Chapter 360 Oregon Laws 2003

AN ACT

SB 185

Relating to student assistance loans; creating new provisions; amending ORS 348.530 and 348.570; and declaring an emergency.

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

SECTION 1. ORS 348.530 is amended to read:

348.530. The Oregon Student Assistance Commission may:

(1) Negotiate for and contract with private and governmental agencies for the establishment of financial aid programs.

(2) Receive gifts of any type, including gifts of stock and real property, for the purpose of establishing, continuing and increasing financial aid.

(3) Administer any form of financial aid submitted to and accepted for administration by the commission.

(4) Authorize payment from funds appropriated therefor, of costs, commissions, attorney fees and other reasonable expenses, including refund of overpayment of fees, which are related to and necessary for making and protecting guaranteed loans and recovering moneys and loans and management of property acquired in connection with such loans.

(5) Sue and be sued.

(6) Pursuant to ORS 183.310 to 183.550, adopt such rules as may be necessary to carry out the provisions of ORS 348.040 to 348.280, 348.393 to 348.399, 348.505 to 348.695 and 348.992.

(7) Cooperatively coordinate all types of financial aid activities.

(8) Establish a State of Oregon scholar program to recognize students with outstanding academic achievement and other demonstrated attributes. The students will not necessarily receive financial aid.

(9) Guarantee loans by eligible lending institutions to [student residents of the State of Oregon] students who are enrolled or accepted for enrollment at any eligible institution[, nonresident students enrolled or accepted for enrollment in an institution of higher education or community college in Oregon,] and parents of those students, under the provisions of the Higher Education Act of 1965 as amended.

(10) Deny financial aid to any student owing a refund or in default on financial aid previously made available to that student.

(11) Establish and implement any program permitted under federal law to guaranty agencies, including administrative garnishment and wage withholding under Public Law 102-164, section 605.

SECTION 2. ORS 348.530, as amended by section 1 of this 2003 Act, is amended to read:

348.530. The Oregon Student Assistance Commission may:

(1) Negotiate for and contract with private and governmental agencies for the establishment of financial aid programs.

(2) Receive gifts of any type, including gifts of stock and real property, for the purpose of establishing, continuing and increasing financial aid.

(3) Administer any form of financial aid submitted to and accepted for administration by the commission.

(5) Sue and be sued.

(6) Pursuant to ORS 183.310 to 183.550, adopt such rules as may be necessary to carry out the provisions of ORS 348.040 to 348.280, 348.393 to 348.399, 348.505 to 348.695 and 348.992.

(7) Cooperatively coordinate all types of financial aid activities.

(8) Establish a State of Oregon scholar program to recognize students with outstanding academic achievement and other demonstrated attributes. The students will not necessarily receive financial aid.

(9) Guarantee loans by eligible lending institutions to [students] student residents of the State of Oregon who are enrolled or accepted for enrollment at any eligible institution, nonresident students enrolled or accepted for enrollment in an institution of higher education or community college in Oregon, and parents of those students, under the provisions of the Higher Education Act of 1965 as amended.

(10) Deny financial aid to any student owing a refund or in default on financial aid previously made available to that student.

(11) Establish and implement any program permitted under federal law to guaranty agencies, including administrative garnishment and wage withholding under Public Law 102-164, section 605.

SECTION 3. The amendments to ORS 348.530 by section 2 of this 2003 Act become operative on June 30, 2009.

SECTION 4. ORS 348.570 is amended to read:

348.570. (1) There is established in the State Treasury a fund, separate and distinct from the General Fund, to be known as the Oregon Student Assistance Fund for investment as provided by ORS 293.701 to 293.820 and for the payment of the expenses of the Oregon Student Assistance Commission in carrying out the purposes of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and 348.992. Interest earned by the fund shall be credited to the fund.

(2) There is established in the State Treasury a fund, separate and distinct from the General Fund, to be known as the Student Loan Guarantee Fund, which may be invested in the same manner as the Oregon Student Assistance Fund. This fund shall receive funds from federal, state or private sources for the purpose of guarantying payment of loans made by eligible lending institutions to [student residents of the State of Oregon] students who are enrolled or accepted for enrollment at any eligible institution[, nonresident students enrolled or accepted for enrollment in an institution of higher education or community college in Oregon,] and parents of those students, under the provisions of the Higher Education Act of 1965 as amended and for administrative expenses of guarantying loans. This fund, including the interest earnings on the fund, if any, is continuously appropriated to the commission for those purposes for which such funds were provided to, received or collected by the commission.

(3) There is established in the State Treasury a fund, separate and distinct from the General Fund, to be known as the Alternative Student Loan Program Fund for investment as provided by ORS 293.701 to 293.820 and for the payment of expenses of the commission in carrying out the purposes of ORS 348.625 to 348.695. This fund, including the interest earnings on the fund, if any, is continuously appropriated to the commission for those purposes for which such funds were provided to, received or collected by the commission.

(4)(a) There is established in the General Fund an account to be known as the Nursing Services Account. Funds in the account shall be used for the payment of expenses of the Nursing Services Program created in ORS 442.540.

(b) The account shall consist of:

(A) Funds appropriated to the Oregon Student Assistance Commission for deposit into the account;

(B) Collections and penalties received by the commission under ORS 442.545; and

(c) Any funds in the account that are not expended in any biennium shall be retained in the account and may be expended in the next biennium.

(5) There is established in the State Treasury a fund, separate and distinct from the General Fund, to be known as the Former Foster Youth Scholarship Fund. Moneys received from appropriations, donations and grants shall be credited to the fund. Moneys in the fund are continuously appropriated to the Oregon Student Assistance Commission for the purposes of investment, as provided by ORS 293.701 to 293.820, and for carrying out the provisions of ORS 348.270 (1)(b). Interest earned by the fund shall be credited to the fund.

SECTION 5. ORS 348.570, as amended by section 4 of this 2003 Act, is amended to read:

(2) There is established in the State Treasury a fund, separate and distinct from the General Fund, to be known as the Student Loan Guarantee Fund, which may be invested in the same manner as the Oregon Student Assistance Fund. This fund shall receive funds from federal, state or private sources for the purpose of guarantying payment of loans made by eligible lending institutions to [students] student residents of the State of Oregon who are enrolled or accepted for enrollment at any eligible institution, nonresident students enrolled or accepted for enrollment in an institution of higher education or community college in Oregon, and parents of those students, under the provisions of the Higher Education Act of 1965 as amended and for administrative expenses of guarantying loans. This fund, including the interest earnings on the fund, if any, is continuously appropriated to the commission for those purposes for which such funds were provided to, received or collected by the commission.

(b) The account shall consist of:

(A) Funds appropriated to the Oregon Student Assistance Commission for deposit into the account;

(B) Collections and penalties received by the commission under ORS 442.545; and

(c) Any funds in the account that are not expended in any biennium shall be retained in the account and may be expended in the next biennium.

SECTION 6. The amendments to ORS 348.570 by section 5 of this 2003 Act become operative on June 30, 2009.

SECTION 7. (1) The amendments to ORS 348.530 and 348.570 by sections 1 and 4 of this 2003 Act apply to loans that are disbursed on or after the effective date of this 2003 Act and prior to June 30, 2009.

(2) The amendments to ORS 348.530 and 348.570 by sections 2 and 5 of this 2003 Act apply to loans that are disbursed on or after June 30, 2009.

SECTION 8. Prior to February 15, 2005, the Oregon Student Assistance Commission shall report to the Seventy-third Legislative Assembly, and prior to February 15, 2007, the commission shall report to the Seventy-fourth Legislative Assembly, on the implementation of ORS 348.530 and 348.570 as amended by sections 1 and 4 of this 2003 Act. Each report shall:

(1) Specify the actual revenue and fiscal impacts of guarantying loans to nonresident students who attend eligible post-secondary institutions not located in Oregon; and

(2) Include an evaluation of the effect of the implementation of ORS 348.530 and 348.570 as amended by sections 1 and 4 of this 2003 Act on the commission’s ability to serve resident students who attend eligible post-secondary institutions in Oregon.

SECTION 9. This 2003 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2003 Act takes effect July 1, 2003.

Approved by the Governor June 13, 2003

Filed in the office of Secretary of State June 13, 2003

Effective date July 1, 2003

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