Chapter 900 Oregon Laws 2001

AN ACT

HB 2294

Relating to Department of Human Services; creating new provisions; amending ORS 18.400, 25.080, 25.381, 30.297, 30.298, 87.512, 101.140, 108.610, 109.425, 113.085, 113.105, 114.305, 114.525, 115.125, 116.093, 124.090, 125.060, 137.658, 162.135, 166.412, 179.010, 179.040, 179.050, 179.055, 179.065, 179.105, 179.110, 179.140, 179.240, 179.321, 179.360, 179.380, 179.385, 179.390, 179.460, 179.478, 179.479, 179.490, 179.505, 179.509, 197.660, 197.667, 222.850, 238.300, 243.140, 276.180, 279.855, 285A.458, 310.630, 327.023, 339.137, 343.035, 343.243, 343.499, 343.507, 344.511, 344.530, 344.620, 344.685, 344.690, 344.735, 346.015, 409.010, 409.070, 409.080, 409.093, 409.096, 409.110, 409.130, 409.150, 409.160, 409.185, 409.225, 409.230, 409.270, 409.310, 409.410, 409.710, 410.040, 410.060, 410.070, 410.080, 410.100, 410.210, 410.270, 410.300, 410.320, 410.420, 410.430, 410.720, 411.062, 411.070, 411.095, 411.113, 411.125, 411.145, 411.320, 411.590, 411.595, 411.620, 411.632, 411.660, 411.790, 411.802, 411.803, 411.890, 411.972, 411.975, 411.977, 412.005, 412.580, 412.600, 413.165, 414.022, 414.095, 414.105, 414.106, 414.151, 414.305, 414.400, 416.510, 416.520, 416.540, 416.560, 416.600, 416.990, 417.210, 417.340, 417.342, 417.346, 417.348, 417.747, 417.787, 417.845, 418.005, 418.050, 418.070, 418.130, 418.163, 418.205, 418.295, 418.480, 418.625, 418.747, 419A.004, 419B.352, 419C.507, 426.005, 426.508, 427.005, 427.007, 427.010, 427.104, 427.330, 428.210, 430.010, 430.021, 430.065, 430.165, 430.190, 430.257, 430.306, 430.315, 430.405, 430.450, 430.610, 430.705, 430.743, 430.955, 431.045, 431.110, 431.140, 431.155, 431.170, 431.195, 431.210, 431.250, 431.416, 431.705, 431.830, 431.990, 432.005, 433.001, 433.235, 433.260, 433.267, 435.205, 438.010, 441.020, 441.022, 441.025, 441.030, 441.037, 441.050, 441.055, 441.057, 441.060, 441.062, 441.085, 441.109, 441.277, 441.624, 441.678, 441.685, 441.690, 441.705, 441.990, 442.015, 442.807, 443.205, 443.340, 443.400, 443.415, 443.445, 443.455, 443.705, 443.715, 443.735, 443.767, 443.775, 443.830, 443.886, 446.125, 446.310, 448.005, 448.115, 448.273, 448.405, 448.409, 448.450, 453.001, 453.605, 456.541, 458.525, 458.532, 471.333, 475.302, 476.030, 497.162, 616.020, 619.095, 624.010, 624.165, 624.310, 655.605, 657.880, 657.885, 657A.420, 685.055, 691.405, 743.412 and 743.556 and sections 13 and 14, chapter 653, Oregon Laws 1991, section 2, chapter 579, Oregon Laws 1997, and section 9, chapter 849, Oregon Laws 1999; repealing ORS 343.975, 344.520, 344.525, 344.527, 344.573, 344.575, 344.577, 409.190, 410.130, 411.040, 411.064, 411.090, 411.260, 411.270, 411.280, 411.350, 411.405, 411.415, 411.765, 411.775, 411.785, 411.950, 411.955, 411.960, 412.550, 413.170, 413.180, 416.010, 416.020, 416.030, 416.035, 416.040, 416.050, 416.055, 416.061, 416.070, 416.080, 416.090, 416.100, 416.110, 416.120, 416.130, 416.145, 416.170, 416.180, 416.190, 416.200, 416.210, 416.220, 416.240, 416.250, 416.260, 416.270, 416.280, 418.003, 426.360, 426.405, 426.407, 427.009, 430.041, 430.110, 430.260, 430.642, 430.910, 430.950, 431.065, 432.560, 441.097 and 441.623 and section 144, chapter 104, Oregon Laws 2001 (Enrolled House Bill 2609); and declaring an emergency.

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

SECTION 1. (1) The following named divisions, offices, programs and organizational units of the Department of Human Services are abolished:

(a) The Adult and Family Services Division;

(b) The State Office for Services to Children and Families;

(c) The Mental Health and Developmental Disability Services Division;

(d) The Vocational Rehabilitation Division;

(e) The Health Division;

(f) The Senior and Disabled Services Division;

(g) The Alcohol and Drug Abuse Programs;

(h) The Office of Medical Assistance Programs; and

(i) The Office of the Director.

(2) The positions of assistant directors of the divisions, offices, programs and organizational units listed in subsection (1) of this section are abolished. On the effective date of this 2001 Act, the tenure of the assistant directors shall cease.

(3) All of the duties, functions and powers of the Adult and Family Services Division, the State Office for Services to Children and Families, the Mental Health and Developmental Disability Services Division, the Vocational Rehabilitation Division, the Health Division, the Senior and Disabled Services Division, the Alcohol and Drug Abuse Programs, the Office of Medical Assistance Programs and the Office of the Director are transferred to the Department of Human Services.

(4) Notwithstanding the abolishment of the divisions, offices, programs and organizational units of the Department of Human Services by subsection (1) of this section and the transfer of duties, functions and powers by subsection (3) of this section, the lawfully adopted rules of the Adult and Family Services Division, the State Office for Services to Children and Families, the Mental Health and Developmental Disability Services Division, the Vocational Rehabilitation Division, the Health Division, the Senior and Disabled Services Division and the office of Alcohol and Drug Abuse Programs in effect on the effective date of this 2001 Act continue in effect until lawfully superseded or replaced by the rules of the Department of Human Services.

SECTION 2. The transfer of duties, functions and powers to the Department of Human Services under this 2001 Act does not affect any action, suit, proceeding or prosecution involving or with respect to such duties, functions and powers begun before and pending at the time of the transfer, except that the Department of Human Services shall be substituted for any division, office, program or organizational unit listed in section 1 (1)(a) to (i) of this 2001 Act in such action, suit, proceeding or prosecution.

SECTION 3. (1) Nothing in this 2001 Act relieves a person of an obligation with respect to a tax, fee, fine or other charge, interest, penalty, forfeiture or other liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred by this 2001 Act. The Department of Human Services may undertake the collection or enforcement of any such tax, fee, fine, charge, interest, penalty, forfeiture or other liability, duty or obligation.

(2) The rights and obligations of a division, office, program or organizational unit listed in section 1 (1)(a) to (i) of this 2001 Act legally incurred under contracts, leases and business transactions, executed, entered into or begun before the effective date of this 2001 Act, are transferred to the Department of Human Services. For the purpose of succession to these rights and obligations, the Department of Human Services is considered to be a continuation of any division, office, program or organizational unit listed in section 1 (1)(a) to (i) of this 2001 Act and not a new authority, and the Department of Human Services shall exercise such rights and fulfill such obligations as if they had not been transferred.

SECTION 4. (1) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the divisions, offices, programs and organizational units of the Department of Human Services listed in subsection (2) of this section, wherever they occur in Oregon Revised Statutes, other words designating the Department of Human Services, and for words designating the directors, assistant directors and administrators listed in subsection (3) of this section, wherever they occur in Oregon Revised Statutes or in sections 5 and 8 to 260 of this 2001 Act, other words designating the Director of Human Services.

(2) Pursuant to subsection (1) of this section, words designating the Department of Human Services may be substituted for words designating the:

(a) Adult and Family Services Division or the Adult and Family Services Division of the Department of Human Services.

(b) State Office for Services to Children and Families or the State Office for Services to Children and Families of the Department of Human Services.

(c) Mental Health and Developmental Disability Services Division or the Mental Health and Developmental Disability Services Division of the Department of Human Services.

(d) Vocational Rehabilitation Division or the Vocational Rehabilitation Division of the Department of Human Services.

(e) Health Division or the Health Division of the Department of Human Services.

(f) Senior and Disabled Services Division or the Senior and Disabled Services Division of the Department of Human Services.

(g) Alcohol and Drug Abuse Programs, office of Alcohol and Drug Abuse Programs or Alcohol and Drug Abuse Programs of the Department of Human Services.

(h) Office of Medical Assistance Programs or the Office of Medical Assistance Programs of the Department of Human Services.

(i) Office of the Director or the Office of the Director of Human Services.

(3) Pursuant to subsection (1) of this section, words designating the Director of Human Services may be substituted for words designating the director, assistant director or administrator of the following divisions, offices, programs or organizational units:

(a) Adult and Family Services Division.

(b) State Office for Services to Children and Families.

(c) Mental Health and Developmental Disability Services Division.

(d) Vocational Rehabilitation Division.

(e) Health Division.

(f) Senior and Disabled Services Division.

(g) Alcohol and Drug Abuse Programs.

(h) Office of Medical Assistance Programs.

(4) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the Health Division Account, wherever they occur in Oregon Revised Statutes, other words designating the Public Health Account, and for words designating the Vocational Rehabilitation Division Revolving Fund, wherever they occur in Oregon Revised Statutes, other words designating the Vocational Rehabilitation Revolving Fund.

(5) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the Diagnosis and Evaluation Service or the Diagnosis and Evaluation Service of the Mental Health and Developmental Disability Services Division, wherever they occur in Oregon Revised Statutes, other words designating the Developmental Disability Diagnosis and Evaluation Service, and for words designating the Adult and Family Services Division Review Commission, wherever they occur in Oregon Revised Statutes, other words designating the Family Services Review Commission.

SECTION 4a. (1) The Department of Human Services shall report at each of the meetings of the Emergency Board during the interim of the Seventy-first Legislative Assembly on the status of the reorganization of the department. The reports shall include, but need not be limited to, the following information regarding the reorganization:

(a) Progress on the implementation;

(b) The staffing implications;

(c) The savings realized;

(d) The transition to a new accounting and budgeting system, including information on the tracking of historical data;

(e) The impact on information systems and which systems are being modified; and

(f) How the department is using the $6 million in estimated savings and the specific projects being funded with the reinvestment of the savings.

(2) For the 2001-2003 biennium, before transferring funds between legislatively established appropriations, expenditure limitations or budgets of organizational units within the department, the department must obtain approval from the Legislative Assembly or, if the Legislative Assembly is not in session, from the Emergency Board.

SECTION 5. ORS 409.010 is amended to read:

409.010. (1) The Department of Human Services is created.

[(2) The department shall provide programs for the delivery to the public of services relating to public assistance, children and families, health and health-related affairs, mental health and developmental disabilities, vocational rehabilitation, elderly persons, disabled persons, including persons with traumatic brain injuries, alcohol and drug abuse and such other services as may be assigned to the department. Family support services provided by the department shall be delivered in accordance with the principles described in ORS 417.342 and 417.344.]

[(3) The department shall provide the programs and services enumerated in subsection (2) of this section through the divisions and other organizational units, including but not limited to the following:]

[(a) The Adult and Family Services Division;]

[(b) The State Office for Services to Children and Families;]

[(c) The Mental Health and Developmental Disability Services Division;]

[(d) The Vocational Rehabilitation Division;]

[(e) The Health Division;]

[(f) The Senior and Disabled Services Division; and]

[(g) Alcohol and Drug Abuse Programs.]

(2) The department is responsible for the delivery and administration of programs and services relating to:

(a) Children and families, including but not limited to child protective services, foster care, residential care for children and adoption services;

(b) Elderly persons and disabled persons, including but not limited to social, health and protective services and promotion of hiring of otherwise qualified persons who are certifiably disabled;

(c) Persons who, as a result of the person's or the person's family's economic, social or health condition, require financial assistance, institutional care, rehabilitation or other social and health services;

(d) Health and health-related affairs, including but not limited to medical assistance and services, public health services, migrant health services, licensing of health facilities and coordination of the activities of professional and occupational licensing boards;

(e) Mental health and developmental disabilities;

(f) Vocational rehabilitation for individuals with disabilities;

(g) Alcohol abuse, drug abuse, addiction and chemical dependency problems;

(h) Licensing and regulation of individuals, facilities and programs providing health and human services, in accordance with the provisions of state and federal law; and

(i) Any other health and human service programs and functions delegated to the department by or in accordance with the provisions of state and federal law.

[(4)] (3) The department shall be the recipient of all federal funds paid or to be paid to the state to enable the state to provide the programs and services assigned to the department.

(4)(a) All personnel of the department, including those engaged in the administration of vocational rehabilitation programs, public assistance programs and services to families or children in compliance with the federal social security laws, shall be subject to the merit system prescribed in the State Personnel Relations Law. For purposes of the State Personnel Relations Law, the department is the appointing authority of all employees in the department.

(b) The Director of Human Services, in conformity with the State Personnel Relations Law, may appoint and employ such personnel as may be necessary for the department, and may appoint and fix the compensation of all assistants and employees of the department.

(c) The director may authorize reimbursement of such expenses as are approved by the department and incurred by assistants and employees of the department, and by volunteers or other persons not employed by the department, in carrying out duties assigned or authorized by the department.

(5) The director may designate employees to be custodians of records within any of the organizational units of the department, and persons so designated shall have the duties and powers of custodians of public records as prescribed by law. Such designation shall be in writing and notice thereof shall be filed in the office of the Secretary of State, with the director and in the organizational unit to which the authorization applies.

SECTION 6. In accordance with ORS 417.342 and 417.344, the Department of Human Services shall provide family support services throughout the department. Notwithstanding ORS 430.640, the department may contract directly with community organizations for the provision of family support services.

SECTION 7. The Department of Human Services shall maintain in each of its local offices copies of its rules and regulations that the department is required to file with the Secretary of State. Copies of the rules and regulations shall be available for public use and inspection during regular business hours and shall be compiled and indexed in a manner that will facilitate their use.

SECTION 8. ORS 25.381 is amended to read:

25.381. Whenever support rights are not and have not at any time during the past five months been assigned to the Department of Human Services [or one of its divisions,] or to a public assistance agency of another state, and no arrearages under a support order are so assigned, the district attorney or, as appropriate, the Division of Child Support of the Department of Justice, shall provide, upon request of an obligor or obligee, services sufficient to permit establishment of income withholding under ORS 25.378, including such services as are necessary to establish a support payment record under ORS 25.164 and 25.167. These services shall be provided to the obligee without the necessity of an application for support enforcement services under Title IV-D of the Social Security Act (42 U.S.C. 651, et seq.).

SECTION 9. Section 2, chapter 579, Oregon Laws 1997, is amended to read:

Sec. 2. (1) The following facilities and training homes are public bodies for the purposes of ORS 30.260 to 30.300:

(a) A nonprofit residential training facility as defined in ORS 443.400, nonprofit residential training home as defined in ORS 443.400 or nonprofit facility as defined in ORS 427.005, organized and existing under ORS chapter 65, that receives more than 50 percent of its funding from the state or a political subdivision of the state for the purpose of providing residential or vocational services to mentally retarded or developmentally disabled individuals.

(b) A nonprofit residential training facility as defined in ORS 443.400, nonprofit residential training home as defined in ORS 443.400 or nonprofit facility as defined in ORS 427.005, organized and existing under ORS chapter 65, that receives less than 50 percent of its funding from the state or a political subdivision of the state but that provides residential or vocational services to mentally retarded or developmentally disabled individuals, more than half of whom are eligible for funding for services by the [office of Developmental Disabilities Services of the Mental Health and Developmental Disability Services Division] Department of Human Services under criteria established by the [office] department.

(2) The provisions of this section apply only to a nonprofit residential training facility, nonprofit residential training home or nonprofit facility that provides services to mentally retarded or developmentally disabled individuals under a contract with:

(a) The [Mental Health and Developmental Disability Services Division] Department of Human Services; or

(b) A community mental health and developmental disabilities program established pursuant to ORS 430.620[; or]

[(c) The Vocational Rehabilitation Division].

SECTION 10. ORS 30.297 is amended to read:

30.297. (1) Notwithstanding ORS 125.235, the [State Office for Services to Children and Families] Department of Human Services is liable for damages resulting from the intentional torts of a foster child who is:

(a) Residing in a foster home that has been certified by the [office] department under the provisions of ORS 418.625 to 418.645, even though the child may be temporarily absent from that home; or

(b) Residing in an approved home that is receiving payment from the [office] department under the provisions of ORS 418.027 or under the provisions of ORS 420.810 and 420.815, even though the child may be temporarily absent from that home.

(2) Notwithstanding ORS 125.235, the [Mental Health and Developmental Disability Services Division] department is liable for damages resulting from the intentional torts of a foster child who is residing in a developmental disability child foster home that has been certified by the [division] department under the provisions of ORS 443.830 and 443.835, even though the foster child may be temporarily absent from that home.

(3) Except as otherwise provided in this section, the liability of the [office and the division] department under this section shall be subject to the same requirements and limitations provided in ORS 30.260 to 30.300, and a claim under this section shall be treated as a claim for damages within the scope of ORS 30.260 to 30.300 for the purposes of ORS 278.120.

(4) Notwithstanding subsections (1) and (2) of this section:

(a) The [office and the division] department shall not be liable for any damages arising out of the operation of a motor vehicle by a foster child; and

(b) The [office and the division] department shall only be liable for theft by a foster child upon a showing by clear and convincing evidence that the foster child committed the theft.

(5) For the purposes of this section:

(a) [“Division” means the Mental Health and Developmental Disability Services Division] “Department” means the Department of Human Services.

(b) “Foster child” means:

(A) A minor child under the custody or guardianship of the [office] department by reason of appointment pursuant to ORS chapter 125, 419A, 419B or 419C;

(B) A minor child under the physical custody of the [office] department pursuant to a voluntary agreement with the parent under ORS 418.015 (1);

(C) A minor child placed in a certified foster home, pending hearing, by any person authorized by the [office] department to make that placement;

(D) A person under 21 years of age who has been placed in an approved home that is receiving payment from the [office] department under the provisions of ORS 418.027 or under the provisions of ORS 420.810 and 420.815; or

(E) A child residing in a developmental disability child foster home certified under ORS 443.830 and 443.835.

[(c) “Office” means the State Office for Services to Children and Families.]

SECTION 11. ORS 30.298 is amended to read:

30.298. (1) Except as otherwise provided in this section, the [State Office for Services to Children and Families] Department of Human Services is liable, without regard to fault, for injury to the person of foster parents or damage to the property of foster parents caused by a foster child if:

(a) The foster child resides in a foster home that is maintained by the foster parents and that has been certified by the [office] department under the provisions of ORS 418.625 to 418.645; or

(b) The foster child is residing in an approved home that is maintained by the foster parents and that is receiving payment from the [office] department under the provisions of ORS 418.027 or under the provisions of ORS 420.810 and 420.815.

(2) Except as otherwise provided in this section, the [Mental Health and Developmental Disability Services Division] department is liable, without regard to fault, for injury to the person of foster parents or damage to the property of foster parents caused by a foster child if the foster child is residing in a developmental disability child foster home that has been certified by the [division] department under the provisions of ORS 443.830 and 443.835.

(3) Except as otherwise provided in this section, the liability of the [office and division] department under this section shall be subject to the same requirements and limitations provided in ORS 30.260 to 30.300, and a claim under this section shall be treated as a claim for damages within the scope of ORS 30.260 to 30.300 for the purposes of ORS 278.120.

(4) Notwithstanding ORS 30.260 to 30.300:

(a) In no event shall the liability of the [office and division] department under this section exceed $5,000 for any number of claims arising out of a single occurrence;

(b) The liability of the [office and division] department under this section is limited to economic damages, and in no event shall the [office and division] department be liable for noneconomic damages;

(c) The [office and division are] department is liable under this section only to the extent the loss is not covered by other insurance; and

(d) No claim shall be allowed under this section unless written notice of the claim is delivered to the Oregon Department of Administrative Services within 90 days after the alleged loss or injury.

(5) The [office and division shall] department is not [be] liable under this section for:

(a) Damage to or destruction of currency, securities or any other intangible property;

(b) The unexplained disappearance of any property; or

(6) In no event shall the liability of the [office and division] department under this section for damage to property exceed the difference between the fair market value of the property immediately before its damage or destruction and its fair market value immediately thereafter. The [office and division] department shall not be liable for the costs of any betterments to the property that may be required by code, statute or other law as a condition of repair, replacement or reconstruction.

(7) The liability imposed under this section is in addition to that imposed for the intentional torts of a foster child under ORS 30.297, but any amounts paid under this section shall reduce any recovery that may be made under ORS 30.297.

(8) For the purposes of this section:

(a) [“Division” means the Mental Health and Developmental Disability Services Division] “Department” means the Department of Human Services.

(b) “Economic damages” and “noneconomic damages” have those meanings given in ORS 18.560.

[(d) “Office” means the State Office for Services to Children and Families.]

SECTION 12. ORS 87.512 is amended to read:

87.512. The notice of lien required under ORS 87.507 shall be a written statement verified by the oath of an officer of the long term care facility that asserts a claim for the lien and that contains:

(1) A true statement of demand, including an itemized statement of services provided and setting forth the amount due and owing to the long term care facility as of the date of the notice, after deducting all credits and offsets;

(2) The name of the individual who received care;

(3) The name, address and telephone number of the long term care facility;

(4) A statement that the amount claimed is a true and bona fide existing debt as of the date of filing the notice of lien;

(5) A statement that the lien may cover contracted services provided by the long term care facility subsequent to the services itemized under subsection (1) of this section and that interested persons may obtain information on the current amount due under the lien by contacting the long term care facility;

(6) A statement that the long term care facility has given the individual or an authorized representative a written summary of the requirements and procedures for establishing eligibility for Medicaid, including the right to an assessment that determines the extent of spouses' nonexempt resources at the time of institutionalization and attributes to the community spouse an equitable share of the resources that can not be considered available for payment of costs for the medical care of the institutionalized spouse in the process of spending down to Medicaid eligibility levels. The written statement shall be given no fewer than 30 days and no more than 60 days before the notice of lien is filed. The long term care facility may meet the requirement of this subsection by providing [the] written materials relating to Medicaid eligibility for long term care services for disabled persons and elderly persons used by [the Senior and Disabled Services Division of] the Department of Human Services; and

(7) A description of the real property to be charged with the lien that complies with ORS 93.600.

SECTION 13. ORS 101.140 is amended to read:

101.140. (1) The Continuing Care Retirement Community Advisory Council is created and shall consist of nine members appointed by the [Assistant Director for Senior and Disabled Services] Director of Human Services or a designee and shall represent the geographic location of providers in this state. A member must be a resident of this state. Three members must represent providers that are registered pursuant to ORS 101.030 and must have been actively engaged in the offering of residency agreements in this state for five years before appointment. The remaining members shall include:

(a) A representative of the business community with expertise in the area of management;

(b) A certified public accountant;

(d) Three Oregon residents of continuing care retirement communities or other consumer representatives.

(2) The term of office for a member shall be three years or until a successor has been appointed and qualified.

(3) The members of the advisory council shall serve without pay. They shall be reimbursed by the [Senior and Disabled Services Division] Department of Human Services for their actual and necessary traveling expenses incurred while on official business.

(4) The council shall:

(a) Elect a chairperson from among their number and elect or appoint a secretary, both of whom shall hold office for one year and thereafter until a successor is qualified and elected;

(b) Hold an annual meeting and hold other meetings at times and places the [division] department or the chairperson of the council may direct;

(c) Keep a record of its proceedings. The record is prima facie evidence of all matters reported and shall be open to inspection at all times;

(d) Act in an advisory capacity to the [division] department; and

(e) Make recommendations to the [division] department on all proposed rules pertaining to this chapter.

SECTION 14. ORS 109.425 is amended to read:

109.425. As used in this section and ORS 109.435 to 109.507:

(1) “Adoptee” means a person who has been adopted in the State of Oregon.

(2) “Adoption” means the judicial act of creating the relationship of parent and child where it did not exist previously.

(3) “Adoptive parent” means an adult who has become a parent of a child through adoption.

(4) “Adult” means a person 18 years of age or older.

(5) “Agency” means any public or private organization licensed or authorized under the laws of this state to place children for adoption.

(6) “Birth parent” is:

(a) The man or woman who is legally presumed under the laws of this state to be the father or mother of genetic origin of a child; and

(b) A putative father of the child if the birth mother alleges he is the father and the putative father, by written affidavit or surrender and release executed within three years of the relinquishment of the child by the birth mother or the termination of parental rights of the birth mother, acknowledges being the child's biological father.

(7) “Department” means the Department of Human Services.

[(7)(a)] (8)(a) “Genetic and social history” is a comprehensive report, when obtainable, of the health status and medical history of the birth parents and other persons related to the child.

(b) The genetic and social history may contain as much of the following as is available:

(A) Medical history;

(B) Health status;

(D) Height, weight, eye and hair color;

(E) Ethnic origins; and

(F) Religion, if any.

(A) The birth parents;

(B) A putative father, if any;

(D) Siblings to a putative father, if any;

(E) Other children of either birth parent, if any;

(F) Other children of a putative father, if any;

(G) Parents of the birth parents; and

(H) Parents of a putative father, if any.

[(8)] (9) “Health history” is a comprehensive report, when obtainable, of the child's health status and medical history at the time of placement for adoption, including neonatal, psychological, physiological and medical care history.

[(9) “Office” means the State Office for Services to Children and Families.]

(10) “Putative father” is a man who, under the laws of this state, is not legally presumed to be the father of genetic origin of a child, but who claims or is alleged to be the father of genetic origin of the child.

(11) “Registry” is a voluntary adoption registry as established under ORS 109.450.

(12) “Successor agency” is an agency which has the adoption records of another agency because of the merger of the agency and the successor agency or because a former agency has ceased doing business and has given its adoption records to the successor agency as provided in ORS 109.435 (2).

SECTION 15. ORS 113.085 is amended to read:

113.085. (1) Except as provided in subsection (2) of this section, upon the filing of the petition, if there is no will or there is a will and it has been proved, the court shall appoint a qualified person it finds suitable as personal representative, giving preference in the following order:

(a) To the executor named in the will.

(b) To the surviving spouse of the decedent or the nominee of the surviving spouse of the decedent.

(d) To the [Assistant Director for Adult and Family Services or the designated representative of the assistant director] Director of Human Services or a designee, if it appears the decedent received public assistance pursuant to ORS chapter 411, 412, 413 or 414 and that such assistance is a claim against the estate.

(e) To the Director of Veterans' Affairs, if the decedent was a protected person under ORS 406.050 (4), and the director has joined in the petition for such appointment.

(f) To any other person.

(2) If it appears that the decedent died wholly intestate and without heirs, the court shall appoint the Director of the Division of State Lands as personal representative. The Attorney General shall represent the director in the administration of the estate. Any funds received by the director in the capacity of personal representative may be deposited in accounts, separate and distinct from the General Fund, established with the State Treasurer. Interest earned by such account shall be credited to that account.

SECTION 16. ORS 113.105 is amended to read:

113.105. (1) Unless a testator provides in a will that no bond shall be required of the executor of the estate, or unless the personal representative is the sole heir or devisee or is the Director of the Division of State Lands, or is the [Assistant Director for Adult and Family Services or a designated representative] Director of Human Services or a designee, or is the Director of Veterans' Affairs, the personal representative shall not act nor shall letters be issued to the personal representative until the personal representative files with the clerk of the court a bond. The bond shall be executed by a surety company authorized to transact surety business in this state, or by one or more sufficient personal sureties approved by the court. A personal surety must be a resident of this state. The court may, in its discretion, require a bond notwithstanding any provision in a will that no bond is required. The bond shall be for the security and benefit of all interested persons and shall be conditioned upon the personal representative faithfully performing the duties of the trust.

(2) The amount of the bond set by the court shall be adequate to protect interested persons, but in no event shall it be less than $1,000. In setting the amount of the bond the court shall consider:

(a) The nature, liquidity and apparent value of the assets of the estate.

(b) The anticipated income during administration.

(3) Nothing in this section affects the provisions of ORS 709.240, relating to a trust company acting as personal representative.

(4) Notwithstanding any other provisions of this section, a court may, in its discretion, waive the requirement of a bond if all devisees and heirs known to the court agree in writing that the requirement be waived and the signed agreement is filed with the court at the time of filing of the petition for the appointment of a personal representative.

SECTION 17. ORS 114.305 is amended to read:

114.305. Subject to the provisions of ORS 97.130 (2) and except as restricted or otherwise provided by the will of the decedent, a document of anatomical gift under ORS 97.952 or by court order, a personal representative, acting reasonably for the benefit of interested persons, is authorized to:

(1) Direct and authorize disposition of the remains of the decedent pursuant to ORS 97.130 and incur expenses for the funeral, burial or other disposition of the remains in a manner suitable to the condition in life of the decedent. Only those funeral expenses necessary for a plain and decent funeral and disposition of the remains of the decedent may be paid from the estate if the assets are insufficient to pay the claims of the [Adult and Family Services Division and the Mental Health and Developmental Disability Services Division] Department of Human Services for the net amount of public assistance, as defined in ORS 411.010, paid to or for the decedent and for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 to 179.770.

(2) Retain assets owned by the decedent pending distribution or liquidation.

(3) Receive assets from fiduciaries or other sources.

(4) Complete, compromise or refuse performance of contracts of the decedent that continue as obligations of the estate, as the personal representative may determine under the circumstances. In performing enforceable contracts by the decedent to convey or lease real property, the personal representative, among other courses of action, may:

(a) Execute and deliver a deed upon satisfaction of any sum remaining unpaid or upon receipt of the note of the purchaser adequately secured; or

(b) Deliver a deed in escrow with directions that the proceeds, when paid in accordance with the escrow agreement, be paid to the successors of the decedent, as designated in the escrow agreement.

(5) Satisfy written pledges of the decedent for contributions, whether or not the pledges constituted binding obligations of the decedent or were properly presented as claims.

(6) Deposit funds not needed to meet currently payable debts and expenses, and not immediately distributable, in bank or savings and loan association accounts, or invest the funds in bank or savings and loan association certificates of deposit, or federally regulated money-market funds and short-term investment funds suitable for investment by trustees under ORS 128.194 to 128.218, or short-term United States Government obligations.

(7) Abandon burdensome property when it is valueless, or is so encumbered or is in a condition that it is of no benefit to the estate.

(8) Vote stocks or other securities in person or by general or limited proxy.

(9) Pay calls, assessments and other sums chargeable or accruing against or on account of securities.

(10) Sell or exercise stock subscription or conversion rights.

(11) Consent, directly or through a committee or other agent, to the reorganization, consolidation, merger, dissolution or liquidation of a corporation or other business enterprise.

(12) Hold a security in the name of a nominee or in other form without disclosure of the interest of the estate, but the personal representative is liable for any act of the nominee in connection with the security so held.

(13) Insure the assets of the estate against damage and loss, and insure the personal representative against liability to third persons.

(14) Advance or borrow money with or without security.

(15) Compromise, extend, renew or otherwise modify an obligation owing to the estate. A personal representative who holds a mortgage, pledge, lien or other security interest may accept a conveyance or transfer of the encumbered asset in lieu of foreclosure in full or partial satisfaction of the indebtedness.

(16) Accept other real property in part payment of the purchase price of real property sold by the personal representative.

(17) Pay taxes, assessments and expenses incident to the administration of the estate.

(18) Employ qualified persons, including attorneys, accountants and investment advisers, to advise and assist the personal representative and to perform acts of administration, whether or not discretionary, on behalf of the personal representative.

(19) Prosecute or defend actions, claims or proceedings in any jurisdiction for the protection of the estate and of the personal representative in the performance of duties as personal representative.

(20) Prosecute claims of the decedent including those for personal injury or wrongful death.

(21) Continue any business or venture in which the decedent was engaged at the time of death to preserve the value of the business or venture.

(22) Incorporate or otherwise change the business form of any business or venture in which the decedent was engaged at the time of death.

(23) Discontinue and wind up any business or venture in which the decedent was engaged at the time of death.

(24) Provide for exoneration of the personal representative from personal liability in any contract entered into on behalf of the estate.

(25) Satisfy and settle claims and distribute the estate as provided in ORS chapters 111, 112, 113, 114, 115, 116 and 117.

(26) Perform all other acts required or permitted by law or by the will of the decedent.

SECTION 18. ORS 114.525 is amended to read:

114.525. An affidavit filed under ORS 114.515 shall:

(1) State the name, age, domicile, post-office address and social security number of the decedent;

(2) State the date and place of the decedent's death. A certified copy of the death certificate shall be attached to the affidavit;

(3) Describe and state the fair market value of all property in the estate, including a legal description of any real property;

(4) State that no application or petition for the appointment of a personal representative has been granted in Oregon;

(5) State whether the decedent died testate or intestate, and if the decedent died testate, the will shall be attached to the affidavit;

(6) List the heirs of the decedent and the last address of each heir as known to the affiant, and state that a copy of the affidavit showing the date of filing and a copy of the will, if the decedent died testate, will be delivered to each heir or mailed to the heir at the last-known address;

(7) If the decedent died testate, list the devisees of the decedent and the last address of each devisee as known to the affiant and state that a copy of the will and a copy of the affidavit showing the date of filing will be delivered to each devisee or mailed to the devisee at the last-known address;

(8) State the interest in the property described in the affidavit to which each heir or devisee is entitled;

(9) State that reasonable efforts have been made to ascertain creditors of the estate. List the expenses of and claims against the estate remaining unpaid or on account of which the affiant or any other person is entitled to reimbursement from the estate, including the known or estimated amounts thereof and the names and addresses of the creditors as known to the affiant, and state that a copy of the affidavit showing the date of filing will be delivered to each creditor who has not been paid in full or mailed to the creditor at the last-known address;

(10) Separately list the name and address of each person known to the affiant to assert a claim against the estate which the affiant disputes and the known or estimated amount thereof and state that a copy of the affidavit showing the date of filing will be delivered to each such person or mailed to the person at the last-known address;

(11) State that a copy of the affidavit showing the date of filing will be mailed or delivered to the [Adult and Family Services Division, Estate Administration Section] Department of Human Services, Salem, Oregon;

(12) State that claims against the estate not listed in the affidavit or in amounts larger than those listed in the affidavit may be barred unless:

(a) A claim is presented to the affiant within four months of the filing of the affidavit at the address stated in the affidavit for presentment of claims; or

(b) A personal representative of the estate is appointed within the time allowed under ORS 114.555; and

(13) If the affidavit lists one or more claims which the affiant disputes, state that any such claim may be barred unless:

(a) A petition for summary determination is filed within four months of the filing of the affidavit; or

(b) A personal representative of the estate is appointed within the time allowed under ORS 114.555.

SECTION 18a. If House Bill 2243 becomes law, section 18 of this 2001 Act (amending ORS 114.525) is repealed and ORS 114.525, as amended by section 2, chapter 620, Oregon Laws 2001 (Enrolled House Bill 2243), is amended to read:

114.525. An affidavit filed under ORS 114.515 shall:

(1) State the name, age, domicile, post-office address and social security number of the decedent;

(2) State the date and place of the decedent's death. A certified copy of the death certificate shall be attached to the affidavit;

(3) Describe and state the fair market value of all property in the estate, including a legal description of any real property;

(4) State that no application or petition for the appointment of a personal representative has been granted in Oregon;

(5) State whether the decedent died testate or intestate, and if the decedent died testate, the will shall be attached to the affidavit;

(8) State the interest in the property described in the affidavit to which each heir or devisee is entitled;

(11) State that a copy of the affidavit showing the date of filing will be mailed or delivered to the [Estate Administration Unit within the] Department of Human Services;

(12) State that claims against the estate not listed in the affidavit or in amounts larger than those listed in the affidavit may be barred unless:

(a) A claim is presented to the affiant within four months of the filing of the affidavit at the address stated in the affidavit for presentment of claims; or

(b) A personal representative of the estate is appointed within the time allowed under ORS 114.555; and

(13) If the affidavit lists one or more claims which the affiant disputes, state that any such claim may be barred unless:

(a) A petition for summary determination is filed within four months of the filing of the affidavit; or

(b) A personal representative of the estate is appointed within the time allowed under ORS 114.555.

SECTION 19. ORS 115.125 is amended to read:

115.125. (1) If the applicable assets of the estate are insufficient to pay all expenses and claims in full, the personal representative shall make payment in the following order:

(a) Support of spouse and children, subject to the limitations imposed by ORS 114.065.

(b) Expenses of administration.

(d) Debts and taxes with preference under federal law.

(e) Reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent.

(f) Taxes with preference under the laws of this state that are due and payable while possession of the estate of the decedent is retained by the personal representative.

(g) Debts owed employees of the decedent for labor performed within 90 days immediately preceding the date of death of the decedent.

(h) The [claim] claims of the [Adult and Family Services Division] Department of Human Services for the net amount of public assistance, as defined in ORS 411.010, paid to or for the decedent, and [the claim of the Mental Health and Developmental Disability Services Division] for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 to 179.770.

(i) All other claims against the estate.

(2) If the applicable assets of the estate are insufficient to pay in full all expenses or claims of any one class specified in subsection (1) of this section, each expense or claim of that class shall be paid only in proportion to the amount thereof.

SECTION 19a. If Senate Bill 183 becomes law, section 19 of this 2001 Act (amending ORS 115.125) is repealed and ORS 115.125, as amended by section 13, chapter 487, Oregon Laws 2001 (Enrolled Senate Bill 183), is amended to read:

115.125. (1) If the applicable assets of the estate are insufficient to pay all expenses and claims in full, the personal representative shall make payment in the following order:

(a) Support of spouse and children, subject to the limitations imposed by ORS 114.065.

(b) Expenses of administration.

(d) Debts and taxes with preference under federal law.

(e) Reasonable and necessary medical and hospital expenses of the last illness of the decedent, including compensation of persons attending the decedent.

(f) Taxes with preference under the laws of this state that are due and payable while possession of the estate of the decedent is retained by the personal representative.

(g) Debts owed employees of the decedent for labor performed within 90 days immediately preceding the date of death of the decedent.

(h) The claim of the [Adult and Family Services Division] Department of Human Services for the net amount of public assistance, as defined in ORS 411.010, paid to or for the decedent, and the claim of the [Mental Health and Developmental Disability Services Division or the] Department of Corrections for care and maintenance of any decedent who was at a state institution to the extent provided in ORS 179.610 to 179.770.

(i) All other claims against the estate.

SECTION 20. ORS 116.093 is amended to read:

116.093. (1) Upon filing the final account and petition for decree of distribution, the personal representative shall fix a time for filing objections thereto in a notice thereof. Not less than 20 days before the time fixed in the notice, the personal representative shall cause a copy of the notice to be mailed to:

(a) Each heir at the last-known address of the heir, if the decedent died intestate.

(b) Each devisee at the last-known address of the devisee, if the decedent died testate.

(d) Any other person known to the personal representative to have or to claim an interest in the estate being distributed.

(2) The notice need not be mailed to the personal representative.

(3) Proof of the mailing to those persons entitled to notice shall be made by affidavit and filed in the estate proceeding at or before approval of the final account.

(4) If the [Adult and Family Services Division or its authorized agent] Department of Human Services has presented a claim under ORS chapters 411 to 415 and ORS 179.620 (3), [416.010 to 416.270,] 416.310 to 416.340 and 416.510 to 416.990 or 417.010 to 417.080, [or the Mental Health and Developmental Disability Services Division or its authorized agent has presented a claim under ORS 179.620 (3),] and the claim has not been settled or paid in full, the personal representative shall [cause to be mailed] mail to the [division or] department a copy of the final account at the same time, and shall make proof of the mailing in the same manner, as the notice provided for in this section.

SECTION 20a. If Senate Bill 183 becomes law, section 20 of this 2001 Act (amending ORS 116.093) is repealed and ORS 116.093, as amended by section 14, chapter 487, Oregon Laws 2001 (Enrolled Senate Bill 183), is amended to read:

(a) Each heir at the last-known address of the heir, if the decedent died intestate.

(b) Each devisee at the last-known address of the devisee, if the decedent died testate.

(d) Any other person known to the personal representative to have or to claim an interest in the estate being distributed.

(2) The notice need not be mailed to the personal representative.

(3) Proof of the mailing to those persons entitled to notice shall be made by affidavit and filed in the estate proceeding at or before approval of the final account.

(4) If the [Adult and Family Services Division or its authorized agent] Department of Human Services has presented a claim under ORS chapters 411 to 415 and ORS [416.010 to 416.270,] 416.310 to 416.340 and 416.510 to 416.990 or 417.010 to 417.080, or the [Mental Health and Developmental Disability Services Division or the] Department of Corrections or the authorized agent of the [division or the] Department of Corrections has presented a claim under ORS 179.620 (3), and the claim has not been settled or paid in full, the personal representative shall [cause to be mailed] mail to the [division or] appropriate department a copy of the final account at the same time, and shall make proof of the mailing in the same manner, as the notice provided for in this section.

SECTION 21. ORS 124.090 is amended to read:

124.090. Notwithstanding the provisions of ORS 192.410 to 192.505, the names of the public or private official who made the complaint, witnesses and the elderly persons compiled under the provisions of ORS 124.050 to 124.095 are confidential and are not accessible for public inspection. However, the [Senior and Disabled Services Division] Department of Human Services shall make the information and any investigative report available to any law enforcement agency, to any public agency [which] that licenses or certifies residential facilities or licenses or certifies the persons practicing therein, to any public agency providing protective services for the elderly person[, to the Mental Health and Developmental Disability Services Division] and to the Long Term Care Ombudsman, if appropriate. The [division] department shall also make the information and any investigative report available to any private nonprofit agency providing protective services for the elderly person. When this information and any investigative report is made available to the private agency, ORS 124.050 to 124.095 relating to confidentiality apply to the private agency.

SECTION 22. ORS 125.060 is amended to read:

125.060. (1) The notices required by this section must be given to all persons whose identities and addresses can be ascertained in the exercise of reasonable diligence by the person required to give the notice.

(2) Notice of the filing of a petition for the appointment of a fiduciary or entry of other protective order must be given by the petitioner to the following persons:

(a) The respondent, if the respondent has attained 14 years of age.

(b) The spouse, parents and adult children of the respondent.

(c) If the respondent does not have a spouse, parent or adult child, the person or persons most closely related to the respondent.

(d) Any person who is cohabiting with the respondent and who is interested in the affairs or welfare of the respondent.

(e) Any person who has been nominated as fiduciary or appointed to act as fiduciary for the respondent by a court of any state, any trustee for a trust established by or for the respondent, any person appointed as a health care representative under the provisions of ORS 127.505 to 127.660 and any person acting as attorney-in-fact for the respondent under a power of attorney.

(f) If the respondent is a minor, the person who has exercised principal responsibility for the care and custody of the respondent during the 60-day period before the filing of the petition.

(g) If the respondent is a minor and has no living parents, any person nominated to act as fiduciary for the minor in a will or other written instrument prepared by a parent of the minor.

(h) If the respondent is receiving moneys paid or payable by the United States through the Department of Veterans Affairs, a representative of the United States Department of Veterans Affairs regional office that has responsibility for the payments to the protected person.

(i) If the respondent is receiving moneys paid or payable for public assistance provided under ORS chapter 411, 412, 413 or 414by the State of Oregon through [the Adult and Family Services Division of] the Department of Human Services, a representative of the [Adult and Family Services Division] department.

(j) If the respondent is committed to the legal and physical custody of the Department of Corrections, the Attorney General and the superintendent or other officer in charge of the facility in which the respondent is confined.

(k) Any other person that the court requires.

(3) Notice of a motion for the termination of the protective proceedings, for removal of a fiduciary, for modification of the powers or authority of a fiduciary, for approval of a fiduciary's actions or for protective orders in addition to those sought in the petition must be given by the person making the motion to the following persons:

(a) The protected person, if the protected person has attained 14 years of age.

(b) Any person who has filed a request for notice in the proceedings.

(d) If the protected person is receiving moneys paid or payable by the United States through the Department of Veterans Affairs, a representative of the United States Department of Veterans Affairs regional office that has responsibility for the payments to the protected person.

(e) If the respondent is committed to the legal and physical custody of the Department of Corrections, the Attorney General and the superintendent or other officer in charge of the facility in which the respondent is confined.

(f) Any other person that the court requires.

(4) A request for notice under subsection (3)(b) of this section must be in writing and include the name, address and phone number of the person requesting notice. A copy of the request must be mailed by the person making the request to the petitioner or to the fiduciary if a fiduciary has been appointed. The original request must be filed with the court. The person filing the request must pay the fee specified by ORS 21.310 (5).

(5) A person who files a request for notice in the proceedings in the manner provided by subsection (4) of this section is entitled to receive notice from the fiduciary of any motion specified in subsection (3) of this section and of any other matter to which a person listed in subsection (2) of this section is entitled to receive notice under a specific provision of this chapter.

(6) If the [State Office for Services to Children and Families] Department of Human Services is nominated as guardian for the purpose of consenting to the adoption of a minor, the notice provided for in this section must also be given to the minor's brothers, sisters, aunts, uncles and grandparents.

(7) In addition to the requirements of subsection (2) of this section, notice of the filing of a petition for the appointment of a guardian for a person who is alleged to be incapacitated must be given by the petitioner to the following persons:

(a) Any attorney who is representing the respondent in any capacity.

(b) If the respondent is a resident of a nursing home or residential facility, or if the person nominated to act as fiduciary intends to place the respondent in a nursing home or residential facility, the office of the Long Term Care Ombudsman.

(c) If the respondent is a resident of a mental health treatment facility or a residential facility for individuals with developmental disabilities, or if the person nominated to act as fiduciary intends to place the respondent in such a facility, the system designated to protect and advocate the rights of individuals with developmental disabilities as described in ORS 192.517 (1).

(8) In addition to the requirements of subsection (3) of this section, in a protective proceeding in which a guardian has been appointed, notice of the motions specified in subsection (3) of this section must be given by the person making the motion to the following persons:

(a) Any attorney who represented the protected person at any time during the protective proceeding.

(b) If the protected person is a resident of a nursing home or residential facility, or if the motion seeks authority to place the protected person in a nursing home or residential facility, the office of the Long Term Care Ombudsman.

(c) If the protected person is a resident of a mental health treatment facility or a residential facility for individuals with developmental disabilities, or if the motion seeks authority to place the protected person in such a facility, the system designated to protect and advocate the rights of individuals with developmental disabilities as described in ORS 192.517 (1).

(9) A respondent or protected person may not waive the notice required under this section.

(10) The requirement that notice be served on an attorney for a respondent or protected person under subsection (7)(a) or (8)(a) of this section does not impose any responsibility on the attorney receiving the notice to represent the respondent or protected person in the protective proceeding.

SECTION 23. ORS 137.658 is amended to read:

137.658. (1) The chairperson of the Oregon Criminal Justice Commission may create any committees within the commission as the chairperson may think necessary. Persons who are not commission members may be appointed as members to serve on the committees with the approval of the commission.

(2) The chairperson shall appoint members of committees created under this section in such a manner as to ensure representation from all segments of the criminal justice system that are affected by the work of the committee. In selecting members for committee assignments, the chairperson shall consider, but is not limited to, representatives from the following:

(a) The Attorney General;

(b) The Director of the Department of Corrections;

(d) The Superintendent of State Police;

(e) The chief administrative employee of the Psychiatric Security Review Board;

(f) [The administrator of the Mental Health and Developmental Disability Services Division] The Director of Human Services;

(g) The Director of the Oregon Youth Authority;

(h) Trial judges;

(i) Judges of the Oregon Supreme Court or Court of Appeals;

(j) Majority and minority parties of the House of Representatives and the Senate;

(k) District attorneys;

(L) Criminal defense attorneys;

(m) County sheriffs;

(n) County commissioners;

(o) County community corrections directors;

(p) Chiefs of police;

(q) Victims of crime;

(r) The public at large;

(s) The director of a nonprofit entity created for the purpose of increasing understanding of the adult and juvenile justice systems and promotion of effective policies for prevention and control of crime; and

(t) Private contract providers.

SECTION 24. ORS 162.135 is amended to read:

162.135. As used in ORS 162.135 to 162.205, unless the context requires otherwise:

(1)(a) “Contraband” means:

(A) Controlled substances as defined in ORS 475.005;

(B) Drug paraphernalia as defined in ORS 475.525;

(C) Except as otherwise provided in paragraph (b) of this subsection, currency possessed by or in the control of an inmate confined in a correctional facility; or

(D) Any article or thing which a person confined in a correctional facility, youth correction facility or state hospital is prohibited by statute, rule or order from obtaining or possessing, and whose use would endanger the safety or security of such institution or any person therein.

(b) “Contraband” does not include authorized currency possessed by an inmate in a work release facility.

(2) “Correctional facility” means any place used for the confinement of persons charged with or convicted of a crime or otherwise confined under a court order and includes but is not limited to a youth correction facility. “Correctional facility” applies to a state hospital only as to persons detained therein charged with or convicted of a crime, or detained therein after acquittal of a crime by reason of mental disease or defect under ORS 161.290 to 161.370.

(3) “Currency” means paper money and coins that are within the correctional institution.

(4) “Custody” means the imposition of actual or constructive restraint by a peace officer pursuant to an arrest or court order, but does not include detention in a correctional facility, youth correction facility or a state hospital.

(5) “Escape” means the unlawful departure of a person from custody or a correctional facility. “Escape” includes the unauthorized departure or absence from this state or failure to return to this state by a person who is under the jurisdiction of the Psychiatric Security Review Board. “Escape” does not include failure to comply with provisions of a conditional release in ORS 135.245.

(6) “Youth correction facility” means the MacLaren School, Hillcrest School of Oregon and any other school established by law for similar purposes, and includes the other camps and programs maintained under ORS chapter 420 and detention facilities as defined in ORS 419A.004.

(7) “State hospital” means the Oregon State Hospital, [F. H. Dammasch State Hospital,] Eastern Oregon Psychiatric Center, Eastern Oregon Training Center[, Fairview Training Center] and any other hospital established by law for similar purposes.

(8) “Unauthorized departure” means the unauthorized departure of a person confined by court order in a youth correction facility or a state hospital that, because of the nature of the court order, is not a correctional facility as defined in this section, or the failure to return to custody after any form of temporary release or transitional leave from a correctional facility.

SECTION 25. ORS 166.412 is amended to read:

166.412. (1) As used in this section:

(a) “Antique firearm” has the meaning given that term in 18 U.S.C. 921;

(b) “Department” means the Department of State Police;

(d) “Firearms transaction record” means the firearms transaction record required by 18 U.S.C. 921 to 929;

(e) “Firearms transaction thumbprint form” means a form provided by the department under subsection (12) of this section;

(f) “Gun dealer” means a person engaged in the business, as defined in 18 U.S.C. 921, of selling, leasing or otherwise transferring a firearm, whether the person is a retail dealer, pawnbroker or otherwise;

(g) “Handgun” has the meaning given that term in ORS 166.210; and

(h) “Purchaser” means a person who buys, leases or otherwise receives a firearm from a gun dealer.

(2) Except as provided in subsections (3)(c) and (13) of this section, a gun dealer shall comply with the following before a handgun is delivered to a purchaser:

(a) The purchaser shall present to the dealer current identification meeting the requirements of subsection (4) of this section.

(b) The gun dealer shall complete the firearms transaction record and obtain the signature of the purchaser on the record.

(c) The gun dealer shall obtain the thumbprints of the purchaser on the firearms transaction thumbprint form and attach the form to the gun dealer's copy of the firearms transaction record to be filed with that copy.

(d) The gun dealer shall request by telephone that the department conduct a criminal history record check on the purchaser and shall provide the following information to the department:

(A) The federal firearms license number of the gun dealer;

(B) The business name of the gun dealer;

(D) The name of the person making the transfer;

(E) The make, model, caliber and manufacturer's number of the handgun being transferred;

(F) The name and date of birth of the purchaser;

(G) The social security number of the purchaser if the purchaser voluntarily provides this number to the gun dealer; and

(H) The type, issuer and identification number of the identification presented by the purchaser.

(e) The gun dealer shall receive a unique approval number for the transfer from the department and record the approval number on the firearms transaction record and on the firearms transaction thumbprint form.

(f) The gun dealer may destroy the firearms transaction thumbprint form five years after the completion of the firearms transaction thumbprint form.

(3)(a) Upon receipt of a request of the gun dealer for a criminal history record check, the department shall immediately, during the gun dealer's telephone call or by return call:

(A) Determine, from criminal records and other information available to it, whether the purchaser is disqualified under ORS 166.470 from completing the purchase; and

(B) Notify the dealer when a purchaser is disqualified from completing the transfer or provide the dealer with a unique approval number indicating that the purchaser is qualified to complete the transfer.

(b) If the department is unable to determine if the purchaser is qualified or disqualified from completing the transfer within 30 minutes, the department shall notify the dealer and provide the dealer with an estimate of the time when the department will provide the requested information.

(c) If the department fails to provide a unique approval number to a gun dealer or to notify the gun dealer that the purchaser is disqualified under paragraph (a) of this subsection before the close of the gun dealer's next business day following the request by the dealer for a criminal history record check, the dealer may deliver the handgun to the purchaser.

(4)(a) Identification required of the purchaser under subsection (2) of this section shall include one piece of current identification bearing a photograph and the date of birth of the purchaser that:

(A) Is issued under the authority of the United States Government, a state, a political subdivision of a state, a foreign government, a political subdivision of a foreign government, an international governmental organization or an international quasi-governmental organization; and

(B) Is intended to be used for identification of an individual or is commonly accepted for the purpose of identification of an individual.

(b) If the identification presented by the purchaser under paragraph (a) of this subsection does not include the current address of the purchaser, the purchaser shall present a second piece of current identification that contains the current address of the purchaser. The Superintendent of State Police may specify by rule the type of identification that may be presented under this paragraph.

(c) The department may require that the dealer verify the identification of the purchaser if that identity is in question by sending the thumbprints of the purchaser to the department.

(5) The department shall establish a telephone number that shall be operational seven days a week between the hours of 8 a.m. and 10 p.m. for the purpose of responding to inquiries from dealers for a criminal history record check under this section.

(6) No public employee, official or agency shall be held criminally or civilly liable for performing the investigations required by this section provided the employee, official or agency acts in good faith and without malice.

(7)(a) The department may retain a record of the information obtained during a request for a criminal records check for no more than five years.

(b) The record of the information obtained during a request for a criminal records check by a gun dealer is exempt from disclosure under public records law.

(8) The [Mental Health and Developmental Disability Services Division] Department of Human Services shall provide the [department] Department of State Police with direct electronic access to information from the [division's] Department of Human Services' database of information identifying persons meeting the criteria in ORS 166.470 (1)(e) and (f) who were committed or subject to an order under ORS 426.130. The Department of State Police and the [division] Department of Human Services shall enter into an agreement describing the access to information under this subsection.

(9) A law enforcement agency may inspect the records of a gun dealer relating to transfers of handguns with the consent of a gun dealer in the course of a reasonable inquiry during a criminal investigation or under the authority of a properly authorized subpoena or search warrant.

(10) When a handgun is delivered, it shall be unloaded.

(11) In accordance with applicable provisions of ORS 183.310 to 183.550, the Superintendent of State Police may adopt rules necessary for:

(a) The design of the firearms transaction thumbprint form;

(b) The maintenance of a procedure to correct errors in the criminal records of the department;

(c) The provision of a security system to identify dealers who request a criminal history record check under subsection (2) of this section; and

(d) The creation and maintenance of a database of the business hours of gun dealers.

(12) The department shall publish the firearms transaction thumbprint form and shall furnish the form to gun dealers on application at cost.

(13) This section does not apply to transactions between persons licensed as dealers under 18 U.S.C. 923.

SECTION 26. ORS 179.010 is amended to read:

179.010. As used in this chapter and sections 2 and 12, chapter 321, Oregon Laws 1987, unless the context requires otherwise:

[(1) “Assistant Director” means the Assistant Director for the Mental Health and Developmental Disability Services Division.]

[(2) “Department” means the Department of Corrections.]

[(3) “Director” means the Director of the Department of Corrections.]

[(4) “Division” means the Mental Health and Developmental Disability Services Division.]

[(5)] (1) “Institutions” means the institutions designated in ORS 179.321.

[(6)] (2) “Local government” means any county, city or special district.

[(7)] (3) “Plan” means the statewide strategic corrections plan developed under section 12, chapter 321, Oregon Laws 1987.

SECTION 27. ORS 179.040 is amended to read:

179.040. (1) The Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services shall:

(a) Govern, manage and administer the affairs of the public institutions and works within their respective jurisdictions.

(b) Enter into contracts for the planning, erection, completion and furnishings of all new buildings or additions at their respective institutions.

(c) Subject to any applicable provisions of ORS 279.545 to 279.746, 279.805, 279.826 to 279.833 and 283.110 to 283.395, enter into contracts for the purchase of supplies for their respective institutions.

(d) Make and adopt rules, not inconsistent with law, for the guidance of [that department or division] the Department of Corrections or the Department of Human Services and for the government of their respective institutions.

(2) The [department and the division] Department of Corrections and the Department of Human Services, respectively, may:

(a) Sue and plead in all courts of law and equity.

(b) Perform all legal and peaceful acts requisite and necessary for the successful management and maintenance of the institutions within their respective jurisdictions.

SECTION 28. ORS 179.050 is amended to read:

179.050. The Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services may receive, take and hold property, both real and personal, for any institution within their respective jurisdictions. Title shall be taken in the name of the state.

SECTION 29. ORS 179.055 is amended to read:

179.055. (1) The revenue from the rental or lease of property administered by an institution governed or managed by the Department of Corrections or the [Mental Health and Developmental Disability Services Division] Department of Human Services, except dormitory and housing rentals at institutions governed by [the] either department [or division], shall be deposited in the account of the respective department [or division] for use by the respective department [or division] to pay for the cost of administration, taxes, repairs and improvements on the property.

(2) The [department or division] Department of Corrections or Department of Human Services may request the Oregon Department of Administrative Services to make necessary repairs and improvements on the property described in subsection (1) of this section to be paid for by the [department or division] Department of Corrections or Department of Human Services from the proceeds derived from such rental or lease of the property or from appropriations otherwise available.

SECTION 30. ORS 179.065 is amended to read:

179.065. The Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services shall have the same powers with respect to furnishing heat, light, power, sewage, fire protection and communications facilities to institutions under their respective jurisdictions as is granted to the Oregon Department of Administrative Services under ORS 276.210 to 276.228, 276.234 to 276.244, 276.250 and 276.252. The powers shall be exercised in accordance with and subject to the provisions of such sections.

SECTION 31. ORS 179.105 is amended to read:

179.105. (1) For any of the purposes contemplated by ORS 179.040, including aid and support of research in any of the institutions, the Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services may in their respective discretions accept from the United States or any of its agencies financial assistance and grants in the form of money or labor, or from any other source any donation or grant of land or gift of money or any other thing. Any funds accepted in accordance with the provisions of this section and ORS 179.110 shall be deposited with the State Treasurer and subject to subsection (2) of this section, are appropriated to the [department or division] Department of Corrections or Department of Human Services and may be expended by it according to the conditions and terms of the grant or donation.

(2) Funds received under subsection (1) of this section or ORS 179.110 shall be expended subject to expenditure limitations imposed on the [department or division] Department of Corrections or Department of Human Services by the Legislative Assembly or, in the absence of such limitations, only after approval of the Legislative Assembly or of the Emergency Board, if approval is required during the interim between sessions of the Legislative Assembly.

(3) In any case where prior approval of the authority to expend any funds available under subsection (1) of this section or ORS 179.110 is imposed as a term or condition of receipt of such funds, the Legislative Assembly or the Emergency Board may approve expenditures of such funds prior to their receipt.

SECTION 32. ORS 179.110 is amended to read:

179.110. Subject to the approval of the Director of the Oregon Department of Administrative Services, the Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services, respectively, may accept and receive grants of funds from the United States or any of its agencies for the construction, equipment and betterment of any of the institutions under its jurisdiction and may cooperate with the United States or its agencies in such construction, equipment and betterment. Any balances of appropriations for capital outlay for any institution resulting from the use of funds so received shall be placed in a common fund. The [department and the division] Department of Corrections and the Department of Human Services are authorized and empowered in their discretion to expend such common fund or any portion thereof in the construction, equipment or betterment of any institution under its jurisdiction.

SECTION 33. ORS 179.140 is amended to read:

179.140. Subject to any applicable provision of ORS 279.545 to 279.746, 279.805, 279.826 to 279.833, 283.110 to 283.395 and 291.232 to 291.260, all claims for supplies or materials furnished or services rendered to institutions shall be audited and approved as provided by law, upon the presentation of duly verified vouchers therefor, approved in writing by the Director of the Department of Corrections or by the [Assistant Director for the Mental Health and Developmental Disability Services Division] Director of Human Services, or by their designees.

SECTION 34. ORS 179.240 is amended to read:

179.240. (1) If any person owes a debt to this state or a state agency, and the debt has been fixed by final judgment of a court of competent jurisdiction or is no longer subject to judicial review, the Department of Corrections or the [Mental Health and Developmental Disability Services Division] Department of Human Services shall deduct the amount of the debt from any award made to that person under ORS 179.210.

(2) The [department or division] Department of Corrections or the Department of Human Services shall request the State Treasurer to transfer to the appropriate fund or account to which the debt is owed, an amount equal to the amount deducted from the award under subsection (1) of this section, for use during that biennium in accordance with law by the state agency administering the fund or account to which the debt is owed. The State Treasurer shall evidence the transfer by proper bookkeeping entries. If the [department, division] Department of Corrections, Department of Human Services or State Treasurer cannot determine the appropriate fund or account, the amount shall be transferred to the General Fund for general governmental purposes.

(3) Any debt owed by a person to this state or a state agency is satisfied, upon the completion of a transfer made pursuant to subsection (2) of this section, to the extent of the amount so transferred.

SECTION 35. ORS 179.321 is amended to read:

179.321. (1) The [Mental Health and Developmental Disability Services Division] Department of Human Services shall operate, control, manage and supervise[:] the Eastern Oregon Psychiatric Center, the Eastern Oregon Training Center[, F. H. Dammasch State Hospital, Fairview Training Center] and the Oregon State Hospital.

(2) The Department of Corrections shall operate, control, manage and supervise those institutions defined as Department of Corrections institutions in ORS 421.005.

SECTION 36. ORS 179.360 is amended to read:

179.360. (1) Each superintendent shall:

(a) Have custody of the residents of the institution under jurisdiction of the superintendent.

(b) Direct the care, custody and training of the residents unless otherwise directed by law or by rule.

(d) Promote the mental, moral and physical welfare and development of the residents.

(e) Enjoy the other powers and privileges and perform the other duties that are prescribed by law or by rule or that naturally attach themselves to the position of superintendent.

(f) Designate a physician licensed by the Board of Medical Examiners for the State of Oregon to serve as chief medical officer as provided in ORS 426.020 and 427.010, who will be directly responsible to the superintendent for administration of the medical treatment programs at the institution and assume such other responsibilities as are assigned by the superintendent.

(2) The Director of the Department of Corrections or the [Assistant Director for Mental Health and Developmental Disability Services] Director of Human Services[, as the case may be,] shall prescribe for their respective institutions:

(a) The duties of the superintendents where the duties are not prescribed by law.

(b) The additional duties, beyond those prescribed by law, that the [director or assistant director] Director of the Department of Corrections or the Director of Human Services considers necessary for the good of the public service.

SECTION 37. ORS 179.380 is amended to read:

179.380. (1) The Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services shall authorize the employment of all necessary physicians, attendants, nurses, engineers, messengers, clerks, guards, cooks, waiters and other officers and employees not specifically authorized by law and necessary to the successful maintenance of their respective institutions. The amounts expended for the services of such officers and employees shall not exceed the amounts provided therefor in the biennial appropriations for the institution.

(2) The [department and division] Department of Corrections and the Department of Human Services shall designate in their respective rules which employees shall be officers, and shall require all officers to take and subscribe to an oath of office and, if the circumstances require it, to furnish bonds.

SECTION 38. ORS 179.385 is amended to read:

179.385. The Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services, respectively, may establish scholarship programs to provide assistance in securing qualified personnel at state institutions governed by them. Scholarships authorized by this section shall be granted in accordance with rules and regulations adopted respectively by the [department or division] departments.

SECTION 39. ORS 179.390 is amended to read:

179.390. (1) The superintendent of [institutions] an institution other than [those] an institution within the jurisdiction of the [Mental Health and Developmental Disability Services Division] Department of Human Services shall, subject to the approval of the [assistant director] Director of Human Services or the Director of the Department of Corrections, appoint in the manner provided by law all assistants, officers and other employees at the institution under the jurisdiction of the superintendent. The superintendent may suspend or remove an assistant, officer or other employee in the manner provided by law, reporting all acts of suspension or removal to the [assistant director] Director of Human Services or [director for corrections] Director of the Department of Corrections for approval or disapproval. The [assistant director] Director of Human Services or [director for corrections] Director of the Department of Corrections shall fix the salaries of assistants, officers and employees where their salary is not fixed by law. The [assistant director of a division] Director of Human Services or [director of corrections] Director of the Department of Corrections shall, subject to any applicable provisions of the State Personnel Relations Law, suspend or discharge any subordinate of a superintendent when public service requires such action.

(2) The [Assistant Director for Mental Health and Developmental Services or the designees of the Assistant Director for Mental Health and Developmental Services] Director of Human Services or a designee at each facility under jurisdiction of the [division] Department of Human Services shall, as provided by law, appoint, suspend or discharge an employee of the [division] department. The [assistant director] Director of Human Services may designate up to three employees at each facility to act in the name of the [assistant director] director in accordance with ORS 240.400.

(3) In addition to or in lieu of employing physicians, the Director of the Department of Corrections or the designee thereof may contract for the personal services of physicians licensed to practice medicine by the Board of Medical Examiners for the State of Oregon to serve as medical advisors for the [division] Department of Human Services. Advisors under such contracts shall be directly responsible for administration of medical treatment programs at penal and correctional institutions, as defined in ORS 421.005.

SECTION 40. ORS 179.460 is amended to read:

179.460. (1) In order to encourage industry and thereby increase productiveness in the institutions, the Department of Corrections and the [Mental Health and Developmental Disability Services Division] Department of Human Services shall prescribe rules and regulations for the sale and exchange of surplus products of each.

(2) The funds derived from the sale of the surplus products shall be paid into the State Treasury and become a part of a fund to be known as the State Institutional Betterment Fund, which fund shall be expended by the [department and division] Department of Corrections and the Department of Human Services, respectively, for the benefit of the institutions in proportion to the amount earned by each.

(3) The provisions of this section apply to facilities operated under ORS 346.010.

SECTION 41. ORS 179.478 is amended to read:

179.478. (1) If the person, a relative, guardian or friend, or institution staff have probable cause to believe that an inmate or youth offender is mentally retarded to such a degree that the inmate or youth offender cannot adjust to or benefit from the Department of Corrections institution or youth correction facility, the superintendent of the institution shall request that a diagnostic assessment be performed by the [Mental Health and Developmental Disability Services Division] Department of Human Services or its designee. If there is probable cause to believe that the inmate or youth offender is mentally retarded and otherwise eligible for admission to a state hospital and training center for the mentally retarded pursuant to ORS 427.010 and other applicable statutes and rules of the [Mental Health and Developmental Disability Services Division] Department of Human Services, the person shall be entitled to a commitment hearing.

(2) If the inmate or youth offender is by clear and convincing evidence determined by the court to be mentally retarded, the person shall be committed and transferred to a hospital and training center designated by the [Mental Health and Developmental Disability Services Division] Department of Human Services as soon as space in an appropriate unit is available, and any sentence to a Department of Corrections institution or commitment to the youth correction facility shall be terminated. [The State Office for Services to Children and Families may retain general wardship of the youth offender, as it would for other minors placed in its custody.]

SECTION 42. ORS 179.479 is amended to read:

179.479. (1) The superintendent or other chief executive officer of an institution described in ORS 179.321 may, when authorized by regulation or direction of the Department of Corrections or [Mental Health and Developmental Disability Services Division] Department of Human Services, convey an inmate to a physician, clinic or hospital, including the Oregon Health Sciences University, for medical, surgical or dental treatment when such treatment cannot satisfactorily be provided at the institution. An inmate conveyed for treatment pursuant to this section shall be kept in the custody of the institution from which the inmate is conveyed.

(2) The [department and division] Department of Corrections and the Department of Human Services each [, respectively,] shall prescribe rules and regulations governing conveyances authorized by this section.

SECTION 43. ORS 179.490 is amended to read:

179.490. In the case of a necessary or emergency operation, requiring the services of a specialist, and where the relatives or guardians, in the judgment of the Department of Corrections or [Mental Health and Developmental Disability Services Division] Department of Human Services, are unable to pay a part or the whole cost of the operation, [the] either department [or division], in its discretion, may have the operation performed, the cost of the operation to be payable from the funds of the institution concerned.

SECTION 44. ORS 179.505 is amended to read:

179.505. (1) “Provider,” as used in this section, means any public agency or publicly operated institution, any private organization that operates as a community mental health provider, any subcontractor of a community mental health provider or any contractor of the [Mental Health and Developmental Disability Services Division or the office of Alcohol and Drug Abuse Programs,] Department of Human Services, licensed or operated under this chapter or ORS chapter 426[,] or 427[,] or ORS 430.010 to 430.180, 430.260 to 430.395, 430.397 to 430.401, 430.405 to 430.565 and 430.610 to 430.880 or ORS 431.035 to 431.530, 431.705 to 431.990 and sections 2 and 12, chapter 321, Oregon Laws 1987, that provides health care services or maintains written accounts of health care services provided to individuals.

(2) Except as provided in subsections (3), (4), (6), (7), (8), (9), (11), (12), (14), (15) and (16) of this section, case histories, clinical records, X-rays, treatment charts, progress reports and other similar written accounts of the patients of any provider maintained in or by the provider by the officers or employees thereof who are authorized to maintain such histories, records, X-rays, reports, charts and other accounts within the official scope of their duties shall not be subject to inspection. This subsection applies to written accounts maintained in or by facilities of the Department of Corrections only to the extent that the written accounts concern the medical, dental or psychiatric treatment as patients of those under the jurisdiction of the Department of Corrections.

(3) If the patient, or in the case of incompetence, the legal guardian, gives voluntary and informed consent, the content of any written account referred to in subsection (2) of this section shall be released accordingly, if the consent is in writing and is signed and dated by the patient or guardian and sets forth with specificity the following:

(a) Name of the provider directed to make the disclosure, except when the consent is given by recipients of or applicants for public assistance to a governmental entity for purposes of determining eligibility for benefits or investigating for fraud;

(b) Name or title of the persons or organizations to which the information is to be disclosed or that information may be released to the public;

(d) Extent or nature of the information to be disclosed; and

(e) Statement that the consent is subject to revocation at any time except to the extent that action has been taken in reliance thereon, and a specification of the date, event or condition upon which it will expire without express revocation. However, no revocation of a consent is valid with respect to inspection or records necessary to validate expenditures by or on behalf of governmental entities.

(4) The content of any written account referred to in subsection (2) of this section may be released without consent:

(a) To any person to the extent necessary to meet a medical emergency.

(b) At the discretion of the responsible officer of the provider, which in the case of any [Mental Health and Developmental Disability Services Division] Department of Human Services facility or community mental health and developmental disabilities program shall be the [Assistant Director for Mental Health and Developmental Disability Services] Director of Human Services, to persons engaged in scientific research, program evaluation, peer review and fiscal audits. However, patient identities shall not be disclosed to such persons, except when the disclosure is essential to the research, evaluation, review or audit or when the disclosure benefits the provider or patient.

(c) To governmental agencies when necessary to secure compensation for services rendered in the treatment of the patient.

(5) When a patient's identity is disclosed under subsection (4) of this section, a provider shall prepare, and include in the permanent records of the provider, a written statement indicating the reasons for the disclosure, the written accounts disclosed and the recipients of the disclosure.

(6) The content of any written account referred to in subsection (2) of this section and held by a provider currently engaged in the treatment of a patient may be released to officers or employees of that provider, its agents or cooperating providers who are currently acting within the official scope of their duties to evaluate treatment programs, to diagnose or treat or to assist in diagnosing or treating a patient when such written account is to be used in the course of diagnosing or treating the patient. Nothing in this subsection shall prevent the transfer of written accounts referred to in subsection (2) of this section among providers of the [Mental Health and Developmental Disability Services Division] Department of Human Services, the Department of Corrections, a local correctional facility or a community mental health and developmental disabilities program when the transfer is necessary or beneficial to the treatment of a patient.

(7) When an action, suit, claim, arbitration or proceeding is brought under ORS 34.105 to 34.240 or 34.310 to 34.730 and involves a claim of constitutionally inadequate medical care, diagnosis or treatment, or is brought under ORS 30.260 to 30.300 and involves the Department of Corrections or an institution operated by the department, nothing in this section prohibits the disclosure or release of any written account referred to in subsection (2) of this section to the Department of Justice, Oregon Department of Administrative Services, or their agents, upon request, or the subsequent release to a court, administrative hearings officer, arbitrator or other administrative decision maker.

(8)(a) When an action, suit, claim, arbitration or proceeding involves the [Mental Health and Developmental Disability Services Division] Department of Human Services or an institution operated by the [division] department, nothing in this section prohibits the disclosure or release of any written account referred to in subsection (2) of this section to the Department of Justice, Oregon Department of Administrative Services, or their agents, provided:

(A) Consent under subsection (3) of this section is requested and obtained; or

(B) If no consent under subsection (3) of this section is given, disclosure is made only after notice of the extent or nature of the disclosure has been given to the patient.

(b) Disclosure or release of information in an action, suit, claim, nonlabor arbitration or proceeding is limited by the relevancy restrictions of ORS 40.010 to 40.585 and ORS chapter 183. Only written accounts of a plaintiff, claimant or petitioner shall be disclosed or released under this paragraph.

(c) Disclosure or release of information as part of a labor arbitration or proceeding to support a personnel action taken against staff is limited to written accounts directly relating to alleged action or inaction by staff for which the personnel action was imposed.

(9)(a) The copy of any written account referred to in subsection (2) of this section, upon written request of the patient, or in the case of incompetence, the legal guardian, shall be released to the patient or the guardian within a reasonable time not to exceed five working days. The patient, or in the case of incompetence, the legal guardian, shall have the right to immediate inspection of any written accounts.

[(a)] (b) If the release of psychiatric or psychological information contained in the written account would constitute an immediate and grave detriment to the treatment of the patient, disclosure may be denied, if medically contraindicated by the attending physician in the medical record of the patient.

[(b)] (c) The Department of Corrections may withhold psychiatric or psychological information if:

(A) The information relates to an individual other than the individual seeking it.

(B) Release of the information would constitute a danger to another individual.

[(c)] (d) However, a written statement of the denial under paragraph [(b)] (c) of this subsection and the reasons therefor shall be entered in the individual's record.

(10) A provider may require a person requesting disclosure of the contents of a written account under this section to reimburse the provider for the reasonable costs incurred in searching files, abstracting if requested and copying if requested. However, a patient shall not be denied access to written accounts concerning the patient because of inability to pay.

(11) No written account referred to in subsection (2) of this section may be used to initiate or substantiate any criminal, civil, administrative, legislative or other proceedings conducted by federal, state or local authorities against the patient or to conduct any investigations of the patient. If the patient, as a party to an action, suit or other judicial proceeding, voluntarily produces evidence regarding an issue to which a written account referred to in subsection (2) of this section would be relevant, the contents of that written account may be released for use in the proceeding.

(12) Information obtained in the course of diagnosis, evaluation or treatment of a patient which, in the professional judgment of the provider indicates a clear and immediate danger to others or to society may be reported to the appropriate authority. A decision not to disclose information under this subsection shall not subject the provider to any civil liability. Nothing in this subsection shall be construed to alter the provisions of ORS 146.750, 146.760, 419B.010, 419B.015, 419B.020, 419B.025, 419B.030, 419B.035, 419B.040 and 419B.045.

(13) The prohibitions of this section shall apply to written accounts concerning any individual who has been treated by any provider irrespective of whether or when the individual ceases to receive treatment.

(14) Persons other than the patient who are granted access under this section to the contents of a written account referred to in subsection (2) of this section shall not disclose the contents of the written account to any other person except in accordance with the provisions of this section.

(15) Nothing in this section shall prevent the [State Office for Services to Children and Families] Department of Human Services from disclosing the contents of written accounts in its possession to individuals or agencies with whom children in its custody are placed.

(16) The system designated under ORS 192.517 (1) shall have access to records, as defined in ORS 192.515, as provided in ORS 192.517.

SECTION 45. ORS 179.509 is amended to read:

179.509. (1) The superintendent of each state institution shall submit quarterly reports on the number of deaths, including the ages of the deceased, the causes of death and the disposition of the remains, within the institution to the [division in the] Department of Human Services or to the Department of Corrections, as the case may be, having jurisdiction over the institution.

(2) The [division having jurisdiction] Department of Human Services or the Department of Corrections shall compile the reports described in subsection (1) of this section and submit them quarterly to the offices of the President of the Senate and of the Speaker of the House of Representatives.

SECTION 46. Section 9, chapter 849, Oregon Laws 1999, is amended to read:

Sec. 9. (1) Except as provided in this section, all agencies must use hearing officers assigned from the Hearing Officer Panel established under section 3, chapter 849, Oregon Laws 1999, [of this 1999 Act] to conduct contested case hearings, without regard to whether those hearings are subject to the procedural requirements for contested case hearings.

(2) The following agencies need not use hearing officers assigned from the panel:

(a) The Department of Education, the State Board of Education and the Superintendent of Public Instruction.

(b) Employment Appeals Board.

(d) Public Utility Commission.

(e) Bureau of Labor and Industries and the Commissioner of the Bureau of Labor and Industries.

(f) Land Conservation and Development Commission.

(g) Land Use Board of Appeals.

(h) Department of Revenue.

(i) Local government boundary commissions created pursuant to ORS 199.425 or 199.430.

(j) State Accident Insurance Fund Corporation.

(k) Psychiatric Security Review Board.

(L) State Board of Parole and Post-Prison Supervision.

(m) Department of Corrections.

(n) Energy Facility Siting Council.

(o) [Vocational Rehabilitation Division] Department of Human Services for vocational rehabilitation services cases under 29 U.S.C. 722(c) and disability determination cases under 42 U.S.C. 405.

(p) Secretary of State.

(q) State Treasurer.

(r) Attorney General.

(s) Fair Dismissal Appeals Board.

(t) Department of State Police.

(u) Oregon Youth Authority.

(v) Boards of stewards appointed by the Oregon Racing Commission.

(w) The Department of Higher Education and the institutions of higher education listed in ORS 352.002.

(x) The Governor.

(y) State Land Board.

(3) The Workers' Compensation Board is exempt from using hearing officers assigned from the panel for any hearing conducted by the board under ORS chapters 147, 654 and 656. The Director of the Department of Consumer and Business Services must use hearing officers assigned from the panel for all contested case hearings regarding matters other than those concerning a claim under ORS chapter 656, as provided in ORS 656.704 (2). Except as specifically provided in this subsection, the Department of Consumer and Business Services must use hearing officers assigned from the panel only for contested cases arising out of the department's powers and duties under:

(a) ORS chapter 59;

(b) ORS 200.005 to 200.075;

(d) ORS chapter 674;

(e) ORS chapters 706 to 716;

(f) ORS chapter 717;

(g) ORS chapters 722, 723, 725 and 726; and

(h) ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 744, 746, 748 and 750.

(4) Notwithstanding any other provision of law, in any proceeding in which an agency is required to use a hearing officer assigned from the panel, an officer or employee of the agency may not conduct the hearing on behalf of the agency.

(5) Notwithstanding any other provision of sections 2 to 21, chapter 849, Oregon Laws 1999 [of this 1999 Act], no agency shall be required to use a hearing officer assigned from the panel if:

(a) Federal law requires that a different hearing officer be used; or

(b) Use of a hearing officer from the panel could result in a loss of federal funds.

(6) Notwithstanding any other provision of this section, the Department of Environmental Quality must use hearing officers assigned from the panel only for contested case hearings conducted under the provisions of ORS 183.413 to 183.470.

SECTION 47. ORS 197.660 is amended to read:

197.660. As used in ORS 197.660 to 197.670, 215.213, 215.263, 215.283, 215.284 and 443.422:

(1) “Residential facility” means a residential care, residential training or residential treatment facility, as those terms are defined in ORS 443.400, licensed or registered [by or under the authority of the department, as defined in ORS 443.400,] under ORS 443.400 to 443.460 or licensed [by the State Office for Services to Children and Families] under ORS 418.205 to 418.327 [which] by the Department of Human Services that provides residential care alone or in conjunction with treatment or training or a combination thereof for six to fifteen individuals who need not be related. Staff persons required to meet licensing requirements shall not be counted in the number of facility residents, and need not be related to each other or to any resident of the residential facility.

(2) “Residential home” means a residential treatment or training or an adult foster home licensed by or under the authority of the department, as defined in ORS 443.400, under ORS 443.400 to 443.825, a residential facility registered under ORS 443.480 to 443.500 or an adult foster home licensed under ORS 443.705 to 443.825 [which] that provides residential care alone or in conjunction with treatment or training or a combination thereof for five or fewer individuals who need not be related. Staff persons required to meet licensing requirements shall not be counted in the number of facility residents, and need not be related to each other or to any resident of the residential home.

(3) “Zoning requirement” means any standard, criteria, condition, review procedure, permit requirement or other requirement adopted by a city or county under the authority of ORS chapter 215 or 227 which applies to the approval or siting of a residential facility or residential home. A zoning requirement does not include a state or local health, safety, building, occupancy or fire code requirement.

SECTION 48. ORS 197.667 is amended to read:

197.667. (1) A residential facility shall be a permitted use in any zone where multifamily residential uses are a permitted use.

(2) A residential facility shall be a conditional use in any zone where multifamily residential uses are a conditional use.

(3) A city or county may allow a residential facility in a residential zone other than those zones described in subsections (1) and (2) of this section, including a zone where a single-family dwelling is allowed.

(4) A city or county may require an applicant proposing to site a residential facility within its jurisdiction to supply the city or county with a copy of the entire application and supporting documentation for state licensing of the facility, except for information which is exempt from public disclosure under ORS 192.496 to 192.530. However, cities and counties shall not require independent proof of the same conditions that have been required by the Department of Human Services [as defined in ORS 443.400 or the State Office for Services to Children and Families] under ORS 418.205 to 418.327 for licensing of a residential facility.

SECTION 49. ORS 238.300 is amended to read:

238.300. Upon retiring from service at normal retirement age or thereafter a person who is a member of the system shall receive a service retirement allowance which shall consist of the following annuity and pensions:

(1) A refund annuity which shall be the actuarial equivalent of accumulated contributions by the member and interest thereon credited at the time of retirement, which annuity shall provide an allowance payable during the life of the member and at death a lump sum equal in amount to the difference between accumulated contributions at the time of retirement and the sum of the annuity payments actually made to the member during life shall be paid to such person, if any, as the member nominates by written designation duly acknowledged and filed with the board or shall otherwise be paid according to the provisions of this chapter for disposal of an amount credited to the account of a member at the time of death in the event the member designates no beneficiary to receive the amount or no such beneficiary is able to receive the amount. If death of the member occurs before the first payment is due, the account of the member shall be treated as though death had occurred before retirement.

(2)(a) A life pension (nonrefund) for current service provided by the contributions of employers, which pension, subject to paragraph (b) of this subsection, shall be an amount which, when added to the sum of the annuity under subsection (1) of this section and the annuity, if any, provided on the same basis and payable from the Variable Annuity Account, both annuities considered on a refund basis, results in a total of:

(A) For service as a police officer or firefighter, two percent of final average salary multiplied by the number of years of membership in the system as a police officer or firefighter before the effective date of retirement.

(B) For service as a member of the Legislative Assembly, two percent of final average salary multiplied by the number of years of membership in the system as a member of the Legislative Assembly before the effective date of retirement.

(C) For service as other than a police officer, firefighter or member of the Legislative Assembly, 1.67 percent of final average salary multiplied by the number of years of membership in the system as other than a police officer, firefighter or member of the Legislative Assembly before the effective date of retirement.

(b) A pension under this subsection shall be at least:

(A) The actuarial equivalent of the annuity provided by the accumulated contributions of the member.

(B) For a member who made contributions before August 21, 1981, the equivalent of a pension computed pursuant to this subsection as it existed immediately before that date.

(c) As used in this subsection, “number of years of membership” means the number of full years plus any remaining fraction of a year for which salary was paid and contributions to the Public Employees Retirement System made. Except as otherwise provided in this paragraph, in determining a remaining fraction a full month shall be considered as one-twelfth of a year and a major fraction of a month shall be considered as a full month. Membership of a school district employee, an employee of the State Board of Higher Education engaged in teaching or other school activity at an institution of higher education or an employee of the [State Office for Services to Children and Families] Department of Human Services, the Oregon Youth Authority, the Department of Corrections[, the Mental Health and Developmental Disability Services Division] or the State Board of Education engaged in teaching or other school activity at an institution supervised by the [office,] authority, board[,] or department [or division], for all portions of a school year in a calendar year in which the district school, institution of higher education or school activity at an institution so supervised in which the member is employed is normally in session shall be considered as a full one-half year of membership. The number of years of membership of a member who received a refund of contributions as provided in ORS 237.976 (2) is limited to the number of years after the day before the date on which the refund was received. The number of years of membership of a member who is separated, for any reason other than death or disability, from all service entitling the member to membership in the system, who withdraws the amount credited to the account of the member in the fund during absence from such service and who thereafter reenters the service of an employer participating in the system but does not repay the amount so withdrawn as provided in this chapter, is limited to the number of years after the day before the date of so reentering.

(3) An additional life pension (nonrefund) for prior service, including military service, credited to the member at the time of first becoming a member of the system, as elsewhere provided in this chapter, which pension shall be provided by the prior service contributions of the employer or, in case the member is an employee of a school district, by a uniform rate of contribution by all school districts.

SECTION 50. ORS 276.180 is amended to read:

276.180. When vacated and no longer required for institution uses, all or any portion of the buildings, grounds and facilities presently operated and controlled by the [Mental Health and Developmental Disability Services Division] Department of Human Services, Department of Corrections[, State Office for Services to Children and Families,] or the State Board of Education, are transferred to the Oregon Department of Administrative Services when so ordered by the Oregon Department of Administrative Services. Title shall vest automatically in the Oregon Department of Administrative Services in the name of the State of Oregon and the department shall operate and maintain all facilities described in this section.

SECTION 51. ORS 279.855 is amended to read:

279.855. The following may purchase equipment, materials, supplies and services through the Oregon Department of Administrative Services in the same manner as state agencies as provided in ORS 279.545 to 279.746 and 279.800 to 279.833:

(1) Qualified nonprofit agencies for disabled individuals participating in the program set forth in ORS 279.015 and 279.835 to 279.850.

(2) Residential programs when under contract with the Department of Human Services [or any division thereof] to provide services to youth in the custody of the state.

(3) Public benefit corporations, as defined in ORS 65.001, that provide public services either under contract with a state agency, as defined in ORS 171.133, or under contract with a unit of local government, as defined in ORS 190.003, that funds the contract, in whole or in part, with state funds.

SECTION 52. ORS 285A.458 is amended to read:

285A.458. (1) The Governor shall create and maintain regional workforce committees to advise on regional and local needs for workforce development, to prepare plans for achieving regional goals and to coordinate the provision of services within regions. The committees shall have private and public sector members. However, a majority of the members of each committee shall represent the private sector and include business and labor representatives. The chairperson of each committee shall be a private sector member and be elected by the committee.

(2) The private sector committee members shall play a critical role in workforce development, including but not limited to:

(a) Identifying current and future workforce needs;

(b) Providing feedback on public sector programs;

(d) Being a partner in addressing workforce needs.

(3) Private sector members of a committee created under this section shall be appointed by county commissioners and, in the region that includes the City of Portland, the Mayor of Portland. The members of the committee shall reflect the broadest feasible representation from the groups described in ORS 285A.455 (4)(a) to (h).

(4) The public sector representatives on the committee are representatives who receive resources and deliver education and workforce programs within the labor market area. Public sector members shall include the broadest feasible representation from, but not be limited to, the following:

(a) The [Adult and Family Services Division of the] Department of Human Services;

(b) School districts, education service districts, community colleges, state institutions of higher education and Oregon Health Sciences University;

[(c) The Vocational Rehabilitation Division of the Department of Human Services;]

[(d)] (c) The Economic and Community Development Department and local economic development entities;

[(e)] (d) The Employment Department;

[(f)] (e) The Job Training Partnership Act local administrative entity; and

[(g)] (f) Other public sector partners.

(5) A local region individually may recommend to the Governor an alternate structure for its regional committee, based on local determination and mutually agreed to by the current public and private sector members of the regional workforce committee and the local elected officials. The alternate structure must retain a private sector chairperson, appointments of the private sector members as provided in subsection (3) of this section, and substantive public and private sector and other stakeholder participation through formalized methods, such as standing committees.

(6) A regional workforce committee shall develop and implement a strategic plan that responds to the current and future workforce needs of the local labor market.

(7) The strategic plan shall:

(a) Consider the supply and demand outlook for the region;

(b) Identify and prioritize initiatives and resources, both public and private, to meet the local workforce needs;

(c) Articulate and include the coordination of both public and private resources in addressing the workforce needs and goals; and

(d) Ensure the most appropriate use of resource investments.

(8) The regional workforce committee shall create or enhance the workforce program delivery system to meet the strategic priorities of the region.

(9) Within each region, or within overlapping regions, regional workforce committees and regional strategy boards shall coordinate their planning efforts to ensure that the strategic efforts and resource allocation of economic and workforce development of an area are consistent. Regional workforce committees and regional strategy boards will extend opportunities to other entities engaged in economic and workforce development programs and services to participate in their joint or integrated strategic planning.

SECTION 53. ORS 310.630 is amended to read:

310.630. As used in ORS 310.630 to 310.706:

(1) “Department” means the Department of Revenue.

(2) “Fuel and utility payments” include payments for heat, lights, water, sewer and garbage made solely to secure those commodities or services for the homestead of the taxpayer. “Payments for heat” mean those payments made to secure the commodities or services to be used as the principal source of heat for the homestead of the taxpayer and includes payments for natural gas, oil, firewood, coal, sawdust, electricity, steam or other materials that are capable of use as a primary source of heat for the homestead. “Fuel and utility payments” do not include telephone service.

(3) “Gross rent” means contract rent paid plus the fuel and utility payments made for the homestead in addition to the contract rent, during the calendar year for which the claim is filed.

(4) “Homestead” means the taxable principal dwelling located in Oregon, either real or personal property, rented by the taxpayer, and the taxable land area of the tax lot upon which it is built.

(5) “Household” means the taxpayer, the spouse of the taxpayer and all other persons residing in the homestead during any part of the calendar year for which a claim is filed.

(6) “Household income” means the aggregate income of the taxpayer and the spouse of the taxpayer who reside in the household, that was received during the calendar year for which the claim is filed. “Household income” includes payments received by the taxpayer or the spouse of the taxpayer under the federal Social Security Act for the benefit of a minor child or minor children who are members of the household.

(7) “Income” means “adjusted gross income” as defined in the federal Internal Revenue Code, as amended and in effect on December 31, 1998, even where the amendments take effect or become operative after that date, relating to the measurement of taxable income of individuals, estates and trusts, with the following modifications:

(a) There shall be added to adjusted gross income the following items of otherwise exempt income:

(A) The gross amount of any otherwise exempt pension less return of investment, if any.

(B) Child support received by the taxpayer.

(D) Gifts and grants, the sum of which are in excess of $500 per year.

(E) Amounts received by a taxpayer or spouse of a taxpayer for support from a parent who is not a member of the taxpayer's household.

(F) Life insurance proceeds.

(G) Accident and health insurance proceeds, except reimbursement of incurred medical expenses.

(H) Personal injury damages.

(I) Sick pay which is not included in federal adjusted gross income.

(J) Strike benefits excluded from federal gross income.

(K) Worker's compensation, except for reimbursement of medical expense.

(L) Military pay and benefits.

(M) Veteran's benefits.

(N) Payments received under the federal Social Security Act which are excluded from federal gross income.

(O) Welfare payments, except as follows:

(i) Payments for medical care, drugs and medical supplies, if the payments are not made directly to the welfare recipient;

(ii) In-home services authorized and approved by the Department of Human Services[, or by any of its divisions]; and

(iii) Direct or indirect reimbursement of expenses paid or incurred for participation in work or training programs.

(P) Nontaxable dividends.

(Q) Nontaxable interest not included in federal adjusted gross income.

(R) Rental allowance paid to a minister that is excluded from federal gross income.

(S) Income from sources without the United States that is excluded from federal gross income.

(b) Adjusted gross income shall be increased due to the disallowance of the following deductions:

(A) The amount of the net loss, in excess of $1,000, from all dispositions of tangible or intangible properties.

(B) The amount of the net loss, in excess of $1,000, from the operation of a farm or farms.

(C) The amount of the net loss, in excess of $1,000, from all operations of a trade or business, profession or other activity entered into for the production or collection of income.

(D) The amount of the net loss, in excess of $1,000, from tangible or intangible property held for the production of rents, royalties or other income.

(E) The amount of any net operating loss carryovers or carrybacks included in federal adjusted gross income.

(F) The amount, in excess of $5,000, of the combined deductions or other allowances for depreciation, amortization or depletion.

(G) The amount added or subtracted, as required within the context of this section, for adjustments made under ORS 316.680 (2)(d) and 316.707 to 316.737.

(A) Any governmental grant which must be used by the taxpayer for rehabilitation of the homestead of the taxpayer.

(B) The amount of any payments made pursuant to ORS 310.630 to 310.706.

(8) “Contract rent” means rental paid to the landlord for the right to occupy a homestead, including the right to use the personal property located therein. “Contract rent” does not include rental paid for the right to occupy a homestead that is exempt from taxation, unless payments in lieu of taxes of 10 percent or more of the rental exclusive of fuel and utilities are made on behalf of the homestead. “Contract rent” does not include advanced rental payments for another period and rental deposits, whether or not expressly set out in the rental agreement, or payments made to a nonprofit home for the elderly described in ORS 307.375. If a landlord and tenant have not dealt with each other at arm's length, and the department is satisfied that the contract rent charged was excessive, it may adjust the contract rent to a reasonable amount for purposes of ORS 310.630 to 310.706.

(9) “Statement of gross rent” means a declaration by the applicant, under penalties of false swearing, that the amount of contract rent and fuel and utility payments designated is the actual amount both incurred and paid during the year for which elderly rental assistance is claimed.

(10) “Taxpayer” means an individual who is a resident of this state on December 31 of the year for which elderly rental assistance is claimed and whose homestead, as of the same December 31 and during all or a portion of the year ending on the same December 31, is rented and while rented is the subject, directly or indirectly, of property tax levied by this state or a political subdivision or of payments made in lieu of taxes.

SECTION 54. ORS 343.499 is amended to read:

343.499. (1)(a) There is created the State Interagency Coordinating Council.

(b) The Governor shall appoint members of the council from a list of eligible appointees provided by the council and agencies described in subsection (2) of this section and shall ensure that the membership of the council reasonably represents the population of this state.

(c) The Governor shall designate one member of the council to serve as the chairperson, or if the Governor chooses not to name a chairperson, the council may elect one of its members to serve as chairperson. However, any member of the council who represents the Department of Education may not serve as the chairperson of the council.

(2) The membership of the council shall be composed as follows:

(a) At least 20 percent of the council members shall be parents, including minority parents, of preschool children with disabilities or of children with disabilities who are 12 years of age or younger who have knowledge of or experience with programs for infants and toddlers with disabilities. At least one council member shall be a parent of an infant or toddler with a disability or of a child with a disability who is six years of age or younger.

(b) At least 20 percent of the council members shall be public or private providers of early intervention and early childhood special education services.

(d) At least one council member shall be involved in the training and preparation of personnel for employment in early intervention and early childhood special education.

(e) At least one council member shall represent the Department of Human Services. [each of the state agencies that are involved in the provision of or payment for services for preschool children with disabilities and their families and shall have sufficient authority to engage in policymaking and implementation on behalf of these agencies, including but not limited to the Department of Education, the Mental Health and Developmental Disability Services Division, the State Office for Services to Children and Families, the Health Division, the Alcohol and Drug Abuse Programs, the Office of Medical Assistance Programs, the Adult and Family Services Division, the Department of Consumer and Business Services, the State Commission on Children and Families and the Child Development and Rehabilitation Center of the Oregon Health Sciences University.]

(f) At least one council member shall represent the federal Head Start program.

(g) At least one council member shall represent the Child Care Division of the Employment Department.

(h) At least one council member shall represent the Department of Education.

(i) At least one council member shall represent the Department of Consumer and Business Services.

(j) At least one council member shall represent the State Commission on Children and Families.

(k) At least one council member shall represent the Child Development and Rehabilitation Center of the Oregon Health Sciences University.

[(h)] (L) At least one council member shall be a member of the State Advisory Council for Special Education created under ORS 343.287.

[(i)] (m) The council may include other members appointed by the Governor, including but not limited to one representative from the United States Bureau of Indian Affairs or, where there is no school operated or funded by the bureau, from the Indian Health Service or the tribe or tribal council.

(3) An individual appointed to represent a state agency that is involved in the provision of or payment for services for preschool children with disabilities under subsection (2)(e) and (h) to (k) of this section shall have sufficient authority to engage in making and implementing policy on behalf of the agency.

[(3)] (4) The State Interagency Coordinating Council shall:

(a) Advise the Superintendent of Public Instruction and the State Board of Education on unmet needs in the early childhood special education and early intervention programs for preschool children with disabilities, review and comment publicly on any rules proposed by the State Board of Education and the distribution of funds for the programs and assist the state in developing and reporting data on and evaluations of the programs and services.

(b) Advise and assist the represented public agencies regarding the services and programs they provide to preschool children with disabilities and their families, including public comments on any proposed rules affecting the target population and the distribution of funds for such services, and assist each agency in developing services that reflect the overall goals for the target population as adopted by the council.

(c) Advise and assist the Department of Education and other state agencies in the development and implementation of the policies that constitute the statewide system.

(d) Assist all appropriate public agencies in achieving the full participation, coordination and cooperation for implementation of a statewide system that includes but is not limited to:

(A) Seeking information from service providers, service coordinators, parents and others about any federal, state or local policies that impede timely service delivery; and

(B) Taking steps to ensure that any policy problems identified under subparagraph (A) of this paragraph are resolved.

(e) Advise and assist the Department of Education in identifying the sources of fiscal and other support for preschool services, assigning financial responsibility to the appropriate agencies and ensuring that the provisions of interagency agreements under ORS 343.511 are carried out.

(f) Review and comment on each agency's services and policies regarding services for preschool children with disabilities, or preschool children who are at risk of developing disabling conditions, and their families to the maximum extent possible to assure cost-effective and efficient use of resources.

(g) To the extent appropriate, assist the Department of Education in the resolution of disputes.

(h) Advise and assist the Department of Education in the preparation of applications and amendments thereto.

(i) Advise and assist the Department of Education regarding the transition of preschool children with disabilities.

(j) Prepare and submit an annual report to the Governor and to the United States Secretary of Education on the status of early intervention programs operated within this state.

[(4)] (5) The council may advise appropriate agencies about integration of services for preschool children with disabilities and at-risk preschool children.

[(5)] (6) Terms of office for council members shall be three years, except that:

(a) The representative from the State Advisory Council for Special Education shall serve a one-year term; and

(b) The representatives from other state agencies and the representative from the Legislative Assembly shall serve indefinite terms.

[(6)] (7) Subject to approval by the Governor, the council may use federal funds appropriated for this purpose and available to the council to:

(a) Conduct hearings and forums;

(b) Reimburse nonagency council members pursuant to ORS 292.495 for attending council meetings, for performing council duties, and for necessary expenses, including child care for parent members;

(c) Pay compensation to a council member if the member is not employed or if the member must forfeit wages from other employment when performing official council business;

(d) Hire staff; and

(e) Obtain the services of such professional, technical and clerical personnel as may be necessary to carry out its functions.

[(7)] (8) Except as provided in subsection [(6)] (7) of this section, council members shall serve without compensation.

[(8)] (9) The Department of Education shall provide clerical and administrative support, including staff, to the council to carry out the performance of the council's function as described in this section.

[(9)] (10) The council shall meet at least quarterly. The meetings shall be announced publicly and, to the extent appropriate, be open and accessible to the general public.

[(10)] (11) No member of the council shall cast a vote on any matter that would provide direct financial benefit to that member or otherwise give the appearance of a conflict of interest under state law.

SECTION 55. ORS 343.507 is amended to read:

343.507. (1) Each contractor for early childhood special education and early intervention services shall assist in the development of a local early intervention interagency advisory council in every county within the contractor's service area.

(2) Each local early intervention interagency advisory council shall include as members at least 20 percent parents of preschool children with disabilities, 20 percent providers of early childhood special education and early intervention services or other services to preschool children with disabilities, a representative of the State Commission on Children and Families and representatives from public and private agencies that serve young children and their families, including but not limited to Head Start and Oregon prekindergartens, community child care, the Child Care Division of the Employment Department, local school districts, education service districts, Department of Education regional special education programs, [the Health Division,] community [Mental Health and Developmental Disability Services Division] mental health and developmental disabilities programs, [the State Office for Services to Children and Families, the Adult and Family Services Division,] Department of Human Services health programs, child welfare programs and public assistance programs, Indian education agencies, migrant programs serving young children and community colleges.

(3) Each local early intervention interagency advisory council shall select its own chairperson and vice chairperson and fix the duties of its officers.

(4) The department shall establish procedures pursuant to rules of the State Board of Education for seeking and considering local council advice regarding the selection of contractors, coordination of services and procedures for local resolution of disputes.

SECTION 56. ORS 344.511 is amended to read:

344.511. As used in ORS 344.511 to 344.690 and 344.710 to 344.730:

[(1) “Assistant director” means the Assistant Director for Vocational Rehabilitation.]

(1) “Department” means the Department of Human Services.

(2) “Director” means the Director of Human Services.

[(2)] (3) “Disabled individual” means any person who has a substantial occupational handicap due to a physical or mental condition except blindness.

[(3) “Division” means the Vocational Rehabilitation Division established by ORS 344.520.]

(4) “Maintenance” means money payments, during vocational rehabilitation, to individuals with occupational handicaps found to require financial assistance with respect thereto in order to effectuate the vocational rehabilitation of such individuals.

(5) “Occupational handicap” means a physical or mental condition other than blindness which, regardless of its origin, constitutes, contributes to, or, if not corrected, will probably result in, an obstruction to occupational performance or the condition of being an untrained individual.

(6) “Occupational licenses” means any license, permit or other written authority required by any governmental unit to be obtained in order to engage in any occupation.

(7) “Occupational tools, equipment and supplies” means such customary implements, appliances, apparatus, fixtures and materials as are necessary for the successful prosecution of the employment objective of an individual with an occupational handicap.

(8) “Physical restoration” means any medical, surgical or therapeutic treatment necessary to correct or substantially modify an individual's occupational handicap within a reasonable length of time. The term includes but is not limited to medical, psychiatric, dental and surgical treatment, nursing services, hospital and convalescent home care, medical and surgical drugs and supplies, and prosthetic appliances, excluding curative treatment for acute or transitory conditions.

(9) “Prosthetic appliance” means any artificial appliance designed to support or take the place of a part of the body or to increase the acuity of a sense organ.

(10) “Rehabilitation training” means all training provided, directly or through public or private instrumentalities, to an individual to compensate for the occupational handicap of the individual. The term includes but is not limited to manual, preconditioning, prevocational, vocational and supplementary training and training provided for the purpose of achieving broader and more remunerative skills and capacities.

(11) “Severely handicapped individual” means a disabled individual who, because of the nature of disabilities, is not able to participate fully in competitive employment, and for whom specialized employment opportunities must be provided.

(12) “Untrained individual” means any person without mental or physical disability who has a substantial occupational handicap due to lack of occupational training, experience, skills or other factors and who is receiving and, in the opinion of the [Adult and Family Services Division] Department of Human Services, probably will continue to receive public assistance because of the occupational handicap of the individual.

(13) “Vocational rehabilitation” and “vocational rehabilitation services” mean any services necessary to enable an individual with an occupational handicap to engage in a remunerative occupation and include, but are not limited to, medical and vocational diagnoses, vocational guidance, counseling and placement, rehabilitation training, physical restoration, transportation, occupational licenses, occupational tools, equipment and supplies, maintenance and training books, supplies and materials.

SECTION 57. ORS 344.530 is amended to read:

344.530. Notwithstanding any other provisions of the law, the [Vocational Rehabilitation Division] Department of Human Services shall perform the following vocational rehabilitation functions:

[(1) Provide for the vocational rehabilitation of all eligible individuals with occupational disabilities and for their placement in remunerative occupations.]

[(2)] (1) Establish and enforce such rules as may be necessary to:

(a) Carry out ORS 344.511 to 344.690 and 344.710 to 344.730;and

(b) Safeguard the confidential character of vocational rehabilitation information and records.[; and]

[(c) Maintain a system of personnel standards, subject to the State Personnel Relations Law, governing the selection, appointment and employment upon a merit basis of all personnel engaged in the administration of the vocational rehabilitation program.]

[(3)] (2) Cooperate with public and private departments, agencies and institutions in:

(a) Providing for the vocational rehabilitation of individuals with occupational disabilities;

(b) Studying the problems involved therein; and

(c) Establishing, developing and providing, in conformity with ORS 344.511 to 344.690 and 344.710 to 344.730, such programs, facilities and services as may be necessary.

[(4)] (3) Enter into reciprocal agreements with other states relative to the provision of vocational rehabilitation to residents of the states concerned.

[(5)] (4) Conduct research and compile statistics relating to the vocational rehabilitation of individuals with occupational disabilities.

[(6)] (5) Encourage and assist severely disabled individuals in the establishment, maintenance and conduct of appropriate home industries within their capacities and in the promotion of the sale and distribution of the products of such home industries. All funds collected or received from such activities shall be deposited in a permanent special fund in the State Treasury and shall be used for the operation of such home industries as determined by the [division] department.

[(7)] (6) For rehabilitation facilities:

(a) Establish, conduct and maintain facilities necessary for the sheltered employment of severely disabled individuals;

(b) Pay the individuals employed in the facilities suitable wages;

(d) Devise a subsidy program, and include a plan for its funding in each biennial budget submitted to the Legislative Assembly; and

(e) Take such other action as may be necessary to insure the successful operation of the facilities established.

[(8)] (7) All funds collected or received from activities described in subsection [(7)] (6) of this section shall be deposited in the State Vocational Rehabilitation Account and are appropriated and shall be used for the operation of facilities necessary for the sheltered employment of severely disabled individuals as determined by the [division] department.

[(9) Family support services provided by the Vocational Rehabilitation Division shall be delivered in accordance with the principles described in ORS 417.342 and 417.344.]

[(10)] (8) Take such other action as may be necessary to carry out ORS 344.511 to 344.690 and 344.710 to 344.730.

SECTION 58. ORS 344.620 is amended to read:

344.620. (1) There is established in the General Fund of the State Treasury, a State Vocational Rehabilitation Account which shall consist of all moneys made available to the [Vocational Rehabilitation Division] Department of Human Services for rehabilitation purposes. All moneys in such special account hereby are appropriated for the purposes of the administration of ORS 344.511 to 344.690, 344.710 to 344.730 and 344.850.

(2) The State Treasurer is designated custodian of all funds received from the federal government for the purpose of carrying out any federal Act pertaining to vocational rehabilitation. The State Treasurer shall receive such funds and provide for their custody.

(3) Disbursements from the State Vocational Rehabilitation Account shall be made as directed by the [division] department. The [division] department shall keep a record of all moneys deposited in such account. The record shall indicate by separate cumulative accounts the source from which the moneys are derived and the [individual divisional] departmental activity against which each withdrawal is charged.

SECTION 59. ORS 344.685 is amended to read:

344.685. (1) There is established the Vocational Rehabilitation [Division] Revolving Fund, not to exceed the sum of $750,000, for the use of the [Vocational Rehabilitation Division] Department of Human Services. The revolving fund shall be deposited with the State Treasurer to be held in a special account against which the [division] department may draw checks for the purposes of paying expenses of vocational rehabilitation services when it is appropriate to make immediate payments for such services, including advance payments to applicants for vocational rehabilitation.

(2) Disbursements from the revolving fund may be made by the [division] department and all vouchers for payments made from the fund shall be approved by the [administrator of the division] Director of Human Services. When payments are so approved, reimbursements shall be made to the [division] department revolving fund upon order of the [Assistant Director for Vocational Rehabilitation] director out of funds in the State Vocational Rehabilitation Account.

SECTION 60. ORS 344.735 is amended to read:

344.735. (1) There is established a state advisory committee that shall function solely in an advisory capacity to the [Assistant Director for Vocational Rehabilitation and to the Vocational Rehabilitation Division] Director of Human Services on vocational rehabilitation services. The [assistant] director shall appoint members to the advisory committee. A majority of the advisory committee shall be disabled persons.

(2) The [assistant] director shall include advisory committee recommendations in the [division's] Department of Human Services' decision-making process. The advisory committee shall:

(a) Collect and study data and other information and offer advice concerning specialized needs of specific client groups;

(b) Provide liaison between the [division] department and the rehabilitation community;

(c) Review and suggest new and revised legislation affecting the provision of vocational rehabilitation services to Oregon's disabled;

(d) Study, collect data and offer advice regarding high priority issues identified by the [division] department;

(e) Consider items of statewide concern relayed from regional advisory committees; and

(f) Utilize regional committees as a resource for gathering information as it relates to the individual areas.

(3) Through the advisory committee, the [division] department shall take into account views of individuals and groups who are recipients of vocational rehabilitation services, providers of vocational rehabilitation services and others who are active in the vocational rehabilitation field, in connection with matters of general policy, program development and implementation.

SECTION 61. ORS 346.015 is amended to read:

346.015. (1) Prior to convening a meeting to prepare an individual education plan for a mentally retarded or developmentally disabled child for whom placement at a school under ORS 346.010 may be considered, the agency that is providing the education for the child shall notify the local community mental health and developmental disabilities program. The mentally retarded and developmentally disabled program mental health case manager in consultation with the [Mental Health and Developmental Disability Services Division and with the assistance of a State Office for Services to Children and Families caseworker] Department of Human Services shall evaluate whether the child also has needs for alternative residential care or other support services. If the evaluation determines this to be the case, but documents that community resources are not available to meet these needs, the school district may proceed with the meeting to prepare the individual education plan in which placement at a school under ORS 346.010 may be considered.

(2) An agency providing education under subsection (1) of this section may initiate the procedure in subsection (1) of this section for any child who is not mentally retarded or developmentally disabled when in the agency's judgment a treatment or residential issue is prompting proposed placement under ORS 346.010.

(3) No child shall be placed in a facility operated under ORS 346.010 and no school district of residence shall be billed under ORS 343.243 unless the district superintendent or the superintendent's designee has signed a statement declaring that the district cannot provide a free appropriate public education for the child commensurate with the needs of the child as identified by the individual education plan of the child and that the facility is the least restrictive environment in which the child can be educated.

(4) By rule, the State Board of Education shall determine procedures to be followed by local education agencies in carrying out this section.

SECTION 62. ORS 409.070 is amended to read:

409.070. (1) There is established a Department of Human Services Special Checking Account in the State Treasury. Upon the written request of the Director of Human Services, the Oregon Department of Administrative Services shall draw payments in favor of the Department of Human Services to be charged against appropriations and other moneys available to the Department of Human Services in the same manner as other claims against the state, as provided in ORS chapter 293. All such payments shall be deposited in the special checking account and may be disbursed by check or other means acceptable to the State Treasurer.

(2) The special checking account may be used for the purpose of paying the administrative expenses of programs and services as assigned to the Department of Human Services by law, including the payment of expenses to be reimbursed by the federal government.

(3) In addition to the authority provided in ORS 293.180, the Department of Human Services may establish petty cash funds out of the special checking account or any account established in the State Treasury for the department [or its divisions]. Small cash disbursements to pay the expenses of the department [or its divisions] may be made from a petty cash fund. Periodically, the department shall request reimbursement for disbursements made from a petty cash fund. Upon receipt of a reimbursement payment from an appropriate account, the department shall use the payment to reimburse the petty cash fund.

SECTION 63. ORS 409.080 is amended to read:

409.080. Notwithstanding any other law, the Department of Human Services may, with the approval of the Oregon Department of Administrative Services and the State Treasurer, combine or eliminate any accounts that are established in statute within the authority of the Department of Human Services [or its divisions] when the Department of Human Services determines that economy and efficiency in operations can be obtained and that the combination or elimination of accounts does not substantially alter the intent of the authorizing statutes. When accounts are combined, the Department of Human Services retains the authority granted by the statutes establishing the accounts.

SECTION 64. ORS 409.110 is amended to read:

409.110. (1) The Director of Human Services, consistent with any federal requirements and with the prior consent of the Governor:

(a) May cause the [programs, divisions, other] organizational units [and offices] within the Department of Human Services to make joint use of the personnel, resources, information and facilities available within the department;

(b) May combine or transfer components of [existing programs, divisions, other] organizational units [and offices] within the department; and

(c) May organize and reorganize the department in the manner the director considers necessary to properly conduct the work of the department consistent with federal requirements and after consultation with parties affected by such change, including but not limited to service providers, advisory committees and county governments.

[(2) When the action taken under subsection (1) of this section requires any transfer between appropriations or expenditure limitations or between the budgets of programs, divisions, other organizational units and offices within the department, established by legislative action, the transfer first must be approved by the Legislative Assembly or, if it is not in session, the Emergency Board.]

[(3) Consistent with federal requirements, the director has the same power, duty, function or authority that is vested in any division or office of the department or any personnel in the department. The director may delegate any power, duty, function or authority in accordance with ORS 409.120.]

[(4)] (2) The director may make financial grants to local units of government, nonprofit organizations and individuals from funds appropriated by the Legislative Assembly to carry out the department's responsibilities.

SECTION 65. ORS 409.130 is amended to read:

409.130. (1) The Director of Human Services may appoint a deputy director, whose appointment is subject to approval by the Governor and who shall serve at the pleasure of the director. The deputy director shall have full authority to act for the director, subject to directions of the director. The appointment of the deputy director shall be by written order, filed with the Secretary of State.

[(2) Each division or office within the Department of Human Services shall be under the supervision of an assistant director appointed by the director. The assistant director's appointment is subject to approval by the Governor. The assistant director serves at the pleasure of the director.]

[(3) Except as provided in subsection (1) of this section and subject to any applicable provisions of the State Personnel Relations Law, the director may appoint employees within the office of the director of the department, prescribe their functions and fix their compensation.]

[(4)] (2) [In addition to the assistant directors specified in subsection (2) of this section, the] The director may appoint [other] assistant directors as necessary to carry out [such other responsibilities as the director may assign] the responsibilities of the Department of Human Services. The appointment of each assistant director is subject to approval by the Governor. An assistant director serves at the pleasure of the director.

SECTION 66. ORS 409.150 is amended to read:

409.150. Assistant directors appointed under ORS 409.130 shall be in the unclassified service of the state and shall receive such salaries as may be provided by law. With the approval of the Director of Human Services, each assistant director [supervising a division] may appoint [one deputy and one secretary] deputies and secretarial staff as necessary to conduct the work of the department who shall be in the unclassified service and receive such salaries as may be provided by law. In addition to their salaries, they shall, subject to the limitations otherwise provided by law, be reimbursed for all expenses actually and necessarily incurred in the performance of official duties.

SECTION 67. ORS 409.160 is amended to read:

409.160. (1) The Director of Human Services shall require from the personnel within the department such information, reports and documentation, as the director, in the discretion of the director, determines will be necessary to enable the director to:

(a) Execute responsibilities pursuant to law.

(b) Develop and report to the Governor from time to time on legislative, budgetary and administrative programs to accomplish comprehensive, long-range, coordinated planning and policy formulation in the matters of public interest related to the department.

(c) File with the Oregon Department of Administrative Services, for purposes of ORS 291.208, a budget report for [each program, division, other organizational unit or office within] the department.

(2) Where such information, reports or documentation is confidential in the hands of departmental personnel, it shall be confidential in the hands of the director.

SECTION 68. ORS 409.185 is amended to read:

409.185. [(1) The State Office for Services to Children and Families is established in the Department of Human Services.]

[(2) The Assistant Director for Services to Children and Families shall be appointed by the Director of Human Services subject to approval by the Governor from among persons well qualified by training and experience to provide the services described in ORS 409.190. The assistant director shall serve at the pleasure of the director.]

[(3) The assistant director shall hire and supervise qualified personnel required to provide the services described in ORS 409.190, and may contract as necessary with appropriate public and private providers for such services.]

[(4)] (1) The [assistant director] Director of Human Services shall oversee the development of standards and procedures for assessment, investigation and enforcement of child protective services.

[(5)(a)] (2)(a) The [office] Department of Human Services shall take action to implement the provision of child protective services as outlined in ORS 417.705 to 417.797 and 419A.170 and based on the recommendations in the 1992 “Oregon Child Protective Services Performance Study” published by the University of Southern Maine.

(b) In all substantiated cases of child abuse and neglect, the role of the [State Office for Services to Children and Families] department is to complete a comprehensive family assessment of risk of abuse or neglect, or both, assess service needs and provide immediate protective services as necessary.

(d) In all cases of abuse and neglect when a criminal investigation occurs, the role of law enforcement agencies is to provide a legally sound, child sensitive investigation of whether abuse or neglect or both have occurred and to gather other evidence and perform other responsibilities in accordance with interagency agreements.

(e) The [office] department and law enforcement agencies shall conduct the investigation and assessment concurrently, based upon the protocols and procedures of the multidisciplinary team in each jurisdiction.

(f) When the [office] department and law enforcement agencies conduct a joint investigation and assessment, the activities of the [office] department and agencies are to be clearly differentiated by the protocols of the multidisciplinary team.

(g) Nothing in this subsection is intended to be inconsistent with ORS 418.747, 418.748 and 418.749 and ORS chapter 419B.

SECTION 69. ORS 409.225 is amended to read:

409.225. (1) In the interest of family privacy and for the protection of children, families and other recipients of services, the [State Office for Services to Children and Families] Department of Human Services shall not disclose or use the contents of any child welfare records, files, papers or communications that contain any information about an individual child, family or other recipient of services for purposes other than those directly connected with the administration of child welfare laws or unless required or authorized by ORS 419A.255 or 419B.035. The records, files, papers and communications are confidential and are not available for public inspection. General information, policy statements, statistical reports or similar compilations of data are not confidential unless such information is identified with an individual child, family or other recipient of services or protected by other provision of law.

(2) Notwithstanding subsection (1) of this section, unless exempt from disclosure under ORS chapter 192, the [State Office for Services to Children and Families] department shall disclose child welfare records:

(a) About a recipient of services, to the recipient if the recipient is 18 years of age or older or is legally emancipated, unless prohibited by court order;

(b) Regarding a specific individual if the individual gives written authorization to release confidential information;

(d) To the juvenile court in proceedings regarding the child; and

(e) Concerning a child who is or has been in the custody of the [State Office for Services to Children and Families] department, to the child's parent or legal guardian except:

(A) When the child objects; or

(B) If disclosure would be contrary to the best interests of any child or could be harmful to the person caring for the child.

(3) Notwithstanding subsection (1) of this section, unless exempt from disclosure under ORS chapter 192, the [State Office for Services to Children and Families] department shall disclose child welfare records, if in the best interests of the child, to:

[(a) Employees of the Department of Human Services to the extent necessary to perform their official duties or to provide services to the child or family;]

[(b)] (a) Treatment providers, foster parents, adoptive parents, school officials or other persons providing services to the child or family to the extent that such disclosure is necessary to provide services to the child or family; or

[(c)] (b) A person designated as a member of a sensitive review committee convened by the Director of [the State Office for Services to Children and Families] Human Services when the purpose of the committee is to determine whether the [State Office for Services to Children and Families] department acted appropriately and to make recommendations to the [State Office for Services to Children and Families] department regarding policy and practice.

(4) Any record disclosed under subsection (1), (2) or (3) of this section shall be kept confidential by the person or entity to whom the record is disclosed and shall be used only for the purpose for which disclosure was made.

(5) Unless exempt from disclosure under ORS chapter 192, when an adult who is the subject of information made confidential by subsection (1) of this section publicly reveals or causes to be revealed any significant part of the confidential matter or information, the protections afforded by subsection (1) of this section are presumed voluntarily waived and confidential information about the person making or causing the public disclosure, not already disclosed but related to the information made public, may be disclosed if disclosure is in the best interests of the child or necessary to the administration of the child welfare laws.

(6) Notwithstanding subsection (1) of this section, unless exempt from disclosure under ORS chapter 192, the [State Office for Services to Children and Families] department shall disclose information related to the [office's] department's activities and responsibilities in a case where child abuse or neglect has resulted in a child fatality or near fatality or where an adult has been charged with a crime related to child abuse or neglect.

(7) Notwithstanding subsections (2), (3), (5) and (6) of this section, ORS 192.501 (3) shall apply to investigatory information compiled for criminal law purposes that may be in the possession of the [State Office for Services to Children and Families.] department.

(8) As used in this section, “adult” means a person who is 18 years of age or older.

SECTION 70. ORS 409.230 is amended to read:

409.230. (1) Information contained in [State Office for Services to Children and Families] Department of Human Services reports and other [office] materials relating to a child's history and prognosis that, in the professional judgment of the person providing the information for the reports or other materials, indicates a clear and immediate danger to another person or to society shall be disclosed to the appropriate authority and the person or entity who is in danger from the child.

(2) An agency or a person who discloses information under subsection (1) of this section shall have immunity from any liability, civil or criminal, that might otherwise be incurred or imposed for making the disclosure. The disclosure of information under this section does not make the information admissible in any court or administrative proceeding if it is not otherwise admissible.

SECTION 71. ORS 409.270 is amended to read:

409.270. As used in ORS 409.273 to 409.285:

[(1) “Assistant director” means the Assistant Director for Services to Children and Families.]

[(2)] (1) “Crisis line” means an emergency telephone service staffed by persons who are trained to provide emergency peer counseling, information, referral and advocacy to victims of sexual offenses and their families.

(2) “Director” means the Director of Human Services.

SECTION 72. ORS 409.310 is amended to read:

409.310. [(1) The Health Division is created in the Department of Human Services. The Health Division shall be responsible for the administration of health and health-related affairs in this state as provided by law, including but not limited to public health services, migrant health services, licensing of health facilities, and coordinating the activities of professional and occupational licensing boards.]

[(2) The Health Division shall provide necessary staff assistance and services to, and shall have full authority and responsibility for, all administrative matters in connection with the functioning of the division.]

[(3)] It is the intention of the Legislative Assembly to provide for the more effective coordination of the administrative functions of boards charged with responsibility for protecting the public through the licensing and regulating of health-related professions practiced in this state. Further, it is the intention of the Legislative Assembly to retain responsibility and authority in the professional licensing boards, members of which are qualified by education, training and experience to make the necessary judgments, for decisions on qualifications, standards of practice, licensing, enforcement, discipline and other discretionary functions relating to professional activities. The professional licensing boards shall have authority to employ such personnel as they consider necessary to carry out their respective functions and shall maintain full budgetary control over the boards' expenditures and their recommendations for legislation including but not limited to appropriations. Expenditures are subject to the allotment system under ORS 291.232 to 291.260 and rules adopted thereunder. Budgets shall be prepared pursuant to ORS 291.201 to 291.226 and rules adopted thereunder.

SECTION 73. ORS 409.410 is amended to read:

409.410. (1) The Director of Human Services shall [appoint an Assistant Director for Alcohol and Drug Abuse Programs. The Assistant Director for Alcohol and Drug Abuse Programs shall have full responsibility to] administer all alcohol and drug abuse programs, [including the funds appropriated therefor, that would otherwise be the responsibility of the Mental Health and Developmental Disability Services Division,] including but not limited to programs or components of programs described in ORS 430.397 to 430.401, ORS chapter 430, 475.225, 743.557, 743.558 and ORS chapters 801 to 822.

(2) Subject to ORS 417.300 and 417.305, the [Assistant Director for Alcohol and Drug Abuse Programs] director shall:

(a) Report to the Legislative Assembly on accomplishments and issues occurring during each biennium, and report on a new biennial plan describing resources, needs and priorities for all alcohol and drug abuse programs.

(b) Develop within the Department of Human Services priorities for alcohol and drug abuse programs and activities.

(d) Conduct statewide and special planning processes which provide for participation from state and local agencies, groups and individuals.

(e) Identify the needs of special populations including minorities, elderly, youth, women and individuals with disabilities.

(f) Subject to ORS 183.310 to 183.550, adopt such rules as are necessary for the performance of the duties and functions specified by this section, ORS 409.010 and 430.255 to 430.630, or otherwise lawfully delegated.

(3) The [Assistant Director for Alcohol and Drug Abuse Programs] director may apply for, receive and administer funds, including federal funds and grants, from sources other than the state. Subject to expenditure limitation set by the Legislative Assembly, funds received under this subsection may be expended by the [assistant] director:

(a) For the study, prevention or treatment of alcohol and drug abuse and dependence in this state.

(b) To provide training, both within this state and in other states, in the prevention and treatment of alcohol and drug abuse and dependence.

SECTION 74. ORS 409.710 is amended to read:

409.710. (1) The Department of Human Services [or any division or office in the department] shall not refer any individual on a job referral that would aid in the filling of a job opening that exists because of a labor dispute, as defined in ORS 662.010.

(2)(a) Notwithstanding any other provision of law, [no division of] neither the department [of Human Services, or] nor any other state agency [shall] may require as a condition of eligibility to receive benefits or services provided by that [division] department or agency that an individual apply for or accept employment at any workplace where there is a labor dispute in progress.

(b) As used in this subsection, “labor dispute” has the meaning for that term provided in ORS 662.010.

SECTION 75. ORS 410.040 is amended to read:

410.040. As used in ORS 409.010, 410.040 to 410.320, 411.590 and 441.630:

(1) “Appropriate living arrangement” means any arrangement for an elderly citizen or disabled citizen in a residential setting which is appropriate for the individual considering, in order of priority, the following criteria:

(a) Personal desires and goals of the individual;

(b) The right of the individual to live as independently as possible, in the least restrictive environment; and

(c) The cost of the living arrangement compared to other types of living arrangements, based on the criteria in paragraphs (a) and (b) of this subsection.

(2) “Area agency” means:

(a) An established or proposed type A or type B Area Agency on Aging within a planning and service area designated under Section 305 of the Older Americans Act; or

(b) Any public or nonprofit private agency which is designated as a type A or type B Area Agency on Aging under Section 305 of the Older Americans Act.

(3) “Area agency board” means the local policy-making board which directs the actions of the area agency within state and federal laws and regulations.

(4) “Department” means the Department of Human Services.

[(4)] (5) “Disabled person” means a person with a physical or mental disability:

(a) Who is eligible for Supplemental Security Income or for general assistance; and

(b) Who meets one of the following criteria:

(A) Is mentally retarded, [or] developmentally disabled or mentally or emotionally disturbed and resides in or needs placement in a residential program administered by the department [Senior and Disabled Services Division].

[(B) Is mentally or emotionally disturbed and resides in or needs placement in a residential program administered by the Senior and Disabled Services Division.]

[(C)] (B) Is an alcohol or drug abuser and resides in or needs placement in a residential program administered by the [Senior and Disabled Services Division] department.

[(D)] (C) Has a physical or mental disability other than those described in subparagraphs (A) [to (C)] and (B) of this paragraph.

[(5) “Division” means the Senior and Disabled Services Division of the Department of Human Services.]

(6) “Elderly” or “elderly persons” means persons who are served by type A area agencies or type B area agencies or by the [Senior and Disabled Services Division] department and who are 60 years of age or older.

(7) “Local government” means a political subdivision of the state whose authority is general or a combination of units of general purpose local governments.

(8) “Preadmission screening” means a professional program within the [Senior and Disabled Services Division] department or type B area agencies, with staff that includes registered nurses and social workers, that assesses the needs of clients and recommends appropriate placements in residential programs administered by the [Senior and Disabled Services Division] department or type B area agencies.

(9) “Protective services” means a service to be provided by the [Senior and Disabled Services Division] department directly or through type B area agencies, in response to the need for protection from harm or neglect to elderly persons and disabled persons.

(10) “Title XIX” means [the] long term care and health services programs in Title XIX of the Social Security Act available to elderly persons and disabled persons. [transferred from the long term care unit of the health and social services section of the Adult and Family Services Division to the Senior and Disabled Services Division but does not include Title XIX programs, other than home health, personal care and nursing home programs, or Title XIX programs in other divisions of the Department of Human Services.]

(11) “Type A area agency” means an area agency:

(a) For which either the local government or the area agency board does not agree to accept local administrative responsibility for Title XIX; and

(b) That provides a service to elderly persons.

(12) “Type B area agency” means an area agency:

(a) For which the local government agrees to accept local administrative responsibility for Title XIX;

(b) That provides a service to elderly persons or to elderly persons and disabled persons who require services similar to those required by elderly persons; and

(c) That uses the term “disabled services” or “disability services” in its title to communicate the fact that it provides services to both populations described in paragraph (b) of this subsection.

SECTION 76. ORS 410.060 is amended to read:

410.060. (1) It is the policy of the State of Oregon that disabled persons served by the [Senior and Disabled Services Division, or any designated state agency,] Department of Human Services shall also receive necessary services, as appropriate for their needs, from other state agencies [and divisions].

(2) In carrying out the provisions in subsection (1) of this section, the Department of Human Services shall [insure that the Senior and Disabled Services Division, or any designated state agency, negotiates] negotiate interagency agreements and [coordinates] coordinate services with the [Mental Health and Developmental Disability Services Division, Vocational Rehabilitation Division,] Employment Department[, State Office for Services to Children and Families] and the Department of Education for the provision of appropriate services to disabled clients of the [Senior and Disabled Services Division, or any designated state agency] Department of Human Services.

(3)(a) Prior to approval of an appropriate living arrangement, as defined in ORS 410.040, administered by the [Senior and Disabled Services Division, or any designated state agency] Department of Human Services, all disabled persons shall be assessed by preadmission screening to insure the appropriateness of the living arrangement.

(b) If a disabled person is diagnosed as, or is reasonably believed to be, mentally retarded or developmentally disabled, preadmission screening shall include an assessment by the Developmental Disability Diagnosis and Evaluation Service established under ORS 427.104. [of the Mental Health and Developmental Disability Services Division.]

(4) The [Senior and Disabled Services Division, or any designated state agency,] Department of Human Services in coordination with [the Mental Health and Developmental Disability Services Division, State Office for Services to Children and Families, Vocational Rehabilitation Division and] the Department of Education shall work with nursing homes which have one or more residents under 18 years of age to develop a program appropriate to the needs of such residents.

SECTION 77. ORS 410.070 is amended to read:

410.070. [(1) The Senior and Disabled Services Division is created in the Department of Human Services. The division shall administer laws and programs relating to social, health and protective services to elderly persons and disabled persons, and shall promote the hiring of otherwise qualified persons who are certifiably disabled for positions within the programs it manages. Family support services provided by the Senior and Disabled Services Division shall be delivered in accordance with the principles described in ORS 417.342 and 417.344.]

[(2)] (1) The [division] Department of Human Services shall:

(a) Serve as the central state agency with primary responsibility for the planning, coordination, development and evaluation of policy, programs and services for elderly persons and disabled persons in Oregon.

(b) Function as the designated state unit on aging, as defined in the Older Americans Act of 1965.

(c) With the advice of the Governor's Commission on Senior Services and the Oregon Disabilities Commission, develop long-range state plans for programs, services and activities for elderly persons and disabled persons. State plans should be revised [annually] biennially and should be based on area agency plans, statewide priorities and state and federal requirements.

(d) Have the authority to transfer state and federal funds, except Title III of the Older Americans Act funds, from one area agency to another area agency or from one program or service to another program or service after consultation with the area agencies involved in the transfer. However, no area agency shall suffer a reduction in state or federal funds due to increased local funds.

(e) Receive and disburse all federal and state funds allocated to the [division] department and solicit, accept and administer grants, including federal grants or gifts made to the [division] department or to the state and enter into contracts with private entities for the purpose of providing or contracting for case management services for long term care insurance for the benefit of elderly persons and disabled persons in this state.

(f) Provide technical, training and program assistance to area agencies and assist them to provide such assistance to public and private agencies and organizations.

(g) Assist area agencies to stimulate more effective use of existing resources and services for elderly persons and develop programs, opportunities and services which are not otherwise provided for elderly persons, with the aim of developing a comprehensive and coordinated system for the delivery of social services to elderly persons.

(h) Assist local [division units] department offices and area agencies which have assumed responsibility for disabled services to stimulate more effective use of existing resources and to develop programs, opportunities and services which are not otherwise provided for disabled persons, with the aim of developing a comprehensive and coordinated system for the delivery of social services to disabled persons.

(i) Serve within government and in the state at large as an advocate for elderly persons and disabled persons by holding hearings and conducting studies or investigations concerning matters affecting the health, safety and welfare of elderly persons and disabled persons and by assisting elderly persons and disabled persons to assure their rights to apply for and receive services and to be given fair hearings when such services are denied.

(j) Process fiscal and client data for all area agencies.

(k) Conduct regulatory functions with regard to program operation, by adopting rules for providing social services, including protective services, to elderly persons and disabled persons who need services that the [division] department or area agencies are authorized to provide and rules for standard rate setting and quality assurance.

(L) Provide information and technical assistance to the Governor's Commission on Senior Services, the Oregon Disabilities Commission and the Medicaid Long Term Care Quality and Reimbursement Advisory Council and keep the commissions and the council continually informed of the activities of the [division] department.

(m) Make recommendations for legislative action to the Governor and to the Legislative Assembly, after consultation with the Governor's Commission on Senior Services, the Oregon Disabilities Commission and the Medicaid Long Term Care Quality and Reimbursement Advisory Council.

(n) Conduct research and other appropriate activities to determine the needs of elderly persons and disabled persons in this state, including, but not limited to, their needs for social and health services, and to determine what existing services and facilities, private and public, are available to elderly persons and disabled persons to meet those needs.

(o) Maintain a clearinghouse for information related to the needs and interests of elderly persons and disabled persons.

(p) Provide area agencies with assistance in applying for federal, state and private grants and identifying new funding sources.

[(3)] (2) In addition to the requirements of subsection [(2)] (1) of this section, the [division] department shall:

(a) Determine type A and type B area agencies annual budget levels for Oregon Project Independence and Title III of the Older Americans Act expenditures.

(b) For type B area agencies:

(A) Determine annual budget levels for planning Title XIX reimbursed services. In determining the budget levels, the [division] department shall retain contingency reserves against overruns and transfers in use of Title XIX funds.

(B) Provide timely management information so the area agencies and the [division's] department's disability services units can manage Title XIX reimbursements within budgeted levels.

(C) Determine annual budget levels for planning and administering programs relating to social, health, independent living and protective services for disabled persons for the [division's] department's disability services units and type B area agencies which have assumed local responsibility for the programs and clients transferred under [subsection (2) of] section 2 (2), chapter 787, Oregon Laws 1989.

(A) A type A area agency, at the request of the agency, for Oregon Project Independence or Title III of the Older Americans Act expenditures, or both.

(B) A type B area agency, for Title XIX and Oregon Project Independence expenditures, and at the request of the agency, for Title III of the Older Americans Act expenditures.

(d) Assume program responsibility for Title XIX programs in areas served by type A area agencies and in areas where no area agency is designated.

(e) Assume planning and program responsibilities for disabled persons in areas served by type A area agencies, in areas served by type B agencies that serve only elderly persons and in areas where no area agency exists.

[(4)] (3) When developing programs affecting elderly persons, the [division] department shall consult with the Governor's Commission on Senior Services.

[(5)] (4) When developing programs affecting disabled persons, the [division] department shall consult with the Oregon Disabilities Commission.

SECTION 78. ORS 410.100 is amended to read:

410.100. (1) In the event that a local government withdraws the designation of an area agency, or the [Senior and Disabled Services Division] Department of Human Services withdraws the area agency designation in accordance with the Older Americans Act, the [division] department shall administer the services to clients previously performed by the area agency until a new area agency is designated.

(2) The [division] department may withdraw any particular program or service, except Title III of the Older Americans Act programs, from the area agency, and administer such programs and services. Before such action is taken, the [division] department must consult with the director of the area agency and the chief elected official of the affected local government. Such action shall be taken by the [division] department only when it can be shown the federal or state laws or rules have not been complied with, state or federal funds are not being expended for the purposes for which they were intended, or the elderly are not receiving appropriate services within available resources. Withdrawal of any particular program or service is appealable to [the Director of Human Services and] the Governor after requesting a reconsideration by the Director of Human Services.

SECTION 79. ORS 410.210 is amended to read:

410.210. (1) Each area agency shall have an area agency advisory council, with members appointed by the area agency board.

(a) For a type A area agency, membership of the council shall include consumers of services provided primarily to elderly persons under [Senior and Disabled Services Division] Department of Human Services programs, including low income and minority persons.

(b) A type B area agency that serves elderly and disabled persons shall have two advisory councils. One shall include persons described in paragraph (a) of this subsection. The second shall be a disability services advisory council. That council shall have as a majority of its members disabled persons and shall include consumers of services and other interested persons. Any disability services advisory council in existence at the time the area agency assumes responsibility for providing services to disabled persons shall become the disability services advisory council for the area agency.

(2) Each area agency advisory council shall:

(a) Recommend basic policy guidelines for the administration of the activities of the area agencies on behalf of elderly persons or disabled persons, and advise the area agency on questions of policy.

(b) Advise the area agency with respect to development of the area plan and budget, and review and comment on the completed area plan and budget before its transmittal to the [Assistant Director for Senior and Disabled Services] Director of Human Services.

(c) Review and evaluate the effectiveness of the area agency in meeting the needs of elderly persons or disabled persons in the planning and service area.

(d) Meet at least quarterly. The meetings are subject to ORS 192.610 to 192.690.

SECTION 80. ORS 410.270 is amended to read:

410.270. (1) A local government shall be responsible for all actions of a type B area agency in its jurisdiction, including but not limited to the accountability for funds and compliance with federal and state laws and rules. Such responsibility shall include all geographic areas in which the type B area agency is designated to operate.

(2) The respective local government shall appoint a director of the type B area agency in its jurisdiction who must meet minimum qualifications established by the [Senior and Disabled Services Division] Department of Human Services. The director shall serve with the continuing approval of the [Assistant Director for Senior and Disabled Services] Director of Human Services. Continuing approval may be withdrawn by the [assistant director] Director of Human Services only when it can be shown that the state or federal rules have not been complied with by the type B area agency, state or federal funds are not being expended for the purposes for which they were intended or the elderly are not receiving appropriate services within available funds. Withdrawal of continuing approval is appealable to [the Director of Human Services and] the Governor by the local government after requesting a reconsideration by the Director of Human Services.

SECTION 81. ORS 410.300 is amended to read:

410.300. (1) A type B area agency may contract with the [Senior and Disabled Services Division] Department of Human Services for services of state employees or have such employees transferred to employment by the area agency by transfer agreement.

(2) State employees whose services have been contracted to a type B area agency shall be supervised for program purposes by the area agency.

(3) If state employees are transferred to a type B area agency, the provisions of ORS 236.610 to 236.640 shall apply.

(4) Prior to transfer of any state employee to any other public employer under ORS 327.525, 409.010, 410.040 to 410.320, 411.590 and 441.630, at a date to be determined by the [Assistant Director for Senior and Disabled Services] Director of Human Services, each type B area agency shall prepare a plan in coordination with local staff of the [Adult and Family Services Division] department for implementation of ORS 327.525, 409.010, 410.040 to 410.320, 411.590 and 441.630. The plan shall show how statutory responsibilities are to be met and how all staff are to be utilized.

SECTION 82. ORS 410.320 is amended to read:

410.320. (1) The Governor's Commission on Senior Services is created. The commission shall consist of at least 21 members appointed by the Governor for terms of three years.

(2) Prior to making appointments, the Governor shall request and consider recommendations from the area agencies on aging and other interested senior organizations. The Governor shall designate a member to serve at the pleasure of the Governor as chairperson for a term of two years with such duties as the Governor shall prescribe. The membership of the commission shall be composed of persons broadly representative of major public and private agencies who are experienced in or have demonstrated particular interest in the special needs of elderly persons, including persons who have been active in organizations and advocates on behalf of elderly persons. Additionally, membership shall include persons who are active in advocacy organizations representing the interests of disabled persons who are served in programs under the [Senior and Disabled Services Division] Department of Human Services and consumers of services provided primarily to elderly persons and disabled persons under [the Senior and Disabled Services Division] department programs, including low income, minority and disabled persons. At least a majority of members shall be 60 years of age or older.

(3) The Governor's Commission on Senior Services shall advise the Governor[,] and the Director of Human Services [and the Assistant Director for Senior and Disabled Services] on needs of elderly persons, and recommend actions by the Governor, the Department of Human Services, [the Senior and Disabled Services Division,] other governmental entities and the private sector, appropriate to meet such needs.

(4) The commission shall have authority to study programs and budgets of all state agencies [which] that affect elderly persons. After such study, the commission shall make recommendations to the Governor and to the agencies involved. Such recommendations shall be designed to provide coordination of programs for elderly persons, to avoid unnecessary duplication in provision of services, and to point out gaps in provision of services. The commission shall also recommend development of a comprehensive plan for delivery of services to elderly persons. In carrying out these tasks, the commission shall coordinate its efforts with other advisory groups within the Department of Human Services to avoid duplication of effort.

(5) The commission shall promote responsible statewide advocacy for elderly persons.

(6) Members of the commission, other than legislators, shall be entitled to compensation and expenses as provided in ORS 292.495.

SECTION 83. ORS 410.420 is amended to read:

410.420. (1) Funds appropriated for Oregon Project Independence shall only be expended for the following authorized services:

(a) Homemaker;

(b) Housekeeper;

(d) Escort;

(e) Home health;

(f) Personal care service;

(g) Elderly day care; and

(h) Other services authorized by the [Senior and Disabled Services Division] Department of Human Services.

(2) The [division] department shall adopt rules to implement ORS 410.410 to 410.480. [and may adopt by reference rules of the Health Division and the Adult and Family Services Division that relate to activities under Oregon Project Independence.]

SECTION 84. ORS 410.430 is amended to read:

410.430. (1) In order to qualify for services from an authorized agency or service provider, each client or recipient must:

(a) Be 60 years old or older or have been diagnosed as having Alzheimer's disease or a related disorder;

(b) Not be receiving [support or services from the Adult and Family Services Division, except food stamp benefits] financial assistance from the Department of Human Services, except food stamp benefits and limited medicare reimbursement benefits administered by the department; and

(2) Eligibility determination shall be required before any client may receive services from an authorized agency or service provider.

SECTION 85. ORS 410.720 is amended to read:

410.720. (1) It is the policy of this state to provide for the mental health needs of all Oregon senior citizens through a comprehensive and coordinated statewide network of local senior mental health services and alcohol and drug abuse education and treatment. These services should involve family and friends and be provided in the least restrictive and most appropriate settings.

(2) In carrying out the provisions of subsection (1) of this section, the Department of Human Services shall [insure that the Senior and Disabled Services Division, in cooperation with the Mental Health and Developmental Disability Services Division and the office of Alcohol and Drug Abuse Programs,] develop plans for service coordination[, negotiate appropriate interagency agreements] and recommend budget provisions for the delivery of needed services.

SECTION 86. ORS 411.113 is amended to read:

411.113. The [Adult and Family Services Division] Department of Human Services shall determine eligibility for all public assistance. [County public welfare boards shall have access to information regarding persons receiving public assistance.]

SECTION 87. ORS 411.125 is amended to read:

411.125. (1) There is established the [Adult and Family Services Division] Family Services Review Commission consisting of 16 members. The members shall be appointed by the Governor for a term of four years. In making the appointments, the Governor shall consider representatives of county public welfare boards, as well as representatives from all of the congressional districts. Four members shall be recipients or former recipients of [the aid or services] cash or self-sufficiency-related services from the [of the Adult and Family Services Division;] Department of Human Services. Four members shall be representatives of business and professional interests.[;] Four members shall be public welfare policy specialists. [; and] Four members shall be advocates of public welfare from the state agencies or public or private organizations interested in public welfare. The commission shall receive compensation and expenses as provided in ORS 292.495.

(2) The commission shall advise and consult with the [Assistant Director for Adult and Family Services] Director of Human Services in carrying out the functions of the [division] department relating to programs and services to persons who, as a result of the person's or the person's family's economic, social or health condition, require medical assistance, financial assistance, institutional care, rehabilitation, vocational rehabilitation or other social or health services. The commission[and] shall, through its chairperson, have access to information regarding persons receiving assistance and other relevant information about self-sufficiency programs of the [division] department.

SECTION 88. ORS 411.145 is amended to read:

411.145. (1) A county public welfare board of not fewer than five nor more than seven members may be created within each county. The members shall be appointed by the governing body of the county, on the basis of recognized interest in and knowledge of the field of public assistance. Members of the governing body may be appointed to the board.

(2) Members shall be appointed for a term of four years. Before the expiration of the term of a member of the county public welfare board, the governing body shall appoint the successor of the member to assume the duties of the member on July 1 next following. In case of a vacancy for any cause, the governing body shall make an appointment to be immediately effective for the unexpired term. Any member of the county public welfare board may be removed by the governing body at any time for cause. The governing body shall name the chairperson of the county public welfare board.

(3) Members appointed shall receive no compensation for their services but shall be allowed the actual and necessary expenses incurred by them in attending any meeting of the [Adult and Family Services Division] Department of Human Services when such attendance is authorized by the [administrator of the division] Director of Human Services. The expenses authorized pursuant to this subsection shall be paid by the [division] department out of the Public Welfare Account.

(4) The governing body of the county may abolish the county public welfare board upon 60 days’ notice. On the effective date stated in the notice, the county public welfare board shall be abolished and the tenure of office of members shall cease.

(5) Until the notice required in subsection (4) of this section is given, any county public welfare board in existence on November 4, 1993, shall continue and shall perform its duties under ORS 411.155.

SECTION 88a. ORS 411.320 is amended to read:

411.320. (1) For the protection of applicants for and recipients of public assistance, except as otherwise provided in this section, the [Adult and Family Services Division] Department of Human Services shall not disclose or use the contents of any public assistance records, files, papers or communications for purposes other than those directly connected with the administration of the public assistance laws of Oregon or as necessary to assist public assistance applicants and recipients in accessing and receiving other governmental or private nonprofit services, and these records, files, papers and communications are considered confidential subject to the rules and regulations of the [Adult and Family Services Division] Department of Human Services. In any judicial or administrative proceeding, except proceedings directly connected with the administration of public assistance or child support enforcement laws, their contents are considered privileged communications.

(2) Nothing in this section prohibits the disclosure or use of contents of records, files, papers or communications for purposes directly connected with the establishment and enforcement of support obligations pursuant to the Title IV-D program.

(3) Nothing in this section prohibits the disclosure of the address, social security number and photograph of any applicant or recipient to a law enforcement official at the request of such official. To receive information pursuant to this section, the officer must furnish the agency the name of the applicant or recipient and advise that the applicant or recipient:

(a) Is fleeing to avoid prosecution, custody or confinement after conviction for a felony;

(b) Is violating a condition of probation or parole; or

(c) Has information that is necessary for the officer to conduct the official duties of the officer and the location or apprehension of the applicant or recipient is within such official duties.

SECTION 89. ORS 411.590 is amended to read:

411.590. A person who is employed as a housekeeper, homemaker or otherwise in the residence of a recipient of public assistance or services, whose compensation is paid in whole or in part by the Department of Human Services [Adult and Family Services Division, the Senior and Disabled Services Division, the Mental Health and Developmental Disability Services Division, the State Office for Services to Children and Families] or an area agency, as defined in ORS 410.040, and is not otherwise employed by the [division, office or] department or agency, shall not for any purposes be deemed to be an employee of the State of Oregon or an area agency whether or not the [division, office] department or agency selects the person for employment or exercises any direction or control over the person's employment. However, nothing in this section precludes the state or an area agency from being considered the employer of the person for purposes of ORS chapter 657.

SECTION 90. ORS 411.595 is amended to read:

411.595. (1) As used in this section “policy change” [means] includes any change in the operation of public assistance programs that affects recipients adversely in any substantial manner, including but not limited to the denial, reduction, modification or delay of benefits. “Policy change” does not include any procedural change that affects internal management but does not adversely and substantially affect the interest of public assistance recipients.

(2) The [Adult and Family Services Division or the] Department of Human Services [on behalf of the division] may submit applications for waiver of federal statutory or regulatory requirements to the federal government or any agency thereof. Following the submission of any application for waiver that involves a policy change, and prior to implementation, the [division] department shall do the following:

(a) Conduct a hearing in accordance with ORS 183.310 to 183.550 regarding the waiver application or application for waiver renewals and the proposed rules;

(b) Prepare a complete summary of the testimony and written comments received at the hearing;

(c) Submit the application for waiver or application for waiver renewals involving a policy change to the legislative review agency, as defined in ORS 291.375, and present the summary of testimony and comments described in this section; and

(d) Give notice of the date of its appearance [or the appearance of the Department of Human Services on its behalf] before the Emergency Board or the Joint Committee on Ways and Means in accordance with ORS 183.335, and before the [Adult and Family Services Division] Family Services Review Commission.

SECTION 91. ORS 411.632 is amended to read:

411.632. If it reasonably appears that a customer who is a recipient of public assistance has assets in excess of those allowed to a recipient of such assistance under applicable federal and state statutes and regulations, and it reasonably appears that such assets may be transferred, removed, secreted or otherwise disposed, then the [department or its divisions] Department of Human Services may seek appropriate relief under ORCP 83 and 84, or any other provision of law but only to the extent of the liability. The state shall not be required to post a bond in seeking the relief.

SECTION 92. ORS 411.660 is amended to read:

411.660. (1) If any person is convicted of a violation of any provision of ORS 411.630, any grant of general assistance or public assistance made wholly or partially to meet the needs of such person shall be modified, canceled or suspended for such time and under such terms and conditions as may be prescribed by or pursuant to rules or regulations of the [division] Department of Human Services.

(2) Subsection (1) of this section does not prohibit a grant of general assistance or public assistance to meet the needs of a child under the age of 18 years.

SECTION 93. ORS 411.790 is amended to read:

411.790. (1) In granting general assistance, the [Adult and Family Services Division] Department of Human Services shall apply a graduated scale that disregards a portion of a person's income, if that income is earned in employment that is part of an approved treatment or rehabilitation program and if the person has been unemployed and receiving general assistance due to chronic mental illness.

(2) The [division] department shall continue to provide health services and needs, as described in ORS 411.710 (2), to a person described in subsection (1) of this section for a period of time not to exceed two years after the person ceases to receive general assistance if:

(a) Group health insurance is not available to the person through employment or otherwise; and either

(b) Termination of eligibility for health services and needs would seriously inhibit the person's ability to continue employment; or

(c) The person's earnings are not sufficient to allow the person a reasonable equivalent of the general assistance and health service benefits which would be available to the person in the absence of the earnings.

(3) If the person described in subsection (1) of this section is covered by a group health insurance plan, the [division] department shall continue to provide health services and needs for the limited purpose of paying the costs of treatment for preexisting conditions until such costs are paid in whole or in part by the group health insurance policy.

(4) For purposes of this section, “approved treatment and rehabilitation program” and “chronic mental illness” shall be defined by the department by rule [, adopted by the division after consultation with the Mental Health and Developmental Disability Services Division].

(5) For the purposes of general assistance, any work performed by a person while that person is hospitalized in a state or community psychiatric hospital shall not be considered employment.

(6) Nothing in this section is intended to limit the authority of the [division] department to disregard the income of, and extend the period of eligibility for health services and needs to, persons other than those described in subsection (1) of this section.

SECTION 94. ORS 411.802 is amended to read:

411.802. If an approved provider providing in-home care to a recipient of public assistance for compensation marries the recipient, the [Adult and Family Services Division or the Senior and Disabled Services Division] Department of Human Services shall consider the care provided as compensable even though provided by a spouse. The standard of compensation under this section shall be the same as the standard applied for in-home care provided by an approved provider not residing in the home of the recipient.

SECTION 95. ORS 411.803 is amended to read:

411.803. When a married recipient of public assistance provided under ORS chapter 412 or 413 requires in-home care, the [Adult and Family Services Division or the Senior and Disabled Services Division, as appropriate,] Department of Human Services shall provide that such care be compensated even though provided by the spouse, in the manner and to the extent specified by rule of the [appropriate division] department based on the extent of need and the availability of funds therefor.

SECTION 96. ORS 411.890 is amended to read:

411.890. A JOBS Plus Implementation Council shall be established in [each Adult and Family Services Division district] service areas to be determined by the Director of Human Services to assist the JOBS Plus Advisory Board, the Department of Human Services and the Employment Department in the administration of the JOBS Plus Program and to allow local flexibility in dealing with the particular needs of each county. Each council shall be primarily responsible for recruiting and encouraging participation of employment providers in the county. Each council shall be composed of seven members who shall be appointed by the county commissioners in each county in the district. Council members shall be residents of the district in which they are appointed and shall serve four-year terms. Six members of the council shall be from the local business community. At least one member shall be a current or former recipient of the temporary assistance for needy families program, the food stamp program or the unemployment insurance program.

SECTION 97. ORS 411.977 is amended to read:

411.977. (1) All applicants for and recipients of public assistance shall be treated in a courteous, fair and dignified manner by [Adult and Family Services Division] Department of Human Services personnel.

(2) Any applicant or recipient who alleges discourteous, unfair or undignified treatment by [division] department personnel or alleges that incorrect or inadequate information regarding public assistance programs has been provided by [division] department personnel may file a grievance with the [division] department. The [division] department shall publicize the grievance system in each [branch] local office.

(3) The grievance shall be discussed first with the supervisor of the employee against whom the grievance is filed. If the grievance is not resolved, the applicant or recipient may discuss the grievance with the [branch] local office manager.

(4) The [division] department shall compile a monthly report summarizing each grievance filed against [division] department personnel and the action taken. The report shall identify each grievance by [branch] local office and indicate the number of grievances filed against individual employees. The report shall protect the anonymity of [division] department personnel. The report shall be presented to the [Adult and Family Services Division] Family Services Review Commission and to all county public welfare boards.

SECTION 98. ORS 412.005 is amended to read:

412.005. As used in ORS 412.005 to 412.125:

(1) “Aid” means money payments under ORS 412.005 to 412.125 to blind persons, or in behalf of such person.

(2) “Applicant” means any person who has applied for aid under ORS 412.005 to 412.125.

(3) “Blind person” means any needy person whose visual acuity with correcting lenses does not exceed 20/200 in the better eye, or whose vision in the better eye is restricted to a field which subtends an angle of not greater than 20 degrees, or who has an equivalent visual impairment, as determined by the [division] department after examination by an ophthalmologist licensed to practice medicine and surgery in Oregon or by a duly licensed and practicing optometrist in Oregon, or by an ophthalmologist licensed to practice medicine and surgery or by an optometrist licensed and practicing in another state or territory of the United States having qualifications substantially similar to those of the State of Oregon.

(4) “Department” means the Department of Human Services.

[(4)] (5) “Income” means receipts in cash or kind but does not include such amounts per month of earnings or other income as may be exempted in compliance with federal legislation and rules thereto applicable or premiums on life insurance policies whether paid by the applicant, recipient or other person.

[(5)] (6) “Real property” includes but is not limited to estates for more than one year, houses, boats, trailers or other habitation when used for the purpose of providing a home for the applicant or the proceeds from the conversion of any one of these if the amount retained is used within 12 months to provide a home for the applicant.

[(6)] (7) “Recipient” means any person who has received or is receiving aid under ORS 412.005 to 412.125.

[(7) “Division” means the Adult and Family Services Division.]

SECTION 99. ORS 412.580 is amended to read:

412.580. If an application is not acted upon by the [Adult and Family Services Division] Department of Human Services with reasonable promptness or is denied in whole or in part, or if any award of assistance is modified or canceled, the applicant or recipient may appeal from the decision of the [division] department [to the Adult and Family Services Division]. The [Adult and Family Services Division] department shall give the appellant an opportunity for a hearing pursuant to ORS 183.310 to 183.550.[; and the] The hearing shall be held in the county selected by the appellant. If required by either the appellant or the [division] department, the hearing shall include a review of the medical findings as to disability and the social data as to appellant's capacity for employment. [The findings and decision of the Adult and Family Services Division shall be binding upon the division] The department shall be bound by the findings and decision.

SECTION 99a. ORS 413.165 is amended to read:

413.165. (1) Money payments of old-age assistance with respect to a recipient may be made to a representative payee if it is determined by the [division] Department of Human Services that the recipient, by reason of physical or mental condition, has such inability to manage funds that making payments to the recipient would be contrary to the welfare of the person and that, therefore, it is necessary to provide assistance through payments authorized by this section.

(2) The [division] department may designate as representative payee any responsible individual who is interested in or concerned with the welfare of the recipient and who is willing to act in that capacity.

(3) If it appears to the [division] department that the interests of the recipient would be best served thereby, the [division] department may petition for the judicial appointment of a guardian, conservator or other legal representative of the recipient. If the person is appointed and duly qualified, money payments of assistance otherwise payable to the recipient, or representative payee, shall be made to the qualified person until the [division] department determines that the conditions which would justify the protective payments no longer exist.

(4) Subject to funds made available to the [division] department for administrative expenditures, the [division] department may, with respect to any guardianship or conservatorship established pursuant to this section, pay all costs and fees, including any necessary bond premiums, reasonably incurred in the proceeding and in administering money payments.

SECTION 100. ORS 414.022 is amended to read:

414.022. Mental health services shall be provided by the Department of Human Services, in collaboration with [the Mental Health and Developmental Disability Services Division, the Office of Medical Assistance Programs and] the Health Services Commission, for the purpose of determining how best to serve the range of mental health conditions statewide utilizing a capitated managed care system. The services shall begin as soon as feasible following receipt of the necessary waiver in anticipation that the services are to be available not later than January 1, 1995, and shall cover up to 25 percent of state-funded mental health services until July 1, 1997. After July 1, 1997, the services shall cover all of the state-funded eligible mental health services. The provision of services under this section shall support and be consistent with community mental health and developmental disabilities programs established and operated or contracted for under ORS chapter 430. The goals and criteria are:

(1) Test actuarial assumptions used to project costs and utilization rates, and revise estimates of cost for statewide implementation.

(2) Compare current medical assistance fee for service with capitated managed care mental health system, using state determined quality assurance standards to evaluate capacity, diagnosis, utilization and treatment:

(a) Including components for testing full integration of physical medicine and mental health services and measuring the impact of mental health services on utilization of physical health services.

(b) Comparing current medical assistance fee for service with capitated managed care system for utilization and length of stay in private and public hospitals, and in nonhospital residential care facilities.

(3) Design the services to assure geographic coverage of urban and rural areas including significant population bases, and areas with and without existing capacity to provide fully capitated managed care services including:

(a) Requiring providers to maintain and report information about clients by type and amount of services in a predetermined uniform format for comparison with state established quality assurance standards.

(b) Within the geographic areas in which services are provided, requiring providers to serve the full range of mental health populations and conditions.

(c) Requiring providers to have the full range of eligible mental health services available including, but not limited to, assessment, case management, outpatient treatment and hospitalization.

(4) The department shall report to the Emergency Board and other appropriate interim legislative committees and task forces by October 1, 1996, on the implementation of the services.

SECTION 101. ORS 414.151 is amended to read:

414.151. The Department of Human Services[, the Office of Medical Assistance Programs and the Health Division] shall endeavor to develop agreements with local governments to facilitate the enrollment of poverty level medical assistance program clients. Subject to the availability of funds therefor, the agreement shall be structured to allow flexibility by the state and local governments and may allow any of the following options for enrolling clients in poverty level medical assistance programs:

(1) Initial processing shall be done at the county health department by employees of the county, with eligibility determination completed at the local office of the Department of Human Services;

(2) Initial processing and eligibility determination shall be done at the county health department by employees of the local health department; or

(3) Application forms shall be made available at the county health department with initial processing and eligibility determination shall be done at the local office of the [department] Department of Human Services.

SECTION 102. ORS 414.305 is amended to read:

414.305. [(1)] The Department of Human Services is hereby authorized to pay the cost of care for patients [within Mental Health and Developmental Disability Services Division] in institutions operated under ORS 179.321 under the medical assistance program established by [this chapter] ORS chapter 414.

[(2) All moneys received by the Mental Health and Developmental Disability Services Division from the Department of Human Services for the cost of care of patients shall be accounted for separately and deposited daily for credit to the Mental Health and Developmental Disability Services Account.]

SECTION 103. ORS 414.400 is amended to read:

414.400. (1) The Drug Use Review Board shall operate in accordance with ORS chapter 192. The board shall annually elect a chairperson from the members of the board.

(2) Each board member is entitled to reimbursement for actual and necessary travel expenses incurred in connection with the member's duties, pursuant to ORS 292.495.

(3) A quorum consists of eight members of the board.

(4) The board may establish advisory committees to assist in carrying out the board's duties under ORS 414.350 to 414.415 with approval of the [Office of Medical Assistance Programs director] Director of Human Services.

SECTION 104. ORS 416.510, as amended by section 144, chapter 104, Oregon Laws 2001 (Enrolled House Bill 2609), is amended to read:

416.510. As used in ORS 416.510 to 416.610, unless the context requires otherwise:

(1) “Action” means an action, suit or proceeding.

(2) “Applicant” means an applicant for public assistance.

[(3) “Assistance” means moneys paid by the Adult and Family Services Division to persons directly and moneys paid by the division to others for the benefit of such persons.]

[(4)] (3) “Claim” means a claim of a recipient of public assistance for damages for personal injuries against any person or public body, agency or commission other than the State Accident Insurance Fund Corporation or Workers' Compensation Board.

[(5)] (4) “Compromise” means a compromise between a recipient and any person or public body, agency or commission against whom the recipient has a claim.

(5) “Department” means the Department of Human Services.

[(6) “Division” means the Adult and Family Services Division.]

[(7)] (6) “Judgment” means a judgment in any action or proceeding brought by a recipient to enforce the claim of the recipient.

(7) “Public assistance” has the meaning given that term in ORS 411.010.

(8) “Recipient” means a recipient of public assistance.

(9) “Settlement” means a settlement between a recipient and any person or public body, agency or commission against whom the recipient has a claim.

SECTION 104a. If Senate Bill 392 becomes law, section 104 of this 2001 Act (amending ORS 416.510) and section 144, chapter 104, Oregon Laws 2001 (Enrolled House Bill 2609) (amending ORS 416.510), are repealed.

SECTION 105. ORS 416.520 is amended to read:

416.520. If any applicant or recipient has a claim for damages for personal injuries, the existence of such claim or any action to enforce such claim shall not be grounds for denying or discontinuing public assistance to such applicant or recipient.

SECTION 105a. If Senate Bill 392 becomes law, section 105 of this 2001 Act (amending ORS 416.520) is repealed.

SECTION 106. ORS 416.540 is amended to read:

416.540. (1) Except as provided in subsection (2) of this section and in ORS 416.590, the [Adult and Family Services Division] Department of Human Services shall have a lien upon the amount of any judgment in favor of a recipient or amount payable to the recipient under a settlement or compromise for all public assistance received by such recipient from the date of the injury of the recipient to the date of satisfaction of such judgment or payment under such settlement or compromise.

(2) The lien does not attach to the amount of any judgment, settlement or compromise to the extent of attorney's fees, costs and expenses incurred by a recipient in securing such judgment, settlement or compromise and to the extent of medical, surgical and hospital expenses incurred by such recipient on account of the personal injuries for which the recipient had a claim.

SECTION 106a. If Senate Bill 392 becomes law, section 106 of this 2001 Act (amending ORS 416.540) is repealed.

SECTION 107. ORS 416.560 is amended to read:

416.560. The form of the notice required by ORS 416.550 (1) shall be substantially as follows:

______________________________________________________________________________

Notice is hereby given that the [Adult and Family Services Division] Department of Human Services has rendered public assistance to ________, a person who was injured on or about the __ day of ____ in the city of ____ and State of ____, and the [Adult and Family Services Division] Department of Human Services hereby asserts a lien to the extent provided in ORS 416.510 to 416.610, for the amount of such public assistance upon any amount due and owing ________ (name of injured person) under a judgment, settlement or compromise from ____ alleged to have caused such injuries and from any other person or public body, agency or commission liable for the injury or obligated to compensate the injured person on account of such injuries.

[Adult and Family Services Division]

Department of Human Services

[by ________, Assistant Director.]

by ________, Director of Human Services or designee.

State of Oregon, )

) ss.

County of _______ )

I, ________, being first duly sworn on oath say: That I am the [Assistant Director for Adult and Family Services] Director of Human Services or designee; that I have read the foregoing notice of lien and know the contents thereof and believe the same to be true.

_____________________

Subscribed and sworn to before me this __ day of ________,[in the year of our Lord ____] 2____.

________, Notary Public.

______________________________________________________________________________

SECTION 107a. If Senate Bill 392 becomes law, section 107 of this 2001 Act (amending ORS 416.560) is repealed.

SECTION 108. ORS 416.600 is amended to read:

416.600. When the [Adult and Family Services Division] Department of Human Services determines that a recipient will incur additional medical, surgical or hospital expenses or that additional public assistance will have to be given to the recipient after the date of satisfaction of judgment or payment under a settlement or compromise, the [division] department may release any portion of its lien to the extent of such anticipated expenses and public assistance.

SECTION 108a. If Senate Bill 392 becomes law, section 108 of this 2001 Act (amending ORS 416.600) is repealed.

SECTION 109. ORS 417.346 is amended to read:

417.346. Subject to the availability of funds therefor, the Director of Human Services shall:

(1) [Direct all divisions in the department to identify] Identify current programs and potential resources [in each division] available to families providing care for a family member with a disability or chronic illness.

(2) Develop a biennial plan for adequate funding and recommend budgetary priorities for family support services.

(3) Develop a biennial cooperative plan for assuring a statewide interagency system of family support services.

(4) [Direct the State Office for Services to Children and Families, Mental Health and Developmental Disability Services Division, Senior and Disabled Services Division, Vocational Rehabilitation Division, Health Division and Adult and Family Services Division and any other governmental entities involved in family support services, to] Adopt rules for family support services that are guided by the goals and principles set forth in ORS [344.530, 409.010, 410.070, 411.070,] 417.340 to 417.348[, 430.021 and 431.110]. These rules shall contain a grievance procedure.

(5) Make a biennial report to the Legislative Assembly on the state of the family support system, including strengths, deficiencies, cost savings and recommendations. This report shall include a comprehensive statement of the efforts of [each division] the Department of Human Services to carry out the policies and principles set forth in this legislation. The report shall include but not be limited to a list of family support services, a summary of costs and the number of clients served.

(6) Establish a Family Support Advisory Council whose purpose is to review and comment on plans and services provided or contracted for family support by state agencies and advise the director on the state plans for coordinated family support services.

(a) The council shall meet a minimum of four times per year.

(b) The membership of the council shall be 51 percent consumers of family support services.

(c) The remaining membership shall be composed of representatives of agencies providing family support services and representatives of advocacy groups. One member shall be a representative of the Department of Education.

SECTION 110. ORS 417.348 is amended to read:

417.348. Subject to the availability of funds therefor, a family shall be eligible to receive family support services and goods if the family meets any of the following requirements:

(1) The family has a family member requiring long term care due to disability or chronic illness whom the family desires to keep at home or return to the home from an institution or other out-of-home placement.

(2) The family desires to care for the dependent family member at home if financial, physical or other barriers are reduced or eliminated and adequate community based support services are provided.

(3) The family is caring for a family member who is waiting for residential or vocational services.

(4) Other requirements established by [the division of] the Department of Human Services [by which the specific family support services are offered]. The requirements must be reviewed by the Family Support Advisory Council.

SECTION 111. ORS 417.845 is amended to read:

417.845. (1) The Juvenile Crime Prevention Advisory Committee is created within the Oregon Criminal Justice Commission.

(2) The committee shall have the following members:

(a) The Director of the Oregon Youth Authority or a designee of the director;

(b) The staff director of the State Commission on Children and Families or a designee of the staff director;

(c) The Director of Human Services or [a designee] one or more designees of the director, one of whom has expertise in treatment and prevention of substance abuse;

[(d) The Assistant Director for Alcohol and Drug Abuse Programs or a designee of the assistant director;]

[(e)] (d) The executive director of the Oregon Criminal Justice Commission or a designee of the executive director;

[(f)] (e) The Superintendent of Public Instruction or a designee of the superintendent;

[(g)] (f) The Superintendent of State Police or a designee of the superintendent;

[(h)] (g) The Director of the Department of Corrections or a designee of the director;

[(i)] (h) One designee of the Governor;

[(j)] (i) One member appointed by the President of the Senate, who shall be a member of the Senate and who shall be a nonvoting, advisory member;

[(k)] (j) One member appointed by the Speaker of the House of Representatives, who shall be a member of the House of Representatives and who shall be a nonvoting, advisory member; and

[(L)] (k) One designee of the Chief Justice of the Supreme Court from the Judicial Department who serves as an ex officio member to provide information and support the partnership role of the courts in an effective comprehensive statewide approach to high-risk youth and their families.

(3) In addition to the members listed in subsection (2) of this section, the Governor shall appoint the following members who shall be representative of the geographic and cultural diversity of the state:

(a) To represent local public and private entities:

(A) A county commissioner;

(B) A local juvenile director;

(D) Two law enforcement officials;

(E) A county mental health director;

(F) An alcohol and drug abuse professional;

(G) A school superintendent;

(H) A private youth service provider; and

(I) An elected city official;

(b) A researcher;

(d) Other members as determined by the Governor.

(4) Each member of the committee appointed by the Governor under subsection (3) of this section shall serve a term of four years. Members appointed by the Governor shall serve at the pleasure of the Governor. A vacancy in the office of any member appointed by the Governor under subsection (3) of this section shall be filled by the Governor by appointment for the unexpired term.

(5) The Governor shall select one of the members of the committee as chairperson and one of its members as vice chairperson.

(6) The committee shall meet at times, places and intervals deemed advisable by a majority of the members.

(7) The Oregon Criminal Justice Commission shall provide staff support to the committee.

SECTION 112. ORS 418.005 is amended to read:

418.005. (1) In order to establish, extend and strengthen welfare services for the protection and care of homeless, dependent or neglected children or children in danger of becoming delinquent, the [State Office for Services to Children and Families] Department of Human Services may:

(a) Make all necessary rules and regulations for administering child welfare services under this section.

(b) Accept and disburse any and all federal funds made available to the State of Oregon for child welfare services.

(c) Make such reports in such form and containing such information as may from time to time be required by the federal government and comply with such provisions as may from time to time be found necessary to insure correctness and verification of such reports.

(d) Cooperate with medical, health, nursing and welfare groups and organizations and with any agencies in the state providing for protection and care of homeless, dependent or neglected children or children in danger of becoming delinquent.

(e) Cooperate with the United States Government or any of its agencies in administering the provisions of this section.

(2) There is created an advisory committee that shall consist of 21 members to advise the [State Office for Services to Children and Families] department on the development and administration of [the] child welfare policies, programs and practices [of the office]. Members shall be appointed by and serve at the pleasure of the [Assistant Director for Services to Children and Families] Director of Human Services.

(a) Advisory committee membership shall include representatives of other state agencies concerned with services, representatives of professional, civic or other public or private organizations, private citizens interested in service programs, and recipients of assistance or service or their representatives.

(b) Members of the advisory committee shall receive no compensation for their services. Members of the advisory committee other than members employed in full-time public service shall be reimbursed for their actual and necessary expenses incurred in the performance of their duties by the [State Office for Services to Children and Families] department. Such reimbursements shall be subject to the provisions of ORS 292.210 to 292.288. Members of the advisory committee who are employed in full-time public service may be reimbursed for their actual and necessary expenses incurred in the performance of their duties by their employing agency.

(3) Subject to the allotment system provided for in ORS 291.234 to 291.260, the [office] department may expend the amounts necessary to carry out the purposes and administer the provisions of this section.

SECTION 113. ORS 418.050 is amended to read:

418.050. Subject to rules of the [Adult and Family Services Division] Department of Human Services and to such conditions and limitations as may be prescribed pursuant to the temporary assistance for needy families program:

(1) Money payments of aid with respect to the temporary assistance for needy families program, including payments to meet the needs of the relative, and the relative's spouse, with whom a dependent child is living, may be made to an individual other than such relative or spouse if it is determined by the [division] department that the relative to whom such payments are made has such inability to manage funds that continuation of such payments to the relative would be contrary to the welfare of such child and that, therefore, it is necessary to provide such aid through payments in the manner authorized by this section. Such determination shall be subject to review and hearing, upon application of such relative, in the manner prescribed pursuant to ORS 418.125. However, the pendency of such application, review or hearing shall not stay the effect of such determination.

(2) The [Adult and Family Services Division] department may designate any responsible individual, including any public officer or employee, as a representative payee if such individual is willing to act in such capacity. Representative payees shall receive no compensation for their services, but shall be allowed expenses actually and necessarily incurred by them in the performance of their duties under ORS 418.059. Such expenses shall be paid from funds appropriated to the [division] department for administrative expenditures.

(3) During the time payments of aid pursuant to the temporary assistance for needy families program with respect to a dependent child or relative are made to a representative payee, the [division] department shall:

(a) Undertake and continue special efforts to develop greater ability on the part of such relative to manage funds in such manner as to protect the welfare of the relative and the family of the relative; and

(b) Periodically review the determination made pursuant to subsection (1) of this section and terminate payments to the representative payee if it is established by such review that the conditions justifying such determination no longer exist.

[(4) The services described in subsection (3)(a) of this section may be obtained by the Adult and Family Services Division from the State Office for Services to Children and Families, upon mutual agreement between the division and the office.]

SECTION 114. ORS 418.070 is amended to read:

418.070. For the purposes of ORS 418.035 to 418.185, with respect to any period for which federal funds are made available to this state in aid of a state-administered program of aid to any child defined in and meeting the requirements of this section:

(1) “Dependent child” includes:

(a) A needy child meeting the requirements of ORS 418.035 (1)(b)(A) or (B) who has been deprived of parental support or care by reason of the unemployment of a parent or parents and who is living with any of the relatives specified in ORS 418.035 (1) in a place of residence maintained by one or more of such relatives as the relative's or relatives' own home.

(b) A child:

(A) Who would meet the requirements of ORS 418.035 (1) or of paragraph (a) of this subsection except for removal after April 30, 1961, from the home of a relative specified in ORS 418.035 (1) as a result of a judicial determination to the effect that continuation therein would be contrary to the welfare of such child[,];

(B) Who has been accepted for placement and care by [either or both the Adult and Family Services Division and the State Office for Services to Children and Families,] the Department of Human Services;

(C) Who has been placed in a foster home or licensed nonprofit private child-caring agency as a result of such determination[,]; and

(D) Who received aid in or for the month in which court proceedings leading to such determination were initiated, or would have received such aid in or for such month if application had been made therefor, or in the case of a child who had been living with a relative specified in ORS 418.035 (1) within six months prior to the month in which such proceedings were initiated, would have received such aid in or for such month if in such month the child had been living with and removed from the home of such a relative and application had been made therefor.

(2) “Foster home” means a foster home which is certified by this state or has been approved, by the agency of this state responsible for the certification of foster homes, as meeting the standards established for such certification.

(3) “Aid” includes foster care in behalf of a child described in subsection (1)(b) of this section in the foster home of any individual or in a licensed nonprofit private child-caring agency.

(4) “Unemployment of parent” shall be defined by the [Adult and Family Services Division] department and such definition may take into account definitions used to establish the availability of federal funds for the program of temporary assistance for needy families.

SECTION 115. ORS 418.130 is amended to read:

418.130. (1) Except as otherwise provided in this section, no person shall, except for purposes directly connected with the administration of the temporary assistance for needy families program, delivery or administration of programs and services the Department of Human Services is authorized to deliver and administer pursuant to ORS 409.010 or as necessary to assist public assistance applicants and recipients in accessing and receiving other governmental or private nonprofit services and in accordance with the rules of the [Adult and Family Services Division, or the State Office for Services to Children and Families, whichever is applicable,] department, solicit, disclose, receive, make use of, or authorize, knowingly permit, participate in, or acquiesce in the use of, any list of or names of, or any information concerning, persons applying for or receiving such aid, directly or indirectly derived from the records, papers, files or communications of the [Adult and Family Services Division or the State Office for Services to Children and Families, whichever is applicable,] department or acquired in the course of the performance of official duties.

(2) Nothing in this section prohibits the disclosure and use of information about applicants and recipients as is necessary to carry out the child support enforcement laws of this state and of the United States.

(3) Nothing in this section prohibits the disclosure of the address of any applicant or recipient to a law enforcement official at the request of such official. To receive information pursuant to this section, the officer must furnish the agency the name of the applicant or recipient and advise that the applicant or recipient:

(a) Is fleeing to avoid prosecution, custody or confinement after conviction for a felony;

(b) Is violating a condition of probation or parole; or

(c) Has information that is necessary for the officer to conduct the official duties of the officer and the location or apprehension of the applicant or recipient is within such official duties.

SECTION 116. ORS 418.163 is amended to read:

418.163. The [State Office for Services to Children and Families] Department of Human Services shall have the responsibility and authority to provide such services and engage in such cooperative and coordinated efforts with the [Adult and Family Services Division,] Employment Department and other appropriate agencies as are necessary to maintain the intent of and compliance with federal requirements for the programs defined in ORS 418.155.

SECTION 117. ORS 418.205 is amended to read:

418.205. As used in ORS 418.205 to 418.310 and 418.992 to 418.998, unless the context requires otherwise:

(1) “Child” means an unmarried person under 18 years of age.

(2)(a) “Child-caring agency” means any private agency or private organization providing:

(A) Day treatment for disturbed children;

(B) Adoption placement services;

(D) Other similar services for children.

(b) “Child-caring agency” does not include residential [homes or] facilities or foster care homes certified or licensed by the [Mental Health and Developmental Disability Services Division.] Department of Human Services under ORS 443.400 to 443.455, 443.830 and 443.835 for children receiving developmental disability services.

(3) “Private” means not owned, operated or administered by any governmental agency or unit.

SECTION 118. ORS 418.295 is amended to read:

418.295. (1) No attorney employed by the State of Oregon shall represent prospective adoptive parents in their attempt to adopt a child being cared for under the provisions of ORS 418.005 to 418.025, 418.035 to 418.185, 418.205 to 418.315, and 418.625 to 418.685.

(2) No employee of the [Adult and Family Services Division or the State Office for Services to Children and Families] Department of Human Services shall recommend any attorney to serve as counsel for prospective adoptive parents.

SECTION 119. ORS 418.480 is amended to read:

418.480. As used in ORS 418.480 to 418.500, “purchase of care” includes the purchase of institutional and foster family care and services, adoptive services, services to the unwed mother and her child and such other care and services as the [State Office for Services to Children and Families, in consultation with the Director of Human Services,] Department of Human Services shall determine to be necessary to carry out the policy stated in ORS 418.485.

SECTION 120. ORS 418.625 is amended to read:

418.625. As used in ORS 418.625 to 418.645:

(1) Certificate includes:

(a) A “provisional” certificate issued for 90 days; or

(b) A “regular” certificate, which is effective for one year.

(2) “Department” means the Department of Human Services.

[(2)] (3) “Foster home” means any home maintained by a person who has under the care of the person in such home any child under the age of 18 years not related to the person by blood or marriage and unattended by its parent or guardian, for the purpose of providing such child with care, food and lodging, but does not include:

(a) Any boarding school that is essentially and primarily engaged in educational work;

(b) Any home in which a child is provided board and room by a school board;

(c) Any foster home under the direct supervision of a private child-caring agency or institution certified by the [State Office for Services to Children and Families] department; [or]

(d) Any home under the direct supervision of a custodial parent for the purpose of providing respite care as defined by rule[.]; or

(e) Any developmental disability child foster home as defined in ORS 443.830.

[(3) “Office” means the State Office for Services to Children and Families.]

SECTION 121. ORS 418.747 is amended to read:

418.747. (1) The district attorney in each county shall be responsible for developing interagency and multidisciplinary teams to consist of but not be limited to law enforcement personnel, [State Office for Services to Children and Families] Department of Human Services child protective service workers, Child Care Division personnel, school officials, health departments and courts, as well as others specially trained in child abuse, child sexual abuse and rape of children investigation.

(2) The teams shall develop a written protocol for immediate investigation of and notification procedures for child abuse cases and for interviewing child abuse victims. Each team also shall develop written agreements signed by member agencies that specify:

(a) The role of each agency;

(b) Procedures to be followed to assess risks to the child;

(d) Guidelines for completion of responsibilities by member agencies;

(e) Upon clear disclosure that the alleged child abuse occurred in a child care facility as defined in ORS 657A.250, that immediate notification of parents or guardians of children attending the child care facility is required regarding any abuse allegation and pending investigation; and

(f) Criteria and procedures to be followed when removal of the child is necessary for the child's safety.

(3) Each team member and those conducting child abuse investigations and interviews of child abuse victims shall be trained in risk assessment, dynamics of child abuse, child sexual abuse and rape of children, legally sound and age appropriate interview and investigatory techniques.

(4) All investigations of child abuse and interviews of child abuse victims shall be carried out by appropriate personnel using the protocols and procedures called for in this section. If trained personnel are not available in a timely fashion and, in the judgment of a law enforcement officer or [office] department[employee] child welfare worker, there is reasonable cause to believe a delay in investigation or interview of the child abuse victim could place the child in jeopardy of physical harm, the investigation can proceed without full participation of all personnel. This authority applies only for as long as reasonable danger to the child exists. A reasonable effort to find and provide a trained investigator or interviewer shall be made.

(5) Protection of the child is of primary importance. To ensure the safe placement of a child, the [State Office for Services to Children and Families] department may request that local multidisciplinary team members obtain criminal history information on any person who is part of the household where the [office] department may place or has placed a child who is in the [office's] department's custody. All information obtained by the local team members and the [office] department in the exercise of their duties is confidential and may only be disclosed as necessary to assure the safe placement of a child.

(6) Each team shall classify, assess and review cases under investigation.

(7) Each multidisciplinary team shall develop policies that provide for an independent review of investigation procedures of sensitive cases after completion of court actions on particular cases. The policies shall include independent citizen input. Parents of child abuse victims shall be notified of the review procedure.

(8) Each team shall establish a local multidisciplinary fatality review process. The purposes of the review process are to:

(a) Coordinate various agencies and specialists to review a fatality caused by child abuse or neglect;

(b) Identify local and state issues related to preventable deaths; and

(9) In establishing the review process and carrying out reviews, the members of the local multidisciplinary team shall be assisted by the local medical examiner or county health officer as well as others specially trained in areas relevant to the purpose of the local team.

(10) The categories of fatalities reviewed by the multidisciplinary team include:

(a) Child fatalities in which child abuse or neglect may have occurred at any time prior to death or have been a factor in the fatality;

(b) Any category established by the local multidisciplinary team;

(c) All child fatalities where the child is less than 18 years of age and there is an autopsy performed by the medical examiner; and

(d) Any specific cases recommended for local review by the statewide interdisciplinary team established under ORS 418.748.

(11) The local multidisciplinary team shall develop a written protocol for review of child fatalities. The protocol shall be designed to facilitate communication and information between persons who perform autopsies and those professionals and agencies concerned with the prevention, investigation and treatment of child abuse and neglect.

(12) Within the guidelines, and in a format, established by the statewide interdisciplinary team established under ORS 418.748, the local team shall provide the statewide team with information regarding child fatalities under subsection (10) of this section.

(13) The local multidisciplinary team shall have access to and subpoena power to obtain all medical records, hospital records and records maintained by any state, county or local agency, including, but not limited to, police investigations data, coroner or medical examiner investigative data and social services records, as necessary to complete the review of a specific fatality under subsection (8)(a) of this section. All meetings of the local team relating to the fatality review process required by subsections (8) to (13) of this section shall be exempt from the provisions of ORS 192.610 to 192.690. All information and records acquired by the local team in the exercise of its duties are confidential and may only be disclosed as necessary to carry out the purposes of the local fatality review process.

SECTION 122. ORS 419A.004 is amended to read:

419A.004. As used in this chapter and ORS chapters 419B and 419C, unless the context requires otherwise:

(1) “CASA Volunteer Program” means a program approved or sanctioned by the juvenile court to recruit, train and supervise volunteer persons to serve as court appointed special advocates.

(2) “Child” means a person within the jurisdiction of the juvenile court as provided in ORS 419B.100.

(3) “Child care center” means a residential facility for the care and supervision of children that is licensed under the provisions of ORS 418.240.

(4) “Community service” has the meaning given that term in ORS 137.126.

(5) “Conflict of interest” means a person appointed to a local citizen review board who has a personal or pecuniary interest in a case being reviewed by that board.

(6) “Counselor” means a juvenile department counselor.

(7) “Court” means the juvenile court.

(8) “Court appointed special advocate” or “CASA” means a person appointed by the court pursuant to a CASA Volunteer Program to act as special advocate for a child pursuant to ORS 419A.170.

(9) “Court facility” has the meaning given that term in ORS 166.360.

(10) “Department” means the Department of Human Services.

[(10)] (11) “Detention” or “detention facility” means a facility established under ORS 419A.010 to 419A.020 and 419A.050 to 419A.063 for the detention of dependent children or delinquent youth pursuant to a judicial commitment or order.

[(11)] (12) “Director” means the director of a juvenile department established under ORS 419A.010 to 419A.020 and 419A.050 to 419A.063.

[(12)] (13) “Guardian” means guardian of the person and not guardian of the estate.

[(13)] (14) “Indian child” means any unmarried person less than 18 years of age who is:

(a) A member of an Indian tribe;

(b) Eligible for membership in an Indian tribe and is the biological child of a member of an Indian tribe; or

[(14)] (15) “Juvenile court” means the court having jurisdiction of juvenile matters in the several counties of this state.

[(15)] (16) “Local citizen review board” means the board specified by ORS 419A.090 and 419A.092.

[(16) “Office” means the State Office for Services to Children and Families.]

(17) “Parent” means the biological or adoptive mother of the child and the legal or adoptive father of the child. A legal father includes:

(a) A nonimpotent, nonsterile man who was cohabiting with his wife, who is the mother of the child, at the time of conception;

(b) A man married to the mother of the child at the time of birth, where there is no decree of separation and the presumption of paternity has not been disputed;

(d) A biological father who has established or declared paternity through filiation proceedings or under ORS 416.400 to 416.470; and

(e) A biological father who has, with the mother, established paternity through a voluntary acknowledgment of paternity under ORS 109.070.

(18) “Permanent foster care” means an out-of-home placement in which there is a long-term contractual foster care agreement between the foster parents and the [State Office for Services to Children and Families] department that is approved by the juvenile court and in which the foster parents commit to raise a foster child until the age of majority.

(19) “Planned permanent living arrangement” means an out-of-home placement other than by adoption, placement with a relative or placement with a legal guardian that is consistent with the case plan and in the best interests of the child.

(20) “Public building” has the meaning given that term in ORS 166.360.

(21) “Reasonable time” means a period of time that is reasonable given a child's emotional and developmental needs and ability to form and maintain lasting attachments.

(22) “Records” means any information in written form, pictures, photographs, charts, graphs, recordings or documents pertaining to a case.

(23) “Resides” or “residence,” when used in reference to the residence of a child or youth, means the place where the child or youth is actually living or the jurisdiction in which wardship of the child or youth has been established.

(24) “Restitution” has the meaning given that term in ORS 137.103.

(25) “Serious physical injury” means:

(a) A serious physical injury as defined in ORS 161.015; or

(b) A physical injury that:

(A) Has a permanent or protracted significant effect on a child's daily activities;

(B) Results in substantial and recurring pain; or

(26) “Shelter care” means a home or other facility suitable for the safekeeping of a child who is taken into temporary custody pending investigation and disposition where the circumstances are such that the child does not need to be kept in secure custody.

(27) “Short-term detention facility” means a facility established under ORS 419A.050 (3) for holding youths pending further placement.

(28) “Substitute care” means an out-of-home placement directly supervised by the [office] department or other agency, including placement in a foster family home, group home or other child caring institution or facility. “Substitute care” does not include care in:

(a) A detention facility, forestry camp or youth correction facility;

(b) A family home which the court has approved as a child's permanent placement, where a private child caring agency has been appointed guardian of the child and where the child's care is entirely privately financed; or

(29) “Surrogate” means a person appointed by the court to protect the right of the child to receive procedural safeguards with respect to the provision of free appropriate public education.

(30) “Tribal court” means a court with jurisdiction over child custody proceedings and that is either a Court of Indian Offenses, a court established and operated under the code of custom of an Indian tribe or any other administrative body of a tribe that is vested with authority over child custody proceedings.

(31) “Youth” means a person under 18 years of age who is alleged to have committed an act that is a violation, or, if done by an adult would constitute a violation, of a law or ordinance of the United States or a state, county or city.

(32) “Youth care center” has the meaning given that term in ORS 420.855.

(33) “Youth offender” means a person who has been found to be within the jurisdiction of the juvenile court under ORS 419C.005 for an act committed by the person when the person was at least 12 years of age and under 18 years of age.

SECTION 123. ORS 419B.352 is amended to read:

419B.352. The court may direct that the child be examined or treated by a physician, psychiatrist or psychologist, or receive other special care or treatment in a hospital or other suitable facility. If the court determines that mental health examination and treatment should be provided by services delivered through the [Mental Health and Developmental Disability Services Division] Department of Human Services, the [Mental Health and Developmental Disability Services Division] department shall determine the appropriate placement or services in consultation with the court[, the State Office for Services to Children and Families] and other affected agencies. If [the State Office for Services to Children and Families or another] an affected agency objects to the type of placement or services, the court shall determine the appropriate type of placement or service. During the examination or treatment of the child, the [Mental Health and Developmental Disability Services Division shall not] department may, if appropriate, be appointed guardian of the child.

SECTION 124. ORS 419C.507 is amended to read:

419C.507. The court may, in lieu of or in addition to any disposition under this chapter, direct that the youth be examined or treated by a physician, psychiatrist or psychologist, or receive other special care or treatment in a hospital or other suitable facility. If the court determines that mental health examination and treatment should be provided by services delivered through the [Mental Health and Developmental Disability Services Division, the Mental Health and Developmental Disability Services Division] Department of Human Services, the department shall determine the appropriate placement or services in consultation with the court, the Oregon Youth Authority and other affected agencies. If the youth authority or another affected agency objects to the type of placement or services, the court shall determine the appropriate type of placement or service. During the examination or treatment of the youth, the [Mental Health and Developmental Disability Services Division shall not] department may, if appropriate, be appointed guardian of the youth.

SECTION 125. ORS 426.005 is amended to read:

426.005. (1) As used in ORS 426.005 to 426.390, unless the context requires otherwise:

(a) “Department” means the Department of Human Services.

[(a)] (b) “Director of the facility” means a superintendent of a state mental hospital, the chief of psychiatric services in a community hospital or the person in charge of treatment and rehabilitation programs at other treatment facilities.

[(b) “Division” means the Mental Health and Developmental Disability Services Division.]

(c) “Facility” means a state mental hospital, community hospital, residential facility, detoxification center, day treatment facility or such other facility as the [Mental Health and Developmental Disability Services Division] department determines suitable, any of which may provide diagnosis and evaluation, medical care, detoxification, social services or rehabilitation for committed mentally ill persons.

(d) “Mentally ill person” means a person who, because of a mental disorder, is one or more of the following:

(A) Dangerous to self or others.

(B) Unable to provide for basic personal needs and is not receiving such care as is necessary for health or safety.

(i) Is chronically mentally ill, as defined in ORS 426.495;

(ii) Within the previous three years, has twice been placed in a hospital or approved inpatient facility by the [division] department under ORS 426.060;

(iii) Is exhibiting symptoms or behavior substantially similar to those that preceded and led to one or more of the hospitalizations or inpatient placements referred to in sub-subparagraph (ii) of this subparagraph; and

(iv) Unless treated, will continue, to a reasonable medical probability, to physically or mentally deteriorate so that the person will become a person described under either or both subparagraph (A) or (B) of this paragraph.

(e) “Nonhospital facility” means any facility, other than a hospital, that is approved by the [Mental Health and Developmental Disability Services Division] department to provide adequate security, psychiatric, nursing and other services to persons under ORS 426.232 or 426.233.

(f) “Prehearing period of detention” means a period of time calculated from the initiation of custody during which a person may be detained under ORS 426.228, 426.231, 426.232 or 426.233.

(2) Whenever a community mental health and developmental disabilities program director, director of the facility, superintendent of a state hospital or administrator of a facility is referred to, the reference includes any designee such person has designated to act on the person's behalf in the exercise of duties.

SECTION 126. ORS 427.005 is amended to read:

427.005. As used in this chapter[, unless the context requires otherwise]:

(1) “Adaptive behavior” means the effectiveness or degree with which an individual meets the standards of personal independence and social responsibility expected for age and cultural group.

[(2) “Assistant director” means the Assistant Director for Mental Health and Developmental Disability Services.]

[(3)] (2) “Care” means supportive services, including, but not limited to, provision of room and board; supervision; protection; and assistance in bathing, dressing, grooming, eating, management of money, transportation or recreation.

(3) “Department” means the Department of Human Services.

(4) “Developmental period” means the period of time between birth and the 18th birthday.

(5) “Director of the facility” means the superintendent of a state training center, or the person in charge of care, treatment and training programs at other facilities.

[(6) “Division” means the Mental Health and Developmental Disability Services Division of the Department of Human Services.]

[(7)] (6) “Facility” means a state training center, community hospital, group home, activity center, intermediate care facility, community mental health clinic, or such other facility or program as the [division] department approves to provide necessary services to mentally retarded persons.

[(8)] (7) “Incapacitated” means a person is unable, without assistance, to properly manage or take care of personal affairs or is incapable, without assistance, of self-care.

[(9)] (8) “Independence” means the extent to which persons with mental retardation or developmental disabilities exert control and choice over their own lives.

[(10)] (9) “Integration” means use by persons with mental retardation or developmental disabilities of the same community resources that are used by and available to other persons and participation in the same community activities in which nondisabled persons participate, together with regular contact with nondisabled persons, and residence by persons with developmental disabilities in homes or in home-like settings which are in proximity to community resources, together with regular contact with nondisabled persons in their community.

[(11)] (10) “Intellectual functioning” means functioning as assessed by one or more of the individually administered general intelligence tests developed for the purpose.

[(12)] (11) “Mental retardation” means significantly subaverage general intellectual functioning existing concurrently with deficits in adaptive behavior and manifested during the developmental period. Persons of borderline intelligence may be considered mentally retarded if there is also serious impairment of adaptive behavior. Definitions and classifications shall be consistent with the “Manual on Terminology and Classification in Mental Retardation” of the American Association on Mental Deficiency, 1977 Revision. Mental retardation is synonymous with mental deficiency.

[(13)] (12) “Minor” means an unmarried person under 18 years of age.

[(14)] (13) “Physician” means a person licensed by the Board of Medical Examiners for the State of Oregon to practice medicine and surgery.

[(15)] (14) “Productivity” means engagement in income-producing work by a person with mental retardation or developmental disabilities which is measured through improvements in income level, employment status or job advancement or engagement by a person with mental retardation or developmental disabilities in work contributing to a household or community.

[(16)] (15) “Resident” means a person admitted to a state training center either voluntarily or after commitment to the [division] department.

[(17)] (16) “Significantly subaverage” means a score on a test of intellectual functioning that is two or more standard deviations below the mean for the test.

[(18)] (17) “State training center” means [Fairview Training Center,] Eastern Oregon Training Center and any other facility operated by the [division] department for the care, treatment and training of the mentally retarded.

[(19)] (18) “Training” means the systematic, planned maintenance, development or enhancement of self-care, social or independent living skills; or the planned sequence of systematic interactions, activities, structured learning situations or education designed to meet each resident's specified needs in the areas of physical, emotional, intellectual and social growth.

[(20)] (19) “Treatment” means the provision of specific physical, mental, social interventions and therapies which halt, control or reverse processes that cause, aggravate or complicate malfunctions or dysfunctions.

SECTION 127. ORS 427.007 is amended to read:

427.007. (1) The Legislative Assembly finds and declares that a significant number of persons with mental retardation or other developmental disabilities currently reside in state-operated hospitals and training centers or lack needed services simply because appropriate community-based services, including residential facilities, day programs, home care and other support, care and training programs, do not exist. The Legislative Assembly further finds that families are the major providers of support, care, training and other services to their members with mental retardation or other developmental disabilities who live at home, and many of these families experience exceptionally high financial outlays and extraordinary physical and emotional challenges due to the unavailability of appropriate family support services. Such services pertain to the needs of the person with disabilities, the needs of other family members related to their care-giving and nurturing capacity, and specialized needs for environmental accommodation to reduce dependency of the family member with mental retardation or other developmental disabilities. Therefore, the Department of Human Services[, through the Mental Health and Developmental Disability Services Division,] is directed to facilitate the development of appropriate community-based services, including family support, residential facilities, day programs, home care and other necessary support, care and training programs, in an orderly and systematic manner. The role of state-operated hospitals and training centers in Oregon shall be as specialized back-up facilities to a primary system of community-based services for persons with mental retardation or other developmental disabilities.

(2) In carrying out the directive in subsection (1) of this section, the [Mental Health and Developmental Disability Services Division] department shall develop a biennial plan in conjunction with the budgeting process for review by each Legislative Assembly. In developing this plan, the [Mental Health and Developmental Disability Services Division] department shall meet with and consider the input of representatives from the following constituencies: Consumer organizations, parent-family organizations, advocacy organizations, unions representing workers in state-operated hospitals and training centers, community provider organizations, state and local education officials and community mental health departments or programs. Such plans shall include, where appropriate:

(a) Proposals for the decrease in the number of persons with mental retardation or other developmental disabilities to be served in state-operated hospitals and training centers at a steady and planned rate until such time that the Legislative Assembly shall determine that each person served in programs or facilities operated or supported by the [Mental Health and Developmental Disability Services Division] department is being served according to the best contemporary professional practices in the least restrictive environment, with preference given to the community-based setting over the institutional. However, no person shall be moved from any facility until a comprehensive assessment of the person's medical, treatment, training and support service needs has been completed, the move determined to be in the person's best interest and appropriate service alternatives procured.

(b) Proposals for the orderly development of community-based services, including family support, residential facilities, day programs, home care and other necessary support, care and training programs, to accommodate persons coming out of state-operated hospitals and training centers and to serve persons already in the community waiting for services. The proposals shall include services developed for persons in the community waiting for services that are at least equal in number to those services developed for those coming out of state-operated hospitals and training centers, and shall include services for all persons who are leaving the public education system, in order to further prevent unnecessary institutionalization of persons with mental retardation or other developmental disabilities. Funding for these services shall be commensurate with individual need. These proposals may include provisions for an array of both publicly and privately operated services and shall include specific implementation plans requiring that new services developed are designed to significantly increase the independence, productivity and integration into the community of persons with mental retardation and developmental disabilities.

(c) Proposals for the location of community-based services for persons with mental retardation or other developmental disabilities in proximity to family, friends, supportive services and home communities whenever possible.

(3) In further carrying out the directive in subsection (1) of this section, the [Mental Health and Developmental Disability Services Division] department shall develop monitoring and evaluation systems which insure competent management, program quality and cost-effectiveness of community-based services. Such systems shall include, where appropriate:

(a) A comprehensive system of case management which assures an orderly movement of persons with mental retardation or other developmental disabilities from state-operated hospitals and training centers to community-based services, and between community-based service alternatives, and assures an effective system of service delivery to persons with mental retardation or other developmental disabilities living in the community, based on individualized planning and close cooperation with consumers, families and guardians.

(b) An annual progress assessment of every person with mental retardation or other developmental disabilities served in programs or facilities operated or supported by the [Mental Health and Developmental Disability Services Division] department. This assessment shall measure the degree to which a family with a member with mental retardation or other developmental disabilities demonstrates enhanced care-giving and nurturing capacities, and the degree to which the independence, productivity and integration into the community of each person with mental retardation or other developmental disabilities has been increased as a result of receiving such services. The overall results of these assessments shall annually be aggregated and analyzed for each program or facility operated or supported by the [division] department, and shall be made available for public inspection and review by the Legislative Assembly.

(c) The development of specific standards for each component within the array of services, for persons with mental retardation or other developmental disabilities, either operated or supported by the [Mental Health and Developmental Disability Services Division] department and assure the competent management, program quality and cost-effectiveness of such services.

(4) Subject to available funds, the [Mental Health and Developmental Disability Services Division] department shall insure that each family with a member with mental retardation or other developmental disabilities has access to family support services, and that each person with mental retardation or developmental disabilities living in the community, including those leaving the public education system, has access to community-based services necessary to enable the person to strive to achieve independence, productivity and integration. Specific services proposed for the person shall be identified in an individual habilitation plan or in a family support service plan.

(5) Subject to available funds, the [Mental Health and Developmental Disability Services Division] department shall determine the content of individual habilitation plans and family support service plans, and the process whereby such plans are developed and updated.

(6) The [Mental Health and Developmental Disability Services Division] department shall establish grievance procedures for mediation of disputes concerning eligibility for or appropriateness of services in individual cases.

SECTION 128. ORS 427.010 is amended to read:

427.010. (1) Except as otherwise ordered by the [Mental Health and Developmental Disability Services Division] Department of Human Services pursuant to ORS 179.325, the [Fairview Training Center in Salem, Marion County, and] Eastern Oregon Training Center in Pendleton, Umatilla County, shall be used for the care, treatment and training of such mentally retarded persons as are assigned to the care of [such institutions] the institution by the [division] department according to procedures defined in ORS 427.185 or who [are] were residents on October 3, 1979.

(2) Upon receipt of an application approved by the [division] department or its designee, pursuant to its rules, a mentally retarded person may be entitled to admission to [a] the state training center for emergency, respite or part-time care. Part-time care means presence of the person at the facility less than 24 hours per day and may include day or night care. Admission for emergency care or respite care shall in no case exceed 90 days. Admission for part-time care may exceed 90 days. The fee schedule for such care, training and treatment in [a] the training center shall be established by the [division] department in the same manner as for other residents. The fees shall be charged and collected by the [Mental Health and Developmental Disability Services Division] department in the same manner as charges are collected under ORS 179.610 to 179.770.

(3) The [superintendents] superintendent of the training [centers] center named in subsection (1) of this section shall be [persons] a person the [division] department considers qualified to administer the training [centers] center. If the superintendent of [any] the training center is a physician licensed by the Board of Medical Examiners for the State of Oregon, the superintendent shall serve as chief medical officer. If not a physician, the superintendent shall appoint a physician to serve as chief medical officer who shall be in the unclassified service.

SECTION 129. ORS 427.104 is amended to read:

427.104. The [Mental Health and Developmental Disability Services Division] Department of Human Services with funds appropriated for that purpose by the legislature, shall establish and operate a Developmental Disability Diagnosis and Evaluation Service for [the mentally retarded] people with mental retardation or developmental disabilities. The Developmental Disability Diagnosis and Evaluation Service shall provide all or part of diagnostic evaluations, as defined in ORS 427.105, when complete evaluations are not available through community mental health and developmental disabilities programs, and the Developmental Disability Diagnosis and Evaluation Service shall:

(1) Provide consultation and training to community mental health and developmental disabilities programs in the development of local diagnosis and evaluation services;

(2) Develop and periodically revise [division] department standards and procedures for diagnosis and evaluation services;

(3) Coordinate diagnostic evaluations statewide to minimize duplication of tests and examinations;

(4) Approve applications for admission to the training [centers] center;

(5) Provide necessary information to the State Training Center Review Board when a decision of the Developmental Disability Diagnosis and Evaluation Service regarding admission to [a] the state training center is appealed by the person, the parents or legal guardian of the person;

(6) Provide consultation to appropriate agencies and individuals regarding persons evaluated; and

(7) Process and coordinate all placements of residents from the state training [centers] center.

SECTION 130. ORS 427.330 is amended to read:

427.330. As used in ORS 427.330 to 427.345:

(1) “Care provider” means an individual, family member or entity that provides care.

(2)(a) “Community housing” [means] includes:

(A) Real property, including but not limited to buildings, structures, improvements to real property and related equipment, that is used or could be used to house and provide care for individuals with mental retardation or other developmental disability[. “Community housing” includes a]; and

(B) A single-family home or multiple-unit residential housing that an individual with mental retardation or other developmental disability shares with other inhabitants, including but not limited to family members, care providers or friends.

(b) “Community housing” does not include [the Fairview Training Center or] the Eastern Oregon Training Center.

(3) “Construct” means to build, install, assemble, expand, alter, convert, replace or relocate. “Construct” includes to install equipment and to prepare a site.

(4) “Developmental disability” means a disability attributable to mental retardation, cerebral palsy, epilepsy or other neurological handicapping condition or severe physical impairment that requires training similar to that required by mentally retarded persons, and the disability:

(a) Originates before the person attains the age of 22 years;

(b) Has continued or can be expected to continue indefinitely; and

(5) “Equipment” means furnishings, fixtures, appliances, special adaptive equipment or supplies that are used or could be used to provide care in community housing.

(6) “Family member” means an individual who is related by blood or marriage to an individual with mental retardation or other developmental disability.

(7) “Financial assistance” means a grant or loan to pay expenses incurred to provide community housing.

(8) “Housing provider” means an individual or entity that provides community housing.

SECTION 131. ORS 428.210 is amended to read:

428.210. As used in ORS 428.210 to 428.270[, unless the context requires otherwise]:

(1) “Department” means the Department of Human Services.

[(1)] (2) “Foreign hospital” means an institution in any other state which corresponds to the institutions defined in subsection (7) of this section.

[(2) “Division” means the Mental Health and Developmental Disability Services Division.]

(3) “Nonresident” means any person who is not a resident of this state as defined in subsection (6) of this section.

(4) “Other state” includes all the states, territories, possessions, commonwealths and agencies of the United States and the District of Columbia, with the exception of the State of Oregon.

(5) “Patient” means any person who has been committed by a court of competent jurisdiction to a state hospital, except a person committed to a state hospital pursuant to ORS 136.150 (1969 Replacement Part), 136.160 (1969 Replacement Part), 161.341 or 161.370.

(6) “Resident of this state” means a person who has lived in this state continuously for a period of one year and who has not acquired legal residence in any other state by living continuously therein for at least one year subsequent to the residence of the person in this state. However, a service man or woman on active duty in the Armed Forces of the United States who was domiciled in Oregon upon entry into active duty and who has acquired no other domicile shall be entitled to have his or her children considered a resident of this state so long as no other domicile is acquired by the service man or woman.

(7) “State hospital” means any institution listed in ORS 426.010 or 427.010.

SECTION 132. ORS 430.010 is amended to read:

430.010. As used in ORS 430.010 to 430.050, 430.110 to 430.170, [430.260 to] 430.265, 430.270 and 430.610 to 430.695[, unless the context requires otherwise]:

(1) [“Division” means the Mental Health and Developmental Disability Services Division] “Department” means the Department of Human Services.

(2) “Health facility” means a facility licensed as required by ORS 441.015 or a facility accredited by the Joint Commission on Accreditation of Hospitals, either of which provides full-day or part-day acute treatment for alcoholism, drug addiction or mental or emotional disturbance, and is licensed to admit persons requiring 24-hour nursing care.

(3) “Residential facility” or “day or partial hospitalization program” means a program or facility providing an organized full-day or part-day program of treatment. Such a program or facility shall be licensed, approved, established, maintained, contracted with or operated by the department under:

(a) [Licensed, approved, established, maintained, contracted with or operated by the office of Alcohol and Drug Abuse Programs under] ORS [430.041,] 430.260 to 430.380 and 430.610 to 430.880 for alcoholism;

(b) [Licensed, approved, established, maintained, contracted with or operated by the office of Alcohol and Drug Abuse Programs under] ORS [430.041,] 430.260 to 430.380, 430.405 to 430.565 and 430.610 to 430.880 for drug addiction; or

(c) [Licensed, approved, established, maintained, contracted with or operated by the Mental Health and Developmental Disability Services Division under] ORS [430.041 and] 430.610 to 430.880 for mental or emotional disturbance.

(4) “Outpatient service” means:

(a) A program or service providing treatment by appointment[. Such a program or service shall be] and by medical or osteopathic physicians licensed by the Board of Medical Examiners for the State of Oregon under ORS 677.010 to 677.450; psychologists licensed by the State Board of Psychologist Examiners under ORS 675.010 to 675.150; nurse practitioners registered by the Oregon State Board of Nursing under ORS 678.010 to 678.410; or clinical social workers licensed by the State Board of Clinical Social Workers under ORS 675.510 to 675.600; or

(b) A program or service providing treatment by appointment that is licensed, approved, established, maintained, contracted with or operated by the department under:

[(a)] (A) [Licensed, approved, established, maintained, contracted with or operated by the office of Alcohol and Drug Abuse Programs under] ORS [430.041,] 430.260 to 430.380 and 430.610 to 430.880 for alcoholism;

[(b)] (B) [Licensed, approved, established, maintained, contracted with or operated by the office of Alcohol and Drug Abuse Programs under] ORS [430.041,] 430.260 to 430.380, 430.405 to 430.565 and 430.610 to 430.880 for drug addiction; or

[(c)] (C) [Licensed, approved, established, maintained, contracted with or operated by the Mental Health and Developmental Disability Services Division under] ORS [430.041 and] 430.610 to 430.880 for mental or emotional disturbance. [; or]

[(d) Provided by medical or osteopathic physicians licensed by the Board of Medical Examiners for the State of Oregon as provided under ORS 677.010 to 677.450; psychologists licensed by the State Board of Psychologist Examiners as provided under ORS 675.010 to 675.150; nurse practitioners registered by the Oregon State Board of Nursing as provided under ORS 678.010 to 678.410; or clinical social workers licensed by the State Board of Clinical Social Workers as provided under ORS 675.510 to 675.600.]

SECTION 133. ORS 430.021 is amended to read:

430.021. Subject to ORS 417.300 and 417.305:

[(1) The Mental Health and Developmental Disability Services Division is responsible for the administration of the state mental health and developmental disabilities programs and the mental health and developmental disabilities laws of the state.]

[(2)] (1) The [division] Department of Human Services shall direct, promote, correlate and coordinate all the activities, duties and direct services for the mentally or emotionally disturbed, mentally retarded and developmentally disabled, alcoholic and drug-dependent persons [and for families requiring family support services as described in ORS 417.342 and 417.344]; and promote, correlate and coordinate the mental health and developmental disabilities activities of all governmental organizations throughout the state in which there is any direct contact with mental health and developmental disabilities programs.

[(3)] (2) The [division] department shall develop cooperative programs with interested private groups throughout the state to effect better community awareness and action in the field of mental health and developmental disabilities, and encourage and assist in all necessary ways community general hospitals to establish psychiatric services.

[(4)] (3) To the greatest extent possible, the least costly settings for treatment, outpatient services and residential facilities shall be widely available and utilized except when contraindicated because of individual health care needs. State agencies that purchase treatment for mental or emotional disturbances shall develop criteria consistent with this policy [in consultation with the Mental Health and Developmental Disability Services Division and the office of the director]. In reviewing applications for certificates of need, the [director] Director of Human Services shall take this policy into account.

[(5)] (4) The [division] department shall establish, coordinate, assist and direct a community mental health and developmental disabilities program in cooperation with local government units and integrate such a program with the total state mental and developmental disabilities health program.

[(6)] (5) The [division] department shall promote public education in the state concerning mental health and developmental disabilities and act as the liaison center for work with all interested public and private groups and agencies in the field of mental health and developmental disabilities services.

[(7)] (6) The [division] department shall accept the custody of persons committed to its care by the courts of this state.

SECTION 134. ORS 430.065 is amended to read:

430.065. (1) In adopting rules pursuant to ORS 743.556 (3), the [office of Alcohol and Drug Abuse Programs and the Mental Health and Developmental Disability Services Division] Department of Human Services may consider standards proposed by the American Association of Partial Hospitalization as one possible source for such rules. In addition, an insurer or insurers and the [office of Alcohol and Drug Abuse Programs, or an insurer or insurers and the Mental Health and Developmental Disability Services Division] department may mutually develop agreements, standards and procedures for programs that are approved by the [office or the division] department and that provide alternative arrangements for supervision or for review of treatment plans to become qualified to receive payments for treatment.

(2) The [office of Alcohol and Drug Abuse Programs and the Mental Health and Developmental Disability Services Division] Department of Human Services may require payment of an application fee and a certification fee for the approval of noninpatient programs described in ORS 743.556 (3) and (4).

(3) Subject to the review of the Oregon Department of Administrative Services, the [office of Alcohol and Drug Abuse Programs and the Mental Health and Developmental Disability Services Division] Department of Human Services may establish any fees to be imposed under subsection (2) of this section. The fees and charges established under this section shall not exceed the cost of administering the regulatory program of the [division] Department of Human Services pertaining to the purpose for which the fee or charge is established, as authorized by the Legislative Assembly for the [division's] department's budget, as the budget may be modified by the Emergency Board.

SECTION 135. ORS 430.257 is amended to read:

430.257. (1) The Legislative Assembly finds that alcohol and other drug use, abuse and addiction:

(a) Pose significant social and public health problems for Oregon;

(b) Impact the budgets and workloads of state and local agencies that provide services for children and families and contribute to incidences of crime, violence, accidents and deaths, as well as reducing worker productivity; and

(c) Contribute substantially to the problems faced by a significant number of persons served by the Department of Human Services, Department of Corrections, Oregon Youth Authority, Juvenile Crime Prevention Advisory Committee and State Commission on Children and Families.

(2) The Department of Human Services, Department of Corrections, Oregon Youth Authority, Juvenile Crime Prevention Advisory Committee and State Commission on Children and Families shall contribute to the development of a comprehensive state plan for alcohol and other drug prevention, intervention and treatment services.

(3) The administrative heads of the Department of Education, Department of Human Services, Oregon State Police, Department of Transportation, Oregon Liquor Control Commission, Juvenile Crime Prevention Advisory Committee and State Commission on Children and Families shall each designate an individual, or in the instance of multidivisional departments, individuals, to serve as liaison to and assist [both] the Governor's Council on Alcohol and Drug Abuse Programs [and the Assistant Director for Alcohol and Drug Abuse Programs] in meeting the policies, duties and responsibilities set forth in this section and ORS 409.010, 430.250, 430.255, 430.258, 430.259, 430.270, 430.290, 430.359, 430.368, 430.535 and 430.630.

SECTION 136. ORS 430.306 is amended to read:

430.306. As used in ORS 430.315 to 430.335, 430.397 and 430.399, unless the context requires otherwise:

[(1) “Assistant director” means the assistant director of the division.]

[(2)] (1) “Alcoholic” means any person who has lost the ability to control the use of alcoholic beverages, or who uses alcoholic beverages to the extent that the health of the person or that of others is substantially impaired or endangered or the social or economic function of the person is substantially disrupted. An alcoholic may be physically dependent, a condition in which the body requires a continuing supply of alcohol to avoid characteristic withdrawal symptoms, or psychologically dependent, a condition characterized by an overwhelming mental desire for continued use of alcoholic beverages.

[(3)] (2) “Applicant” means a city, county or any combination thereof.

(3) “Department” means the Department of Human Services.

(4) “Detoxification center” means a publicly or privately operated profit or nonprofit facility approved by the [division] department that provides emergency care or treatment for alcoholics or drug-dependent persons.

(5) “Director of the treatment facility” means the person in charge of treatment and rehabilitation programs at a treatment facility.

[(6) “Division” means the Mental Health and Developmental Disability Services Division of the Department of Human Services.]

[(7)] (6) “Drug-dependent person” means one who has lost the ability to control the personal use of controlled substances or other substances with abuse potential, or who uses such substances or controlled substances to the extent that the health of the person or that of others is substantially impaired or endangered or the social or economic function of the person is substantially disrupted. A drug-dependent person may be physically dependent, a condition in which the body requires a continuing supply of a drug or controlled substance to avoid characteristic withdrawal symptoms, or psychologically dependent, a condition characterized by an overwhelming mental desire for continued use of a drug or controlled substance.

[(8)] (7) “Halfway house” means a publicly or privately operated profit or nonprofit, residential facility approved by the [division] department that provides rehabilitative care and treatment for alcoholics or drug-dependent persons.

[(9)] (8) “Local alcoholism planning committee” means a committee appointed or designated by the county governing body under ORS 430.342.

[(10)] (9) “Other treatment facility” includes outpatient facilities, inpatient facilities and such other facilities as the [division] department determines suitable, any of which may provide diagnosis and evaluation, medical care, detoxification, social services or rehabilitation for alcoholics or drug-dependent persons and which operate in the form of a general hospital, a state hospital, a foster home, a hostel, a clinic or other suitable form approved by the [division] department.

SECTION 137. ORS 430.315 is amended to read:

430.315. The Legislative Assembly finds alcoholism or drug dependence is an illness. The alcoholic or drug-dependent person is ill and should be afforded treatment for that illness. To the greatest extent possible, the least costly settings for treatment, outpatient services and residential facilities shall be widely available and utilized except when contraindicated because of individual health care needs. State agencies that purchase treatment for alcoholism or drug dependence shall develop criteria consistent with this policy in consultation with the [Mental Health and Developmental Disability Services Division and the office of the director] Department of Human Services. In reviewing applications for certificate of need, the [director] Director of Human Services shall take this policy into account.

SECTION 138. ORS 430.405 is amended to read:

430.405. As used in ORS 161.125, 430.270, 430.405 and 430.415[, unless the context requires otherwise]:

(1) “Department” means the Department of Human Services.

(2) “Director of the treatment facility” means the person in charge of treatment and rehabilitation programs at the treatment facility.

(3) “Drug abuse” means repetitive, excessive use of drugs or controlled substances short of dependence, without legal or medical supervision, that may have a detrimental effect on the individual or society.

[(1)] (4) “Drug-dependent person” means one who has lost the ability to control the use of controlled substances or other substances with abuse potential, or who uses such substances or controlled substances to the extent that the health of the person or that of others is substantially impaired or endangered or the social or economic function of the person is substantially disrupted. A drug-dependent person may be physically dependent, a condition in which the body requires a continuing supply of a drug or controlled substance to avoid characteristic withdrawal symptoms, or psychologically dependent, a condition characterized by an overwhelming mental desire for continued use of a drug or controlled substance.

[(2) “Drug abuse” means repetitive, excessive use of drugs or controlled substances short of dependence, without legal or medical supervision, which may have a detrimental effect on the individual or society.]

[(3) “Division” means the Mental Health and Developmental Disability Services Division.]

[(4) “Assistant director” means the Assistant Director for Mental Health and Developmental Disability Services.]

(5) “Treatment facility” means profit or nonprofit, public or private detoxification centers, outpatient clinics, residential facilities, hospitals and such other facilities as the [Mental Health and Developmental Disability Services Division] Department of Human Services determines suitable, any of which may provide diagnosis and evaluation, medical care, detoxification, social services or rehabilitation for drug-dependent persons.

[(6) “Director of the treatment facility” means the person in charge of treatment and rehabilitation programs at the treatment facility.]

SECTION 139. ORS 430.450 is amended to read:

430.450. As used in ORS 430.450 to 430.555, unless the context requires otherwise:

[(1) “Assistant director” means the Assistant Director for Mental Health and Developmental Disability Services.]

[(2)] (1) “Community diversion plan” means a system of services approved and monitored by the [Mental Health and Developmental Disability Services Division] Department of Human Services in accordance with approved county mental health plans, which may include but need not be limited to, medical, educational, vocational, social and psychological services, training, counseling, provision for residential care, and other rehabilitative services designed to benefit the defendant and protect the public.

[(3)] (2) “Crimes of violence against the person” means criminal homicide, assault and related offenses as defined in ORS 163.165 to 163.208, rape and sexual abuse, incest, or any other crime involving the use of a deadly weapon or which results in physical harm or death to a victim.

(3) “Department” means the Department of Human Services.

(4) “Diversion” means the referral or transfer from the criminal justice system into a program of treatment or rehabilitation of a defendant diagnosed as drug dependent and in need of treatment at [Mental Health and Developmental Disability Services Division] department approved sites, on the condition that the defendant successfully fulfills the specified obligations of a program designed for rehabilitation.

(5) “Diversion coordinator” means a person designated by a county mental health program director to work with the criminal justice system and health care delivery system to screen defendants who may be suitable for diversion; to coordinate the formulation of individual diversion plans for such defendants; and to report to the court the performance of those defendants being treated under an individual diversion plan.

(6) “Director of the treatment facility” means the person in charge of treatment and rehabilitation programs at the treatment facility.

[(7) “Division” means the Mental Health and Developmental Disability Services Division.]

[(8)] (7) “Drug abuse” means repetitive, excessive use of a drug or controlled substance short of dependence, without medical supervision, which may have a detrimental effect on the individual or society.

[(9)] (8) “Drug-dependent person” means one who has lost the ability to control the personal use of controlled substances or other substances with abuse potential, or who uses such substances or controlled substances to the extent that the health of the person or that of others is substantially impaired or endangered or the social or economic function of the person is substantially disrupted. A drug-dependent person may be physically dependent, a condition in which the body requires a continuing supply of a drug or controlled substance to avoid characteristic withdrawal symptoms, or psychologically dependent, a condition characterized by an overwhelming mental desire for continued use of a drug or controlled substance.

[(10)] (9) “Evaluation” means any diagnostic procedures used in the determination of drug dependency, and may include but are not limited to chemical testing, medical examinations and interviews.

[(11)] (10) “Individual diversion plan” means a system of services tailored to the individual's unique needs as identified in the evaluation, which may include but need not be limited to medical, educational, vocational, social and psychological services, training, counseling, provision for residential care, and other rehabilitative services designed to benefit the defendant and protect the public. The plan shall include appropriate methods for monitoring the individual's progress toward achievement of the defined treatment objectives and shall also include periodic review by the court.

[(12)] (11) “Treatment facility” means detoxification centers, outpatient clinics, residential care facilities, hospitals and such other facilities determined to be suitable by the [Mental Health and Developmental Disability Services Division,] Department of Human Services, any of which may provide diagnosis and evaluation, medical care, detoxification, social services or rehabilitation.

SECTION 140. ORS 430.610 is amended to read:

430.610. It is declared to be the policy and intent of the Legislative Assembly that:

(1) Subject to the availability of funds, mental health services should be available to all mentally or emotionally disturbed, mentally retarded and developmentally disabled, alcohol abuser, alcoholic, drug abuser and drug-dependent persons regardless of age, county of residence or ability to pay;

(2) The [divisions of the] Department of Human Services and other state agencies shall conduct their activities in the least costly and most efficient manner so that delivery of services to the mentally or emotionally disturbed, mentally retarded and developmentally disabled, alcohol abuser, alcoholic, drug abuser and drug-dependent persons shall be effective and coordinated;

(3) To the greatest extent possible, mental health services shall be delivered in the community where the person lives in order to achieve maximum coordination of services and minimum disruption in the life of the person; and

(4) The State of Oregon shall encourage, aid and financially assist its county governments in the establishment and development of community mental health and developmental disabilities programs, including but not limited to, treatment and rehabilitation services for the mentally or emotionally disturbed, mentally retarded and developmentally disabled, alcohol abuser, alcoholic, drug abuser and drug-dependent persons and prevention of these problems through county administered community mental health and developmental disabilities programs.

SECTION 140a. ORS 430.705 is amended to read:

430.705. Notwithstanding ORS 430.640, the State of Oregon, through the [State Office for Services to Children and Families] Department of Human Services, may establish the necessary facilities and provide comprehensive mental health services for children throughout the state. These services may include, but not be limited to the prevention of mental illness, and the prevention, treatment and restoration of emotionally disturbed, mentally ill and drug-dependent children.

SECTION 141. ORS 430.743 is amended to read:

430.743. (1) When a report is required under ORS 430.765 (1) and (2), an oral report shall be made immediately by telephone or otherwise to the [Mental Health and Developmental Disability Services Division's designee] designee of the Department of Human Services or a law enforcement agency within the county where the person making the report is at the time of contact. If known, the report shall include:

(a) The name, age and present location of the allegedly abused adult;

(b) The names and addresses of persons responsible for the adult's care;

(d) Any information that led the person making the report to suspect that abuse has occurred plus any other information that the person believes might be helpful in establishing the cause of the abuse and the identity of the perpetrator; and

(e) The date of the incident.

(2) When a report is received by the [division's] department's designee under this section, the designee shall immediately determine whether the reported victim has sustained any serious injury. If so, the designee shall immediately notify the [division] department. If there is reason to believe a crime has been committed, the designee shall notify the law enforcement agency having jurisdiction within the county where the report was made. If the designee is unable to gain access to the allegedly abused adult, the designee may contact the law enforcement agency for assistance and the agency shall provide assistance. When a report is received by a law enforcement agency, the agency shall immediately notify the law enforcement agency having jurisdiction if the receiving agency does not. The receiving agency shall also immediately notify the [division] department in cases of serious injury or death.

SECTION 142. ORS 430.955 is amended to read:

430.955. (1) The Department of Human Services [Health Division, the office of Alcohol and Drug Abuse Programs] and the Oregon Health Sciences University shall develop a standardized screening instrument designed to identify the use of substances during pregnancy.

(2) The department [Health Division, the office of Alcohol and Drug Abuse Programs] and the Oregon Health Sciences University shall request the boards responsible for the licensing of health care providers and appropriate professional organizations to work with them to conduct a series of training sessions for health professionals who provide maternity care on how to assess drug use in pregnancy.

SECTION 143. ORS 431.045 is amended to read:

431.045. [(1) The Assistant Director for Health, after interview of qualified persons, shall appoint a Deputy Assistant Director for Health who shall be responsible for such duties as the assistant director may prescribe.]

[(2) Either the Assistant Director for Health or the Deputy Assistant Director for Health shall be] The Director of Human Services shall appoint a physician licensed by the Board of Medical Examiners for the State of Oregon and certified by the American Board of Preventive Medicine who shall serve as the Public Health Officer and be responsible for the medical and paramedical aspects of the health programs within the [division] department.

[(3) The Deputy Assistant Director for Health shall be in the unclassified service and shall receive such salary as may be provided by law.]

SECTION 144. ORS 431.140 is amended to read:

431.140. [(1) All rules of the Health Division shall have the force and effect of law.]

[(2)] All state and local officers and employees, including peace officers, shall enforce [such] rules adopted by the Department of Human Services relating to public health and other health matters subject to the authority of the [Assistant Director for Health] Director of Human Services.

SECTION 145. ORS 431.155 is amended to read:

431.155. (1) Whenever it appears to the [Health Division] Department of Human Services that any person is engaged or about to engage in any acts or practices [which] that constitute a violation of any statute relating to public health administered by the [division or its assistant director] department, or any rule or order issued thereunder, the [division] department may institute proceedings in the circuit courts to enforce obedience thereto by injunction, or by other processes, mandatory or otherwise, restraining such person, or its officers, agents, employees and representatives from further violation of such statute, rule or order, and enjoining upon them obedience thereto.

(2) The provisions of this section are in addition to and not in substitution of any other enforcement provisions contained in any statute administered by the [Health Division or its assistant director] department.

SECTION 146. ORS 431.170 is amended to read:

431.170. (1) The [Assistant Director for Health] Director of Human Services shall take direct charge of the functions that are necessary to preserve the public health in any county or district whenever any county or district official fails or refuses to administer or enforce the public health laws or rules [which] that the [Assistant Director for Health, the department of the assistant director] director or board is charged to enforce.

(2) The [Assistant Director for Health] director may call to the aid of the [assistant] director such assistance as is necessary for the enforcement of such statutes and rules, the expense of which shall be borne by the county or district making the use of this procedure necessary, to be paid out of the respective county or district treasury upon vouchers properly certified by the [Assistant Director for Health] director.

SECTION 147. ORS 431.195 is amended to read:

431.195. (1) There is established the Oregon Public Health Advisory Board to serve as an advisory body to the [Assistant Director for Health] Director of Human Services.

(2) The members of the board shall be residents of this state and shall be appointed by the Governor. The board shall consist of 15 members at least one-half of whom shall be public members broadly representing the state as a whole and the others to include representatives of local government and public and private health providers. At least two representatives, one consumer and one provider, from the Oregon Health Council shall serve on the board.

(3) The Oregon Public Health Advisory Board shall:

(a) Advise the [Assistant Director for Health] director on policy matters related to the operation of the [agency] Department of Human Services.

(b) Provide a review of statewide public health issues and make recommendations to the [assistant] director.

(4) Members shall be appointed for four-year terms. No person shall serve more than two consecutive terms.

(5) The board shall meet at least quarterly.

(6) Members of the board shall be entitled to compensation and expenses as provided in ORS 292.495.

(7) Vacancies on the board shall be filled by appointments of the Governor for the unexpired term.

SECTION 148. ORS 431.210 is amended to read:

431.210. (1) There is established in the General Fund the [Health Division] Public Health Account, classified separately as to federal and other moneys.

(2) All fines, fees, penalties, federal apportionments or contributions and other moneys received by the [Health Division] Department of Human Services relating to public health shall be turned over to the State Treasurer not later than the 10th day of the calendar month next succeeding their receipt by the [division] department and shall be credited to the [Health Division] Public Health Account.

(3) All moneys credited to the [Health Division] Public Health Account hereby are appropriated and made available for the payment of expenses of the [Health Division] department.

SECTION 149. ORS 431.250 is amended to read:

431.250. (1) The Department of Human Services hereby is designated as the state agency to apply to and receive from the federal government or any agency thereof such grants for promoting public health and the prevention of disease, including grants for cancer control and industrial hygiene programs, as may be available to this state or any of its political subdivisions or agencies. [The department may designate any of its divisions to make applications and receive funds for the purposes set forth in this subsection.]

(2) For the purposes of subsection (1) of this section, the department shall:

(a) Disburse or supervise the disbursement of all funds made available at any time by the federal government or this state for those purposes.

(b) Adopt, carry out and administer plans for those purposes. Plans so adopted shall be made statewide in application insofar as reasonably feasible, possible or permissible, and shall be so devised as to meet the approval of the federal government or any of its agencies, not inconsistent with the laws of the state.

SECTION 150. ORS 431.416 is amended to read:

431.416. The local public health authority or health district shall:

(1) Administer and enforce the rules of the local public health authority or the health district and public health laws and [the] rules of the [Health Division] Department of Human Services.

(2) Assure activities necessary for the preservation of health or prevention of disease in the area under its jurisdiction as provided in the annual plan of the authority or district are performed. These activities shall include but not be limited to:

(a) Epidemiology and control of preventable diseases and disorders;

(b) Parent and child health services, including family planning clinics as described in ORS 435.205;

(d) Health information and referral services; and

(e) Environmental health services.

SECTION 151. ORS 431.705 is amended to read:

431.705. As used in ORS 431.705 to 431.760, unless the context requires otherwise:

[(1) “Assistant director” means the Assistant Director for Health.]

[(2)] (1) “Affected territory” means an area that is the subject of a proceedings under ORS 431.705 to 431.760 where there is a danger to public health or an alleged danger to public health.

[(3)] (2) “Boundary commission” means a local government boundary commission created under ORS 199.410 to 199.430, 199.435 to 199.464, 199.480 to 199.505 and 199.510.

[(4)] (3) “Commission” means the Environmental Quality Commission.

[(5)] (4) “Danger to public health” means a condition which is conducive to the propagation of communicable or contagious disease-producing organisms and which presents a reasonably clear possibility that the public generally is being exposed to disease-caused physical suffering or illness, including a condition such as:

(a) Impure or inadequate domestic water.

(b) Inadequate installations for the disposal or treatment of sewage, garbage or other contaminated or putrefying waste.

(5) “Department” means the Department of Human Services.

(6) “Director” means the Director of Human Services.

[(6)] (7) “District” means any one of the following:

(a) A metropolitan service district formed under ORS chapter 268.

(b) A county service district formed under ORS chapter 451.

(d) A sanitary authority, water authority or joint water and sanitary authority formed under ORS 450.600 to 450.989.

(e) A domestic water supply district formed under ORS chapter 264.

[(7) “Division” means the Health Division of the Department of Human Services.]

(8) “Requesting body” means the county court, or local or district board of health that makes a request under ORS 431.715.

(9) “Service facilities” means water or sewer installations or works.

SECTION 152. ORS 431.830 is amended to read:

431.830. (1) The [Adult and Family Services Division] Department of Human Services shall establish an acquired immune deficiency syndrome program:

(a) [for its clientele] To provide education and prevention services[. The Health Division shall establish] to its clients; and

(b) [an acquired immune deficiency syndrome program] To provide education and prevention services to the public.

(2) [Program] Programs authorized by this section may be operated by [either division] the department directly or under contract with public and private agencies.

SECTION 153. ORS 431.990 is amended to read:

431.990. Unless otherwise specifically provided by any other statute, failure to obey any rules relating to public health of the [Health Division,] Department of Human Services or failure to obey any lawful written order relating to public health issued by the [Assistant Director for Health] Director of Human Services or any district or county public health administrator is a Class A misdemeanor.

SECTION 154. ORS 432.005 is amended to read:

432.005. As used in this chapter, unless the context requires otherwise:

[(1) “Assistant director” means the Assistant Director for Health.]

[(2)] (1) “Dead body” means a human body or such parts of such human body from the condition of which it reasonably may be concluded that death occurred.

(2) “Department” means the Department of Human Services.

[(3) “Division” means the Health Division of the Department of Human Services.]

(3) “Director” means the Director of Human Services.

(4) “Divorce” means dissolution of a marriage.

(5) “Fetal death” means death prior to the complete expulsion or extraction from its mother of a product of human conception, irrespective of the duration of pregnancy. The death is indicated by the fact that after such expulsion or extraction the fetus does not breathe or show any other evidence of life such as beating of the heart, pulsation of the umbilical cord or definite movement of the voluntary muscles.

(6) “File” means the presentation and acceptance of a vital record or vital report provided for in this chapter by the Center for Health Statistics.

(7) “Final disposition” means the burial, interment, cremation, removal from the state or other authorized disposition of a dead body or fetus, except that when removal from the state is conducted by the holder of a certificate of removal registration issued under ORS 692.270, the final disposition may not be considered complete until the certificate of death is filed.

(8) “Induced termination of pregnancy” means the purposeful interruption of an intrauterine pregnancy with the intention other than to produce a live-born infant and that does not result in a live birth.

(9) “Institution” means any establishment, public or private, that provides inpatient or outpatient medical, surgical or diagnostic care or treatment or nursing, custodial or domiciliary care, or to which persons are committed by law.

(10) “Live birth” means the complete expulsion or extraction from its mother of a product of human conception, irrespective of the duration of pregnancy, that, after such expulsion or extraction, breathes or shows any other evidence of life such as beating of the heart, pulsation of the umbilical cord or definite movement of voluntary muscles, whether or not the umbilical cord has been cut or the placenta is attached.

(11) “Person acting as a funeral service practitioner” means:

(a) A person other than a funeral service practitioner licensed under ORS 692.045, including but not limited to a relative, friend or other interested party, who performs the duties of a funeral service practitioner without payment; or

(b) A funeral service practitioner who files death certificates in another state if the funeral service practitioner is employed by a funeral establishment licensed in another state and registered with the State Mortuary and Cemetery Board under ORS 692.270.

(12) “Physician” means a person authorized or licensed under the laws of this state to practice medicine, osteopathy, chiropractic or naturopathic medicine.

(13) “Registration” means the process by which vital records and vital reports are completed, filed and incorporated into the official records of the Center for Health Statistics.

(14) “State registrar” means the State Registrar of the Center for Health Statistics.

(15) “System of vital statistics” means the registration, collection, preservation, amendment and certification of vital records and vital reports; the collection of other reports required by this chapter, and activities related thereto including the tabulation, analysis, dissemination and publication of vital statistics and training in the use of health data.

(16) “Vital records” means certificates or reports of birth, death, marriage, dissolution of marriage and data related thereto.

(17) “Vital reports” means reports of fetal death, induced termination of pregnancy, suicide attempts by persons under 18 years of age and survey and questionnaire documents and data related thereto.

(18) “Vital statistics” means the data derived from certificates and reports of birth, death, fetal death, induced termination of pregnancy, marriage, dissolution of marriage, suicide attempts by persons under 18 years of age and related reports.

SECTION 155. ORS 433.001 is amended to read:

433.001. As used in ORS 433.001 to 433.045 and 433.106 to 433.770 unless the context requires otherwise:

[(1) “Assistant director” means the Assistant Director for Health or authorized representative.]

[(2)] (1) “Communicable disease” means a disease or condition, the infectious agent of which may be transmitted from one person or an animal to another person, either by direct contact or through an intermediate host, vector or inanimate object, and that may result in illness, death or severe disability.

(2) “Department” means the Department of Human Services.

[(3) “Division” means the Health Division of the Department of Human Services.]

(3) “Director” means the Director of Human Services.

(4) “Local public health administrator” means the local public health administrator of the county or district under ORS 431.418 or the authorized representative of the public health administrator.

(5) “Property” means animals, inanimate objects, vessels, public conveyances, buildings and all other real or personal property.

(6) “Public health measure” means isolation, quarantine or other preventative public health measure imposed on persons or property in order to prevent the spread of or exposure to diseases or contaminants of threat to the public.

(7) “Reportable disease” means a disease or condition, the reporting of which enables a public health agency to take action to protect or to benefit the public health.

(8) “Toxic substance” means a substance that may cause illness, disability or death to persons who are exposed to it.

SECTION 156. ORS 433.235 is amended to read:

433.235. As used in ORS 433.235 to 433.284:

(1) “Administrator” means the principal or other person having general control and supervision of a school or children's facility.

(2) “Children's facility” or “facility” means:

(a) A certified child care facility as described in ORS 657A.030 and 657A.250 to 657A.450, except as exempted by rule of the [Health Division] Department of Human Services;

(b) A program operated by, or sharing the premises with, a certified child care facility, school or post-secondary institution where care is provided to children, six weeks of age to kindergarten entry, except as exempted by rule of the [Health Division] department; or

(c) A program providing child care or educational services to children, six weeks of age to kindergarten entry, in a residential or nonresidential setting, except as exempted by rule of the [Health Division] department.

(3) “Local health department” [or “department”] means the district or county board of health, public health officer, public health administrator or health department having jurisdiction within the area.

(4) “Parent” means a parent or guardian of a child or any adult responsible for the child.

(5) “Physician” means a physician licensed by the Board of Medical Examiners for the State of Oregon or by the Naturopathic Board of Examiners or a physician similarly licensed by another state or country in which the physician practices or a commissioned medical officer of the Armed Forces or Public Health Service of the United States.

(6) “School” means a public, private or parochial school offering kindergarten through grade 12 or any part thereof, except as exempted by rule of the [Health Division] Department of Human Services.

SECTION 157. ORS 433.260 is amended to read:

433.260. (1) Whenever any administrator has reason to suspect that any child or employee has or has been exposed to any restrictable disease [as prescribed by rules of the Health Division pursuant to ORS 433.273] and is required by the rules of the [Health Division] Department of Human Services to be excluded from a school or children's facility, the administrator shall send such person home and, if the disease is one that must be reported to the [Health Division,] department, report the occurrence to the local health department by the most direct means available.

(2) Any person excluded under subsection (1) of this section shall not be permitted to be in the school or facility until the person presents a certificate from a physician, local health department nurse or school nurse stating that the person does not have or is not a carrier of any restrictable disease.

SECTION 158. ORS 433.267 is amended to read:

433.267. (1) As a condition of attendance in any school or children's facility in this state, every child through grade 12 shall submit to the administrator one of the following statements unless the school or facility which the child attends already has on file a record which indicates that the child has received immunizations against the restrictable diseases prescribed by rules of the [Health Division] Department of Human Services as provided in ORS 433.273:

(a) A statement signed by the parent, a practitioner of the healing arts who has within the scope of the practitioner's license the authority to administer immunizations or a representative of the local health department certifying the immunizations the child has received;

(b) A statement signed by a physician or a representative of the local health department that the child should be exempted from receiving specified immunization because of indicated medical diagnosis;

(c) A statement signed by the parent that the child has not been immunized as described in paragraph (a) of this subsection because the child is being reared as an adherent to a religion the teachings of which are opposed to such immunization; or

(d) A statement signed by the parent of a child transferring to a school or facility from another school or facility that the parent will have records required by paragraphs (a) to (c) of this subsection for the child sent to the school or facility within 30 days of initial attendance of the child therein. The statement shall be accompanied by a presigned exclusion order from the local health department to be used as described in subsection (6) of this section.

(2) A child shall be required to submit the statement described in subsection (1) of this section prior to attending the school or facility.

(3) Persons who have been emancipated pursuant to ORS 419B.558 or who have reached the age of majority as provided in ORS 109.510 or 109.520 may sign those statements on their own behalf otherwise requiring the signatures of parents under subsection (1) of this section.

(4) The administrator shall conduct a primary evaluation of the records submitted pursuant to subsection (1) of this section to determine whether the child is entitled to begin attendance by reason of having submitted a statement that complies with the requirements of subsection (1) of this section.

(5) If the records do not meet the initial minimum requirements established by rule, the child shall not be allowed to attend until the requirements are met. If the records meet the initial minimum requirements, the child shall be allowed to attend.

(6) If the records are not received within 30 days, as provided in subsection (1)(d) of this section, the administrator shall enforce the presigned exclusion order and exclude the child in accordance with a time schedule established by rule of the [Health Division] department.

(7) At the time specified by the [Health Division] department by rule, records for children meeting the initial minimum requirements and records previously on file shall be reviewed for completion of requirements by the administrator to determine whether the child is entitled to continue in attendance. If the records do not comply, the administrator shall notify the local health department and shall transmit any records concerning the child's immunization status to the local health department.

(8) The local health department shall provide for a secondary evaluation of the records to determine whether the child should be excluded for noncompliance with the requirements stated in subsection (1)(a), (b) or (d) of this section. If the child is determined to be in noncompliance, the local health department shall issue an exclusion order and shall send copies of the order to the parent or the person who is emancipated or has reached the age of majority and the administrator. On the effective date of the order, the administrator shall exclude the child from the school or facility and not allow the child to attend the school or facility until the requirements of this section have been met.

(9) The administrator shall readmit the child to the school or facility when in the judgment of the local health department the child is in compliance with the requirements of this section.

(10) The administrator shall be responsible for updating the statement described in subsection (1)(a) of this section as necessary to reflect the current status of the immunization of the child and the time at which the child comes into compliance with immunizations against the restrictable diseases prescribed by rules of the [Health Division] department pursuant to ORS 433.273.

(11) Nothing in this section shall be construed as relieving agencies, in addition to school districts, which are involved in the maintenance and evaluation of immunization records on April 27, 1981, from continuing responsibility for these activities.

(12) All statements required by this section shall be on forms approved or provided by the [Health Division] department.

(13) In lieu of signed statements from practitioners of the healing arts, the [division] department may accept immunization record updates using practitioner documented immunization records generated by electronic means or on practitioner letterhead but unsigned, if the [division] department determines such records are accurate.

SECTION 159. ORS 435.205 is amended to read:

435.205. (1) The Department of Human Services and every county health department shall offer family planning and birth control services within the limits of available funds. Both agencies jointly may offer such services. The Director of Human Services or a designee [may designate which divisions] shall initiate and conduct discussions of family planning with each person who might have an interest in and benefit from such service. The Department of Human Services [through its divisions] shall furnish consultation and assistance to county health departments.

(2) Family planning and birth control services may include [interview] interviews with trained personnel; distribution of literature; referral to a licensed physician for consultation, examination, medical treatment and prescription; and, to the extent so prescribed, the distribution of rhythm charts, the initial supply of a drug or other medical preparation, contraceptive devices and similar products.

(3) Any literature, charts or other family planning and birth control information offered under this section in counties in which a significant segment of the population does not speak English shall be made available in the appropriate foreign language for that segment of the population.

(4) In carrying out its duties under this section, and with the consent of the county governing body, any county health department may adopt a fee schedule for services provided by the county health department. The fees shall be reasonably calculated not to exceed costs of services provided and may be adjusted on a sliding scale reflecting ability to pay.

(5) The county health department shall collect fees according to the schedule adopted under subsection (4) of this section. Such fees may be used to meet the expenses of providing the services authorized by this section.

NOTE: Section 160 was deleted by amendment. Subsequent sections were not renumbered.

SECTION 161. ORS 441.020 is amended to read:

441.020. (1) Licenses for health care facilities [except] including long term care facilities, as defined in ORS 442.015, shall be obtained from the [Health Division.] Department of Human Services.

[(2) Licenses for long term care facilities shall be obtained from the Senior and Disabled Services Division.]

[(3)] (2) Applications shall be upon such forms and shall contain such information as the [appropriate division] department may reasonably require, which may include affirmative evidence of ability to comply with such reasonable standards and rules as may lawfully be prescribed under ORS 441.055.

[(4)] (3) Each application shall be accompanied by the license fee. If the license is denied, the fee shall be refunded to the applicant. If the license is issued, the fee shall be paid into the State Treasury to the credit of the [appropriate division] Department of Human Services Account for carrying out the functions under ORS 441.015 to 441.063 and 431.607 to 431.619.

[(5)] (4) Except as otherwise provided in subsection [(6)] (5) of this section, for hospitals with:

(a) Fewer than 26 beds, the annual license fee shall be $750.

(b) Twenty-six beds or more but fewer than 50 beds, the annual license fee shall be $1,000.

(d) One hundred beds or more but fewer than 200 beds, the annual license fee shall be $2,900.

(e) Two hundred or more beds, the annual license fee shall be $3,400.

[(6)] (5) For long term care facilities with:

(a) Fewer than 16 beds, the annual license fee shall be up to $120.

(b) Sixteen beds or more but fewer than 50 beds, the annual license fee shall be up to $175.

(d) One hundred beds or more but fewer than 200 beds, the annual license fee shall be up to $450.

(e) Two hundred beds or more, the annual license fee shall be up to $580.

[(7)] (6) For special inpatient care facilities with:

(a) Fewer than 26 beds, the annual license fee shall be $750.

(b) Twenty-six beds or more but fewer than 50 beds, the annual license fee shall be $1,000.

(d) One hundred beds or more but fewer than 200 beds, the annual license fee shall be $2,900.

(e) Two hundred beds or more, the annual license fee shall be $3,400.

[(8)] (7) For ambulatory surgical centers, the annual license fee shall be $1,000.

[(9)] (8) For birthing centers, the annual license fee shall be $250.

[(10)] (9) During the time the licenses remain in force holders thereof are not required to pay inspection fees to any county, city or other municipality.

[(11)] (10) Any health care facility license may be indorsed to permit operation at more than one location. In such case the applicable license fee shall be the sum of the license fees which would be applicable if each location were separately licensed.

[(12)] (11) Licenses for health maintenance organizations shall be obtained from the Director of the Department of Consumer and Business Services pursuant to ORS 731.072.

SECTION 162. ORS 441.022 is amended to read:

441.022. In determining whether to license a health care facility pursuant to ORS 441.025, the [Health Division or the Senior and Disabled Services Division] Department of Human Services shall consider only factors relating to the health and safety of individuals to be cared for therein and shall not consider whether the health care facility is or will be a governmental, charitable or other nonprofit institution or whether it is or will be an institution for profit.

SECTION 163. ORS 441.025 is amended to read:

441.025. (1) Upon receipt of an application and the license fee, the [Health Division or the Senior and Disabled Services Division] Department of Human Services shall issue a license if it finds that the applicant and health care facility comply with ORS 441.015 to 441.063, 441.085 and 441.087 and the rules of the [appropriate division] department provided that it does not receive within the time specified a certificate of noncompliance issued by the State Fire Marshal, deputy, or approved authority pursuant to ORS 479.215.

(2) Each license, unless sooner suspended or revoked, shall be renewable annually for the calendar year upon payment of the fee, provided that a certificate of noncompliance has not been issued by the State Fire Marshal, deputy, or approved authority pursuant to ORS 479.215.

(3) Each license shall be issued only for the premises and persons or governmental units named in the application and shall not be transferable or assignable.

(4) Licenses shall be posted in a conspicuous place on the licensed premises as prescribed by rule of the [appropriate division] department.

(5) No license shall be issued or renewed for any health care facility or health maintenance organization that offers or proposes to develop a new health service unless a certificate of need has first been issued therefor pursuant to ORS 442.340 (1987 Replacement Part) or approval has been granted under ORS 442.315 or section 9, chapter 1034, Oregon Laws 1989.

(6) No license shall be issued or renewed for any skilled nursing facility or intermediate care facility, as defined in ORS 442.015, unless the applicant has included in the application the name and such other information as may be necessary to establish the identity and financial interests of any person who has incidents of ownership in the facility representing an interest of 10 percent or more thereof. If the person having such interest is a corporation, the name of any stockholder holding stock representing an interest in the facility of 10 percent or more shall also be included in the application. If the person having such interest is any other entity, the name of any member thereof having incidents of ownership representing an interest of 10 percent or more in the facility shall also be included in the application.

(7) A license may be denied to any applicant for a license or renewal thereof or any stockholder of any such applicant who has incidents of ownership in the facility representing an interest of 10 percent or more thereof, or an interest of 10 percent or more of a lease agreement for the facility, if during the five years prior to the application the applicant or any stockholder of the applicant had an interest of 10 percent or more in the facility or of a lease for the facility and has divested that interest after receiving written notice from the [division] department of intention to suspend or revoke the license or to decertify the home from eligibility to receive payments for services provided under this section.

(8) No license shall be issued or renewed for any long term care facility, as defined in ORS 442.015, unless the applicant has included in the applic