77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

SA to A-Eng. SB 270

LC 977/SB 270-A23

                      SENATE AMENDMENTS TO
                   A-ENGROSSED SENATE BILL 270

              By JOINT COMMITTEE ON WAYS AND MEANS

                             July 1

  On page 1 of the printed A-engrossed bill, delete lines 4
through 16 and insert '36.155, 174.117, 184.631, 190.510,
190.520, 190.530, 190.540, 190.580, 190.590, 190.610, 192.501,
238.005, 238.200, 238.215, 238A.005, 243.107, 243.800, 243.820,
243.850, 243.910, 244.050, 270.100, 270.110, 273.155, 276.610,
276.612, 279A.025, 282.076, 284.540, 284.706, 286A.700, 287A.001,
291.055, 291.357, 291.375, 292.043, 292.044, 294.311, 297.250,
307.090, 307.095, 307.110, 307.112, 320.100, 329.810, 337.521,
340.310, 341.440, 342.443, 343.465, 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, 351.049, 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, 351.203, 351.205,
351.300, 351.310, 351.340, 351.509, 351.511, 351.516, 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, 354.090, 357.004, 358.575,
366.785, 401.922, 408.095, 408.506, 430.651, 442.830, 461.543,
468A.245, 471.580, 471.810, 526.215, 576.768, 659.850, 659.855,
659.860, 660.312, 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 5, 9, 22 and 24, chapter 904, Oregon Laws
2009, sections 8 and 11, chapter 615, Oregon Laws 2011, and
section 14, chapter 36, Oregon Laws 2012; repealing ORS 352.035,
352.048, 352.049,'.
  On page 3, delete lines 2 through 30 and insert:
  '  { +  SECTION 3. + }  { + (1) A governing board is
established for each of the following public universities:
  ' (a) University of Oregon;
  ' (b) Portland State University;
  ' (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 168a of this 2013 Act;
  ' (d) Eastern Oregon University, if Eastern Oregon University
becomes a university with a governing board in the manner set
forth in section 168a of this 2013 Act;
  ' (e) Oregon Institute of Technology, if Oregon Institute of
Technology becomes a university with a governing board in the
manner set forth in section 168a of this 2013 Act;
  ' (f) Southern Oregon University, if Southern Oregon University
becomes a university with a governing board in the manner set
forth in section 168a of this 2013 Act; and
  ' (g) Western Oregon University, if Western Oregon University
becomes a university with a governing board in the manner set
forth in section 168a 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 168a of this 2013 Act.
  ' (d) The Eastern Oregon University governing board shall be
known as the Board of Trustees of Eastern Oregon University, if
Eastern Oregon University becomes a university with a governing
board in the manner set forth in section 168a of this 2013 Act.
  ' (e) The Oregon Institute of Technology governing board shall
be known as the Board of Trustees of the Oregon Institute of
Technology, if the Oregon Institute of Technology becomes a
university with a governing board in the manner set forth in
section 168a of this 2013 Act.
  ' (f) The Southern Oregon University governing board shall be
known as the Board of Trustees of Southern Oregon University, if
Southern Oregon University becomes a university with a governing
board in the manner set forth in section 168a of this 2013 Act.
  ' (g) The Western Oregon University governing board shall be
known as the Board of Trustees of Western Oregon University, if
Western Oregon University becomes a university with a governing
board in the manner set forth in section 168a of this 2013
Act. + }
  '  { +  NOTE: + } Section 4 was deleted by amendment.
Subsequent sections were not renumbered.'.
  Delete lines 43 through 45.
  On page 4, delete lines 1 through 24 and insert:
  '  { +  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. The student shall be a voting
member of the board.
  ' (c) The governing board must include one person who is a
member of the faculty of the university and one person who is a
member of the nonfaculty staff of the university. For each
appointment made under this paragraph, the Governor may appoint
the person as either a voting or 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) Except as provided in paragraph (b) of this
subsection, the term of office for each appointed member of the
governing board is four years.
  ' (b) The term of office of each student, faculty and
nonfaculty staff 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. + } ' .
  Delete lines 28 through 45.
  On page 5, delete lines 1 through 15 and insert:
  '  { +  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 an office
designated by the Higher Education Coordinating Commission as
being responsible for university coordination.
  ' (3) A university with a governing board shall submit any
significant change in the university's academic programs to an
office designated by the Higher Education Coordinating Commission
as being responsible for university coordination. The office
shall establish a process for reviewing the program change and
submitting it 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 April 1 of each even-numbered year, each
university listed in ORS 352.002 must submit to an office
designated by the Higher Education Coordinating Commission as
being responsible for university coordination a funding request
applicable to the biennium beginning on July 1 of the following
year. On or before May 1 of each even-numbered year, the office
shall consolidate the funding requests from public universities
listed in ORS 352.002 and submit the consolidated funding
requests to the commission.
  ' (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.
  ' (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.
  ' (6) A public university listed in ORS 352.002 that wishes to
request the issuance of state bonds, including a university with
a governing board that elects to remain eligible to receive
proceeds of state bonds under section 20 of this 2013 Act, must
make a request to this effect to an office designated by the
Higher Education Coordinating Commission as being responsible for
university coordination. The office shall establish a process for
reviewing the request to issue state bonds and submit the request
to the commission. The commission shall decide whether, and in
what manner, to make a request for the issuance of state bonds to
the Legislative Assembly.
  ' (7)(a) Each public university listed in ORS 352.002,
including universities with governing boards, shall respond to a
request for data from the Legislative Assembly or other state
body by submitting the requested information to an office
designated by the Higher Education Coordinating Commission as
being responsible for university coordination. The office shall
consolidate the data received from public universities and
provide the data to the commission. The commission shall be
responsible for providing the data to the Legislative Assembly or
other requesting entity.
  ' (b) As used in this subsection, 'data' means any information
that, as of the effective date of this 2013 Act, is collected by
an office designated by the Higher Education Coordinating
Commission as being responsible for university coordination from
each university and reported to the Legislative Assembly or any
other state entity, including but not limited to retention and
graduation rates and demographic information on students. + } ' .
  On page 6, line 34, delete the first 'and' and insert ', pledge
or' and after 'mortgages' insert ', liens'.
  On page 7, line 1, after 'convey,' insert 'mortgage, pledge or
otherwise encumber,'.
  In line 26, after 'to' insert 'tuition and'.
  On page 8, line 2, after 'maintenance,' insert ' encumbrance,'.
  In line 5, before 'Real' insert 'Unless the governing board has
granted prior consent,'.
  On page 9, delete lines 2 through 5 and insert:
  '  { +  SECTION 14a. + }  { + (1) Notwithstanding sections 10,
11 and 169 of this 2013 Act, the amendments to ORS 243.107 and
351.094 by sections 88 and 113 of this 2013 Act and the operative
date set forth in section 171 of this 2013 Act, a university with
a governing board shall continue to participate with other public
universities listed in ORS 352.002 in all shared administrative
services relating to:
  ' (a) Employee benefits, including but not limited to group
insurance or deferred compensation plans authorized by ORS
351.094;
  ' (b) Collective bargaining with any statewide bargaining unit
that includes employees of two or more public universities listed
in ORS 352.002; and
  ' (c) Risk management, the purchase of insurance or the
management of a self-insurance program authorized by ORS 351.096
or section 11 of this 2013 Act.
  ' (2) The shared administrative services listed in subsection
(1) of this section must be done under the same terms,
conditions, funding model and policy frameworks as those that
exist on the effective date of this 2013 Act until July 1, 2015.
On and after July 1, 2015, public universities listed in ORS
352.002 may choose to participate in shared services under an
alternative shared services model.
  ' (3) Two or more public universities listed in ORS 352.002,
including universities with governing boards, may participate in
shared services not described in subsection (1) of this section,
including but not limited to shared services involving legal
services and information technology.
  ' (4) Pursuant to section 1 of this 2013 Act, and in order to
ensure that the establishment of universities with governing
boards does not negatively impact public universities that do not
have governing boards, if a university with a governing board
stops participating in a service shared by two or more public
universities listed in ORS 352.002, including but not limited to
the shared services listed in this section, and the withdrawal
from the service has a negative effect on the remaining public
universities, the Higher Education Coordinating Commission shall
compensate universities suffering a negative impact through
either reduction of appropriations made to the university with a
governing board or any other method found to be appropriate by
the commission.
  ' (5) The office of the Chancellor of the Oregon University
System shall coordinate public university shared services
described in this section until a new entity to coordinate shared
services is operational. + }
  '  { +  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 July
1, 2014, or the date that the board is established, whichever is
later, and all moneys collected or received by a university with
a governing board after that date, may be:'.
  On page 10, line 20, delete 'university' and insert ' public
universities listed in ORS 352.002'.
  In line 21, delete '$2.4 million' and insert '$6 million'.
  On page 12, line 36, after 'of' insert 'ORS 271.390 and'.
  On page 13, line 43, after the period delete the rest of the
line and delete lines 44 and 45 and insert '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 legally
available revenue of the university and on a pari passu basis
with the payment of any revenue bonds of the university issued
pursuant to section 21 of this 2013 Act.'.
  On page 15, delete lines 12 through 45.
  On page 16, delete lines 1 through 9 and insert:
  '  { +  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.
  '  { +  (5) Subsections (1) to (4) of this section apply only
to listed public universities that do not become a university
with a governing board under section 3, 168 or 168a of this 2013
Act. + }
  '  { +  SECTION 26. + }  { + A public university that becomes a
university with a governing board under section 168 or 168a of
this 2013 Act is not considered to be a public university listed
in ORS 351.011. + }
  '  { +  NOTE: + } Section 27 was deleted by amendment.
Subsequent sections were not renumbered.'.
  On page 21, delete lines 41 through 45.
  On page 22, delete lines 1 through 25 and insert:
  '  { +  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 - }   { + Two
members + } of the faculty at
  { - Eastern Oregon University, Oregon Institute of Technology,
Southern Oregon University or Western Oregon University - }  { +
a public university listed in ORS 351.011 + }.
  '  { - (4) - }  { +  (3) + } Eleven { +   + }members of the
general public who are not students or faculty members at the
time of appointment.
  '  { +  NOTE: + } Sections 38 and 39 were deleted by amendment.
Subsequent sections were not renumbered.'.
  On page 23, line 5, after 'all' insert 'significant changes
to'.
  In line 6, delete 'academic programs' and insert ' changes'.
  Delete lines 22 through 28 and insert:
  ' (2)(a) On or before April 1 of each even-numbered year, each
public university listed in ORS 352.002 must submit to an office
designated by the Higher Education Coordinating Commission as
being responsible for university coordination a funding request
applicable to the biennium beginning on July 1 of the following
year; and
  ' (b) On or before May 1 of each even-numbered year, the office
designated under paragraph (a) of this subsection shall
consolidate the funding requests from public universities listed
in ORS 352.002 and submit the consolidated funding requests to
the Higher Education Coordinating Commission.'.
  In line 36, after the period delete the rest of the line and
delete lines 37 through 39.
  On page 29, line 11, delete 'to the board'.
  In line 12, delete 'board' and insert 'Higher Education
Coordinating Commission' and delete '(2)(b)'.
  On page 38, line 40, after 'owed' insert 'by the public
universities listed in ORS 352.002'.
  In line 41, delete 'by the Oregon University System'.
  On page 39, line 6, after 'owed' insert 'by the public
universities listed in ORS 352.002' and delete 'by the uni-'.
  In line 7, delete 'versity' and delete '$2.4 million' and
insert '$6 million'.
  On page 51, after line 43, insert:
  '  { +  SECTION 106a. + } ORS 190.510 is amended to read:
  ' 190.510. As used in ORS 190.510 to 190.610, unless the
context requires otherwise { + , + }  { - : - }
  '  { - (1) 'Board' means the State Board of Higher Education
established under ORS 351.015. - }
  '  { - (2) - }  'city' means any incorporated city or town.
  '  { +  SECTION 106b. + } ORS 190.520 is amended to read:
  ' 190.520. (1)   { - The State Board of Higher Education - }
 { +  Portland State University  + }shall:
  ' (a) Annually estimate the population as of July 1 of each
city and county within the state and no later than December 15 of
each year prepare a certificate of population showing the
  { - board's - }   { + university's + } estimate of the
population of each city and county within the state as of July 1.
The   { - board's - }   { + university's + } estimate may be
based upon statistical or other pertinent data or upon an actual
count. The certificate shall also indicate the results of any
enumeration of cities or annexed areas made after July 1.
  ' (b) Annually estimate the number of persons between the ages
of 4 and 20 who resided in each county as of October 25. The
  { - board - }   { + university + } shall certify such estimate
to the Superintendent of Public Instruction and to the executive
officer of the administrative office of each county, as defined
in ORS 328.001, by January 1 of each year.
  ' (c) Upon an official request from a city, county, political
subdivision, public corporation or state agency, cause to be
conducted at the expense of the requesting party an actual count
of the population of the area specified in the request and
prepare a certificate of population based upon such count.
  ' (d) Upon the incorporation of a city, cause to be conducted
at the expense of the city an actual count of the population of
the city. The   { - board - }   { + university + } shall prepare
a certificate of population based upon such count. If the
election of officers of the newly incorporated city is held 40
days or more before the end of the calendar quarter, the
certificate shall be prepared before the end of the calendar
quarter. If the election is held less than 40 days before the end
of the calendar quarter, the certificate shall be prepared before
the end of the calendar quarter next following the election.
  ' (2) All certificates prepared under this section shall be
filed with the Portland State University Population Research
Center.
  '  { +  SECTION 106c. + } ORS 190.530 is amended to read:
  ' 190.530. Upon petition from a city, county, political
subdivision, public corporation or state agency for
reconsideration, or upon its own motion,   { - the State Board of
Higher Education - }   { + Portland State University + } may
revise its determination of the population of a city, county or
other area.  Payment of funds to a city, county or other area
under ORS 323.455, 366.785 to 366.820 or 471.810 shall be
affected by a subsequent filing of a corrected certificate under
this section in the manner provided by ORS 190.620.
  '  { +  SECTION 106d. + } ORS 190.540 is amended to read:
  ' 190.540. (1) The population shown in the certificate of
population   { - of the State Board of Higher Education - }
filed pursuant to ORS 190.520 or 190.530 shall be the official
population of the city, county or other area covered by the
certificate until a later certificate covering such city, county
or other area is filed by   { - the board - }   { + Portland
State University + }.
  ' (2) After a certificate of population is filed pursuant to
ORS 190.520 or 190.530, the population of a city, county or other
area as shown in the certificate shall be the official and
exclusive basis for determining per capita allocation and payment
of funds to such city, county or other area under ORS 366.785 to
366.820 and 471.810 until the filing by the   { - board - }
 { + university + } of a later certificate for such city, county
or other area.
  '  { +  SECTION 106e. + } ORS 190.580 is amended to read:
  ' 190.580.   { - The State Board of Higher Education - }
 { + Portland State University + } may adopt such   { - rules and
regulations - }  { +  standards + } as it considers desirable and
expedient in the conduct of its duties under ORS 190.510 to
190.610.
  '  { +  SECTION 106f. + } ORS 190.590 is amended to read:
  ' 190.590. Any state agency, or officer thereof, and any city,
or department, officer or employee thereof, shall, upon request
of   { - the State Board of Higher Education - }   { + Portland
State University + }, furnish such available information as may
be required by the   { - board - }   { + university + } in
securing accurate data and information upon which to base its
estimates. The   { - board - }  { + university + } may prescribe
the form for reporting such information.
  '  { +  SECTION 106g. + } ORS 190.610 is amended to read:
  ' 190.610.   { - The State Board of Higher Education - }
 { + Portland State University + } shall establish a
program { + , + }   { - at one or more of the public universities
under its control, - }  designed to perform the duties imposed
upon it by ORS 190.510 to 190.610.
  '  { +  SECTION 106h. + } ORS 294.311 is amended to read:
  ' 294.311. As used in ORS 294.305 to 294.565, unless the
context requires otherwise:
  ' (1) 'Accrual basis' means the recording of the financial
effects on a municipal corporation of transactions and other
events and circumstances that have cash consequences for the
municipal corporation in the periods in which those transactions,
events and circumstances occur, rather than only in the periods
in which cash is received or paid by the municipal corporation.
  ' (2) 'Activity' means a specific and distinguishable service
performed by one or more organizational components of a municipal
corporation to accomplish a function for which the municipal
corporation is responsible.
  ' (3) 'Appropriation' means an authorization granted by the
governing body to make expenditures and to incur obligations for
specific purposes. An appropriation is limited to a single fiscal
year for municipal corporations preparing annual budgets, or to
the budget period for municipal corporations preparing biennial
budgets.
  ' (4) 'Basis of accounting' means the cash basis, the modified
accrual basis or the accrual basis.
  ' (5) 'Budget' means a plan of financial operation embodying an
estimate of expenditures for a given period or purpose and the
proposed means of financing the estimated expenditures.
  ' (6) 'Budget document' means the estimates of expenditures and
budget resources as set forth on the estimate sheets, tax levy
and the financial summary.
  ' (7) 'Budget period' means, for municipal corporations with
the power to levy a tax upon property, the two-year period
commencing on July 1 and closing on June 30 of the second
calendar year next following, and for all other municipal
corporations, an accounting period of 24 months ending on the
last day of any month.
  ' (8) 'Budget resources' means resources to which recourse can
be had to meet obligations and expenditures during the fiscal
year or budget period covered by the budget.
  ' (9) 'Cash basis' means a basis of accounting under which
transactions are recognized only in the period during which cash
is received or disbursed.
  ' (10) 'Current budget period' means the budget period in
progress.
  ' (11) 'Current year' means the fiscal year in progress.
  ' (12) 'Encumbrance accounting' means the method of accounting
under which outstanding encumbrances are recognized as reductions
of appropriations and the related commitments are carried in a
reserve for encumbrances until liquidated, either by replacement
with an actual liability or by cancellation. This method of
accounting may be used as a modification to the accrual basis of
accounting in accordance with generally accepted accounting
principles.
  ' (13) 'Encumbrances' means obligations in the form of purchase
orders, contracts or salary commitments which are chargeable to
an appropriation and for which a part of the appropriation is
reserved. Obligations cease to be encumbrances when paid or when
the actual liability is set up.
  ' (14) 'Ensuing budget period' means the budget period
following the current budget period.
  ' (15) 'Ensuing year' means the fiscal year following the
current year.
  ' (16) 'Expenditure' means, if the accounts are kept on the
accrual basis or the modified accrual basis, decreases in net
financial resources and may include encumbrances. If the accounts
are kept on the cash basis, the term covers only actual
disbursement, the drawing of the check or warrant for these
purposes and not encumbrances, except that deferred employee
compensation shall be included as a personnel service expenditure
where an approved deferred employee compensation plan is in
effect for a municipal corporation.
  ' (17) 'Fiscal year' means for municipal corporations with the
power to impose ad valorem property taxes, the fiscal year
commencing on July 1 and closing on June 30, and for all other
municipal corporations, an accounting period of 12 months ending
on the last day of any month.
  ' (18) 'Fund balance' means the excess of the assets of a fund
over its liabilities and reserves except in the case of funds
subject to budgetary accounting where, prior to the end of a
fiscal period, it represents the excess of the fund's assets and
estimated revenues for the period over its liabilities, reserves
and appropriations for the period.
  ' (19) 'General county resources' means resources from property
taxes, state and federal shared revenue, beginning balances
available for expenditure and interest not required to be
allocated to specific programs or activities.
  ' (20) 'Governing body' means the city council, board of
commissioners, board of directors, county court or other managing
board of a municipal corporation including a board managing a
municipally owned public utility or a dock commission.
  ' (21) 'Grant' means a donation or contribution of cash to a
governmental unit by a third party.
  ' (22) 'Intergovernmental entity' means an entity created under
ORS 190.010 (5). The term includes any council of governments
created prior to the enactment of ORS 190.010 (5).
  ' (23) 'Internal service fund' means a fund properly authorized
to finance, on a cost reimbursement basis, goods or services
provided by one organizational unit of a municipal corporation to
other organizational units of the municipal corporation.
  ' (24) 'Liabilities' means probable future sacrifices of
economic benefits, arising from present obligations of a
municipal corporation to transfer assets or provide services to
other entities in the future as a result of past transactions or
events.  The term does not include encumbrances.
  ' (25)(a) 'Modified accrual basis' means the accrual basis of
accounting adapted to the governmental fund-type measurement
focus. Under this basis of accounting, revenues and other
financial resource increments, such as bond proceeds, are
recognized when they become susceptible to accrual, that is, when
they become both measurable and available to finance expenditures
in the current period.
  ' (b) As used in this subsection, 'available' means collectible
in the current period or soon enough thereafter to be used to pay
liabilities of the current period. Under this basis of
accounting, expenditures are recognized when the fund liability
is incurred except for:
  ' (A) Inventories of material and supplies that may be
considered expenditures either when purchased or when used; and
  ' (B) Prepaid insurance and similar items that may be
considered expenditures either when paid for or when consumed.
  ' (26) 'Municipal corporation' means any county, city, port,
school district, union high school district, community college
district and all other public or quasi-public corporations
including a municipal utility or dock commission operated by a
separate board or commission. 'Municipal corporation' includes an
intergovernmental entity or council of governments that proposes
to impose or imposes ad valorem property taxes.
  ' (27) 'Net working capital' means the sum of the cash, cash
equivalents, investments, accounts receivable expected to be
converted to cash during the ensuing year or ensuing budget
period, inventories, supplies and prepaid expenses less current
liabilities and, if encumbrance accounting is adopted, reserve
for encumbrances. The term is not applicable to the cash basis of
accounting.
  ' (28) 'Object' means, as used in expenditure classification,
articles purchased including, but not limited to, land,
buildings, equipment and vehicles, or services obtained
including, but not limited to, administrative services, clerical
services, professional services, property services and travel, as
distinguished from the results obtained from expenditures.
  ' (29) 'Object classification' means a grouping of expenditures
on the basis of goods or services purchased, including, but not
limited to, personnel services, materials, supplies and
equipment.
  ' (30) 'Operating taxes' has the meaning given that term in ORS
310.055.
  ' (31) 'Organizational unit' means any administrative
subdivision of a municipal corporation, especially one charged
with carrying on one or more functions or activities.
  ' (32) 'Population' means the number of inhabitants of a
municipal corporation according to certified estimates of
population made by   { - the State Board of Higher Education - }
 { +  Portland State University + }.
  ' (33) 'Program' means a group of related activities aimed at
accomplishing a major service or function for which the
municipality is responsible.
  ' (34) 'Public utility' means those public utility operations
authorized by ORS chapter 225.
  ' (35) 'Publish' or 'publication' means any one or more of the
following methods of giving notice or making information or
documents available to members of the general public:
  ' (a) Publication in one or more newspapers of general
circulation within the jurisdictional boundaries of the municipal
corporation.
  ' (b) Posting through the United States Postal Service by first
class mail, postage prepaid, to each street address within the
jurisdictional boundaries of the municipal corporation and to
each post office box and rural route number belonging to a
resident within the jurisdictional boundaries of the municipal
corporation.
  ' (c) Hand delivery to each street address within the
jurisdictional boundaries of the municipal corporation.
  ' (36) 'Receipts' means cash received unless otherwise
qualified.
  ' (37) 'Reserve for encumbrances' means a reserve representing
the segregation of a portion of a fund balance to provide for
unliquidated encumbrances.
  ' (38) 'Revenue' means the gross receipts and receivables of a
governmental unit derived from taxes, licenses, fees and from all
other sources, but excluding appropriations, allotments and
return of principal from investment of surplus funds.
  ' (39) 'Special revenue fund' means a fund properly authorized
and used to finance particular activities from the receipts of
specific taxes or other revenues.
  '  { +  SECTION 106i. + } ORS 366.785 is amended to read:
  ' 366.785. As used in ORS 366.785 to 366.820, unless the
context requires otherwise:
  ' (1) 'Year' means a calendar year.

  ' (2) 'City' means only cities of this state which are
regularly operating as such through elected governmental
officers.
  ' (3) 'Population' means population as given in the latest
determination of   { - the State Board of Higher Education - }
 { + Portland State University + }, except that for a city of
more than 100,000 population according to the latest such
determination, the term means 74 percent of the number of
population given for the city in the determination for
computation of its share for 1964, 78 percent for computation of
its share for 1965, 82 percent for 1966, 86 percent for 1967, 90
percent for 1968, 94 percent for 1969, 98 percent for 1970; and
for 1971 and subsequent years computation shall be made on the
basis of full number of population.
  '  { +  SECTION 106j. + } ORS 471.810 is amended to read:
  ' 471.810. (1) At the end of each month, the Oregon Liquor
Control Commission shall certify the amount of moneys available
for distribution in the Oregon Liquor Control Commission Account
and, after withholding such moneys as it may deem necessary to
pay its outstanding obligations, shall within 35 days of the
month for which a distribution is made direct the State Treasurer
to pay the amounts due, upon warrants drawn by the Oregon
Department of Administrative Services, as follows:
  ' (a) Fifty-six percent, or the amount remaining after the
distribution under subsection (4) of this section, credited to
the General Fund available for general governmental purposes
wherein it shall be considered as revenue during the quarter
immediately preceding receipt;
  ' (b) Twenty percent to the cities of the state in such shares
as the population of each city bears to the population of the
cities of the state, as determined by   { - the State Board of
Higher Education - }   { + Portland State University + } last
preceding such apportionment, under ORS 190.510 to 190.610;
  ' (c) Ten percent to counties in such shares as their
respective populations bear to the total population of the state,
as estimated from time to time by   { - the State Board of Higher
Education - }   { + Portland State University + }; and
  ' (d) Fourteen percent to the cities of the state to be
distributed as provided in ORS 221.770 and this section.
  ' (2) The commission shall direct the Oregon Department of
Administrative Services to transfer 50 percent of the revenues
from the taxes imposed by ORS 473.030 and 473.035 to the Mental
Health Alcoholism and Drug Services Account in the General Fund
to be paid monthly as provided in ORS 430.380.
  ' (3) If the amount of revenues received from the taxes imposed
by ORS 473.030 for the preceding month was reduced as a result of
credits claimed under ORS 473.047, the commission shall compute
the difference between the amounts paid or transferred as
described in subsections (1)(b), (c) and (d) and (2) of this
section and the amounts that would have been paid or transferred
under subsections (1)(b), (c) and (d) and (2) of this section if
no credits had been claimed. The commission shall direct the
Oregon Department of Administrative Services to pay or transfer
amounts equal to the differences computed for subsections (1)(b),
(c) and (d) and (2) of this section from the General Fund to the
recipients or accounts described in subsections (1)(b), (c) and
(d) and (2) of this section.
  ' (4) Notwithstanding subsection (1) of this section, no city
or county shall receive for any fiscal year an amount less than
the amount distributed to the city or county in accordance with
ORS 471.350 (1965 Replacement Part), 471.810, 473.190 and 473.210
(1965 Replacement Part) during the 1966-1967 fiscal year unless
the city or county had a decline in population as shown by its
census. If the population declined, the per capita distribution
to the city or county shall be not less than the total per capita
distribution during the 1966-1967 fiscal year. Any additional
funds required to maintain the level of distribution under this
subsection shall be paid from funds credited under subsection
(1)(a) of this section.'.
  On page 77, delete line 9 and insert:
  '  { +  SECTION 119. + } ORS 270.100 is amended to read:
  ' 270.100. (1)(a) Before offering for sale any real property or
equitable interest therein owned by the state, the state agency
acting for the state in such transaction shall report its intent
of sale or transfer to the Oregon Department of Administrative
Services. The department, or the agency specifically designated
by the department, shall notify other state agencies authorized
to own real property of the intended sale or transfer to
determine whether acquisition of the real property or interest
therein would be advantageous to another state agency.
  ' (b) The department shall give political subdivisions, as
defined in ORS 271.005, the first opportunity after other state
agencies to acquire, purchase, exchange or lease real property to
be sold or disposed of by the State of Oregon. The state agency
responsible for selling or transferring the property may require
at the time of the sale or transfer that any state real property
sold or transferred to a political subdivision, as defined in ORS
271.005, shall be for use for a public purpose or benefit, and
not be for resale to a private purchaser.
  ' (c) If property is not disposed of under paragraph (a) or (b)
of this subsection, in accordance with rules adopted by the
department, the state agency desiring to sell or transfer the
property shall cause it to be appraised by one or more competent
and experienced appraisers. Except as provided in ORS 273.825, if
such property has an appraised value exceeding $5,000 it shall
not be sold to any private person except after notice calling for
such proposals as set forth in ORS 270.130.
  ' (d) The department shall adopt rules to carry out the
provisions of this section.
  ' (2) Before acquisition of any real property or interest
therein by any state agency, except for highway right of way
acquired by the Department of Transportation and park properties
acquired by the State Parks and Recreation Department and
property within the approved projected campus boundaries for
public universities of the Oregon University System { +  or
public universities with governing boards listed in section 3 of
this 2013 Act + }, the state agency shall report its intent of
acquisition to the Oregon Department of Administrative Services.
The department shall notify other state agencies owning land of
the intended acquisition to determine whether another state
agency desires to sell or transfer property which would meet the
needs of the purchasing agency. In accordance with rules adopted
by the Oregon Department of Administrative Services, if no other
state agency desires to sell or transfer property which would
meet the needs of the agency, the agency may acquire the real
property or interest therein, consistent with applicable
provisions of law.
  ' (3) Before any terminal disposition of real property or an
interest in real property, the state agency acting for the state
in the transaction must secure approval of the transaction from
the Oregon Department of Administrative Services.
  ' (4) Subsection (3) of this section does not apply to terminal
disposition of the following real property:
  ' (a) Property controlled by the State Department of Fish and
Wildlife;
  ' (b) State forestlands controlled by the State Forestry
Department;
  ' (c) Property controlled by the Department of Transportation;
  ' (d) Property controlled by the Department of State Lands;
  ' (e) Property controlled by the Oregon University System { +
or controlled by public universities with governing boards listed
in section 3 of this 2013 Act + };
  ' (f) Property controlled by the legislative or judicial
branches of state government; and
  ' (g) Property controlled by the State Parks and Recreation
Department.
  ' (5) Notwithstanding the provisions of subsection (4) of this
section, prior approval by the Oregon Department of
Administrative Services is required for the terminal disposition
of public land for less than the fair market value of that land.
  ' (6) The provisions of ORS 184.634, 270.005 to 270.015,
270.100 to 270.190, 273.416, 273.426 to 273.436, 273.551 and
308A.709 (1) to (4) do not apply to a home or farm acquired,
sold, or both, by the Department of Veterans' Affairs under ORS
88.720, 406.050, 407.135, 407.145, 407.375 and 407.377.'.
  After line 44, insert:
  '  { +  SECTION 120a. + } ORS 273.155 is amended to read:
  ' 273.155. The Department of State Lands, in carrying out its
duties, may call upon all related state and county agencies,
including the Oregon University System { + , public universities
with governing boards listed in section 3 of this 2013 Act + }
and any state or county officers or Oregon University System
 { + or public university + } employees through whom necessary
information and aid may be received. Such agencies, officers and
employees shall cooperate with the department without additional
compensation.'.
  On page 80, after line 11, insert:
  '  { +  SECTION 123a. + } ORS 282.076 is amended to read:
  ' 282.076. (1) An athletic department of any university under
the jurisdiction of the State Board of Higher Education { +  or
an athletic department of a public university with a governing
board listed in section 3 of this 2013 Act + }   { - shall not
be - }  { +  is not + } required to use state printing services
controlled by the Director of the Oregon Department of
Administrative Services or the designee of the director as
required by ORS 282.020 (1).
  ' (2) A state agency that gives to the director prior written
notice of its intent to use other printing services   { - shall
not be - }  { +  is not + } required to use state printing
services controlled by the director or the director's designee as
required by ORS 282.020 (1), if the agency can demonstrate that
these other printing services provide better value in the form of
lower prices or better responsiveness than those services already
provided by the Oregon Department of Administrative Services.
  '  { +  SECTION 123b. + } ORS 284.540 is amended to read:
  ' 284.540. (1) There is established the Governor's Council on
Oregon's Economy.
  ' (2) The members of the council are:
  ' (a) The presiding officer of the Oregon Business Development
Commission;
  ' (b) The chairperson of the Oregon Transportation Commission;
  ' (c) The chairperson of the State Board of Agriculture;
  ' (d) The   { - president of the State Board of Higher
Education - }  { +  chairperson of the Higher Education
Coordinating Commission + }; and
  ' (e) Other persons designated by the Governor.
  ' (3) The council shall meet quarterly to:
  ' (a) Discuss and coordinate the activities of each entity
described in subsection (2) of this section that relate to
economic development and improving the economy in Oregon; and
  ' (b) Discuss and recommend to the Legislative Assembly methods
for creating certainty for the development process.
  '  { +  SECTION 123c. + } ORS 284.706, as amended by sections
21 and 31, chapter 90, Oregon Laws 2012, is amended to read:
  ' 284.706. (1) There is created the Oregon Innovation Council
consisting of the following voting members:
  ' (a) The Governor or the Governor's designated representative,
who shall be chairperson of the council.
  ' (b) Five members appointed by the Governor who are engaged in
the operations of Oregon traded sector industries or Oregon
growth businesses.
  ' (c) One member appointed by the Governor who is a
representative of an Oregon-based, generally accredited,
not-for-profit private institution of higher education.
  ' (d) A member of the Oregon Growth Account Board, appointed by
the board, who has experience in the field of venture capital.
  ' (e) A member of the Engineering and Technology Industry
Council, appointed by the Engineering and Technology Industry
Council.
  ' (f) The Director of the Oregon Business Development
Department.
  ' (g) The   { - Chancellor of the Oregon University System - }
 { +  executive director of the Higher Education Coordinating
Commission + }.
  '  { - (h) The Commissioner for Community College Services. - }

  '  { - (i) - }   { + (h) + } The State Treasurer.
  ' (2)(a) The Speaker of the House of Representatives shall
appoint two members to the council who are members of the House
of Representatives.
  ' (b) The President of the Senate shall appoint two members to
the council who are members of the Senate.
  ' (c) Members of the Legislative Assembly appointed to the
council are nonvoting members and may act in an advisory capacity
only.
  ' (3) The following persons, or their representatives, shall
serve as ex officio, nonvoting members of the council:
  ' (a) The presiding officer of the Oregon Business Development
Commission.
  ' (b) The   { - president of the State Board of Higher
Education - }  { +  chairperson of the Higher Education
Coordinating Commission + }.
  ' (c) The chairperson of the State Board of Education.
  ' (d) An executive officer of an association representing
Oregon-based, generally accredited, not-for-profit private
institutions of higher education, appointed by the Governor.
  ' (4) The term of office of each appointed voting member of the
council is three years, but an appointed member serves at the
pleasure of the appointing authority. Before the expiration of
the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next
following. An appointed member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
remainder of the unexpired term.
  ' (5) A majority of the voting members of the council
constitutes a quorum for the transaction of business.
  ' (6) Official action by the council requires the approval of a
majority of the voting members of the council.
  ' (7) The council shall meet at least twice per fiscal year at
a place, day and time determined by the chairperson. The council
may also meet at other times and places specified by a call of
the chairperson or by written request of a majority of the voting
members of the council.
  ' (8) The council may adopt rules necessary for the operation
of the council.
  ' (9) The council may establish committees and delegate to the
committees duties as the council considers desirable.
  ' (10) The Oregon Business Development Department shall provide
staff support to the council.
  ' (11) Members of the council who are members of the
Legislative Assembly are entitled to compensation and expense
reimbursement as provided in ORS 171.072.

  ' (12) Members of the council who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are
public officers shall be paid out of funds appropriated to the
public agency that employs the member. Claims for compensation
and expenses of members of the council who are not public
officers shall be paid out of funds appropriated to the Oregon
Business Development Department for that purpose.
  ' (13) All agencies of state government, as defined in ORS
174.111, are directed to assist the council in the performance of
its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
  '  { +  SECTION 123d. + } ORS 286A.700 is amended to read:
  ' 286A.700. (1) As used in this section:
  ' (a) 'Oregon Baccalaureate Bonds' means bonds of the State of
Oregon issued by the State Treasurer at the request of the Oregon
University System that are designated as baccalaureate bonds.
  ' (b) 'Post-secondary education' means training and instruction
provided by fully accredited public universities or private
institutions of higher learning, community colleges and
post-high-school career schools.
  ' (2) The Legislative Assembly encourages citizens of the State
of Oregon to avail themselves of post-secondary education
opportunities.
  ' (3) The Legislative Assembly finds:
  ' (a) For the benefit of its citizens, the state supports a
system of common schools, public universities and community
colleges.
  ' (b) A post-secondary education advances a citizen's ability
to pursue life, liberty and happiness through a wide range of
employment opportunities.
  ' (c) A well-educated citizenry contributes to the economic
well-being of the state and nation.
  ' (d) A well-trained and skilled citizenry enhances economic
development of the state.
  ' (e) While students have just begun their education upon
completion of a formal education, a lifetime pursuit of learning
contributes to a well-informed citizenry and to Oregon's
cherished quality of life.
  ' (f) Citizens educated in Oregon are more likely to pursue
careers in Oregon.
  ' (g) It is in the interest of this state to encourage its
citizens to plan and save for a post-secondary education.
  ' (h) An Oregon Baccalaureate Bond program that provides
citizens an opportunity to save for a post-secondary education
for their children, themselves or any citizen is in the social
and economic interest of the State of Oregon.
  ' (i) A systematic way to save for post-secondary education can
assist all of Oregon's higher education, community college and
career schools to better project enrollments, thereby permitting
the prudent allocation of scarce resources.
  ' (4) At the request of the   { - Oregon University System - }
 { +  Higher Education Coordinating Commission + }, the State
Treasurer may:
  ' (a) Issue bonds as Oregon Baccalaureate Bonds, to encourage
investors to save for post-secondary education opportunities.
  ' (b) Investigate and implement the means and procedures to
facilitate the participation by the broadest practical range of
investors in the Oregon Baccalaureate Bond program. The means and
procedures may include, but are not limited to, adjustments in
the denominations in which the bonds are issued and the frequency
with which the bonds are issued.
  ' (5) The purchase of an Oregon Baccalaureate Bond does not
guarantee the purchaser, owner or beneficiary of the bond
admittance to a public university or private post-secondary
institution.
  '  { +  SECTION 123e. + } ORS 291.375, as amended by section
10, chapter 107, Oregon Laws 2012, is amended to read:
  ' 291.375. (1) Prior to the submission of any application for
financial assistance or grants from the United States or any
agency of the United States by or on behalf of any agency of this
state, the application must be submitted for legislative review
in the following manner:
  ' (a) If the application is to be submitted to the federal
government when the Legislative Assembly is in session, the
application shall be submitted to the Joint Committee on Ways and
Means for review.
  ' (b) If the application is to be submitted to the federal
government when the Legislative Assembly is not in session, the
application shall be submitted to the Emergency Board or to the
Joint Interim Committee on Ways and Means for review.
  ' (2) If the legislative agency authorized under subsection (1)
of this section to review applications described therein approves
the application, it may be submitted to the appropriate federal
agency. If the legislative agency disapproves of the application,
it may not be submitted to any federal agency unless it is or can
be modified to meet the objections of the legislative agency.
  ' (3) Notwithstanding subsection (1) of this section, the Joint
Committee on Ways and Means, the Emergency Board or the Joint
Interim Committee on Ways and Means may exempt any state agency
from the requirements of this section. Project grants for
departmental research, organized activities related to
instruction, sponsored research or other sponsored programs
carried on within the Oregon University System { +  or the public
universities with governing boards listed in section 3 of this
2013 Act + }, for which no biennial expenditure limitations have
been established, are exempt from the requirements of this
section.
  ' (4) The review required by this section is in addition to and
not in lieu of the requirements of ORS 293.550.'.
  On page 87, after line 13, insert:
  '  { +  SECTION 133a. + } ORS 320.100 is amended to read:
  ' 320.100. (1) All moneys received from the taxes imposed under
ORS 320.011 and 320.012, including penalties, shall be paid by
the Department of Revenue in the following manner:
  ' (a) Seventy-five percent (75%) of the moneys shall be
credited, appropriated or remitted as follows:
  ' (A) Forty-three and two-tenths percent (43.2%) thereof shall
be credited to the General Fund to be available for payment of
general governmental expenses.
  ' (B) Nine and seven-tenths percent (9.7%) is continuously
appropriated to pay the expenses of state and local programs of
the Oregon Youth Conservation Corps established under ORS 418.650
to 418.663.
  ' (C) Forty-seven and one-tenth percent (47.1%) thereof shall
be remitted to the county treasurers of the several counties of
the state. Each county shall receive such share of the moneys as
its population, determined by   { - the State Board of Higher
Education - }  { +  Portland State University + }, bears to the
total population of the counties of the state, as determined by
the census last preceding such apportionment.
  ' (b) Twenty-five percent (25%) of the moneys shall be
continuously appropriated to pay the expenses of the state and
local programs of the Oregon Youth Conservation Corps established
under ORS 418.650 to 418.663.
  ' (2) All revenues received under this section by the
treasurers of the several counties shall be placed in the general
fund of each county to be expended by the county courts or the
board of county commissioners of the several counties for general
governmental expenses.
  '  { +  SECTION 133b. + } ORS 329.810 is amended to read:
  ' 329.810. (1) After consulting with representatives of
teachers, administrators, school boards, schools of education,
the Oregon University System { + , the public universities with
governing boards listed in section 3 of this 2013 Act + } and
such others as it considers appropriate, the Department of
Education shall approve training for mentors and beginning
teachers and administrators in programs qualifying for
grants-in-aid under ORS 329.788 to 329.820.
  ' (2) The training curriculum for mentors shall be based on
research and knowledge of the needs of beginning teachers and
administrators.
  ' (3) Mentors shall be trained to build relationships of trust
and mutual collaboration with beginning teachers and
administrators.
  ' (4) Mentors shall receive professional development before the
school year begins and throughout the school year.
  '  { +  SECTION 133c. + } ORS 337.521 is amended to read:
  ' 337.521. (1) The   { - State Board of Higher Education - }
 { +  Higher Education Coordinating Commission + } may work with
publishers, recognized national organizations of publishers,
representatives of post-secondary education institutions, the
system described in ORS 192.517 and other interested parties to:
  ' (a) Develop unified, statewide guidelines consistent with ORS
337.511 to 337.524;
  ' (b) Administer ORS 337.511 to 337.524; and
  ' (c) Review guidelines annually and revise the guidelines as
necessary due to changes in technology or other changes.
  ' (2) The guidelines may address the following:
  ' (a) The procedures and standards relating to the distribution
of files and materials pursuant to ORS 337.511 to 337.524;
  ' (b) Available electronic formats;
  ' (c) Procedures for granting exceptions when it is determined
that a publisher is not able to comply with the requirements of
ORS 337.511 to 337.524 due to technical, economic or other
practical impediments; and
  ' (d) Other matters deemed necessary or appropriate to carry
out the purposes of ORS 337.511 to 337.524.
  ' (3) The   { - State Board of Higher Education - }  { +
Higher Education Coordinating Commission + } shall review the
recommendations, published on or after July 1, 2007, of the
Association of American Publishers' Alternative Formats Solutions
Initiative, and determine whether the recommendations should be
incorporated into ORS 337.511 to 337.524.'.
  On page 88, after line 5, insert:
  '  { +  SECTION 135a. + } ORS 342.443 is amended to read:
  ' 342.443. (1) The Education and Workforce Policy Advisor shall
report biennially to the Legislative Assembly longitudinal data
on the number and percentage of:
  ' (a) Minority students enrolled in community colleges;
  ' (b) Minority students applying for admission to public
universities listed in ORS 352.002;
  ' (c) Minority students accepted in public universities;
  ' (d) Minority students graduated from public universities;
  ' (e) Minority candidates seeking to enter public teacher
education programs in this state;
  ' (f) Minority candidates admitted to public teacher education
programs;
  ' (g) Minority candidates who have completed approved public
teacher education programs;
  ' (h) Minority candidates receiving Oregon teaching licenses
based on preparation in this state and preparation in other
states;

  ' (i) Minority teachers who are newly employed in the public
schools in this state; and
  ' (j) Minority teachers already employed in the public schools.
  ' (2) The advisor also shall report comparisons of minorities'
and nonminorities' scores on basic skills, pedagogy and subject
matter tests.
  ' (3) The Oregon University System, { +  the public
universities with governing boards listed in section 3 of this
2013 Act, + } the Department of Education, the Teacher Standards
and Practices Commission, community colleges and school districts
shall cooperate with the advisor in collecting data and preparing
the report.
  '  { +  SECTION 135b. + } ORS 343.465 is amended to read:
  ' 343.465. (1) It is the policy of this state to respect the
unique nature of each child, family and community with particular
attention to cultural and linguistic diversity, and to support a
system of services for preschool children with disabilities and
their families that:
  ' (a) Recognizes the importance of the child's family, supports
and builds on each family's strengths and respects family
decision-making and input regarding service options and public
policy.
  ' (b) Identifies, evaluates and refers services for preschool
children with disabilities at the earliest possible time.
  ' (c) Uses specialized services and all other community
services and programs for children, including community
preschools, Head Start programs, community health clinics, family
support programs and other child-oriented agencies.
  ' (d) Uses a variety of funding sources for preschool children
with disabilities and their families, including public and
private funding, insurance and family resources.
  ' (e) Assists families in utilizing necessary services in the
most cost-effective and efficient manner possible by using a
coordinated planning and implementation process.
  ' (f) Insures that all children and their families, regardless
of disability, risk factors or cultural or linguistic
differences, are able to utilize services for which they would
otherwise be qualified.
  ' (g) Encourages services and supports for preschool children
with disabilities and their families in their home communities
and in settings with children without disabilities.
  ' (h) Recognizes the importance of developing and supporting
well-trained and competent personnel to provide services to
preschool children with disabilities, and their families.
  ' (i) Evaluates the system's impact on the child and family,
including child progress, service quality, family satisfaction,
transition into public schooling, longitudinal and cumulative
reporting over several biennia and interagency coordination at
both the state and local level.
  ' (j) Reports information described in paragraph (i) of this
subsection to the State Interagency Coordinating Council, the
Governor, the State Board of Education { + , the public
universities with governing boards listed in section 3 of this
2013 Act + } and the Legislative Assembly each biennium.
  ' (2) In carrying out the provisions of subsection (1) of this
section, the Department of Education, the Department of Human
Services { + , the public universities with governing boards
listed in section 3 of this 2013 Act + } and the Oregon
University System shall coordinate services to preschool children
with disabilities, or who are at risk of developing disabling
conditions, and their families. All program planning, standards
for service, policies regarding services delivery and budget
development for services for preschool children with
disabilities, and their families shall reflect the policy
outlined in subsection (1) of this section and elaborated through
rules and agreements.'.
  On page 90, after line 25, insert:
  '  { +  SECTION 138a. + } ORS 351.049 is amended to read:
  ' 351.049. The State Board of Higher Education shall forward
all mission statements of the public universities listed in ORS
  { - 352.002 - }  { +  351.011 + } to the Higher Education
Coordinating Commission for approval.
  '  { +  SECTION 138b. + } ORS 351.203 is amended to read:
  ' 351.203. (1) The State Board of Higher Education { +  and the
public universities with governing boards listed in section 3 of
this 2013 Act + } shall cooperate with the   { - Education and
Workforce Policy Advisor - }  { +  Chief Education Officer of the
Oregon Education Investment Board + } in the development of a
state comprehensive education plan including post-secondary
education and in review of the board's programs and budget. The
board { +  and the public universities with governing boards
listed in section 3 of this 2013 Act + } shall submit in timely
fashion to the   { - advisor such - }  { +  Chief Education
Officer the + } data as is appropriate in a form prescribed by
the   { - advisor - }  { +  officer + }.
  ' (2) The board { +  and the public universities with governing
boards listed in section 3 of this 2013 Act + } shall cooperate
with the mediation process administered by the Higher Education
Coordinating Commission pursuant to ORS 348.603 and, if a
negotiated resolution cannot be reached by mediation, comply with
the decisions of the commission regarding proposed new
post-secondary programs and proposed new post-secondary
locations, including those proposed by Oregon Health and Science
University in cooperation with the State Board of Higher
Education under ORS 353.440.'.
  On page 91, after line 23, insert:
  '  { +  SECTION 140a. + } ORS 358.575 is amended to read:
  ' 358.575. (1) The voting members of the Oregon Heritage
Commission shall be representatives of:
  ' (a) Heritage interests, including Indian tribes with federal
recognition, that reflect the cultural and geographic diversity
of this state; and
  ' (b) Heritage interests reflected in community institutions,
libraries, museums, architecture, archaeology and historic
preservation.
  ' (2) The advisory members of the commission shall be:
  ' (a) One member designated by the Director of the Department
of Land Conservation and Development;
  ' (b) One member designated by the Trustees of the State
Library;
  ' (c) One member designated by the   { - State Board of Higher
Education - }  { +  Higher Education Coordinating Commission + };
  ' (d) One member designated by the Oregon Tourism Commission;
  ' (e) One member designated by the Superintendent of Public
Instruction;
  ' (f) The Executive Director of the Oregon Historical Society
or a designee of the executive director;
  ' (g) The State Archivist or a designee of the archivist;
  ' (h) The Coordinator of the State Historical Records Advisory
Board or a designee of the coordinator; and
  ' (i) The State Historic Preservation Officer or a designee of
the officer.
  '  { +  SECTION 140b. + } ORS 401.922 is amended to read:
  ' 401.922. The Office of Emergency Management shall provide
technical, clerical and other necessary support services to the
Seismic Safety Policy Advisory Commission. The Department of
Consumer and Business Services, the State Department of Geology
and Mineral Industries, the Department of Land Conservation and
Development, the Department of Transportation, the Oregon Health
Authority, the Water Resources Department { + , the public
universities with governing boards listed in section 3 of this
2013 Act + } and the Oregon University System shall provide
assistance, as required, to the commission to enable it to meet
its objectives.'.
  On page 92, after line 8, insert:
  '  { +  SECTION 143a. + } ORS 442.830 is amended to read:
  ' 442.830. (1) There is established the Oregon Patient Safety
Commission Board of Directors consisting of 17 members, including
the Public Health Officer and 16 directors who shall be appointed
by the Governor and who shall be confirmed by the Senate in the
manner prescribed in ORS 171.562 and 171.565.
  ' (2) Membership on the board shall reflect the diversity of
facilities, providers, insurers, purchasers and consumers that
are involved in patient safety. Directors shall demonstrate
interest, knowledge or experience in the area of patient safety.
  ' (3) The membership of the board shall be as follows:
  ' (a) The Public Health Officer or the officer's designee;
  ' (b) One faculty member, who is not involved in the direct
delivery of health care, of the Oregon University System { + , a
public university with a governing board listed in section 3 of
this 2013 Act + } or a private Oregon university;
  ' (c) Two representatives of group purchasers of health care,
one of whom shall be employed by a state or other governmental
entity and neither of whom may provide direct health care
services or have an immediate family member who is involved in
the delivery of health care;
  ' (d) Two representatives of health care consumers, neither of
whom may provide direct health care services or have an immediate
family member who is involved in the delivery of health care;
  ' (e) Two representatives of health insurers, including a
representative of a domestic not-for-profit health care service
contractor, a representative of a domestic insurance company
licensed to transact health insurance or a representative of a
health maintenance organization;
  ' (f) One representative of a statewide or national labor
organization;
  ' (g) Two physicians licensed under ORS chapter 677 who are in
active practice;
  ' (h) Two hospital administrators or their designees;
  ' (i) One pharmacist licensed under ORS chapter 689;
  ' (j) One representative of an ambulatory surgical center or an
outpatient renal dialysis facility;
  ' (k) One nurse licensed under ORS chapter 678 who is in active
clinical practice; and
  ' (L) One nursing home administrator licensed under ORS chapter
678 or one nursing home director of nursing services.
  ' (4) The term of office of each director appointed by the
Governor is four years. Before the expiration of the term of a
director, the Governor shall appoint a successor whose term
begins on July 2 next following. A director is eligible for
reappointment for an additional term. If there is a vacancy for
any cause, the Governor shall make an appointment to become
effective immediately for the unexpired term. The board shall
nominate a slate of candidates whenever a vacancy occurs or is
announced and shall forward the recommended candidates to the
Governor for consideration.
  ' (5) The board shall select one of its members as chairperson
and another as vice chairperson for the terms and with the duties
and powers as the board considers necessary for performance of
the functions of those offices. The board shall adopt bylaws as
necessary for the efficient and effective operation of the
commission.
  ' (6) The Governor may remove any member of the board at any
time at the pleasure of the Governor, but not more than eight
directors shall be removed within a period of four years, unless
it is for corrupt conduct in office. The board may remove a
director as specified in the commission bylaws.

  ' (7) The board may appoint subcommittees and advisory groups
as needed to assist the board, including but not limited to one
or more consumer advisory groups and technical advisory groups.
The technical advisory groups shall include physicians, nurses
and other licensed or certified professionals with specialty
knowledge and experience as necessary to assist the board.
  ' (8) No voting member of the board may be an employee of the
commission.
  '  { +  SECTION 143b. + } ORS 461.543 is amended to read:
  ' 461.543. (1) Except as otherwise specified in subsection (5)
of this section, the Sports Lottery Account is continuously
appropriated to and shall be used by the   { - State Board of
Higher Education - }  { +  Higher Education Coordinating
Commission + } to fund sports programs at public universities
listed in ORS 352.002. Seventy percent of the revenues in the
fund shall be used to fund nonrevenue producing sports and 30
percent shall be used for revenue producing sports. Of the total
amount available in the fund, at least 50 percent shall be made
available for women's athletics.
  ' (2) The board shall allocate moneys in the Sports Lottery
Account among the public universities, giving due consideration
to:
  ' (a) The athletic conference to which the public university
belongs and the relative costs of competing in that conference.
  ' (b) The level of effort being made by the public university
to generate funds and support from private sources.
  ' (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season.
  ' (4) An amount equal to one percent of the moneys transferred
to the Administrative Services Economic Development Fund from the
State Lottery Fund shall be allocated from the Administrative
Services Economic Development Fund to the Sports Lottery Account.
  ' (5) The amounts received by the Sports Lottery Account shall
be allocated as follows:
  ' (a) Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section, but not to exceed $8
million annually, adjusted annually pursuant to the Consumer
Price Index, as defined in ORS 327.006.
  ' (b) Twelve percent for the purpose of scholarships, to be
distributed equally between scholarships based on academic merit
and scholarships based on need, as determined by rule of the
board, but not to exceed $1,090,909 annually.
  ' (c) All additional money to the Oregon Student Access
Commission for the Oregon Opportunity Grant program under ORS
348.260.
  '  { +  SECTION 143c. + } ORS 468A.245 is amended to read:
  ' 468A.245. The Oregon Global Warming Commission shall develop
an outreach strategy to educate Oregonians about the scientific
aspects and economic impacts of global warming and to inform
Oregonians of ways to reduce greenhouse gas emissions and ways to
prepare for the effects of global warming. The commission, at a
minimum, shall work with state and local governments, the State
Department of Energy, the Department of Education, the
  { - State Board of Higher Education - }  { +  Higher Education
Coordinating Commission + } and businesses to implement the
outreach strategy.'.
  On page 95, after line 19, insert:
  '  { +  SECTION 145a. + } ORS 526.215 is amended to read:
  ' 526.215. To aid in the economic development of the State of
Oregon, the State Board of Higher Education { + , or if Oregon
State University establishes a governing board, Oregon State
University, + } shall institute and carry on research and
experimentation to develop the maximum yield from the forestlands
of Oregon, to obtain the fullest utilization of the forest
resource, and to study air and water pollution as it relates to
the forest products industries.
  '  { +  SECTION 145b. + } ORS 576.768 is amended to read:
  ' 576.768. (1) The report submitted by the Oregon Wine Board
under ORS 182.472 must include a description of the long term
strategic plan created by the board and a description of the
progress made in implementing the statewide strategic objectives
of the board during the most recent biennium.
  ' (2) Notwithstanding ORS 182.462:
  ' (a) The board shall prepare and submit annual plans and a
budget recommended by the board for promotion and for research
during the next fiscal year.
  ' (b) The board shall adopt rules specifying the procedures,
criteria and timelines for the preparation and approval of the
annual plans and budget for promotion and for research.
  ' (c) The Director of the Oregon Business Development
Department shall review the budget and plans submitted under this
section. In reviewing the annual plans and budget, the director
shall consider whether the information supplied by the board is
factual and consistent with ORS 576.750 to 576.775 and the
positive development of the Oregon wine grape growing and wine
making industries. The director shall either approve the budget
and plans prior to the commencement of the next fiscal year or
disapprove and return the budget and plans to the board with
conditions necessary for approval prior to the commencement of
the next fiscal year. In reviewing the budget and plans, the
director may consult with and receive coordinated support from:
  ' (A) The State Department of Agriculture;
  ' (B) The Oregon Tourism Commission;
  ' (C) The Oregon University System { + , or if Oregon State
University establishes a governing board, Oregon State
University + };
  ' (D) The Department of Community Colleges and Workforce
Development; and
  ' (E) The Oregon Liquor Control Commission.'.
  On page 96, after line 33, insert:
  '  { +  SECTION 148a. + } ORS 660.312 is amended to read:
  ' 660.312. (1) The Governor shall be responsible for a
coordinated and comprehensive response to education and workforce
issues. The Governor shall appoint an Education and Workforce
Policy Advisor, who serves at the pleasure of the Governor. The
advisor shall, with the advice of such advisory committees as may
be appointed or assigned, advise the Governor on policy, planning
and coordination for education and workforce development in
Oregon.
  ' (2) The duties of the advisor shall include:
  ' (a) Guiding the development of state-level policy related to
education and workforce issues;
  ' (b) Providing general direction and serving as a liaison
between state and local efforts in education, training and
workforce development;
  ' (c) Ensuring, through collaboration with the leadership of
local workforce investment boards and regional workforce
committees, the alignment of statewide, local and regional
strategic plans, and the periodic reporting of performance in the
implementation of such plans; and
  ' (d) Consulting with local workforce investment boards and
regional workforce committees on the development and
implementation of a workforce performance measurement system.
  ' (3) In the performance of duties, the advisor shall
collectively involve state agencies, including but not limited
to:
  ' (a) The Department of Education;
  ' (b) The Oregon University System;
  ' (c) The Oregon Business Development Department;
  ' (d) The Department of Community Colleges and Workforce
Development;
  ' (e) The Employment Department;
  ' (f) The Department of Human Services;
  ' (g) The Bureau of Labor and Industries;
  ' (h) The Department of Corrections;
  ' (i) The Oregon Student Access Commission;   { - and - }
  ' (j) The Teacher Standards and Practices Commission  { - . - }
 { + ; and + }
  '  { +  (k) The public universities with governing boards
listed in section 3 of this 2013 Act. + }
  ' (4) The advisor shall seek input from key interested parties
to help guide policy development, including but not limited to
representatives of:
  ' (a) Businesses and industry organizations;
  ' (b) Labor and labor organizations;
  ' (c) Local education providers;
  ' (d) Local government;
  ' (e) Student, teacher, parent and faculty organizations;
  ' (f) Community-based organizations;
  ' (g) Public-private partnership organizations;
  ' (h) Independent nonprofit and proprietary post-secondary
colleges and schools; and
  ' (i) Regional workforce committees, local workforce investment
boards and regional investment boards.
  ' (5) The advisor shall meet, on a regularly scheduled basis,
with the local workforce investment boards, regional workforce
committees and such others as necessary to ensure that local
interests are represented. The advisor shall seek input, advice
and feedback on policy issues affecting state, regional and local
education and workforce development from interested parties and
other committees formed under ORS 660.306, 660.312 and 660.315.
  ' (6) Pursuant to ORS chapter 183, the advisor may adopt rules
necessary to carry out the duties of the advisor.'.
  On page 100, after line 11, insert:
  '  { +  SECTION 154c. + } Section 5, chapter 904, Oregon Laws
2009, is amended to read:
  '  { +  Sec. 5. + } The   { - State Board of Higher
Education - }   { + Higher Education Coordinating Commission + }
shall determine  { + by rule how + }   { - the capital renewal,
code compliance and safety projects to be undertaken with - }
moneys made available under section 6 (1)(a) { + , chapter 904,
Oregon Laws 2009, shall be allocated to universities listed in
ORS 352.002 + }   { - of this 2009 Act on the basis of the
board's determination of the most critical capital renewal, code
compliance and safety needs. In determining the capital renewal,
code compliance and safety needs, the board shall give priority
to projects that protect the health and safety of occupants and
maintain the structural integrity of facilities - } .
  '  { +  SECTION 154d. + } Section 9, chapter 904, Oregon Laws
2009, as amended by section 6, chapter 99, Oregon Laws 2010, and
section 2, chapter 15, Oregon Laws 2011, is amended to read:
  '  { +  Sec. 9. + } (1) Except as provided in subsection (3) of
this section, the project approvals and expenditure limitations
in chapter 904, Oregon Laws 2009, and the expenditure limitations
established by the Emergency Board during the biennium beginning
July 1, 2009, for capital construction or acquisition projects of
the Oregon University System { + , of the public universities
with governing boards listed in section 3 of this 2013 Act + }
and of the Department of Community Colleges and Workforce
Development for community colleges, expire on June 30, 2015,
unless otherwise noted or unless changed by the Legislative
Assembly.
  ' (2) The project approvals and expenditure limitations
established by section 2 (5)(b), (e) and (i), chapter 725, Oregon
Laws 2003, and section 2 (3)(h), chapter 845, Oregon Laws 2001,
for capital construction or acquisition projects of the Oregon
University System expire on June 30, 2011, unless otherwise
changed by the Legislative Assembly.
  ' (3) The project approvals and expenditure limitations in
section 6 (4)(c), (k) and (L), (5)(c) and (e) and (7)(k), chapter
904, Oregon Laws 2009, and the expenditure limitations
established by the Emergency Board during the biennium beginning
July 1, 2009, for capital construction or acquisition projects of
the Oregon University System described in section 6 (4)(c), (k)
and (L), (5)(c) and (e) and (7)(k), chapter 904, Oregon Laws
2009, expire on June 30, 2015, unless otherwise noted or unless
changed by the Legislative Assembly.
  ' (4) The project approvals and expenditure limitations in
section 6 (1)(a), (2)(b), (4)(b), (6)(a) and (7)(b) and (c),
chapter 904, Oregon Laws 2009, expire on June 30, 2015, unless
provided otherwise.
  '  { +  SECTION 154e. + } Section 8, chapter 615, Oregon Laws
2011, is amended to read:
  '  { +  Sec. 8. + } The   { - State Board of Higher
Education - }  { +  Higher Education Coordinating Commission + }
shall determine  { + by rule how + }   { - the capital renewal,
code compliance and safety projects to be undertaken with - }
moneys made available under section 9 (1)(a) { + , chapter 615,
Oregon Laws 2011, shall be allocated to universities listed in
ORS 352.002 + }   { - of this 2011 Act on the basis of the
board's determination of the most critical capital renewal, code
compliance and safety needs. In determining the capital renewal,
code compliance and safety needs, the board shall give priority
to projects that protect the health and safety of occupants and
maintain the structural integrity of facilities. Capital renewal,
code compliance and safety projects do not include acquisition of
buildings, structures or land - } .
  '  { +  SECTION 154f. + } Section 11, chapter 615, Oregon Laws
2011, is amended to read:
  '  { +  Sec. 11. + } (1) The project approvals and expenditure
limitations established in section 9   { - of this 2011 Act - }
 { + , chapter 615, Oregon Laws 2011 + }, and the expenditure
limitations established by the Emergency Board during the
biennium beginning July 1, 2011, for capital construction or
acquisition projects of the Oregon University System { +  and
public universities with governing boards listed in section 3 of
this 2013 Act + } expire on June 30, 2017, unless otherwise noted
or unless changed by the Legislative Assembly.
  ' (2) The project approvals and expenditure limitations
established by section 2 (6)(h), chapter 787, Oregon Laws 2005,
and increased by the Emergency Board at its April 2006 meeting,
for capital construction or acquisition projects of the Oregon
University System expire on June 30, 2013, unless otherwise
changed by the Legislative Assembly.
  ' (3) The project approvals and expenditure limitations
established by section 2 (4)(g), (5)(g), 5(j), (6)(k) and (6)(p),
chapter 787, Oregon Laws 2005, for capital construction or
acquisition projects of the Oregon University System expire on
June 30, 2013, unless otherwise changed by the Legislative
Assembly.
  ' (4) The project approvals and expenditure limitations
established by section 2 (6)(e), chapter 761, Oregon Laws 2007,
and increased by the Emergency Board at its September 2010
meeting, for capital construction or acquisition projects of the
Oregon University System expire on June 30, 2013, unless
otherwise changed by the Legislative Assembly.
  ' (5) The project approvals and expenditure limitations
established by the Emergency Board at its September 2010 meeting
for construction of student family housing at Western Oregon
University expire on June 30, 2017, unless otherwise changed by
the Legislative Assembly.
  ' (6) The project approvals and expenditure limitations
established by section 3 (1), (6) and (7), chapter 787, Oregon
Laws 2005, for capital construction or acquisition projects at
Columbia Gorge Community College, Klamath Community College and
Southwestern Oregon Community College expire on June 30, 2012,
unless otherwise changed by the Legislative Assembly.
  ' (7) The project approval and expenditure limitation
established by section 16   { - of this 2011 Act - }  { + ,
chapter 615, Oregon Laws 2011, + } for Strand Agriculture Hall
deferred maintenance at Oregon State University expires on June
30, 2015, unless otherwise changed by the Legislative Assembly.'.
  On page 104, after line 15, insert:
  '  { +  SECTION 162a. + } ORS 354.090 is amended to read:
  ' 354.090. The   { - State Board of Higher Education - }
 { + Oregon Institute of Technology + } is declared the managing
agency of the FM radio station KTEC, licensed to the Oregon
Institute of Technology, and as such shall prescribe rules and
regulations in conformity with the regulations and laws of the
United States Government relating to educational FM radio
stations. By such rules and regulations the   { - State Board of
Higher Education - }   { + Oregon Institute of Technology + }
shall make the facilities of the radio station available in the
training programs of the   { - Oregon Institute of Technology - }
 { + university + }.
  '  { +  SECTION 162b. + }  { + (1) The amendments to ORS
354.090 by section 162a of this 2013 Act become operative only if
the Oregon Institute of Technology becomes a university with a
governing board in the manner set forth in section 168a of this
2013 Act.
  ' (2) If the condition specified in subsection (1) of this
section is met, the amendments to ORS 354.090 by section 162a of
this 2013 Act become operative on the date the Governor appoints
the members of the governing board under section 168a of this
2013 Act. + }
  '  { +  SECTION 162c. + } ORS 351.516 is amended to read:
  ' 351.516. (1) There is established in the General Fund an
account to be known as the Eastern Oregon University Regional
Agricultural, Health and Life Sciences Building Account. Funds in
the account shall be used to acquire or construct a new building
for agriculture, health and life sciences studies at Eastern
Oregon University.
  ' (2) The account shall consist of proceeds from lottery bonds
and federal and local government funds made available to and
funds donated to   { - the Oregon University System - }  { +
Eastern Oregon University + } for the purpose of the Eastern
Oregon University Regional Agricultural, Health and Life Sciences
Building 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 - }  { +  Eastern Oregon
University + } for the purposes described in subsection (1) of
this section. The account may not be credited with more than
$14,470,500 in interest, proceeds from lottery bonds, donations
and federal and local government funds for purposes of this
subsection.
  '  { +  SECTION 162d. + }  { + (1) The amendments to ORS
351.516 by section 162c of this 2013 Act become operative only if
Eastern Oregon University becomes a university with a governing
board in the manner set forth in section 168a of this 2013 Act.
  ' (2) If the condition specified in subsection (1) of this
section is met, the amendments to ORS 351.516 by section 162c of
this 2013 Act become operative on the date the Governor appoints
the members of the governing board under section 168a of this
2013 Act. + } ' .
  In line 17, after '62.720,' insert '321.185,'.
  In line 21, delete '168b' and insert '168a'.
  In line 28, delete '168b' and insert '168a'.
  After line 29, insert:
  '  { +  SECTION 165a. + }  { + Notwithstanding ORS 352.221 and
352.223 and section 16, chapter 761, Oregon Laws 2007, section 7,
chapter 2, Oregon Laws 2009, and section 18, chapter 904, Oregon
Laws 2009, if the Oregon Institute of Technology becomes a
university with a governing board in the manner set forth in
section 168a 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 the Oregon Institute of
Technology shall be provided directly to the Oregon Institute of
Technology. + } ' .
  Delete lines 34 through 45 and delete pages 105 and 106.
  On page 107, delete lines 1 through 15 and insert:
  '  { +  SECTION 166. + }  { + (1) The Special Committee on
University Governance and Operations 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.
  ' (b) The Speaker of the House of Representatives shall appoint
four members from among members of the House of Representatives.
  ' (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, after considering the
recommendations of the Work Group on University Shared Services
established under section 166a of this 2013 Act.
  ' (3) The special committee may recommend legislation on the
future relationship between Oregon's institutions of
post-secondary education.
  ' (4) The special committee shall evaluate options related to
institutional governance as Oregon's public universities
transition to new governing boards, with a focus on how best to
coordinate academic services among the universities in order to
increase student access, affordability and success in pursuit of
the mission described in ORS 351.009. Options may include the
role of a chancellor or an academic leader, the composition of
the interim State Board of Higher Education between July 1, 2014,
and June 30, 2015, or the composition and authorities of a
consortium board for universities that do not request
institutional governing boards.
  ' (5) With respect to university governance, any legislation
recommended by the special committee shall:
  ' (a) 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; and
  ' (b) Ensure that the public missions of Oregon's public
universities, including access and affordability for residents of
this state, are maintained and enhanced.
  ' (6) With respect to university operations, any legislation
recommended by the special committee shall 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; and
  ' (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 moneys spent.
  ' (7)(a) Any shared services legislation recommended by the
special committee must further consider the recommended shared
services model provided by the Work Group on University Shared
Services under section 166a (11) 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.
  ' (8) A majority of the members of the special committee
constitutes a quorum for the transaction of business.
  ' (9) Official action by the special committee requires the
approval of a majority of the members of the committee.
  ' (10) The special committee shall elect two of its members to
serve as cochairpersons, one of whom is from the Senate and one
of whom is from the House of Representatives.
  ' (11) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective.
  ' (12) 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.
  ' (13) The special committee may adopt rules necessary for the
operation of the committee.
  ' (14)(a) The special committee shall convene and begin work no
later than September 15, 2013.
  ' (b) The special committee shall submit interim
recommendations to the Governor and Legislative Assembly no later
than January 15, 2014, for consideration during the 2014 regular
legislative session.
  ' (c) The special committee shall continue to meet and submit
final recommendations to the Governor and Legislative Assembly,
if necessary, no later than November 15, 2014, for consideration
during the 2015 regular legislative session.
  ' (15) The Legislative Administration Committee shall provide
staff support to the special committee.
  ' (16) Members of the special committee who are not members of
the Legislative Assembly are not entitled to compensation.
  ' (17) All agencies of state government, as defined in ORS
174.111, and public universities listed in ORS 352.002 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.
  ' (18) 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 for
the activities described in subsections (2) to (7) 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) In recommending how to achieve a shared services
enterprise for the public universities listed in ORS 352.002, the
work group shall:
  ' (a) Recommend an appropriate entity to facilitate the sharing
of services among the public universities listed in ORS 352.002
after universities with governing boards are established;
  ' (b) Recommend how the shared services coordinating entity
described in paragraph (a) of this subsection will be managed;
  ' (c) Determine the financial impact that will be caused, both
cumulatively and individually, for each university that
establishes a governing board and leaves the Oregon University
System;
  ' (d) Recommend a mechanism to mitigate or eliminate the
negative financial impact caused by universities establishing
governing boards and leaving the Oregon University System, or
require universities establishing governing boards and leaving
the Oregon University System to remain in each shared service. In
determining this mechanism, the work group must consider the
appropriateness of assessments or reductions of appropriations;
and
  ' (e) Identify services that should remain shared among public
universities listed in ORS 352.002 after the establishment of
universities with governing boards. In determining whether a
service should remain shared, the work group must consider the
economies of scale achieved by sharing the service, the benefit
to the public in sharing the service and the positive and
negative financial impact on each public university if one or
more universities with governing boards either stops or continues
to participate in the service.
  ' (5) 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.
  ' (6) A majority of the members of the work group constitutes a
quorum for the transaction of business.
  ' (7) Official action by the work group requires the approval
of a majority of the members of the work group.
  ' (8) The work group shall elect one of its members to serve as
chairperson.
  ' (9) 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.
  ' (10) The work group may adopt rules necessary for the
operation of the work group.
  ' (11)(a) The work group shall submit a first draft of its
recommended shared services model to the Special Committee on
University Governance and Operations established in section 166
of this 2013 Act no later than December 15, 2013.
  ' (b) The work group shall finalize and submit its recommended
shared services model to the special committee no later than
September 15, 2014.
  ' (12) The Oregon University System shall provide staff support
to the work group.
  ' (13) Members of the work group are not entitled to
compensation.
  ' (14) 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 2016
regular session of the Legislative Assembly as specified in ORS
171.010. + } ' .
  In line 35, delete '168b' and insert '168a'.
  Delete lines 36 through 45.
  On page 108, delete lines 1 through 19 and insert:
  '  { +  SECTION 168a. + }  { + (1) 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:
  ' (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) 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.
  ' (2)(a) If the president of Eastern Oregon University, Oregon
Institute of Technology, Southern Oregon University or Western
Oregon University determines that the university should become a
university with a governing board, the president shall notify the
Governor and the State Board of Higher Education of the
university's intent. Notification under this subsection must
occur during the period beginning March 1, 2014, and ending June
1, 2015.
  ' (b) Within 45 days of receiving notification under this
subsection from a university president, the State Board of Higher
Education shall decide whether or not to endorse the university's
decision. If the board endorses the request, the board shall
immediately communicate any endorsement to the Governor.
  ' (b) Upon receiving notification that the State Board of
Higher Education has endorsed a university's decision to become a
university with a governing board, the Governor shall:
  ' (A) Inform the President of the Senate, the Speaker of the
House of Representatives and the Legislative Counsel of that the
university will become a university with a governing board; and
  ' (B) Not later than six months after receiving the
notification, appoint all of the members of the governing board
in the manner set forth in section 6 of this 2013 Act.
  ' (3) Notwithstanding section 169 of this 2013 Act, if Eastern
Oregon University, Oregon Institute of Technology, Southern
Oregon University or Western Oregon University become a
university with a governing board under subsection (2) of this
section, the president of that university shall take over
administrative responsibilities for the university from the State
Board of Higher Education on either July 1, 2015 or when the
Governor appoints the members of the governing board, whichever
date comes later. + } ' .
  In line 20, delete '(1)'.
  In line 22, delete 'for the 2013-2014 academic year' and insert
'through June 30, 2014'.
  In line 23, after 'to' insert 'section 8 of this 2013 Act and'.
  Delete lines 26 and 27.
  On page 109, after line 34, insert:
  '  { +  SECTION 172a. + }  { + This 2013 Act is intended to
preserve the autonomy of the universities listed in ORS 352.002
whether they are governed by a university governing board or a
university consortium board. + } ' .
                         ----------