract with
another community college district, common or union high school
district, education service district,   { - the Oregon University
System - }  { +  public university listed in ORS 352.002 + }, the
Oregon Health and Science University, with a private educational
institution accredited by the Northwest Association of Schools
and Colleges or its successor or a career school as defined in
ORS 345.010 to obtain educational services for students enrolled
in the community college of the district. However, the
educational services so obtained must meet the standards for
educational services provided by the college and the contract
price to the college for such services must not exceed the costs
which would otherwise be incurred by the college to provide its
students the same or similar services.
  ' (2) Educational services for which a district operating a
community college may contract include services offered by
correspondence and services offered electronically or through
telecommunications if such services are accredited by a
nationally recognized accrediting association.
  ' (3) For purposes of ORS 341.626, costs incurred under
subsection (1) of this section shall be considered operating
expenses of the district if the contract is approved by the
Commissioner for Community College Services.
  '  { +  SECTION 136. + } 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 { +  or the governing board of a public university with
a governing board listed in section 3 of this 2013 Act + }; 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 137. + } ORS 344.259 is amended to read:
  ' 344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult
self-improvement, professional and technical education for
agencies under its regulatory authority. The State Board of
Higher Education shall coordinate continuing education in upper
division and graduate education for public universities under its
jurisdiction.
  ' (2) When significantly adverse impact is alleged by one or
more of the agencies listed in this subsection, the affected
parties jointly shall provide for written agreements. These
agreements shall allocate responsibility for planning and
providing continuing education or off-campus instruction in
specific areas or by specific types. The agencies are:
  ' (a) The State Board of Education.
  ' (b) The State Board of Higher Education.
  ' (c) Community college districts.
  ' (d) Independent colleges.
  ' (e) Proprietary schools.
  '  { +  (f) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act. + }
  ' (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 - }  { +  a public
university listed in ORS 352.002 + } 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 138. + } ORS 344.753 is amended to read:
  ' 344.753. (1) Employers who enter into written agreements with
educational institutions and who are providing training to
participants in youth apprenticeship and training or work based
learning programs are eligible for reimbursement of expenses
incurred in the training process. These expenses may include
wages paid to the student, training costs for mentors and
supervisors, equipment costs to set up youth training capacity,
curriculum development costs, costs of establishing interfirm
training centers or other costs necessitated by the training
agreement.
  ' (2) The amount of reimbursement shall be 50 percent of the
actual cost of the investment, such reimbursement not to exceed
$2,500 per student who completes the agreed upon course of study.
In the event that a student drops out of the program through no
fault of the employer, the Department of Education may reimburse
the employer for costs incurred to that point.
  ' (3) Eligible employers may elect to receive education service
credits in lieu of the reimbursement provided in this section.
The amount of the education service credit shall equal the value
of the potential reimbursement on a dollar-for-dollar basis.
Education service credits may be used to purchase educational
services provided to the employer by school districts, education
service districts, community colleges,   { - the Oregon
University System - }  { +  public universities listed in ORS
352.002 + } or private providers approved by the Department of
Education.
  ' (4) Employers who terminate students without the concurrence
of the school forfeit all claim to reimbursements or education
service credits earned under this section.
  ' (5) The total amount of employer reimbursement allowable
under this section to all employers shall not exceed the amount
allocated therefor biennially from the Administrative Services
Economic Development Fund.
  ' (6) Reimbursements allowed under this section must first be
certified with regard to eligibility and availability of funds
pursuant to a method established by the Department of Education
in consultation with the Bureau of Labor and Industries.
  '  { +  SECTION 139. + } ORS 353.440 is amended to read:
  ' 353.440. The Legislative Assembly finds that:
  ' (1) Public universities   { - in the Oregon University
System - }  { +  listed in ORS 352.002 + } 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 - }  { +  public
universities + } shall coordinate such programs and shall advise
each other of the following proposed changes to such academic
programs:
  ' (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  ' (b) Creation or significant revision, such as a merger or
closure, of schools; and
  ' (c) Creation or significant revision of major academic
policies.
  ' (4) The Oregon Health and Science University and the Higher
Education Coordinating Commission shall coordinate and advise
each other of the following types of proposed changes to their
related or integrated academic programs:
  ' (a) Coordination of strategic plans for achieving higher
education goals;
  ' (b) Seeking advice and input from each other on modifications
to statutory educational missions;
  ' (c) Working to develop a statewide educational data system;
  ' (d) Collaborating as necessary on the creation of any new
degree programs; and
  ' (e) Notifying each other and commenting on tuition rate
changes.
  ' (5) In order to further the coordination described by this
section, Oregon Health and Science University officers shall
maintain a role in the appropriate committees of the State Board
of Higher Education, the Higher Education Coordinating Commission
and the Oregon University System.
  '  { +  SECTION 140. + } 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 { + , or
the governing board of a public university with a governing board
listed in section 3 of this 2013 Act + }.
  ' (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 141. + } ORS 408.095 is amended to read:
  ' 408.095. (1) As used in this section, 'community college '
has the meaning given that term in ORS 341.005.
  ' (2) There is created in the Department of Veterans' Affairs
the Campus Veterans' Service Officers Program.
  ' (3) The purpose of the program is to provide educational
outreach to veterans to help ensure that they obtain maximum
state and federal benefits.
  ' (4) The department shall appoint a sufficient number of
campus veterans' service officers to ensure that each Oregon
community college and each public university   { - in the Oregon
University System, as described - }  { +  listed + } in ORS
352.002  { - , - }  is provided veterans' services.
  ' (5) Each community college and public university   { - in the
Oregon University System - }  shall provide office space that may
be used for the provision of veterans' services.
  ' (6) The department may adopt rules to implement the Campus
Veterans' Service Officers Program.
  '  { +  SECTION 142. + } ORS 408.506 is amended to read:
  ' 408.506. The Department of Human Services, the Department of
Transportation, the Housing and Community Services Department,
the Employment Department, the Department of Justice, the
Judicial Department, the Oregon University System,  { + public
universities with governing boards listed in section 3 of this
2013 Act, + } the Bureau of Labor and Industries, the Department
of Community Colleges and Workforce Development and the
Department of Veterans' Affairs shall partner with the Oregon
Military Department to provide reintegration services for
veterans throughout this state through regional strategies.
  '  { +  SECTION 143. + } ORS 430.651 is amended to read:
  ' 430.651. (1) If the Oregon Health Authority uses a formula
for allocating to counties moneys, and if the formula includes
population as a factor in determining the amount of each
allocation, the authority shall calculate the formula annually
using the most current population data that is available.
  ' (2) The authority shall use as the source of the population
data required by subsection (1) of this section the primary
population research center that is part of   { - the Oregon
University System - }  { +  Portland State University + }.
  '  { +  SECTION 144. + } 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 by the governing board of a
public university with a governing board listed in section 3 of
this 2013 Act + }; 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 145. + } ORS 471.580, as amended by section 44,
chapter 104, Oregon Laws 2012, is amended to read:
  ' 471.580. (1) As used in this section:
  ' (a) 'Alcohol equivalence' means the amount of ethanol that
would be expected to be present in a beverage based on the
standard drink measurement used by the Centers for Disease
Control and Prevention.
  ' (b) 'Education provider' means:
  ' (A) A community college, as defined in ORS 341.005, offering
a food or beverage career program approved by the State Board of
Education;
  ' (B) A career school, as defined in ORS 345.010, offering a
food or beverage career program approved by the Oregon Student
Assistance Commission or the Higher Education Coordinating
Commission;
  ' (C) An institution of higher education listed in ORS 352.002
offering a food or beverage career program approved by the State
Board of Higher Education { +  or by the governing board of a
public university with a governing board listed in section 3 of
this 2013 Act + }; 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 146. + } 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 Higher
Education Coordinating Commission + }   { - 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 147. + } 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 - }  { +  Higher Education Coordinating Commission + } 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 - }  { +  commission + }.
  ' (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 148. + } 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 - }  { +  An action may not + } be
filed unless, within 180 days of the alleged discrimination, a
grievance has been filed with the school district board, public
charter school governing body, community college board of
education { + , governing board of a public university with a
governing board listed in section 3 of this 2013 Act + } or State
Board of Higher Education.
  ' (4)   { - No action may - }  { +  An action may not + } be
filed until 90 days after filing a grievance unless only
injunctive relief is sought pursuant to ORCP 79. The right to
temporary or preliminary injunctive relief shall be independent
of the right to pursue any administrative remedy available to
complainants pursuant to ORS 659.850.
  ' (5)   { - No action may - }  { +  An action may not + } be
filed if the school district board, public charter school
governing body, community college board of education { + ,
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } 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 149. + } ORS 660.358 is amended to read:
  ' 660.358. (1) The State Workforce Investment Board, in
consultation with the Governor, the Education and Workforce
Policy Advisor and other parties deemed appropriate by the board
and after consideration of the clean energy and energy efficiency
policies of this state, shall develop a plan for a green jobs
growth initiative to promote the development of emerging
technologies and innovations that lead to, create or sustain
family wage green jobs.
  ' (2) The plan for the initiative developed by the board shall:
  ' (a) Identify industries that are high demand green industries
based on current and projected creation of family wage green jobs
and the potential for career pathways created for such jobs.
  ' (b) Use the needs of identified high demand green industries
as the basis for the planning of workforce development activities
that promote the development of emerging green technologies and
innovations. These activities include, but are not limited to,
such efforts undertaken by community colleges,
  { - the - }  public universities   { - of the Oregon University
System - }  { +  listed in ORS 352.002 + }, designated signature
research centers, registered apprenticeship programs and other
private sector training programs.
  ' (c) Leverage and align existing public workforce development
programs and other public and private resources to the goal of
recruiting, supporting, educating and training of targeted
populations of workers.
  ' (d) Require the board to work collaboratively with
stakeholders from business, labor and low income advocacy groups
in the regional economy to develop and implement the initiative.
  ' (e) Link adult basic and remedial education programs with job
training for skills necessary for green jobs.
  ' (f) Require the board to collaborate with employers and labor
organizations to identify skills and competencies necessary for
green job career pathways.
  ' (g) Ensure that support services are integrated with
education and training for green jobs and that such services are
provided by organizations with direct access to and experience
with targeted populations.
  ' (h) Include an analysis of occupations in the forest products
industry to:
  ' (A) Determine key growth factors and employment projections
for green jobs in the forest products industry; and
  ' (B) Define the educational and skill standards required for
current and emerging green occupations in the forest products
industry.
  ' (3) Based on the analysis conducted under subsection (2)(h)
of this section, the State Workforce Investment Board, in
consultation with the Education and Workforce Policy Advisor,
shall identify those forest products industries to be classified
as high-demand green industries, taking into consideration
current and future job creation and the strategic importance of
the development of high-demand green forest products industry
jobs to the development and growth of the state's green economy.
  ' (4) As used in this section, 'forest products industry '
includes, but is not limited to, businesses that grow, manage,
harvest, transport or process forest, wood and paper products.
  '  { +  SECTION 150. + } ORS 820.100 is amended to read:
  ' 820.100. (1) The State Board of Education shall adopt and
enforce such reasonable standards relating to school bus and
school activity vehicle construction and school bus and school
activity vehicle equipment as the board deems necessary for safe
and economical operation, except that the board may not authorize
the use of school buses manufactured before April 1, 1977.
  ' (2) The State Board of Higher Education { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } may adopt and enforce
separate   { - rules - }  { +  standards + } of the type
described under this section for school buses and school activity
vehicles that are under the board's jurisdiction, except that the
board may not authorize the use of school buses manufactured
before April 1, 1977.
  ' (3) The State Board of Education shall adopt and enforce
standards for school bus stop arms authorized by ORS 820.105.
  ' (4)   { - Rules - }  { +  Standards + } 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 151. + } ORS 820.110 is amended to read:
  ' 820.110. (1) The State Board of Education shall adopt and
enforce rules to establish requirements of operation,
qualifications or special training of drivers and special
accident reports for school buses and school activity vehicles.
  ' (2) The State Board of Higher Education { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } may adopt and enforce
separate   { - rules - }  { +  standards + } of the type
described under this section for school buses and school activity
vehicles that are under its jurisdiction.
  ' (3) The rules { +  and standards + } 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 152. + } 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 that the vehicles are in
compliance with requirements under  { + standards and + } rules
established under ORS 820.100 and 820.110, as applicable, and
that the vehicles are safe for operation. The rules may include
intervals of inspections.
  ' (2) The State Board of Higher Education  { + and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } may adopt and enforce
separate   { - rules - }  { + standards + } of the type described
under this section for school buses and school activity vehicles
that are under its jurisdiction.
  ' (3) The rules  { + and standards + } 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 153. + } 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  { + standards and + } rules under ORS
820.100 to 820.120 and that the vehicle is safe for operation on
the highways. Notification required by this section shall be
from:
  ' (1) The State Board of Education or its authorized
representative regarding vehicles under its regulatory authority.
  ' (2) The State Board of Higher Education or its authorized
representative regarding vehicles under its jurisdiction.
  '  { +  (3) The governing board of a public university with a
governing board listed in section 3 of this 2013 Act or the
authorized representative of the board regarding vehicles under
the board's jurisdiction. + }
  '  { +  SECTION 153a. + } ORS 820.140 is amended to read:
  ' 820.140. The Department of Transportation may revoke the
registration of any school bus if the department determines that
the vehicle:
  ' (1) Is not maintained and operated in accordance with  { +
standards and + } rules applicable to the vehicle under ORS
820.100 to 820.120; or
  ' (2) Is not safe for operation over or is not safely operated
over the public highways.
  '  { +  SECTION 154. + } ORS 820.150 is amended to read:
  ' 820.150. (1) The State Board of Education, by rule, may
establish classes or types of vehicles that are not considered
school buses or school activity vehicles for purposes of the
Oregon Vehicle Code or classes of school buses or school activity
vehicles that are not subject to regulation under the Oregon
Vehicle Code either partially or completely.
  ' (2) The State Board of Higher Education { +  and the
governing board of a public university with a governing board
listed in section 3 of this 2013 Act + } may adopt separate
 { - rules - }  { +  standards + } of the type described under
this section for vehicles that are under its jurisdiction.
  ' (3) Rules { +  and standards + } 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 { + , the
governing board + } or the State Board of Higher Education
considers appropriate.
  ' (b)   { - No - }  { +  An + } exemption, either partial or
total,   { - shall - }  { +  may not + } 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 { +  and standards + } under
this section, the boards shall consider the need to
 { - assure - }   { + ensure + } student safety.
  '  { +  SECTION 154a. + } ORS 820.160 is amended to read:
  ' 820.160. (1) A person commits the offense of illegal display
of school bus markings if the person displays the words ' School
Bus' on any vehicle unless the vehicle:
  ' (a) Is used in transporting school children to or from school
or an authorized school activity or function; and
  ' (b) Complies with the applicable requirements under  { +
standards and + } rules established under ORS 820.100 to 820.120.
  ' (2) The offense described in this section, illegal display of
school bus markings, is a Class B traffic violation.
  '  { +  SECTION 154b. + } ORS 820.180 is amended to read:
  ' 820.180. (1) A person commits the offense of unsafe school
vehicle operation if:
  ' (a) The person operates or owns and causes or permits to be
operated a school bus or school activity vehicle in a manner that

is in violation of any  { + standards and + } rules applicable to
the vehicle that are adopted under ORS 820.100 to 820.120;
  ' (b) The person owns or leases and causes or permits to be
operated for school purposes a school bus or school activity
vehicle containing more passengers than the vehicle is designed
to transport; or
  ' (c) The person operates or owns and causes or permits to be
operated a school bus manufactured before April 1, 1977.
  ' (2) A person is not in violation of subsection (1)(b) of this
section if a bus or vehicle contains more passengers than it is
designed to transport due to unforeseen or unusual circumstances.
  ' (3) The offense described in this section, unsafe school
vehicle operation, is a Class B traffic violation.
  '  { +  SECTION 155. + } 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 a public university with a governing board
listed in section 3 of this 2013 Act, the governing board of the
university. + }
  '  { - (F) - }  { +  (G) + } For the Oregon Health and Science
University, the Oregon Health and Science University Board of
Directors.
  ' (2)(a) Prior to the beginning of each fiscal year, the
governing body of each education entity must enter into an
achievement compact with the Oregon Education Investment Board
for the fiscal year.
  ' (b) Governing bodies of education entities identified in
subsection (1)(b)(A) to (C) of this section shall enter into
achievement compacts as part of the budgeting process under ORS
294.305 to 294.565 and shall submit achievement compacts to the
board prior to July 1 of each year.
  ' (c) The board shall specify a process for adoption and a
timeline for submission of achievement compacts for education
entities identified in subsection (1)(b)(D) to (F) 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 156. + } Section 13, chapter 761, Oregon Laws
2007, as amended by section 5, chapter 2, Oregon Laws 2009,
section 93, chapter 762, Oregon Laws 2009, and section 32,
chapter 2, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 13. + } (1) There is established in the General
Fund an account to be known as the Portland State University
Science Research and Teaching Center and Hazardous Waste Facility
Account.  Funds in the account shall be used for the acquisition,
construction, remodeling, expansion and renovation of facilities
for a Science Research and Teaching Center and Hazardous Waste
Facility Phase I at Portland State University.
  ' (2) The account shall consist of proceeds from certificates
of participation, grant funds, gift funds, proceeds of legal
settlements, federal and local government funds made available to
and funds donated to   { - the Oregon University System - }  { +
Portland State University + } for the purpose of the center and
facility project described in subsection (1) of this section.
Interest earned on moneys in the account shall be credited to the
account. The account may not be credited with more than
$7,000,000 for purposes of this subsection.
  ' (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the center
and facility project described in subsection (1) of this section.
  '  { +  SECTION 157. + } Section 14, chapter 761, Oregon Laws
2007, as amended by section 94, chapter 762, Oregon Laws 2009,
and section 33, chapter 2, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 14. + } (1) There is established in the General
Fund an account to be known as the University of Oregon
Integrative Science Complex, Phase 2 Account. Funds in the
account shall be used for the acquisition, construction,
remodeling, expansion and renovation of facilities for an
Interactive Science Complex, Phase 2 at the University of Oregon.
  ' (2) The account shall consist of grant funds, gift funds,
federal and local government funds made available to and funds
donated to the   { - Oregon University System - }  { +
University of Oregon + } for the purpose of the Interactive
Science Complex, Phase 2 project described in subsection (1) of
this section. Interest earned on moneys in the account shall be
credited to the account. The account may not be credited with
more than $30,000,000 for purposes of this subsection.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }  { +  University of
Oregon + } and may be transferred to the account designated by
 { - ORS 351.626 - }  { +  the university + } for the Interactive
Science Complex, Phase 2 project described in subsection (1) of
this section.
  '  { +  SECTION 158. + } Section 15, chapter 761, Oregon Laws
2007, as amended by section 95, chapter 762, Oregon Laws 2009,
and section 34, chapter 2, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 15. + } (1) There is established in the General
Fund an account to be known as the University of Oregon Hayward
Field Account. Funds in the account shall be used for the
purposes described in Article XI-G of the Oregon Constitution at
Hayward Field at the University of Oregon.
  ' (2) The account shall consist of funds received from
not-for-profit organizations, grant funds, gift funds, federal
and local government funds made available to and funds donated to
the
  { - Oregon University System - }  { +  University of Oregon + }
for the purpose of the Hayward Field project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account. The account may not be
credited with more than $2,500,000 for purposes of this
subsection.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }   { + University of
Oregon + } and may be transferred to the account designated by
 { - ORS 351.626 - }  { +  the university + } for the purposes
described in subsection (1) of this section.
  '  { +  SECTION 159. + } Section 17, chapter 761, Oregon Laws
2007, as amended by section 97, chapter 762, Oregon Laws 2009,
and section 36, chapter 2, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 17. + } (1) There is established in the General
Fund an account to be known as the Portland State University
Science PCAT Redevelopment Account. Funds in the account shall be
used for the acquisition, construction, remodeling, expansion and
renovation of facilities on the current site of the Portland
Center for Advanced Technology at Portland State University.
  ' (2) The account shall consist of grant funds, gift funds,
proceeds of legal settlements, federal and local government funds
made available to and funds donated to   { - the Oregon
University System - }  { +  Portland State University + } for the
purpose of the project described in subsection (1) of this
section. Interest earned on moneys in the account shall be
credited to the account. The account may not be credited with
more than $10,000,000 for purposes of this subsection.
  ' (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the project
described in subsection (1) of this section.
  '  { +  SECTION 160. + } Section 22, chapter 904, Oregon Laws
2009, as amended by section 50, chapter 2, Oregon Laws 2011, and
section 46, chapter 9, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 22. + } (1) There is established in the General
Fund an account to be known as the Portland State University
Science Research and Teaching Center/Hazardous Waste Facility
Phase 2 Project Account. Funds in the account shall be used for
the acquisition, construction, remodeling, expansion and
renovation of facilities for a facility project at
 { - Oregon - }  { +  Portland + } State University.
  ' (2) The account shall consist of proceeds from grant funds,
gift funds and federal and local government funds made available
to   { - the Oregon University System - }  { +  Portland State
University + } for the purpose of the facility project described
in subsection (1) of this section. Interest earned on moneys in
the account shall be credited to the account. The account may not
be credited with more than $2,500,000 for purposes of this
subsection.
  ' (3) Moneys in the account are continuously appropriated to
  { - the Oregon University System - }  { +  Portland State
University + } and may be transferred to the account designated
by   { - ORS 351.626 - }  { +  the university + } for the
facility project described in subsection (1) of this section.
  '  { +  SECTION 161. + } Section 24, chapter 904, Oregon Laws
2009, as amended by section 52, chapter 2, Oregon Laws 2011, and
section 48, chapter 9, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 24. + } (1) There is established in the General
Fund an account to be known as the University of Oregon Allen
Hall Expansion and Remodel Project Account. Funds in the account
shall be used for the acquisition, construction, remodeling,
expansion and renovation of facilities for a facility project at
the University of Oregon.
  ' (2) The account shall consist of proceeds from grant funds
and gift funds made available to and funds donated to the
 { - Oregon University System - }  { +  University of Oregon + }
for the purpose of the facility project described in subsection
(1) of this section.  Interest earned on moneys in the account
shall be credited to the account. The account may not be credited
with more than $7,500,000 for purposes of this subsection.
  ' (3) Moneys in the account are continuously appropriated to
the   { - Oregon University System - }   { + University of
Oregon + } and may be transferred to the account designated by
 { - ORS 351.626 - }  { +  the university + } for the facility
project described in subsection (1) of this section.
  '  { +  SECTION 162. + } Section 3, chapter 797, Oregon Laws
2001, is amended to read:
  '  { +  Sec. 3. + } Subject to available funding, if a building
evaluated under section 2 (4) { + , chapter 797, Oregon Laws
2001, + }   { - of this 2001 Act - }  is found by a board to pose
an undue risk to life safety during a seismic event, the State
Board of Higher Education, { +  governing board of a public
university with a governing board listed in section 3 of this
2013 Act, + } 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 163. + }  { + ORS 352.035, 352.048, 352.049,
352.051, 352.052 and 352.053 are repealed. + }
  '  { +  SECTION 164. + }  { + Notwithstanding ORS 62.720,
351.506, 351.507, 351.508, 351.532, 352.560, 567.010, 567.025,
567.030 and 759.445 and section 1, chapter 39, Oregon Laws 2012,
and section 6, chapter 79, Oregon Laws 2012, if the president of
Oregon State University notifies the Governor that the university
will become a university with a governing board in the manner set
forth in section 168 or 168b of this 2013 Act, any moneys
provided or transferred by law to the Oregon University System or
State Board of Higher Education for the benefit of or use by
Oregon State University shall be provided directly to Oregon
State University. + }
  '  { +  SECTION 165. + }  { + Notwithstanding ORS 196.438,
351.350, 352.230, 352.239, 352.247, 352.610, 526.225, 542.710,
561.364, 566.210, 567.005, 567.035, 567.210, 567.260, 567.455,
567.505, 567.510 and 567.580, if the president of Oregon State
University notifies the Governor that the university will become
a university with a governing board in the manner set forth in
section 168 or 168b of this 2013 Act, the university shall act
independently, rather than under the direction, control or
management of the State Board of Higher Education. + }

                                '
 { +  ESTABLISHMENT OF SPECIAL COMMITTEE + }
                               { +
AND WORK GROUP + }

  '  { +  SECTION 166. + }  { + (1) The Special Committee on
Regional and Technical Universities is established, consisting of
10 members appointed as follows:
  ' (a) The President of the Senate shall appoint four members
from among members of the Senate, taking into consideration the
geographic areas that will be most affected if local governance
is granted to the Oregon Institute of Technology, Western Oregon

University, Southern Oregon University and Eastern Oregon
University.
  ' (b) The Speaker of the House of Representatives shall appoint
four members from among members of the House of Representatives,
taking into consideration the geographic areas that will be most
affected if local governance is granted to the Oregon Institute
of Technology, Western Oregon University, Southern Oregon
University and Eastern Oregon University.
  ' (c) The Governor shall appoint two members who are members of
the Oregon Education Investment Board.
  ' (2) The special committee shall review, discuss and analyze:
  ' (a) Issues of administration within the state post-secondary
education system with an emphasis on four-year public
universities; and
  ' (b) Coordination of operations, academic programs, shared
services and other elements of that system.
  ' (3) The special committee may recommend legislation on:
  ' (a) The future governance of the Oregon Institute of
Technology, Western Oregon University, Southern Oregon University
and Eastern Oregon University; and
  ' (b) The future relationship among Oregon's institutions of
post-secondary education.
  ' (4) Any legislation recommended by the special committee
shall:
  ' (a) Take into consideration whether local governance is
appropriate at the Oregon Institute of Technology, Western Oregon
University, Southern Oregon University and Eastern Oregon
University, with a focus on what type of governance will best
increase student access, affordability and competitiveness at
these institutions in pursuit of the mission described in ORS
351.009.
  ' (b) Take into consideration the unique mission associated
with each of Oregon's seven public universities and identify how
these missions can best be accomplished and sustained over the
next 10 years.
  ' (c) Define the operating arrangements between the
institutions in order to ensure:
  ' (A) That all post-secondary institutions, including public
universities listed in ORS 352.002 and Oregon's 17 community
colleges, are able to achieve the goals and mission described in
ORS 351.006 and 351.009;
  ' (B) The achievement of cost efficiencies, economies of scale,
cost effectiveness, accountability, administrative streamlining
and the ability to provide the best quality education possible
for the amount of state dollars spent; and
  ' (C) That the public missions of Oregon's public universities,
including access and affordability for residents of this state,
are maintained and enhanced.
  ' (5)(a) Any shared services legislation recommended by the
special committee must consider the recommended shared services
model provided by the Work Group on University Shared Services
under section 166a (10) of this 2013 Act.
  ' (b) The shared services subject to review by the special
committee shall include, but are not limited to, risk management,
cash management, asset management, treasury services, payroll,
employee benefits, accounting, auditing, purchasing and
contracting, information technology and any other administrative
function that might benefit from the sharing or pooling of public
university resources.
  ' (6) A majority of the members of the special committee
constitutes a quorum for the transaction of business.
  ' (7) Official action by the special committee requires the
approval of a majority of the members of the committee.
  ' (8) The special committee shall elect two of its members to
serve as cochairpersons, one from the Senate and one from the
House of Representatives.
  ' (9) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
  ' (10) The special committee shall meet at times and places
specified by the call of the cochairpersons or of a majority of
the members of the committee.
  ' (11) The special committee may adopt rules necessary for the
operation of the committee.
  ' (12)(a) The special committee shall convene and begin work no
later than September 15, 2013.
  ' (b) The special committee shall complete a first draft of its
recommendations and report to an interim committee of the
Legislative Assembly related to education no later than December
15, 2013.
  ' (c) The special committee shall finalize and submit
recommendations to the Governor and Legislative Assembly no later
than February 1, 2014, for consideration during the 2014 regular
Legislative Session.
  ' (13) The Legislative Administration Committee shall provide
staff support to the special committee.
  ' (14) Members of the special committee who are not members of
the Legislative Assembly are not entitled to compensation.
  ' (15) All agencies of state government, as defined in ORS
174.111, are directed to assist the special committee 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 committee consider necessary to
perform their duties.
  ' (16) The special committee may accept contributions of funds
and assistance from any source, public or private, for the
purposes of the consultation with national experts required by
subsections (2) to (5) of this section. + }
  '  { +  SECTION 166a. + }  { + (1) The Work Group on University
Shared Services is established, consisting of the presidents of
the seven public universities listed in ORS 352.002, or the
presidents' designees.
  ' (2) The work group shall develop a shared services model that
delivers efficient and effective administrative operations to
participating post-secondary institutions in a manner that
focuses on quality, responsiveness and customer service and that
seeks to achieve cost savings, economies of scale,
accountability, transparency and streamlining.
  ' (3) In developing a shared services model under subsection
(2) of this section, the services that the work group must
consider include, but are not limited to, risk management, cash
management, asset management, treasury services, payroll,
employee benefits, accounting, auditing, purchasing and
contracting, information technology and any other administrative
function that might benefit from the sharing or pooling of public
university resources.
  ' (4) The State Board of Higher Education and the office of the
Chancellor of the Oregon University System shall assist the work
group in developing the work group's recommendations. The work
group may seek and accept consulting or other technical
assistance from any source in preparing its recommendations.
  ' (5) A majority of the members of the work group constitutes a
quorum for the transaction of business.
  ' (6) Official action by the work group requires the approval
of a majority of the members of the work group.
  ' (7) The work group shall elect one of its members to serve as
chairperson.
  ' (8) The work group shall meet at times and places specified
by the call of the chairperson or of a majority of the members of
the work group.
  ' (9) The work group may adopt rules necessary for the
operation of the work group.
  ' (10)(a) The work group shall submit a first draft of its
recommended shared services model to the Special Committee on
Regional and Technical Universities created in section 166 of
this 2013 Act no later than November 15, 2013.
  ' (b) The work group shall finalize and submit its recommended
shared services model to the special committee no later than
January 7, 2014.
  ' (11) The Oregon University System shall provide staff support
to the work group.
  ' (12) Members of the work group are not entitled to
compensation.
  ' (13) All agencies of state government, as defined in ORS
174.111, are directed to assist the work group 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 work group consider necessary to perform their
duties. + }
  '  { +  SECTION 167. + }  { + Sections 166 and 166a of this
2013 Act are repealed on the date of the convening of the 2014
regular session of the Legislative Assembly as specified in ORS
171.010. + }

                                '
 { +  OPERATIVE DATE AND TRANSITIONAL PROVISIONS + }

  '  { +  SECTION 168. + }  { + (1) Notwithstanding the operative
date set forth in section 171 of this 2013 Act, the Governor
shall appoint all of the members of the Board of Trustees of the
University of Oregon and all of the members of the Board of
Trustees of Portland State University by August 19, 2013, so that
these appointees may be confirmed by the Senate in the manner
provided in ORS 171.562 and 171.565 by September 30, 2013.
  ' (2) If the president of Oregon State University notifies the
Governor by August 1, 2013, the university will become a
university with a governing board:
  ' (a) Within two weeks after receiving the notification, the
Governor shall inform the President of the Senate, the Speaker of
the House of Representatives and the Legislative Counsel of the
notification; and
  ' (b) The Governor shall appoint all of the members of the
Board of Trustees of Oregon State University in the same manner
and time frame as set forth in subsection (1) of this section.
  ' (3) If the president of Oregon State University notifies the
Governor between August 2, 2013, and January 1, 2014, that the
university will become a university with a governing board, the
Board of Trustees of Oregon State University shall be established
in the manner set forth in section 168b of this 2013 Act. + }
  '  { +  SECTION 168a. + }  { + Notwithstanding the operative
date set forth in section 171 of this 2013 Act:
  ' (1) The Board of Trustees of the University of Oregon and the
Board of Trustees of Portland State University may first issue
bonds in the manner set forth in sections 19 to 23 of this 2013
Act on January 1, 2014.
  ' (2) If the president of Oregon State University notifies the
Governor in the manner set forth in section 168 (2) of this 2013
Act that the university will become a university with a governing
board, the Board of Trustees of Oregon State University may first
issue bonds in the manner set forth in sections 19 to 23 of this
2013 Act on January 1, 2014.
  ' (3) Sections 1, 3, 10 to 12, 15 and 16 of this 2013 Act and
the amendments to ORS 174.117, 287A.001, 307.095, 307.110 and
340.310 by sections 28, 54 and 132 to 134 of this 2013 Act become
operative on January 1, 2014, for any university with a governing
board that issues bonds pursuant to the authority granted in this
section. The provisions of sections 1, 3, 10 to 12, 15 and 16 of
this 2013 Act and the amendments to ORS 174.117, 287A.001,
307.095, 307.110 and 340.310 by sections 28, 54 and 132 to 134 of
this 2013 Act become operative on the date specified in this
subsection only for purposes of allowing, and only to the extent
necessary to allow, the university with a governing board to
issue bonds. Except as otherwise provided in this 2013 Act, the
university with a governing board may not exercise powers under
sections 1, 3, 10 to 12, 15 and 16 of this 2013 Act and the
amendments to ORS 174.117, 287A.001, 307.095, 307.110 and 340.310
by sections 28, 54 and 132 to 134 of this 2013 Act that are
unrelated to the issuance of bonds until July 1, 2014. + }
  '  { +  SECTION 168b. + }  { + If the president of Oregon State
University notifies the Governor between August 2, 2013, and
January 1, 2014, that the university will become a university
with a governing board:
  ' (1) Within two weeks after receiving the notification, the
Governor shall inform the President of the Senate, the Speaker of
the House of Representatives and the Legislative Counsel of the
notification; and
  ' (2) Not later than February 1, 2014, the Governor shall
appoint all of the members of the governing board in the manner
set forth in section 6 of this 2013 Act. + }
  '  { +  SECTION 169. + }  { + (1) Except as provided in section
168a of this 2013 Act, the State Board of Higher Education shall
continue to have jurisdiction over the operations of a university
with a governing board as defined in section 2 of this 2013 Act
for the 2013-2014 academic year. However, the governing board
shall propose funding requests pursuant to ORS 351.052, as
amended by section 42 of this 2013 Act, and shall prepare
budgets, in cooperation with the Higher Education Coordinating
Commission, for the biennium beginning July 1, 2015.
  ' (2) The president of a university with a governing board
shall take over administrative responsibilities for the
university from the State Board of Higher Education on July 1,
2014. + }
  '  { +  SECTION 170. + }  { + (1) Except as otherwise expressly
provided in this section, all persons employed by a university
with a governing board, as defined in section 2 of this 2013 Act,
on the effective date of this 2013 Act shall continue their
employment with the university and shall retain any seniority,
contractual rights or tenure granted prior to the effective date
of this 2013 Act. Nothing in this section shall affect any term
or condition of any collective bargaining agreement in effect on
the effective date of this 2013 Act.
  ' (2) All of the duties, functions, powers and lawfully
incurred rights and obligations of the State Board of Higher
Education that pertain to a university with a governing board are
transferred to and vested in the governing board. The transfer
shall include but not be limited to all applicable contractual
rights and obligations and title to all applicable records,
property, supplies and materials, including equipment, books and
papers. For the purpose of succession to these rights and
obligations, the governing board is considered to be a
continuation of the State Board of Higher Education and not a new
authority, and the governing board must exercise such rights and
fulfill such obligations as if they had not been assigned or
transferred, except as otherwise provided by law.
  ' (3) All unexpended moneys, including but not limited to
General Fund appropriations, gifts, bequests, other funds,
assessments, liability and worker's compensation reserves and
premiums that are appropriated to, held, managed or invested by
or on behalf of or otherwise available to a university with a
governing board, are appropriated and transferred to the
university.
  ' (4) A university with a governing board shall conduct and
complete any proceeding, action, prosecution or other matter that

the university commenced before the effective date of this 2013
Act and that is pending on the effective date of this 2013 Act.
  ' (5) The transfer of duties, functions and powers to a
governing board or university with a governing board does not
affect any action, suit or proceeding relating to the university,
except that the university shall be substituted for the State
Board of Higher Education and the State of Oregon in any such
action, suit or proceeding.
  ' (6) Any action, proceeding or other matter that was commenced
by a state agency, a state officer, the State Board of Higher
Education or an officer or employee of the State Board of Higher
Education before the effective date of this 2013 Act and relates
to the governing board or university with a governing board and
is still pending on the effective date of this 2013 Act shall be
conducted and completed by the governing board or university.
  ' (7) Nothing in this 2013 Act relieves any person, public
entity or private entity of any obligation with respect to a tax,
fee, fine or other charge, interest, penalty, forfeiture, rule,
policy, document, record or proceeding.
  ' (8) Notwithstanding any other provision of this section, the
lawfully adopted rules and policies of the State Board of Higher
Education pertaining to a university with a governing board that
are in effect on the effective date of this 2013 Act continue in
effect until lawfully superseded or repealed by the standards or
policies of the governing board or the university. References in
rules or policies of the State Board of Higher Education to the
state board or an officer or employee of the state board are
considered to be references to the governing board or an officer
or employee of a university with a governing board. + }
  '  { +  SECTION 171. + }  { + Sections 2, 2a, 2b, 3, 5, 8 to
18, 164, 165, 169 and 170 of this 2013 Act, the amendments to
statutes and session laws by sections 24, 25, 28 to 37 and 40 to
162 of this 2013 Act and the repeal of statutes by section 163 of
this 2013 Act become operative on July 1, 2014. + }
  '  { +  SECTION 172. + }  { + The State Board of Higher
Education and a university with a governing board as defined in
section 2 of this 2013 Act may take any action before the
operative date specified in section 171 of this 2013 Act that is
necessary for the State Board of Higher Education and the
university to exercise, on and after the operative date specified
in section 171 of this 2013 Act, all of the duties, functions and
powers conferred on the State Board of Higher Education and
university by this 2013 Act. + }

                                '
 { +  CAPTIONS + }

  '  { +  SECTION 173. + }  { + 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. + }

                                '
 { +  EMERGENCY CLAUSE + }

  '  { +  SECTION 174. + }  { + This 2013 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2013 Act
takes effect on its passage. + } ' .
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