Chapter 674 Oregon Laws 2003

AN ACT

SB 437

Relating to higher education; creating new provisions; amending ORS 192.501, 291.038, 348.603, 348.606, 348.609, 351.060, 351.070, 351.086, 351.210, 351.240, 351.511, 351.516, 351.521, 351.523, 351.524, 351.526, 351.528, 351.529, 351.533, 351.534, 351.537, 351.538, 351.539, 351.540 and 351.590; repealing ORS 351.525, 351.531, 351.535 and 351.536; appropriating money; and declaring an emergency.

Whereas the Oregon University System has achieved significant success in the past in capturing efficiencies in its business practices; and

Whereas the Oregon University System has utilized those efficiency savings to support Oregon resident students for whom no state funds were appropriated; and

Whereas independent audit review has demonstrated the dollar value of those efficiencies in Oregon University System management; and

Whereas the Oregon University System is presently challenged by severe budget constraints at a time of growing demand by Oregonians for access to the universities of the Oregon University System; and

Whereas there are further management efficiencies that could be captured by the Oregon University System if the amendments to state statute contained in this 2003 Act were approved; and

Whereas significant numbers of Oregonians could be admitted to Oregon’s public universities and supported by the efficiency savings derived from those statute changes; now, therefore,

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

SECTION 1. ORS 348.603 is amended to read:

348.603. (1) The Oregon Student Assistance Commission, through the Office of Degree Authorization, shall:

(a) Authorize approved schools to offer academic degree programs;

(b) Authorize approved degree-granting schools to offer nondegree programs leading to a certificate or diploma;

(d) Terminate substandard or fraudulent degree activities; and

(e) Review proposed new publicly funded post-secondary programs and locations.

(2)(a) Following review of a proposed new publicly funded post-secondary program or location, the commission shall recommend resolution to the appropriate governing boards and mediate between the boards to seek a negotiated resolution if:

(A) There is a [seemingly] detrimental duplication of programs; or

(B) The program or location would have a significantly adverse impact on one or more other segments of education.

(b) If the boards [cannot] do not resolve the issue raised under paragraph (a) of this subsection[,] within 90 days of the date when the issue was recommended to the boards for mediation, the commission shall have final authority for approval or disapproval of the program or location. If the boards do not resolve the issue, the commission shall approve or disapprove the program or location within 180 days of the date when the review began.

(c) If the boards do not resolve the issue, the commission shall approve the program or location if the commission finds that the program or location meets an unmet workforce need in the state.

[(c)] (d) The commission shall establish by rule a fair and neutral decision-making process in consultation with representatives designated by the State Board of Education, the State Board of Higher Education, associations representing Oregon independent colleges, associations representing Oregon career colleges, and the governing boards of otherwise unrepresented post-secondary schools.

(3) The commission, by rule, may impose a fee on any school or person requesting information from the commission. The amount of the fee shall be established to recover designated expenses incurred by the commission in carrying out the administration of ORS 348.594 to 348.615. Any fees collected under this subsection shall be deposited in the Office of Degree Authorization Account established under section 5 of this 2003 Act.

SECTION 2. ORS 348.606 is amended to read:

348.606. (1) [No] A school [shall] may not confer or offer to confer any academic degree upon a person, or provide services purporting to lead to a degree in whole or in part, without first obtaining approval from the Oregon Student Assistance Commission through the Office of Degree Authorization. The commission shall adopt by rule standards and procedures for the approval of schools.

(2) The commission shall substitute the standards adopted under subsection (1) of this section with private accreditation standards for a school that has conferred degrees under the same control for five years in Oregon from at least one operationally separate unit accredited as a separate institution by a regional accrediting association or its national successor, provided the school submits for arbitration by the commission any unresolved dispute in which a person alleges detrimental violation of a standard guaranteed by the accrediting association but which the association has declined to arbitrate.

(3) The commission, by rule, may impose a fee on any school applying for approval to confer or offer to confer a degree upon a person or to provide academic credit applicable to a degree. The fee is nonrefundable. The amount of the fee shall be established to recover designated expenses incurred by the commission in carrying out the administration of ORS 348.594 to 348.615. Any fees collected under this subsection shall be deposited in the Office of Degree Authorization Account established under section 5 of this 2003 Act.

SECTION 3. ORS 348.609 is amended to read:

348.609. (1) No person who has been warned by the Oregon Student Assistance Commission, through the Office of Degree Authorization, to cease and desist shall claim or represent that the person possesses any academic degree unless the degree has been awarded to or conferred upon the person by a school that:

(a) Has accreditation recognized by the United States Department of Education or the foreign equivalent of such accreditation;

(b) Has been approved by the Oregon Student Assistance Commission through the Office of Degree Authorization to offer and confer degrees in Oregon;

(d) Is located in the United States and has been found by the commission to meet standards of academic quality comparable to those of an institution located in the United States that has accreditation, recognized by the United States Department of Education, to offer degrees of the type and level claimed by the person.

(2) The Oregon Student Assistance Commission shall adopt, by rule, standards and procedures for responding to complaints about degree claims and for validation of degree claims. Failure of a person to provide documentation of a claimed degree shall be prima facie evidence that the claim of such person to such degree is a violation of this section.

(3) The Oregon Student Assistance Commission, by rule, may impose a fee on any school or person requesting validation of degree claims. The amount of the fee shall be established to recover designated expenses incurred by the commission in carrying out the administration of ORS 348.594 to 348.615. Any fees collected under this subsection shall be deposited in the Office of Degree Authorization Account established under section 5 of this 2003 Act.

[(3)] (4)(a) The Oregon Student Assistance Commission, through the Office of Degree Authorization, may cause a civil suit to be instituted in the circuit court for legal or equitable remedies, including injunctive relief, to ensure compliance with this section. The commission may recover attorney fees and court costs for any such action.

(b) The commission shall adopt a schedule of civil penalties for violations of this section. A civil penalty shall not exceed $1,000 per violation.

(c) In addition to any action or penalty provided by law, any person who violates this section shall incur a civil penalty in an amount prescribed by the schedule adopted by the commission. Any civil penalty imposed under this subsection shall be imposed in the manner provided in ORS 183.090. All penalties recovered under this subsection shall be paid into the State Treasury and credited to the General Fund.

SECTION 4. Section 5 of this 2003 Act is added to and made a part of ORS 348.594 to 348.615.

SECTION 5. The Office of Degree Authorization Account is established separate and distinct from the General Fund. All moneys received by the office, other than appropriations from the General Fund, shall be deposited into the account and are continuously appropriated to the Oregon Student Assistance Commission to carry out the duties, functions and powers of the office.

SECTION 6. ORS 351.060 is amended to read:

351.060. The State Board of Higher Education may:

(1) Control and provide for, subject to the conditions of this section, the custody and occupation of the grounds, buildings, books, papers and documents belonging to each and all the institutions, departments or activities under the control of the State Board of Higher Education.

(2) Manage, control and apply all property of whatever nature given to or appropriated for the use, support or benefit of any or all of the institutions, departments or activities under the control of the State Board of Higher Education, according to the terms and conditions of such gift or appropriation. Moneys received under this section shall be deposited with the State Treasurer in an account or fund separate and distinct from the General Fund. Interest earned by the account or fund shall be credited to the account or fund.

(3) Erect, improve, repair, maintain, equip and furnish buildings, structures and lands for higher education.

(4) Acquire, receive, hold, control, convey, sell, manage, operate, lease, lend, invest, improve and develop any and all property, real or personal:

(a) Given to any of the institutions, departments or activities under the control of the State Board of Higher Education by private donors, whether such gifts are made to the State Board of Higher Education or to the State of Oregon; or

(b) Acquired by any other method or from any source by the State Board of Higher Education for the benefit of any of the institutions, departments or activities under the control of the board, [subject, however, to the applicable provisions of ORS 273.413 to 273.456 and 351.210] except for any structure, equipment or asset encumbered by a certificate of participation.

(5) Manage mineral and geothermal resource rights and proceeds therefrom acquired or held for the state by the board pursuant to this chapter and ORS chapter 567. This includes leasing mineral and geothermal resource rights consistent with ORS 273.785.

(6) Take and hold mortgages on real and personal property acquired by way of gift or arising out of transactions entered into in accordance with the powers, duties and authority given to the board by this section, ORS 351.070 and 351.150.

(7) Institute, maintain and participate in suits and actions and other judicial proceedings, in the name of the State of Oregon, for the foreclosure of such mortgages or for the purpose of carrying into effect any and all of the powers, duties and authority given to the State Board of Higher Education by this section[,] and ORS 351.070 and 351.150.

(8) Acquire, receive, hold, control, sell, manage, operate, lease or lend any goods, supplies, materials, equipment, services and information technology, for the use, support or benefit of any of the institutions, departments or activities under the control of the board.

(9) Delegate any of the powers, duties or functions granted to the board under this section to any state institution of higher education within the Oregon University System.

SECTION 7. ORS 351.070 is amended to read:

351.070. (1) The Oregon University System, in accordance with rules adopted by the State Board of Higher Education, shall implement a personnel system and may engage in collective bargaining with its employees. All collective bargaining with any certified or recognized exclusive employee representative shall be under the direction and supervision of the Chancellor of the Oregon University System. The Oregon University System shall have payroll authority pursuant to ORS 292.043 to 292.180.

(2)(a) The board shall establish competitive procedures for the purchasing, procurement and contracting of goods [and],services and information technology, for the benefit of the Oregon University System and all the institutions, departments and activities therein. The board may also establish exemptions from the competitive procedures when appropriate.

(b) The board shall ensure that the hourly rate of wage paid by any contractor upon all public improvements contracts undertaken for the board shall not be less than the same rate of wage as determined by the Bureau of Labor and Industries for an hour’s work in the same trade or occupation in the locality where such labor is performed. Claims or disputes arising under this subsection shall be decided by the Commissioner of the Bureau of Labor and Industries.

(c) The board shall adopt policies and procedures that achieve results equal to or better than the standards existing on July 17, 1995, regarding affirmative action, pay equity for comparable work, recycling, the provision of workers’ compensation insurance to workers on contract and the participation of emerging small businesses and businesses owned by minorities and women.

(3) The board may, for each institution under its control:

(a) Appoint and employ a president and the requisite number of professors, teachers and employees, and prescribe their compensation and tenure of office or employment.

(b) Demand and receive the interest mentioned in ORS 352.510 and all sums due and accruing to the institutions of higher education for admission and tuition therein, and apply the same, or so much thereof as is necessary, to the payment of the compensation referred to in paragraph (a) of this subsection and the other current expenses of the institutions.

(c) Prescribe fees for enrollment into the institutions. Such enrollment fees shall include tuition for education and general services and such other charges found by the board to be necessary to carry out its educational programs. The board may award student aid from any fund other than the General Fund.

(d) Prescribe incidental fees for programs under the supervision or control of the board found by the board, upon its own motion or upon recommendation of the recognized student government of the institution concerned, to be advantageous to the cultural or physical development of students. Fees realized in excess of amounts allocated and exceeding required reserves shall be considered surplus incidental fees and shall be allocated for programs under the control of the board and found to be advantageous to the cultural or physical development of students by the institution president upon the recommendation of the recognized student government at the institution concerned.

(e) Upon recommendation of the recognized student government, collect optional fees authorized by the institution executive, for student activities not included in paragraph (c) or (d) of this subsection. The payment of such optional fees shall be at the option and selection of the student and shall not be a prerequisite of enrollment.

(f) Confer, on the recommendation of the faculty of any such institution, such degrees as usually are conferred by such institutions, or as they deem appropriate.

(g) Prescribe the qualifications for admission into such institutions.

(4) Subject to such delegation as the board may decide to make to the institutions, divisions and departments under its control, the board, for each institution, division and department under its control, shall:

(a) Supervise the general course of instruction therein, and the research, extension, educational and other activities thereof.

(b) Adopt rules and bylaws for the government thereof, including the faculty, teachers, students and employees therein.

(c) Maintain cultural and physical development services and facilities therefor and, in connection therewith, may cooperate and enter into agreements with any person or governmental agency; and may provide student health services and contract therefor.

(d) Prescribe and collect charges.

(e) Adopt rules relating to the creation, use, custody and disclosure, including access, of student education records of the institutions that are consistent with the requirements of applicable state and federal law. Whenever a student has attained 18 years of age or is attending an institution of post-secondary education, the permission or consent required of and the rights accorded to a parent of the student regarding education records shall thereafter be required of and accorded to only the student.

(5) For each institution under its jurisdiction, the board shall provide opportunities for part-time students to obtain complete undergraduate degrees at unconventional times, which include but are not limited to early morning and noon hours, evenings and weekends. In administering these degree programs, the institution may use any educational facility available for the use of the institution.

SECTION 8. ORS 351.086 is amended to read:

351.086. (1) Except as otherwise provided in this chapter and ORS chapter 352, the provisions of ORS chapters 240, 279, 282 and 292 do not apply to the Oregon University System.

(2) Notwithstanding subsection (1) of this section, ORS 240.167, 240.185, 279.029 (4) and (5), 279.321, 279.348, 279.350, 279.352, 279.354, 279.355, 279.356, 279.357, 279.361, 279.363, 279.365, 279.370, 279.375, 279.526 to 279.542, 279.835 to 279.855 and 292.043 [shall] apply to the Oregon University System.

(3) Notwithstanding any other law, the following provisions [shall] do not apply to the Oregon University System:

(a) ORS 182.310 to 182.400; [and]

(b) ORS 273.413 to 273.456;

[(b)] (c) ORS 276.071 and 276.072; and

(d) ORS 291.038.

(4) Notwithstanding subsection (3)(b) of this section, ORS 273.413 to 273.456 apply to any structure, equipment or asset owned by the Oregon University System that is encumbered by a certificate of participation.

[(4)] (5) In carrying out the duties, functions and powers imposed by law upon the Oregon University System, the State Board of Higher Education or the Chancellor of the Oregon University System may contract with any public agency for the performance of such duties, functions and powers as the Oregon University System considers appropriate.

SECTION 9. ORS 351.210 is amended to read:

351.210. (1) The State Board of Higher Education may sell or otherwise dispose of any worn out, obsolete or otherwise unsuitable equipment, goods, supplies, [or] material or information technology, the disposal of which would in the board’s judgment be to the financial benefit of the institutions under the board’s control. [Before such disposal or sale, the board shall submit to the Oregon Department of Administrative Services a proposal for such sale or disposal and shall secure from the department its formal approval thereof.] This section does not apply to any equipment, goods, supplies, material or information technology encumbered by a certificate of participation.

(2) The board may delegate any of its duties, functions or powers granted to the board under this section to the Chancellor of the Oregon University System or any state institution of higher education within the Oregon University System.

(3) The proceeds from any sales or disposals made pursuant to authority granted in this section shall be deposited in the State Treasury to the credit of the [board] Department of Higher Education and may be expended by [it] the board for any purpose authorized by law in the same manner as [it] the board is authorized to make other expenditures. Any moneys deposited in the State Treasury under this section are continuously appropriated to the department.

SECTION 10. ORS 351.240 is amended to read:

351.240. (1) The State Board of Higher Education may determine the terms and conditions of any transaction authorized by ORS 351.220 to 351.250 and need not require competitive bids in connection therewith. No formal publicity or advertising is required regarding property for the development of which the board wishes to contract, but the board shall make reasonable efforts to disseminate such information in appropriate research and industrial circles.

(2) The board may delegate any of the duties, functions and powers granted to the board under ORS 351.220 to 351.250 to any state institution of higher education within the Oregon University System.

SECTION 11. ORS 351.511 is amended to read:

351.511. (1) There is established in the General Fund an account to be known as the Portland State University Northwest Engineering Science Center Phase I Account. Funds in the account shall be used for construction of an engineering science center at Portland State University.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purpose of the Portland State University Northwest Engineering Science Center Phase I project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $26,500,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 12. ORS 351.516 is amended to read:

351.516. (1) There is established in the General Fund an account to be known as the Eastern Oregon University Regional Agricultural, Health and Life Sciences Building Account. Funds in the account shall be used to construct a new building for agriculture, health and life sciences studies at Eastern Oregon University.

(2) The account shall consist of proceeds from lottery bonds and federal and local government funds made available to [the Oregon University System,] and funds donated to the Oregon University System [and proceeds from lottery bonds] for the purpose of the Eastern Oregon University Regional Agricultural, Health and Life Sciences Building project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $14,470,500 in interest, proceeds from lottery bonds, donations[,] and federal and local government funds [and proceeds from lottery bonds] for purposes of this subsection.

SECTION 13. ORS 351.521 is amended to read:

351.521. (1) There is established in the General Fund an account to be known as the University of Oregon School of Music Account. Funds in the account shall be used for additions and alterations to the School of Music at the University of Oregon.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purpose of the University of Oregon School of Music project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $7,600,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 14. ORS 351.523 is amended to read:

351.523. (1) There is established in the General Fund an account to be known as the Campus Development Project Account. Funds in the account shall be used for remodeling, expansion and renovation of the current Law School Building and additions to Gilbert Hall.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Campus Development Project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account [shall] may not be credited with more than $5,700,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 15. ORS 351.524 is amended to read:

351.524. (1) There is established in the General Fund an account to be known as the Southern Oregon University Library Account. Funds in the account shall be used for the construction of an addition to and the remodeling of a library at Southern Oregon University.

(2) The account shall consist of proceeds from lottery bonds and federal and local government funds made available to [the Oregon University System,] and funds donated to the Oregon University System [and proceeds from lottery bonds] for the purpose of the Southern Oregon University library project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $10,000,000 in interest, proceeds from lottery bonds, donations[,] and federal and local government funds [and proceeds from lottery bonds] for purposes of this subsection.

SECTION 16. ORS 351.526 is amended to read:

351.526. (1) There is established in the General Fund an account to be known as the Millar Library Research Center Account. Funds in the account shall be used for the construction of a library research center at Portland State University.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Millar Library Research Center project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account [shall] may not be credited with more than $1,431,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 17. ORS 351.528 is amended to read:

351.528. (1) There is established in the General Fund an account to be known as the Urban Center Phase I Project Account. Funds in the account shall be used for construction, remodeling and acquisition of land for the Urban Center Phase I.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Urban Center Phase I project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account shall not be credited with more than $7,865,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 18. ORS 351.529 is amended to read:

351.529. (1) There is established in the General Fund an account to be known as the Portland State University Native American Center Account. Funds in the account shall be used for construction of a Native American center at Portland State University.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purpose of the Portland State University Native American Center project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department Higher Education for that purpose. The account may not be credited with more than $1,200,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 19. ORS 351.533 is amended to read:

351.533. (1) There is established in the General Fund an account to be known as the Oregon State University College of Veterinary Medicine Account. Funds in the account shall be used for the construction of a new building for the College of Veterinary Medicine at Oregon State University.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purpose of the Oregon State University College of Veterinary Medicine building project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $4,000,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 20. ORS 351.534 is amended to read:

351.534. (1) There is established in the General Fund an account to be known as the Oregon State University Engineering Building Account. Funds in the account shall be used for the construction of an engineering building at Oregon State University.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purpose of the Oregon State University engineering building project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account may not be credited with more than $20,000,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 21. ORS 351.537 is amended to read:

351.537. (1) There is established in the General Fund an account to be known as the Allen Hall Phase II Project Account. Funds in the account shall be used for the remodeling of Allen Hall at the University of Oregon.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Allen Hall Phase II project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account [shall] may not be credited with more than $561,800 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 22. ORS 351.538 is amended to read:

351.538. (1) There is established in the General Fund an account to be known as the Museum of Art Project Account. Funds in the account shall be used for additions to and alterations of the Museum of Art at the University of Oregon.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Museum of Art project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account [shall] may not be credited with more than $6,360,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 23. ORS 351.539 is amended to read:

351.539. (1) There is established in the General Fund an account to be known as the Straub Hall Project Account. Funds in the account shall be used for the additions to and alterations of Straub Hall at the University of Oregon.

(2) The account shall consist of federal and local government funds made available to and funds donated to the Oregon University System for the purposes of the Straub Hall project described in subsection (1) of this section. Interest earned on moneys in the account shall be credited to the account.

(3) Moneys in the account shall be considered to be General Fund moneys for purposes of section 1 (3), Article XI-G of the Oregon Constitution, and are continuously appropriated to the Department of Higher Education for that purpose. The account [shall] may not be credited with more than $1,166,000 in interest, donations and federal and local government funds for purposes of this subsection.

SECTION 24. ORS 351.540 is amended to read:

351.540. (1) Unless otherwise provided by law, or by federal order or regulation with respect to federal funds, the State Board of Higher Education, with the approval of the State Treasurer, may deposit with the State Treasurer any moneys coming into its [hands] possession. Moneys so deposited shall be credited by the State Treasurer to a special checking account.

(2) The moneys in the special checking account are continuously appropriated to the Department of Higher Education. The special checking account may be used for the purpose of clearing items subject to subsequent debit or credit to state funds.

(3) Disbursements may be made by check or order of the board upon the State Treasurer, signed by such officer or administrative head as the board, by motion or resolution, nominates for that purpose. Disbursements shall be made only in payment of claims authorized by law for the ordinary expenditures of the State Board of Higher Education incurred in the operation of the state institutions of higher learning.

(4) Funds in the account established under subsection (1) of this section may be held as petty cash or carried with the State Treasurer in segregated subaccounts, to be disbursed in accordance with subsection (3) of this section. With the approval of the State Treasurer, petty cash funds may be deposited in banks for safekeeping purposes and disbursed therefrom in payment of claims authorized by law by employees of the board authorized by the disbursing officer. The board’s duly designated disbursing officer from time to time shall reimburse the petty cash funds or subaccounts upon the presentation of satisfactory evidence of disbursements therefrom pursuant to law.

SECTION 25. ORS 351.590 is amended to read:

351.590. (1) The State Board of Higher Education shall maintain with the State Treasurer a fund, separate and distinct from the General Fund, known as the Higher Education Student Activities Fund in which shall be deposited all revenue from incidental fees, optional fees, health services fees and all operating revenue from intercollegiate athletics, student unions and educational activities.

(2) The moneys in the Higher Education Student Activities Fund are continuously appropriated to the Department of Higher Education. Disbursements from the fund, including any interest credited thereto, may be made for necessary expenses for supplies, services and equipment associated with student activities including but not limited to recruiting, training and grant-in-aid to intercollegiate athletes.

(3) The fund may be invested by the State Treasurer, and the earnings from such investments shall be credited to the fund. The State Board of Higher Education shall distribute annually the total interest earnings proportionately to each institution based on each institution’s average cash balance in the fund.

SECTION 26. ORS 192.501 is amended to read:

192.501. The following public records are exempt from disclosure under ORS 192.410 to 192.505 unless the public interest requires disclosure in the particular instance:

(1) Records of a public body pertaining to litigation to which the public body is a party if the complaint has been filed, or if the complaint has not been filed, if the public body shows that such litigation is reasonably likely to occur. This exemption does not apply to litigation which has been concluded, and nothing in this subsection shall limit any right or opportunity granted by discovery or deposition statutes to a party to litigation or potential litigation;

(2) Trade secrets. “Trade secrets,” as used in this section, may include, but are not limited to, any formula, plan, pattern, process, tool, mechanism, compound, procedure, production data, or compilation of information which is not patented, which is known only to certain individuals within an organization and which is used in a business it conducts, having actual or potential commercial value, and which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it;

(3) Investigatory information compiled for criminal law purposes. The record of an arrest or the report of a crime shall be disclosed unless and only for so long as there is a clear need to delay disclosure in the course of a specific investigation, including the need to protect the complaining party or the victim. Nothing in this subsection shall limit any right constitutionally guaranteed, or granted by statute, to disclosure or discovery in criminal cases. For purposes of this subsection, the record of an arrest or the report of a crime includes, but is not limited to:

(a) The arrested person’s name, age, residence, employment, marital status and similar biographical information;

(b) The offense with which the arrested person is charged;

(d) The identity of and biographical information concerning both complaining party and victim;

(e) The identity of the investigating and arresting agency and the length of the investigation;

(f) The circumstances of arrest, including time, place, resistance, pursuit and weapons used; and

(g) Such information as may be necessary to enlist public assistance in apprehending fugitives from justice;

(4) Test questions, scoring keys, and other data used to administer a licensing examination, employment, academic or other examination or testing procedure before the examination is given and if the examination is to be used again. Records establishing procedures for and instructing persons administering, grading or evaluating an examination or testing procedure are included in this exemption, to the extent that disclosure would create a risk that the result might be affected;

(5) Information consisting of production records, sale or purchase records or catch records, or similar business records of a private concern or enterprise, required by law to be submitted to or inspected by a governmental body to allow it to determine fees or assessments payable or to establish production quotas, and the amounts of such fees or assessments payable or paid, to the extent that such information is in a form which would permit identification of the individual concern or enterprise. This exemption does not include records submitted by long term care facilities as defined in ORS 442.015 to the state for purposes of reimbursement of expenses or determining fees for patient care. Nothing in this subsection shall limit the use which can be made of such information for regulatory purposes or its admissibility in any enforcement proceeding;

(6) Information relating to the appraisal of real estate prior to its acquisition;

(7) The names and signatures of employees who sign authorization cards or petitions for the purpose of requesting representation or decertification elections;

(8) Investigatory information relating to any complaint filed under ORS 659A.820 or 659A.825, until such time as the complaint is resolved under ORS 659A.835, or a final order is issued under ORS 659A.850;

(9) Investigatory information relating to any complaint or charge filed under ORS 243.676 and 663.180;

(10) Records, reports and other information received or compiled by the Director of the Department of Consumer and Business Services under ORS 697.732;

(11) Information concerning the location of archaeological sites or objects as those terms are defined in ORS 358.905, except if the governing body of an Indian tribe requests the information and the need for the information is related to that Indian tribe’s cultural or religious activities. This exemption does not include information relating to a site that is all or part of an existing, commonly known and publicized tourist facility or attraction;

(12) A personnel discipline action, or materials or documents supporting that action;

(13) Information developed pursuant to ORS 496.004, 496.172 and 498.026 or ORS 496.192 and 564.100, regarding the habitat, location or population of any threatened species or endangered species;

(14) Writings prepared by or under the direction of faculty of public educational institutions, in connection with research, until publicly released, copyrighted or patented;

(15) Computer programs developed or purchased by or for any public body for its own use. As used in this subsection, “computer program” means a series of instructions or statements which permit the functioning of a computer system in a manner designed to provide storage, retrieval and manipulation of data from such computer system, and any associated documentation and source material that explain how to operate the computer program. “Computer program” does not include:

(a) The original data, including but not limited to numbers, text, voice, graphics and images;

(b) Analyses, compilations and other manipulated forms of the original data produced by use of the program; or

(c) The mathematical and statistical formulas which would be used if the manipulated forms of the original data were to be produced manually;

(16) Data and information provided by participants to mediation under ORS 36.256;

(17) Investigatory information relating to any complaint or charge filed under ORS chapter 654, until a final administrative determination is made or, if a citation is issued, until an employer receives notice of any citation;

(18) Specific operational plans in connection with an anticipated threat to individual or public safety for deployment and use of personnel and equipment, prepared and used by a law enforcement agency, if public disclosure thereof would endanger the life or physical safety of a citizen or law enforcement officer or jeopardize the law enforcement activity involved;

(19)(a) Audits or audit reports required of a telecommunications carrier. As used in this paragraph, “audit or audit report” means any external or internal audit or audit report pertaining to a telecommunications carrier, as defined in ORS 133.721, or pertaining to a corporation having an affiliated interest, as defined in ORS 759.010, with a telecommunications carrier that is intended to make the operations of the entity more efficient, accurate or compliant with applicable rules, procedures or standards, that may include self-criticism and that has been filed by the telecommunications carrier or affiliate under compulsion of state law. “Audit or audit report” does not mean an audit of a cost study that would be discoverable in a contested case proceeding and that is not subject to a protective order; and

(b) Financial statements. As used in this paragraph, “financial statement” means a financial statement of a nonregulated corporation having an affiliated interest, as defined in ORS 759.010, with a telecommunications carrier, as defined in ORS 133.721;

(20) The residence address of an elector if authorized under ORS 247.965 and subject to ORS 247.967;

(21) The following records, communications and information submitted to a housing authority as defined in ORS 456.005 by applicants for and recipients of loans, grants and tax credits:

(a) Personal and corporate financial statements and information, including tax returns;

(b) Credit reports;

(d) Market studies and analyses;

(e) Articles of incorporation, partnership agreements and operating agreements;

(f) Commitment letters;

(g) Project pro forma statements;

(h) Project cost certifications and cost data;

(i) Audits;

(j) Project tenant correspondence requested to be confidential;

(k) Tenant files relating to certification; and

(L) Housing assistance payment requests;

(22) Records or information that, if disclosed, would allow a person to:

(a) Gain unauthorized access to buildings or other property used or owned by a public body;

(b) Identify those areas of structural or operational vulnerability that would permit unlawful disruption to, or interference with, the services provided by a public body; or

(c) Disrupt, interfere with or gain unauthorized access to public funds or to information processing, communication or telecommunication systems, including the information contained in the systems, that are used or operated by a public body;

(23) Records or information that would reveal the security measures taken or recommended to be taken to protect:

(a) An officer or employee of a public body;

(b) Buildings or other property used or owned by a public body;

(c) Information processing, communication or telecommunication systems, including the information contained therein, that are used or operated by a public body; or

(d) Those operations of the Oregon State Lottery the security of which are subject to study and evaluation under ORS 461.180 (6);

(24) Writings prepared by or under the direction of officials of Oregon Health and Science University about a person and the person’s potential interest in donating money or property to the university or about the person’s actual donation unless disclosure is authorized by the person;

(25) Writings prepared by or under the direction of officials of the Oregon University System about a person and the person’s potential interest in donating money or property to the system or to a state institution of higher education, or about the person’s actual donation, unless disclosure is authorized by the person;

[(25)] (26) Records of the name and address of a person who files a report with or pays an assessment to a council, board or commission created or organized under ORS chapter 576, 577, 578 or 579. As used in this subsection, “council, board or commission” does not include the advisory committee established under ORS 576.810; and

[(26)] (27) Information provided to, obtained by or used by a public body to authorize, originate, receive or authenticate a transfer of funds, including but not limited to a credit card number, payment card expiration date, password, financial institution account number and financial institution routing number.

SECTION 27. ORS 291.038 is amended to read:

291.038. (1) The planning, acquisition, installation and use of all information and telecommunications technology by state government and its agencies shall be coordinated so that statewide plans and activities, as well as those of individual agencies, are addressed in the most integrated, economic and efficient manner. To provide policy direction for and coordination of information technology for state government, the Director of the Oregon Department of Administrative Services shall chair and appoint not fewer than five agency executives to an Information Resources Management Council. The council membership shall include at least two members representing the private sector and political subdivisions of the state.

(2) To facilitate accomplishment of the purpose set forth in subsection (1) of this section, the Oregon Department of Administrative Services shall adopt by rule policies, procedures, standards and guidelines to plan for, acquire, implement and manage the state’s information resources. In developing rules, the department shall consult with state agencies having needs that may be satisfied by use of information resources. State agencies shall cooperate with the department in preparing and complying with rules. The rules must be formulated to promote electronic communication and information sharing among state agencies and programs and between state and local governments, and with the public where appropriate.

(3) Rules, plans and specifications shall be formulated to [insure] ensure that information resources fit together in a statewide system capable of providing ready access to information, computing or telecommunication resources. Rules, plans and specifications shall be based on industry standards for open systems to the greatest extent possible. Prior to adoption of rules referred to in subsection (2) of this section, the Oregon Department of Administrative Services shall present the proposed rules to the appropriate legislative committee. The Oregon Department of Administrative Services shall have the review and oversight responsibility for insuring that agencies’ planning, acquisition and implementation activities support the statewide information resources management plan. The department shall be responsible for the fair and competitive procurement of information technology consistent with the rules of the department. [The State Board of Higher Education shall be responsible for the fair and competitive procurement of information technology for the Oregon University System consistent with rules of the Oregon Department of Administrative Services.]

(4)(a) It is the policy of the State of Oregon that state government telecommunications networks should be designed to provide state-of-the-art services where economically and technically feasible, using shared, rather than dedicated, lines and facilities.

(b) The Oregon Department of Administrative Services shall, when procuring telecommunications network services, consider the achievement of the economic development and quality of life outcomes contained in the Oregon benchmarks.

(5)(a) The Oregon Department of Administrative Services, upon request, may furnish and deliver statewide integrated videoconferencing and statewide on-line access service to any public or private entity that primarily conducts its activities for the direct good or benefit of the public or community-at-large in providing educational, economic development, health care, human services, public safety, library or other public services. The department shall adopt rules with respect to furnishing the service.

(b) The department shall establish the statewide integrated videoconferencing and statewide on-line access user fees, services, delivery, rates and long range plans in consultation with the Stakeholders Advisory Committee created pursuant to this section. The rates shall reflect the department’s cost in providing the service.

(c) The department by rule shall restrict its furnishing or delivery of Internet access service to private entities when the service would directly compete with two or more local established providers of such services within the local exchange telecommunications service area.

(d) The rates and services established and provided under this section shall not be subject to the regulation or authority of the Public Utility Commission.

(6)(a) There is created the Stakeholders Advisory Committee, consisting of a minimum of nine members appointed by the Director of the Oregon Department of Administrative Services. In making appointments, the director shall give consideration to geographic balance and adequate representation of the department’s users and providers and the general public.

(b) The Stakeholders Advisory Committee shall consist of members who represent elementary or secondary education, higher education, community colleges, economic development, health care, human services and public safety. At least four members shall reside in areas east of the Cascade Mountains.

(c) The term of office of each member is three years, but a member serves at the sole discretion of the director. The director shall appoint a successor to a member before the expiration of the term of the member. A member is eligible for reappointment. If a position on the Stakeholders Advisory Committee is vacant for any cause, the director shall make an appointment to the position, immediately effective for the unexpired term.

(d) A member of the Stakeholders Advisory Committee is entitled to travel expenses pursuant to ORS 292.495. Members of the Stakeholders Advisory Committee are not entitled to compensation.

(e) The director may establish additional advisory and technical committees as the director considers necessary to aid and advise the Stakeholders Advisory Committee in the performance of its functions.

(f) The director may delegate to the State Chief Information Officer any of the duties, functions or powers imposed upon the director by this subsection.

(7) Any organization or organizations recognized as tax exempt under section 501(c)(3) of the Internal Revenue Code of 1986 that primarily conduct activities for the direct good or benefit of the public or community at large in providing educational, economic development, health care, human services, public safety, library or other public services and have formed an affiliation with one or more federal, state or local governmental units within this state may make application to the department for designation as a community of interest. The application shall be in such form and shall contain such information regarding the governmental affiliation relationship, the tax exempt status of each organization and the public benefit services to be provided as the department may prescribe. The department shall establish an application review and appeal process to ensure that designation of those organizations as a community of interest for the purposes of including the organization in telecommunications contracts under ORS 283.520 will result in providing educational, medical, library or other services for public benefit.

(8) This section does not apply to the State Board of Higher Education or any state institution of higher education within the Oregon University System.

[(8)] (9) As used in this section:

(a) “Advanced digital communications” means equipment, facilities and capability to distribute digital communications signals for the transmission of voice, data, image and video over distance.

(b) “Information resources” means media, instruments and methods for planning, collecting, processing, transmitting and storing data and information, including telecommunications.

(c) “Information resources management” means the state’s program for managing data and information in its various forms in furtherance of program and agency objectives, and in such a way that agency employees are able to obtain and use information easily, efficiently, effectively and economically.

(d) “Information technology” includes, but is not limited to, all present and future forms of hardware, software and services for data processing, office automation and telecommunications.

(e) “Data” and “information” represent facts and representations about the state’s human, natural and commercial resources.

(f) “Internet access service” means electronic connectivity to the Internet and its services.

[(f)] (g) “Open systems” means systems that allow state agencies freedom of choice by providing a vendor-neutral operating environment where different computers, applications, system software and networks operate together easily and reliably.

[(g)] (h) “State-of-the-art services” includes advanced digital communications.

[(h)] (i) “Telecommunications” means the hardware, software and services for transmitting voice, data, video and images over a distance.

[(i)] (j) “Statewide integrated video-conferencing” means a statewide electronic system capable of transmitting video, voice and data communications.

[(j)] (k) “Statewide on-line access” means electronic connectivity to information resources such as computer conferencing, electronic mail, databases and Internet access.

[(k) “Internet access service” means electronic connectivity to the Internet and its services.]

SECTION 28. The Oregon Department of Administrative Services and the State Board of Higher Education shall jointly cause a review to be made regarding the duties, functions and powers vested in the board by ORS 351.060, 351.070, 351.086, 351.210, 351.240 and 291.038 as amended by sections 6 to 10 and 27 of this 2003 Act. The review shall be completed independently of the department and the board. The department and board shall jointly report the findings of the review to the Seventy-fourth Legislative Assembly prior to February 1, 2007.

SECTION 29. The Oregon Student Assistance Commission shall study and report to the Seventy-third Legislative Assembly prior to February 1, 2005, on the impact of a change to the Oregon Opportunity Grant program that would restrict award amounts for students at independent colleges to no more than the amount awarded to students attending state institutions of higher education within the Oregon University System. The report shall include the recommendations of the commission on whether to implement the change and on how to best implement the change.

SECTION 30. ORS 351.525, 351.531, 351.535 and 351.536 are repealed.

SECTION 31. 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 August 21, 2003

Filed in the office of Secretary of State August 21, 2003

Effective date August 21, 2003

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