72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 345
           (Including Amendments to Resolve Conflicts)
 
                           B-Engrossed
 
                         House Bill 3328
                 Ordered by the Senate August 12
  Including House Amendments dated May 27 and Senate Amendments
                         dated August 12
 
Sponsored by COMMITTEE ON JUDICIARY
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
 
  Revises laws administered by Oregon Government Standards and
Practices Commission.
  Allows public official who is compensated member or director of
nonprofit corporation to take official action that may result in
financial gain or avoidance of financial detriment for nonprofit
corporation.
  Exempts food, lodging and travel received by relative of public
official from $100 gift limit when public official participates
in event in official capacity.
  Allows public official or relative to receive something of
economic value from person without legislative or administrative
interest.
  Allows public official or relative to receive nonremunerative
benefit specifically approved by ordinance, resolution or rule.
  Allows public official to make recommendation with respect to
official's or relative's salary in budgeting process or other
negotiation.
   { +  Reorders provisions relating to honoraria. + }
  Allows candidate against whom complaint has been filed within
61 days of election to request and receive delay of Preliminary
Review Phase until after election.
   { +  Extends length of Preliminary Review Phase to 135 days.
Extends length of Investigatory Phase to 180 days. + }
  Directs commission to adopt standards or interpretations of
general applicability by rule.
  Prohibits imposition of civil penalty under government
standards and practices laws if violation occurred as result of
government body of public body acting upon advice of counsel
representing public body. Allows commission to issue letter of
reprimand in lieu of civil penalty.
  Requires all lobbyists who receive compensation for lobbying to
register with commission. Specifies deadlines for registration.
  Requires electronic recording of all executive sessions held by
governing body of public body. Directs commission to return
recordings to governing body at conclusion of commission action.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to activities regulated by the Oregon Government
  Standards and Practices Commission; creating new provisions;
  amending ORS 171.735, 171.740, 171.778, 192.650, 192.685,
  244.020, 244.040, 244.060, 244.100, 244.260, 244.280, 244.350,
  351.067 and 353.270; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 244.020 is amended to read:
  244.020. As used in this chapter, unless the context requires
otherwise:
  (1) 'Actual conflict of interest' means any action or any
decision or recommendation by a person acting in a capacity as a
public official, the effect of which would be to the private
pecuniary benefit or detriment of the person or   { - the
person's relative - }   { + a relative of the person + } or any
business with which the person or a relative of the person is
associated unless the pecuniary benefit or detriment arises out
of circumstances described in subsection (7) of this section.
  (2) 'Business' means any corporation, partnership,
proprietorship, firm, enterprise, franchise, association,
organization, self-employed individual and any other legal entity
operated for economic gain but excluding any income-producing
not-for-profit corporation that is tax exempt under section
501(c) of the Internal Revenue Code with which a public official
 { + or a relative of the public official + } is associated
 { + only as a member or director or + } in a nonremunerative
capacity.
  (3) 'Business with which the person is associated' means:
  (a) Any private business or closely held corporation of which
the person or   { - the person's relative - }   { + a relative of
the person + } is a director, officer, owner or employee, or
agent or any private business or closely held corporation in
which the person or   { - the person's relative - }   { + a
relative of the person + } owns or has owned stock, another form
of equity interest, stock options or debt instruments worth
$1,000 or more at any point in the preceding calendar year;
  (b) Any publicly held corporation in which the person or
 { - the person's relative - }   { + a relative of the person + }
owns or has owned $100,000 or more in stock or another form of
equity interest, stock options or debt instruments at any point
in the preceding calendar year;
  (c) Any publicly held corporation of which the person or
 { - the person's relative - }   { + a relative of the person + }
is a director or officer; or
  (d) For public officials required to file a statement of
economic interest under ORS 244.050, any business from which 50
percent or more of the total annual income of the person and
members of the person's household is derived during the current
calendar year.
  (4) 'Commission' means the Oregon Government Standards and
Practices Commission.
  (5) 'Development commission' means any entity which has the
authority to purchase, develop, improve or lease land or the
authority to operate or direct the use of land. This authority
must be more than ministerial.
  (6) 'Expenditure' has the meaning given that term in ORS
260.005.
  (7) 'Potential conflict of interest' means any action or any
decision or recommendation by a person acting in a capacity as a
public official, the effect of which could be to the private
pecuniary benefit or detriment of the person or   { - the
person's relative - }  { +  a relative of the person + }, or a
business with which the person or   { - the person's relative - }
 { + a relative of the person + } is associated, unless the
pecuniary benefit or detriment arises out of the following:
  (a) An interest or membership in a particular business,
industry, occupation or other class required by law as a
prerequisite to the holding by the person of the office or
position.
  (b) Any action in the person's official capacity which would
affect to the same degree a class consisting of all inhabitants
of the state, or a smaller class consisting of an industry,
occupation or other group including one of which or in which the
person, or   { - the person's relative - }   { + a relative of
the person + } or business with which the person or   { - the
person's relative - }   { + a relative of the person + } is
associated, is a member or is engaged.  The commission may by
rule limit the minimum size of or otherwise establish criteria
for or identify the smaller classes that qualify under this
exception.
  (c) Membership in or membership on the board of directors of a
nonprofit corporation that is tax-exempt under section 501(c) of
the Internal Revenue Code.
  (8) 'Gift' means something of economic value given to a public
official or   { - the public official's relative - }   { + a
relative of the public official + } without valuable
consideration of equivalent value, including the full or partial
forgiveness of indebtedness, which is not extended to others who
are not public officials or the relatives of public officials on
the same terms and conditions; and something of economic value
given to a public official or   { - the public official's
relative - }   { + a relative of the public official + } for
valuable consideration less than that required from others who
are not public officials. However, 'gift' does not mean:
  (a) Campaign contributions, as described in ORS chapter 260.
  (b) Gifts from family members.
  (c) The giving or receiving of food, lodging and travel when
  { - participating - }   { + a public official or a relative of
the public official participates + } in an event   { - which - }
 { + that + } bears a relationship to the public official's
office and when   { - appearing - }  { + the public official
appears + } in an official capacity, subject to the reporting
requirement of ORS 244.060 (6).
  (d) The giving or receiving of food or beverage if the food or
beverage is consumed by the public official or   { - the public
official's relatives - }   { + a relative of the public
official + } in the presence of the purchaser or provider
thereof.
  (e) The giving or receiving of entertainment if the
entertainment is experienced by the public official or   { - the
public official's relatives - }   { + a relative of the public
official + } in the presence of the purchaser or provider thereof
and the value of the entertainment does not exceed $100 per
person on a single occasion and is not greater than $250 in any
one calendar year.
  (9) 'Honoraria' means a payment or something of economic value
given to a public official in exchange for services upon which
custom or propriety prevents the setting of a price.  Services
include, but are not limited to, speeches or other services
rendered in connection with an event at which the public official
appears in an official capacity.
  (10) 'Income' means income of any nature derived from any
source, including, but not limited to, any salary, wage, advance,
payment, dividend, interest, rent, honoraria, return of capital,
forgiveness of indebtedness, or anything of economic value.
  (11) 'Legislative or administrative interest' means an economic
interest, distinct from that of the general public, in one or
more bills, resolutions, regulations, proposals or other matters
subject to the action or vote of a person acting in the capacity
of a public official.
 
  (12) 'Legislative official' means any member or member-elect of
the Legislative Assembly, any member of an agency, board or
committee that is part of the legislative branch and any staff
person, assistant or employee thereof.
  (13) 'Member of household' means any relative who resides with
the public official.
  (14) 'Planning commission' means a county planning commission
created under ORS chapter 215 or a city planning commission
created under ORS chapter 227.
  (15) 'Public official' means any person who, when an alleged
violation of this chapter occurs, is serving the State of Oregon
or any of its political subdivisions or any other public body of
the state as an officer, employee, agent or otherwise, and
irrespective of whether the person is compensated for such
services.
  (16) 'Relative' means the spouse of the public official, any
children of the public official or of the public official's
spouse, and brothers, sisters or parents of the public official
or of the public official's spouse.
  (17) 'Statewide official' means the Secretary of State or
Secretary of State-elect, State Treasurer or State
Treasurer-elect, Superintendent of Public Instruction or
Superintendent-elect of Public Instruction, Attorney General or
Attorney General-elect and the Commissioner of the Bureau of
Labor and Industries or the Commissioner-elect of the Bureau of
Labor and Industries.
  (18) 'Zoning commission' means an entity to which is delegated
at least some of the discretionary authority of a planning
commission or governing body relating to zoning and land use
matters.
  SECTION 1a.  { + If Senate Bill 81 becomes law, section 1 of
this 2003 Act (amending ORS 244.020) is repealed and ORS 244.020,
as amended by section 115, chapter 14, Oregon Laws 2003 (Enrolled
Senate Bill 81), is amended to read: + }
  244.020. As used in this chapter, unless the context requires
otherwise:
  (1) 'Actual conflict of interest' means any action or any
decision or recommendation by a person acting in a capacity as a
public official, the effect of which would be to the private
pecuniary benefit or detriment of the person or   { - the
person's relative - }   { + a relative of the person + } or any
business with which the person or a relative of the person is
associated unless the pecuniary benefit or detriment arises out
of circumstances described in subsection (14) of this section.
  (2) 'Business' means any corporation, partnership,
proprietorship, firm, enterprise, franchise, association,
organization, self-employed individual and any other legal entity
operated for economic gain but excluding any income-producing
not-for-profit corporation that is tax exempt under section
501(c) of the Internal Revenue Code with which a public official
 { + or a relative of the public official + } is associated
 { + only as a member or director or + } in a nonremunerative
capacity.
  (3) 'Business with which the person is associated' means:
  (a) Any private business or closely held corporation of which
the person or   { - the person's relative - }   { + a relative of
the person + } is a director, officer, owner or employee, or
agent or any private business or closely held corporation in
which the person or   { - the person's relative - }   { + a
relative of the person + } owns or has owned stock, another form
of equity interest, stock options or debt instruments worth
$1,000 or more at any point in the preceding calendar year;
  (b) Any publicly held corporation in which the person or
 { - the person's relative - }   { + a relative of the person + }
owns or has owned $100,000 or more in stock or another form of
 
equity interest, stock options or debt instruments at any point
in the preceding calendar year;
  (c) Any publicly held corporation of which the person or
 { - the person's relative - }   { + a relative of the person + }
is a director or officer; or
  (d) For public officials required to file a statement of
economic interest under ORS 244.050, any business from which 50
percent or more of the total annual income of the person and
members of the person's household is derived during the current
calendar year.
  (4) 'Commission' means the Oregon Government Standards and
Practices Commission.
  (5) 'Development commission' means any entity which has the
authority to purchase, develop, improve or lease land or the
authority to operate or direct the use of land. This authority
must be more than ministerial.
  (6) 'Expenditure' has the meaning given that term in ORS
260.005.
  (7) 'Gift' means something of economic value given to a public
official or   { - the public official's relative - }   { + a
relative of the public official + } without valuable
consideration of equivalent value, including the full or partial
forgiveness of indebtedness, which is not extended to others who
are not public officials or the relatives of public officials on
the same terms and conditions; and something of economic value
given to a public official or   { - the public official's
relative - }   { + a relative of the public official + } for
valuable consideration less than that required from others who
are not public officials. However, 'gift' does not mean:
  (a) Campaign contributions, as described in ORS chapter 260.
  (b) Gifts from family members.
  (c) The giving or receiving of food, lodging and travel when
  { - participating - }   { + a public official or a relative of
the public official participates + } in an event   { - which - }
 { + that + } bears a relationship to the public official's
office and when   { - appearing - }  { + the public official
appears + } in an official capacity, subject to the reporting
requirement of ORS 244.060 (6).
  (d) The giving or receiving of food or beverage if the food or
beverage is consumed by the public official or   { - the public
official's relatives - }   { + a relative of the public
official + } in the presence of the purchaser or provider
thereof.
  (e) The giving or receiving of entertainment if the
entertainment is experienced by the public official or   { - the
public official's relatives - }   { + a relative of the public
official + } in the presence of the purchaser or provider thereof
and the value of the entertainment does not exceed $100 per
person on a single occasion and is not greater than $250 in any
one calendar year.
  (8) 'Honoraria' means a payment or something of economic value
given to a public official in exchange for services upon which
custom or propriety prevents the setting of a price.  Services
include, but are not limited to, speeches or other services
rendered in connection with an event at which the public official
appears in an official capacity.
  (9) 'Income' means income of any nature derived from any
source, including, but not limited to, any salary, wage, advance,
payment, dividend, interest, rent, honoraria, return of capital,
forgiveness of indebtedness, or anything of economic value.
  (10) 'Legislative or administrative interest' means an economic
interest, distinct from that of the general public, in one or
more bills, resolutions, regulations, proposals or other matters
subject to the action or vote of a person acting in the capacity
of a public official.
 
  (11) 'Legislative official' means any member or member-elect of
the Legislative Assembly, any member of an agency, board or
committee that is part of the legislative branch and any staff
person, assistant or employee thereof.
  (12) 'Member of household' means any relative who resides with
the public official.
  (13) 'Planning commission' means a county planning commission
created under ORS chapter 215 or a city planning commission
created under ORS chapter 227.
  (14) 'Potential conflict of interest' means any action or any
decision or recommendation by a person acting in a capacity as a
public official, the effect of which could be to the private
pecuniary benefit or detriment of the person or   { - the
person's relative - }  { +  a relative of the person + }, or a
business with which the person or   { - the person's relative - }
 { + a relative of the person + } is associated, unless the
pecuniary benefit or detriment arises out of the following:
  (a) An interest or membership in a particular business,
industry, occupation or other class required by law as a
prerequisite to the holding by the person of the office or
position.
  (b) Any action in the person's official capacity which would
affect to the same degree a class consisting of all inhabitants
of the state, or a smaller class consisting of an industry,
occupation or other group including one of which or in which the
person, or   { - the person's relative - }   { + a relative of
the person + } or business with which the person or   { - the
person's relative - }   { + a relative of the person + } is
associated, is a member or is engaged.  The commission may by
rule limit the minimum size of or otherwise establish criteria
for or identify the smaller classes that qualify under this
exception.
  (c) Membership in or membership on the board of directors of a
nonprofit corporation that is tax-exempt under section 501(c) of
the Internal Revenue Code.
  (15) 'Public official' means any person who, when an alleged
violation of this chapter occurs, is serving the State of Oregon
or any of its political subdivisions or any other public body of
the state as an officer, employee, agent or otherwise, and
irrespective of whether the person is compensated for such
services.
  (16) 'Relative' means the spouse of the public official, any
children of the public official or of the public official's
spouse, and brothers, sisters or parents of the public official
or of the public official's spouse.
  (17) 'Statement of economic interest' means a statement as
described by ORS 244.060 to 244.080.
  (18) 'Statewide official' means the Secretary of State or
Secretary of State-elect, State Treasurer or State
Treasurer-elect, Superintendent of Public Instruction or
Superintendent-elect of Public Instruction, Attorney General or
Attorney General-elect and the Commissioner of the Bureau of
Labor and Industries or the Commissioner-elect of the Bureau of
Labor and Industries.
  (19) 'Zoning commission' means an entity to which is delegated
at least some of the discretionary authority of a planning
commission or governing body relating to zoning and land use
matters.
  SECTION 2. ORS 244.040 is amended to read:
  244.040. The following actions are prohibited regardless of
whether actual conflicts of interest or potential conflicts of
interest are announced or disclosed pursuant to ORS 244.120:
  (1)  { - (a) No - }   { + A + } public official   { - shall - }
 { + may not + } use or attempt to use official position or
office to obtain financial gain or avoidance of financial
detriment   { - that would not otherwise be available but for the
public official's holding of the official position or office,
other than official salary, honoraria, except as prohibited in
paragraphs (b) and (c) of this subsection, reimbursement of
expenses or an unsolicited award for professional achievement - }
for the public official or   { - the public official's
relative - }  { +  a relative of the public official + }, or for
any business with which the public official or a relative of the
public official is associated { + , if the financial gain or
avoidance of financial detriment would not otherwise be available
but for the public official's holding of the official position or
office. This subsection does not apply to:
  (a) Official salary;
  (b) Honoraria except as prohibited in subsections (7) to (9) of
this section;
  (c) Reimbursement of expenses;
  (d) An unsolicited award for professional achievement;
  (e) The receipt by a public official or a relative of a public
official of something of economic value, without valuable
consideration of equivalent value, from any single source unless
the thing of economic value is received from a source that could
reasonably be known to have a legislative or administrative
interest in any governmental agency in which the official has any
official position or office or over which the official exercises
any authority;
  (f) The receipt by a public official or a relative of the
public official of any nonremunerative benefit specifically
approved by ordinance, resolution or rule by the political
subdivision, other public body or state agency that the public
official serves or by which the public official is employed; or
  (g) Any recommendation made by a public official in any
budgeting process or other negotiation with respect to an
increase in the salary or other compensation of the public
official or a relative of the public official + }.
    { - (b) No statewide official shall solicit or receive,
whether directly or indirectly, honoraria for the statewide
official or for any member of the household of the official. No
candidate for statewide office shall solicit or receive, whether
directly or indirectly, honoraria for the candidate or for any
member of the household of the candidate. - }
    { - (c) No legislative official shall solicit or receive,
whether directly or indirectly, honoraria in an amount in excess
of $1,500 or in any amount for an appearance within the state or
for an appearance during a legislative session, regardless of
location, for the legislative official or for any member of the
household of the official, except that a legislative official may
solicit or receive honoraria for services performed in relation
to the private profession or occupation of the legislative
official.  No candidate for legislative office shall solicit or
receive, whether directly or indirectly, honoraria in an amount
in excess of $1,500 or in any amount for an appearance within the
state for the candidate or for any member of the household of the
candidate, except that a candidate for legislative office may
solicit or receive honoraria for services performed in relation
to the private profession or occupation of the legislative
official. - }
    { - (d) Any public official not described in paragraph (b) or
(c) of this subsection or a member of the public official's
household may receive honoraria. - }
  (2)   { - No - }   { + A + } public official or candidate for
office or a relative of the public official or candidate
 { - shall - }   { + may not + } solicit or receive, whether
directly or indirectly, during any calendar year, any gift or
gifts with an aggregate value in excess of $100 from any single
source   { - who - }   { + that + } could reasonably be known to
have a legislative or administrative interest in any governmental
agency in which the official has or the candidate if elected
would have any official position or over which the official
exercises or the candidate if elected would exercise any
authority.
  (3)   { - No - }   { + A + } public official   { - shall - }
 { + may not + } solicit or receive, either directly or
indirectly, and   { - no - }   { + a + } person   { - shall - }
 { + may not + } offer or give to any public official any pledge
or promise of future employment, based on any understanding that
such public official's vote, official action or judgment would be
influenced thereby.
  (4)   { - No - }   { + A + } public official   { - shall - }
 { + may not + } attempt to further or further the personal gain
of the public official through the use of confidential
information gained in the course of or by reason of the official
position or activities of the public official in any way.
  (5)   { - No - }   { + A + } person   { - shall - }   { + may
not + } offer during any calendar year any gifts with an
aggregate value in excess of $100 to any public official or
candidate therefor or a relative of the public official or
candidate if the person has a legislative or administrative
interest in a governmental agency in which the official has or
the candidate if elected would have any official position or over
which the official exercises or the candidate if elected would
exercise any authority.
  (6)   { - No - }   { + A + } person   { - shall - }   { + may
not + } attempt to represent or represent a client for a fee
before the governing body of a public body of which the person is
a member. This subsection does not apply to the person's
employer, business partner or other associate.
   { +  (7) A statewide official may not solicit or receive,
whether directly or indirectly, honoraria for the statewide
official or for any member of the household of the official. A
candidate for statewide office may not solicit or receive,
whether directly or indirectly, honoraria for the candidate or
for any member of the household of the candidate.
  (8) Except as provided in subsection (10) of this section, a
legislative official may not solicit or receive, whether directly
or indirectly, honoraria for the legislative official or for any
member of the household of the official:
  (a) In any amount for an appearance within this state;
  (b) In an amount exceeding $1,500 for an appearance outside
this state; or
  (c) In any amount for an appearance during a legislative
session, regardless of location.
  (9) Except as provided in subsection (10) of this section, a
candidate for legislative office may not solicit or receive,
whether directly or indirectly, honoraria for the candidate or
for any member of the household of the candidate:
  (a) In any amount for an appearance within this state; or
  (b) In an amount exceeding $1,500 for an appearance outside
this state.
  (10) A legislative official or candidate for legislative office
may solicit or receive honoraria for services performed in
relation to the private profession or occupation of the
legislative official or candidate.
  (11) Any public official not described in subsections (7) to
(10) of this section or a member of the public official's
household may receive honoraria. + }
  SECTION 3. ORS 244.060 is amended to read:
  244.060. The statement of economic interest filed under ORS
244.050, shall be on a form prescribed by the Oregon Government
Standards and Practices Commission, and the person filing the
statement shall supply the information required by this section
and ORS 244.090, as follows:
 
 
  (1) The name of all positions as officer of a business and
business directorships held by the person or a member of the
household of the person during the preceding calendar year.
  (2) All names under which the person and members of the
household of the person do business.
  (3) Sources of income received at any time during the preceding
calendar year by the person or a member of the household of the
person that produce 10 percent or more of the total annual
household income.
  (4) The name, principal address and brief description of the
source of income from which 50 percent or more of the total
annual income of the person and members of the household of the
person was received during the preceding calendar year and
whether the source existed during the preceding year, and whether
the source is derived from an entity that now does business or
could reasonably be expected to do business or has legislative or
administrative interest in the governmental agency of which the
public official is or the candidate if elected would be a member
or over which the public official has or the candidate if elected
would have authority.
  (5)(a) The listing of all real property in which the public
official or candidate therefor or a member of the household of
the public official or candidate has or has had any personal,
beneficial ownership interest during the preceding calendar year,
any options to purchase or sell real property, including a land
sales contract, and any other rights of any kind in real property
located within the geographic boundaries of the governmental
agency of which the public official is or the candidate if
elected would be a member or over which the public official has
or the candidate if elected would have authority.
  (b) This subsection does not require the listing of the
principal residence of the public official or candidate.
  (6)(a) Notwithstanding ORS 244.020 (8)(c), if a public official
 { + or a relative of the public official + } has received food,
lodging and payment of travel expenses exceeding $100 when
participating in an event which bears a relationship to the
public official's office and when appearing in an official
capacity, the name, nature and business address of the
organization paying the expenses and the date and amount of that
expenditure.
  (b) Beginning on July 1, 1992, the dollar amount specified in
paragraph (a) of this subsection shall be adjusted annually by
the commission based upon the change in the Portland Consumer
Price Index for All Urban Consumers for All Items as prepared by
the Bureau of Labor Statistics of the United States Department of
Labor or its successor during the preceding 12-month period. The
amount determined under this paragraph shall be rounded to the
nearest dollar.
  (7) Any honoraria exceeding $50 received during the preceding
calendar year by the person or a member of the household of the
person, the payer of the honoraria and the date and time of the
event for which the honoraria was received.
  SECTION 4. ORS 244.100 is amended to read:
  244.100. (1) The Oregon Government Standards and Practices
Commission by rule may require the disclosure and reporting of
gifts or other compensation made to or received by a public
official or candidate for elective office.
  (2) The commission by rule may exempt from the gift limitation
contained in ORS 244.040, any gift of food or beverage but may
require that when gifts of food or beverage exceed a dollar
amount fixed by the commission, the source thereof shall be
disclosed on a form prescribed by the commission.
  (3) In addition to any disclosures or reports required under
subsections (1) and (2) of this section, any person or
organization that provides a public official  { + or a relative
of the public official + } with food, lodging or travel expenses
exceeding $50, as described in ORS 244.060 (6), shall notify the
public official in writing of the amount of the expense. The
notice shall be sent to the public official within 10 days from
the date such expenses are incurred.
  SECTION 5. ORS 244.260 is amended to read:
  244.260. (1)(a) Upon its own instigation or signed complaint of
any person, the Oregon Government Standards and Practices
Commission may undertake action in the Preliminary Review Phase
with respect to the contents of any statements filed under this
chapter or resolution adopted pursuant thereto or any alleged
violation of any provision of this chapter.
  (b) The public official who is the subject of a complaint or of
the commission's own action shall be notified immediately upon
receipt of the complaint or upon adoption of a motion by the
commission to undertake any action concerning the public
official.  The notice shall be given by telephone if the official
can be reached and shall also be in writing mailed to the
official. The notice shall include the nature of the complaint or
motion and a copy of all materials submitted along with the
complaint or materials which give rise to the commission's
instigation of action on its own motion. However, the official
must also be notified in advance if an issue that may give rise
to a motion to undertake action on the commission's own
instigation is to be discussed at a commission meeting.
  (c) Before investigating any complaint or undertaking any
investigation at the commission's own instigation, if the public
official who is the subject of the complaint or of the
commission's own action is a member of the Legislative Assembly,
the commission shall determine whether the alleged violation of
any provision of this chapter involves conduct protected by
section 9, Article IV of the Oregon Constitution. If the
commission determines that the conduct is protected by section 9,
Article IV of the Oregon Constitution, the commission shall
dismiss the complaint or rescind its motion as provided in
paragraph (e) of this subsection.
  (d) If the complaint has not been dismissed or the motion of
the commission has not been rescinded as described in paragraph
(c) of this subsection, before investigating any complaint or
undertaking an investigation on the commission's own instigation,
the commission shall make a finding that there is cause to
undertake an investigation, notify the public official who is the
subject of the investigation, identify the issues to be examined
and shall confine its investigation to those issues. If the
commission finds reason to expand its investigation, it shall
move to do so and shall record in its minutes the issues to be
examined before expanding the scope of its investigation and
formally notify the complainant and the public official who is
the subject of the complaint of the expansion and the scope
thereof.
  (e) If the commission does not make a finding of cause, or if
the commission determines that the alleged violation of this
chapter involves conduct protected by section 9, Article IV of
the Oregon Constitution, the commission shall dismiss the
complaint or rescind its motion and shall formally enter the
dismissal or rescission on its records. The commission shall
notify the public official of the dismissal or rescission. After
dismissal or rescission, the commission shall take no further
action involving the public official unless a new and different
complaint is filed or action at its own instigation is undertaken
based on different conduct.
  (2) The commission may:
  (a) During the Preliminary Review Phase, seek, solicit or
otherwise obtain any books, papers, records, memoranda or other
additional information, administer oaths and take depositions
necessary to determine whether there is cause or if the alleged
 
violation is protected by section 9, Article IV of the Oregon
Constitution; and
  (b) During the Investigatory Phase, require any additional
information, administer oaths, take depositions and issue
subpoenas to compel attendance of witnesses and the production of
books, papers, records, memoranda or other information necessary
to complete the investigation. If any person fails to comply with
any subpoena issued under this section or refuses to testify on
any matters on which the person may be lawfully interrogated, the
procedure provided in ORS 183.440 shall be followed to compel
compliance.
  (3) The person conducting any inquiry or investigation shall do
so in an impartial, objective manner. All favorable and
unfavorable information collected by the investigator shall be
turned over to the commission.
  (4) The findings of the commission in any inquiry or
investigation shall be reported impartially, including both
favorable and unfavorable findings, and shall be made available
to the public official who is the subject thereof, to the
appointing authority, if any, and to the Attorney General for
state public officials and to the appropriate district attorney
for local public officials. The findings shall be made available
to the Commission on Judicial Fitness and Disability in any
investigation involving a judge.
  (5) Hearings relating to any charge of alleged violation of
this chapter may be held before the commission or before a
hearing officer assigned from the Hearing Officer Panel
established under section 3, chapter 849, Oregon Laws 1999. The
procedure shall be that for a contested case under ORS 183.310 to
183.550.
  (6)(a) The period of time from the filing of a complaint or
from acting on the commission's own instigation to the finding of
cause or dismissal of the complaint or rescission of the motion
shall be termed the Preliminary Review Phase and   { - shall - }
 { + may + } not exceed   { - 90 - }   { + 135 + } days
unless { + :
  (A) + } A delay is stipulated to by both the public official
and the Oregon Government Standards and Practices Commission with
the commission reserving a portion of the delay period to
complete its actions { + ; or
  (B) A complaint is filed under this section with respect to a
person who is a candidate for elective public office, the
complaint is filed within 61 days prior to the date of an
election at which the person is a candidate for nomination or
election and a delay is requested in writing by the candidate. If
the candidate makes a request under this subparagraph, the
Preliminary Review Phase shall be completed not later than 90
days after the date of the first meeting of the commission that
is held after the date of the election + }.
  (b) The Preliminary Review Phase shall be confidential.
Commission members and staff may acknowledge receipt of a
complaint but   { - shall make no - }   { + may not make any + }
public comment or publicly disclose any materials relating to a
case during the Preliminary Review Phase. A person who
intentionally violates this paragraph is subject to a civil
penalty in an amount not to exceed $1,000. Any person aggrieved
as a result of a violation of this paragraph by a member of the
commission or its staff may file a petition in a court of
competent jurisdiction in the county in which the petitioner
resides in order to enforce the civil penalty provided in this
paragraph.
  (c) The commission's deliberations of a case at the conclusion
of the Preliminary Review Phase shall be conducted in executive
session.  { + Except as provided in ORS 192.685, + } all case
related materials and proceedings shall be open to the public
after the commission makes a finding of cause, dismisses a
complaint or rescinds a motion. Prior to the end of the
Preliminary Review Phase, the executive director of the
commission shall prepare a statement of the facts determined
during the phase, including appropriate legal citations and
relevant authorities. Before presentation to the commission, the
executive director's statement shall be reviewed by legal counsel
to the commission.
  (d) The time limit imposed in this subsection and the
commission's inquiry are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
inquiry.
  (7)(a) The period of time from the finding of cause to the
beginning of any contested case proceedings shall be termed the
Investigatory Phase and shall not exceed   { - 120 - }
 { + 180 + } days unless a delay is stipulated to by both the
public official and the Oregon Government Standards and Practices
Commission with the commission reserving a portion of the delay
period to complete its actions.
  (b) The time limit imposed in this subsection and the
commission's investigation are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
investigation.
  (c) At the end of the Investigatory Phase, the commission shall
take action by order, which action may include:
  (A) Dismissal, with or without comment;
  (B) Continuation of the investigation to determine further
facts, but no more than one continuation, not to exceed 30 days'
duration, shall be taken;
  (C) Moving to a contested case proceeding;
  (D) Seeking a negotiated settlement; or
  (E) Taking other appropriate action if justified by the
findings.
  (8) If, at the end of the Investigatory Phase, the commission
takes action by order to move to a contested case proceeding, a
public official may notify the commission that the official
elects to have the commission file a lawsuit against the official
in the Marion County Circuit Court in lieu of the contested case
proceeding. The public official shall notify the commission of
the election in writing no later than 21 days after receiving
notification of the commission's action by order to move to the
contested case proceeding. The commission shall file suit within
30 days after receiving notice that the public official has
elected the lawsuit procedure.
  (9) The commission   { - shall - }   { + may + } not inquire
into or investigate any complaint or act at its own instigation
on alleged conduct that occurred more than four years before the
complaint is filed or action is undertaken.
  (10) Nothing in this section is intended to prevent the
commission and the public official or other person alleged to
have violated this chapter from stipulating to a finding of fact
concerning the violation and consenting to an appropriate
penalty.  The commission shall enter an order accordingly.
  (11) As used in this section:
  (a) 'Cause' means that there is a substantial, objective basis
for believing that an offense or violation may have been
committed and the person who is the subject of an inquiry may
have committed the offense or violation.
 
  (b) 'Pending' means that a prosecuting attorney is either
actively investigating the factual basis of the alleged criminal
conduct, is preparing to seek or is seeking an accusatory
instrument, has obtained an accusatory instrument and is
proceeding to trial or is in trial or in the process of
negotiating a plea.
  SECTION 6. ORS 244.260, as amended by section 52, chapter 849,
Oregon Laws 1999, is amended to read:
  244.260. (1)(a) Upon its own instigation or signed complaint of
any person, the Oregon Government Standards and Practices
Commission may undertake action in the Preliminary Review Phase
with respect to the contents of any statements filed under this
chapter or resolution adopted pursuant thereto or any alleged
violation of any provision of this chapter.
  (b) The public official who is the subject of a complaint or of
the commission's own action shall be notified immediately upon
receipt of the complaint or upon adoption of a motion by the
commission to undertake any action concerning the public
official.  The notice shall be given by telephone if the official
can be reached and shall also be in writing mailed to the
official. The notice shall include the nature of the complaint or
motion and a copy of all materials submitted along with the
complaint or materials which give rise to the commission's
instigation of action on its own motion. However, the official
must also be notified in advance if an issue that may give rise
to a motion to undertake action on the commission's own
instigation is to be discussed at a commission meeting.
  (c) Before investigating any complaint or undertaking any
investigation at the commission's own instigation, if the public
official who is the subject of the complaint or of the
commission's own action is a member of the Legislative Assembly,
the commission shall determine whether the alleged violation of
any provision of this chapter involves conduct protected by
section 9, Article IV of the Oregon Constitution. If the
commission determines that the conduct is protected by section 9,
Article IV of the Oregon Constitution, the commission shall
dismiss the complaint or rescind its motion as provided in
paragraph (e) of this subsection.
  (d) If the complaint has not been dismissed or the motion of
the commission has not been rescinded as described in paragraph
(c) of this subsection, before investigating any complaint or
undertaking an investigation on the commission's own instigation,
the commission shall make a finding that there is cause to
undertake an investigation, notify the public official who is the
subject of the investigation, identify the issues to be examined
and shall confine its investigation to those issues. If the
commission finds reason to expand its investigation, it shall
move to do so and shall record in its minutes the issues to be
examined before expanding the scope of its investigation and
formally notify the complainant and the public official who is
the subject of the complaint of the expansion and the scope
thereof.
  (e) If the commission does not make a finding of cause, or if
the commission determines that the alleged violation of this
chapter involves conduct protected by section 9, Article IV of
the Oregon Constitution, the commission shall dismiss the
complaint or rescind its motion and shall formally enter the
dismissal or rescission on its records. The commission shall
notify the public official of the dismissal or rescission. After
dismissal or rescission, the commission shall take no further
action involving the public official unless a new and different
complaint is filed or action at its own instigation is undertaken
based on different conduct.
  (2) The commission may:
  (a) During the Preliminary Review Phase, seek, solicit or
otherwise obtain any books, papers, records, memoranda or other
additional information, administer oaths and take depositions
necessary to determine whether there is cause or if the alleged
violation is protected by section 9, Article IV of the Oregon
Constitution; and
  (b) During the Investigatory Phase, require any additional
information, administer oaths, take depositions and issue
subpoenas to compel attendance of witnesses and the production of
books, papers, records, memoranda or other information necessary
to complete the investigation. If any person fails to comply with
any subpoena issued under this section or refuses to testify on
any matters on which the person may be lawfully interrogated, the
procedure provided in ORS 183.440 shall be followed to compel
compliance.
  (3) The person conducting any inquiry or investigation shall do
so in an impartial, objective manner. All favorable and
unfavorable information collected by the investigator shall be
turned over to the commission.
  (4) The findings of the commission in any inquiry or
investigation shall be reported impartially, including both
favorable and unfavorable findings, and shall be made available
to the public official who is the subject thereof, to the
appointing authority, if any, and to the Attorney General for
state public officials and to the appropriate district attorney
for local public officials. The findings shall be made available
to the Commission on Judicial Fitness and Disability in any
investigation involving a judge.
  (5) Hearings relating to any charge of alleged violation of
this chapter may be held before the commission or before a
hearing officer appointed by the commission. The procedure shall
be that for a contested case under ORS 183.310 to 183.550.
  (6)(a) The period of time from the filing of a complaint or
from acting on the commission's own instigation to the finding of
cause or dismissal of the complaint or rescission of the motion
shall be termed the Preliminary Review Phase and   { - shall - }
 { + may + } not exceed   { - 90 - }   { + 135 + } days
unless { + :
  (A) + } A delay is stipulated to by both the public official
and the Oregon Government Standards and Practices Commission with
the commission reserving a portion of the delay period to
complete its actions { + ; or
  (B) A complaint is filed under this section with respect to a
person who is a candidate for elective public office, the
complaint is filed within 61 days prior to the date of an
election at which the person is a candidate for nomination or
election and a delay is requested in writing by the candidate. If
the candidate makes a request under this subparagraph, the
Preliminary Review Phase shall be completed not later than 90
days after the date of the first meeting of the commission that
is held after the date of the election + }.
  (b) The Preliminary Review Phase shall be confidential.
Commission members and staff may acknowledge receipt of a
complaint but   { - shall make no - }   { + may not make any + }
public comment or publicly disclose any materials relating to a
case during the Preliminary Review Phase. A person who
intentionally violates this paragraph is subject to a civil
penalty in an amount not to exceed $1,000. Any person aggrieved
as a result of a violation of this paragraph by a member of the
commission or its staff may file a petition in a court of
competent jurisdiction in the county in which the petitioner
resides in order to enforce the civil penalty provided in this
paragraph.
  (c) The commission's deliberations of a case at the conclusion
of the Preliminary Review Phase shall be conducted in executive
session.  { + Except as provided in ORS 192.685, + } all case
related materials and proceedings shall be open to the public
after the commission makes a finding of cause, dismisses a
complaint or rescinds a motion. Prior to the end of the
Preliminary Review Phase, the executive director of the
commission shall prepare a statement of the facts determined
during the phase, including appropriate legal citations and
relevant authorities. Before presentation to the commission, the
executive director's statement shall be reviewed by legal counsel
to the commission.
  (d) The time limit imposed in this subsection and the
commission's inquiry are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
inquiry.
  (7)(a) The period of time from the finding of cause to the
beginning of any contested case proceedings shall be termed the
Investigatory Phase and shall not exceed   { - 120 - }
 { + 180 + } days unless a delay is stipulated to by both the
public official and the Oregon Government Standards and Practices
Commission with the commission reserving a portion of the delay
period to complete its actions.
  (b) The time limit imposed in this subsection and the
commission's investigation are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
investigation.
  (c) At the end of the Investigatory Phase, the commission shall
take action by order, which action may include:
  (A) Dismissal, with or without comment;
  (B) Continuation of the investigation to determine further
facts, but no more than one continuation, not to exceed 30 days'
duration, shall be taken;
  (C) Moving to a contested case proceeding;
  (D) Seeking a negotiated settlement; or
  (E) Taking other appropriate action if justified by the
findings.
  (8) If, at the end of the Investigatory Phase, the commission
takes action by order to move to a contested case proceeding, a
public official may notify the commission that the official
elects to have the commission file a lawsuit against the official
in the Marion County Circuit Court in lieu of the contested case
proceeding. The public official shall notify the commission of
the election in writing no later than 21 days after receiving
notification of the commission's action by order to move to the
contested case proceeding. The commission shall file suit within
30 days after receiving notice that the public official has
elected the lawsuit procedure.
  (9) The commission   { - shall - }   { + may + } not inquire
into or investigate any complaint or act at its own instigation
on alleged conduct that occurred more than four years before the
complaint is filed or action is undertaken.
  (10) Nothing in this section is intended to prevent the
commission and the public official or other person alleged to
have violated this chapter from stipulating to a finding of fact
concerning the violation and consenting to an appropriate
penalty.  The commission shall enter an order accordingly.
  (11) As used in this section:
  (a) 'Cause' means that there is a substantial, objective basis
for believing that an offense or violation may have been
committed and the person who is the subject of an inquiry may
have committed the offense or violation.
 
  (b) 'Pending' means that a prosecuting attorney is either
actively investigating the factual basis of the alleged criminal
conduct, is preparing to seek or is seeking an accusatory
instrument, has obtained an accusatory instrument and is
proceeding to trial or is in trial or in the process of
negotiating a plea.
  SECTION 7. ORS 244.280 is amended to read:
  244.280. (1) Upon the written request of any public official,
candidate for public office or any person, or upon its own
motion, the Oregon Government Standards and Practices Commission,
under signature of the chairperson, may issue and publish
opinions on the requirements of this chapter, based on actual or
hypothetical circumstances.
  (2) If any public official or business with which the public
official is associated is in doubt whether a proposed transaction
or action constitutes a violation of this chapter, the public
official or the business may request in writing a determination
from the commission. If any public official is in doubt whether
receipt of an honoraria is in violation of this chapter because
the person paying the honoraria may be found to have a
legislative or administrative interest, the public official shall
request in writing a determination from the commission. The
requester shall supply such information as the commission
requests to enable it to issue the interpretation.
  (3) A public official or business with which a public official
is associated   { - shall - }   { + may + } not be liable under
this chapter, for any action or transaction carried out in
accordance with an advisory interpretation issued under
subsection (2) of this section. Such an advisory interpretation
shall be considered a formal opinion   { - having precedential
effect - }  and shall be subject to review by legal counsel to
the commission before the interpretation is sent to the
requester.
   { +  (4) Notwithstanding subsections (1) and (2) of this
section, any standard or statement of general applicability that
implements or interprets provisions of this chapter, or describes
the procedure or practice requirements of the commission, must be
adopted by the commission by rule. + }
  SECTION 8. ORS 244.350 is amended to read:
  244.350. (1) { +  Except as provided in subsection (3) of this
section, + } the Oregon Government Standards and Practices
Commission or the court under ORS 244.260 (8) may impose civil
penalties not to exceed { + :
  (a) Except as provided in paragraph (b) of this subsection, + }
$1,000 for   { - violating - }   { + violation of + } any
provision of this chapter or any  { + rule or + } resolution
adopted   { - pursuant thereto except that - }  { + under this
chapter.
  (b) $25,000 + } for violation of ORS 244.045   { - the
commission may impose a civil penalty of not to exceed
$25,000 - } .
  (2) { +  Except as provided in subsection (3) of this
section, + } the commission may   { - also - }  impose civil
penalties not to exceed $1,000 for   { - violating - }
 { + violation of + } any provision of ORS 192.660.
  { - However, a civil penalty may not be imposed under this
subsection if the violation occurred as a result of the governing
body of the public body acting upon the advice of the public
body's counsel. - }
   { +  (3) A civil penalty may not be imposed under this section
if the violation occurred as a result of the governing body of
the public body acting upon the advice of counsel representing
the public body.
  (4) In lieu of imposing a civil penalty under this section, the
commission may issue a formal letter of reprimand. + }
 
    { - (3) - }   { + (5) + } Any penalty imposed  { + or letter
of reprimand issued + } under this section is in addition to and
not in lieu of any other penalty or sanction that may be imposed
according to law, including removal from office.
  SECTION 9. ORS 171.735 is amended to read:
  171.735. ORS 171.740 and 171.745 do not apply to the following
persons:
  (1) News media, or their employees or agents, that in the
ordinary course of business directly or indirectly urge
legislative action but that engage in no other activities in
connection with the legislative action.
  (2) Any legislative official acting in an official capacity.
  (3) Any individual who receives no compensation or
reimbursement of expenses for lobbying, who limits lobbying
activities solely to formal appearances to give testimony before
public sessions of committees of the Legislative Assembly, or
public hearings of state agencies, and who, when testifying,
registers an appearance in the records of the committees or
agencies.
  (4) A person who { + :
  (a) Does not receive compensation or reimbursement of expenses
for lobbying; and
  (b) + } Spends not more than 24 hours during any calendar
quarter lobbying and who does not spend an amount in excess of
$100 lobbying during any calendar quarter.
  (5) The Governor, Executive Assistant to the Governor, Legal
Counsel to the Governor, Secretary of State, Deputy Secretary of
State appointed pursuant to ORS 177.040, State Treasurer, Chief
Deputy State Treasurer appointed pursuant to ORS 178.060,
Attorney General, Deputy Attorney General appointed pursuant to
ORS 180.130, Superintendent of Public Instruction, Commissioner
of the Bureau of Labor and Industries and any judge.
  SECTION 10. ORS 171.740 is amended to read:
  171.740. (1)   { - Within three working days after exceeding
the limit of time or expenditure specified in ORS 171.735 (4), a
lobbyist shall register with the Oregon Government Standards and
Practices Commission - }   { + A lobbyist shall register with the
Oregon Government Standards and Practices Commission not later
than five business days after the lobbyist:
  (a) Agrees to provide personal services for money or any other
consideration for the purpose of lobbying; or
  (b) Exceeds the time or expenditure limitations specified in
ORS 171.735 (4).
  (2) A lobbyist shall register  + }by filing with the commission
a statement containing the following information:
  (a) The name, address and telephone number of the lobbyist.
  (b) The name, address and telephone number of each person that
employs the lobbyist or in whose interest the lobbyist appears or
works.
  (c) A general description of the trade, business, profession or
area of endeavor of any person designated under paragraph (b) of
this subsection, and a statement by the person that the lobbyist
is officially authorized to lobby for the person.
  (d) The name of any member of the Legislative Assembly
employed, retained or otherwise compensated by:
  (A) The lobbyist designated under paragraph (a) of this
subsection; or
  (B) A person designated under paragraph (b) of this subsection.
  (e) The general subject or subjects of the legislative action
of interest to the person for whom the lobbyist is registered.
    { - (2) - }   { + (3) + } The designation of official
authorization to lobby shall be signed by an official of each
person that employs the lobbyist or in whose interest the
lobbyist appears or works.
    { - (3) - }   { + (4) + } If a lobbyist appears for a person
for whom the lobbyist has not registered, the lobbyist shall
register with the commission within three working days of the
lobbyist's appearance.
    { - (4) - }   { + (5) + } If any of the information submitted
by a lobbyist in the statement required under subsection
 { - (1) - }   { + (2) + } of this section changes, the lobbyist
shall revise the statement within 30 days of the change.
    { - (5) - }   { + (6) + } A lobbyist registration expires
December 31 of an odd-numbered year. If a lobbyist renews the
registration before March 31 of the following even-numbered year,
the commission shall consider the registration to have been
effective as of December 31 of the odd-numbered year on which the
registration expired.
    { - (6) - }   { + (7) + } For the statement required by this
section, an entity comprised of more than one lobbyist may file
one statement for the lobbyists that comprise the entity. The
statement the entity files must include the names of the
individuals authorized to lobby on behalf of the client listed in
the statement.
  SECTION 10a. ORS 171.778 is amended to read:
  171.778. (1) Upon its own instigation or signed complaint of
any person, the Oregon Government Standards and Practices
Commission may undertake action in the Preliminary Review Phase
with respect to any alleged violation of ORS 171.725 to 171.785.
The person who is the subject of a complaint or of the
commission's own action shall be notified immediately upon
receipt of the complaint or upon adoption of a motion by the
commission to undertake any action concerning the person. The
notice shall be given by telephone if the person can be reached
and a notice shall also be mailed to the person. The notice shall
include the nature of the complaint or motion and a copy of all
materials submitted along with the complaint or materials which
give rise to the commission's instigation of action on its own
motion. However, the person must also be notified in advance if
an issue that may give rise to a motion to undertake action on
the commission's own instigation is to be discussed at a
commission meeting. Before investigating any complaint or
undertaking an investigation on its own instigation, the
commission shall make a finding that there is cause to undertake
an investigation, notify the person who is the subject of the
investigation, identify the issues to be examined and shall
confine its investigation to those issues. If the commission
finds reason to expand its investigation, it shall move to do so
and shall record in its minutes the issues to be examined before
expanding the scope of its investigation and formally notify the
complainant and the person who is the subject of the complaint of
the expansion and the scope thereof. If the commission does not
make a finding of cause, it shall dismiss the complaint or
rescind its motion and shall formally enter the dismissal or
rescission on its records. The commission shall notify the person
of the dismissal or rescission. After dismissal or rescission,
the commission shall take no further action involving the person
unless a new and different complaint is filed or action at its
own instigation is undertaken based on different conduct.
  (2) The commission may:
  (a) During the Preliminary Review Phase, seek, solicit or
otherwise obtain any books, papers, records, memoranda or other
additional information, administer oaths, and take depositions
necessary to determine whether there is cause; and
  (b) During the Investigatory Phase, require any additional
information, administer oaths, take depositions and issue
subpoenas to compel attendance of witnesses and the production of
books, papers, records, memoranda or other information necessary
to complete the investigation. If any person fails to comply with
any subpoena issued under this section or refuses to testify on
any matters on which the person may be lawfully interrogated, the
 
procedure provided in ORS 183.440 shall be followed to compel
compliance.
  (3) The person conducting any inquiry or investigation shall do
so in an impartial, objective manner. All favorable and
unfavorable information collected by the investigator shall be
turned over to the commission.
  (4) The findings of the commission in any inquiry or
investigation shall be reported impartially, including both
favorable and unfavorable findings, and shall be made available
to the person who is the subject thereof and to any employer of
the person.
  (5) Hearings relating to any charge of alleged violation of ORS
171.725 to 171.785 may be held before the commission or before a
hearing officer assigned from the Hearing Officer Panel
established under section 3, chapter 849, Oregon Laws 1999. The
procedure shall be that for a contested case under ORS 183.310 to
183.550.
  (6)(a) The period of time from the filing of a complaint or
from acting on the commission's own instigation to the finding of
cause or dismissal of the complaint or rescission of the motion
shall be termed the Preliminary Review Phase and shall not exceed
  { - 90 - }  { +  135 + } days unless a delay is stipulated to
by both the subject person and the Oregon Government Standards
and Practices Commission, with the commission reserving a portion
of the delay period to complete its actions.
  (b) The Preliminary Review Phase shall be confidential.
Commission members and staff may acknowledge receipt of a
complaint but shall make no public comment or publicly disclose
any materials relating to a case during the Preliminary Review
Phase. A person who intentionally violates this paragraph is
subject to a civil penalty in an amount not to exceed $1,000. Any
person aggrieved as a result of a violation of this paragraph by
a member of the commission or its staff may file a petition in a
court of competent jurisdiction in the county in which the
petitioner resides in order to enforce the civil penalty provided
in this paragraph.
  (c) The commission's deliberations of a case at the conclusion
of the Preliminary Review Phase shall be conducted in executive
session. All case related materials and proceedings shall be open
to the public after the commission makes a finding of cause,
dismisses a complaint or rescinds a motion. Prior to the end of
the Preliminary Review Phase, the executive director of the
commission shall prepare a statement of the facts determined
during the phase, including appropriate legal citations and
relevant authorities. Before presentation to the commission, the
executive director's statement shall be reviewed by legal counsel
to the commission.
  (d) The time limit imposed in this subsection and the
commission's inquiry are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission, unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
inquiry.
  (7)(a) The period of time from the finding of cause to the
beginning of any contested case proceedings shall be termed the
Investigatory Phase and shall not exceed   { - 120 - }  { +
180 + } days unless a delay is stipulated to by both the subject
person and the Oregon Government Standards and Practices
Commission, with the commission reserving a portion of the delay
period to complete its actions.
  (b) The time limit imposed in this subsection and the
commission's investigation are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission, unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
investigation.
  (c) At the end of the Investigatory Phase, the commission shall
take action by order, which action may include:
  (A) Dismissal, with or without comment;
  (B) Continuation of the investigation to determine further
facts, but no more than one continuation, not to exceed 30 days'
duration, shall be taken;
  (C) Moving to a contested case proceeding;
  (D) Seeking a negotiated settlement; or
  (E) Taking other appropriate action if justified by the
findings.
  (8) If, at the end of the Investigatory Phase, the commission
takes action by order to move to a contested case proceeding, a
person may notify the commission that the person elects to have
the commission file a lawsuit against the person in the Marion
County Circuit Court in lieu of the contested case proceeding.
The court may impose the penalty described in ORS 171.992. The
person shall notify the commission of the election in writing no
later than 21 days after receiving notification of the
commission's action by order to move to the contested case
proceeding. The commission shall file suit within 30 days after
receiving notice that the person has elected the lawsuit
procedure.
  (9) The commission shall not inquire into or investigate any
complaint or act at its own instigation on alleged conduct that
occurred more than four years before the complaint is filed or
action is undertaken.
  (10) Nothing in this section is intended to prevent the
commission and the person alleged to have violated ORS 171.725 to
171.785 from stipulating to a finding of fact concerning the
violation and consenting to an appropriate penalty. The
commission shall enter an order accordingly.
  (11) As used in this section, 'cause' and 'pending' have the
meanings given those terms in ORS 244.260.
  SECTION 10b. ORS 171.778, as amended by section 49, chapter
849, Oregon Laws 1999, is amended to read:
  171.778. (1) Upon its own instigation or signed complaint of
any person, the Oregon Government Standards and Practices
Commission may undertake action in the Preliminary Review Phase
with respect to any alleged violation of ORS 171.725 to 171.785.
The person who is the subject of a complaint or of the
commission's own action shall be notified immediately upon
receipt of the complaint or upon adoption of a motion by the
commission to undertake any action concerning the person. The
notice shall be given by telephone if the person can be reached
and a notice shall also be mailed to the person. The notice shall
include the nature of the complaint or motion and a copy of all
materials submitted along with the complaint or materials which
give rise to the commission's instigation of action on its own
motion. However, the person must also be notified in advance if
an issue that may give rise to a motion to undertake action on
the commission's own instigation is to be discussed at a
commission meeting. Before investigating any complaint or
undertaking an investigation on its own instigation, the
commission shall make a finding that there is cause to undertake
an investigation, notify the person who is the subject of the
investigation, identify the issues to be examined and shall
confine its investigation to those issues. If the commission
finds reason to expand its investigation, it shall move to do so
and shall record in its minutes the issues to be examined before
expanding the scope of its investigation and formally notify the
complainant and the person who is the subject of the complaint of
the expansion and the scope thereof. If the commission does not
make a finding of cause, it shall dismiss the complaint or
rescind its motion and shall formally enter the dismissal or
rescission on its records. The commission shall notify the person
of the dismissal or rescission. After dismissal or rescission,
the commission shall take no further action involving the person
unless a new and different complaint is filed or action at its
own instigation is undertaken based on different conduct.
  (2) The commission may:
  (a) During the Preliminary Review Phase, seek, solicit or
otherwise obtain any books, papers, records, memoranda or other
additional information, administer oaths, and take depositions
necessary to determine whether there is cause; and
  (b) During the Investigatory Phase, require any additional
information, administer oaths, take depositions and issue
subpoenas to compel attendance of witnesses and the production of
books, papers, records, memoranda or other information necessary
to complete the investigation. If any person fails to comply with
any subpoena issued under this section or refuses to testify on
any matters on which the person may be lawfully interrogated, the
procedure provided in ORS 183.440 shall be followed to compel
compliance.
  (3) The person conducting any inquiry or investigation shall do
so in an impartial, objective manner. All favorable and
unfavorable information collected by the investigator shall be
turned over to the commission.
  (4) The findings of the commission in any inquiry or
investigation shall be reported impartially, including both
favorable and unfavorable findings, and shall be made available
to the person who is the subject thereof and to any employer of
the person.
  (5) Hearings relating to any charge of alleged violation of ORS
171.725 to 171.785 may be held before the commission or before a
hearing officer appointed by the commission. The procedure shall
be that for a contested case under ORS 183.310 to 183.550.
  (6)(a) The period of time from the filing of a complaint or
from acting on the commission's own instigation to the finding of
cause or dismissal of the complaint or rescission of the motion
shall be termed the Preliminary Review Phase and shall not exceed
  { - 90 - }  { +  135 + } days unless a delay is stipulated to
by both the subject person and the Oregon Government Standards
and Practices Commission, with the commission reserving a portion
of the delay period to complete its actions.
  (b) The Preliminary Review Phase shall be confidential.
Commission members and staff may acknowledge receipt of a
complaint but shall make no public comment or publicly disclose
any materials relating to a case during the Preliminary Review
Phase. A person who intentionally violates this paragraph is
subject to a civil penalty in an amount not to exceed $1,000. Any
person aggrieved as a result of a violation of this paragraph by
a member of the commission or its staff may file a petition in a
court of competent jurisdiction in the county in which the
petitioner resides in order to enforce the civil penalty provided
in this paragraph.
  (c) The commission's deliberations of a case at the conclusion
of the Preliminary Review Phase shall be conducted in executive
session. All case related materials and proceedings shall be open
to the public after the commission makes a finding of cause,
dismisses a complaint or rescinds a motion. Prior to the end of
the Preliminary Review Phase, the executive director of the
commission shall prepare a statement of the facts determined
during the phase, including appropriate legal citations and
relevant authorities. Before presentation to the commission, the
executive director's statement shall be reviewed by legal counsel
to the commission.
  (d) The time limit imposed in this subsection and the
commission's inquiry are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission, unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
inquiry.
  (7)(a) The period of time from the finding of cause to the
beginning of any contested case proceedings shall be termed the
Investigatory Phase and shall not exceed   { - 120 - }  { +
180 + } days unless a delay is stipulated to by both the subject
person and the Oregon Government Standards and Practices
Commission, with the commission reserving a portion of the delay
period to complete its actions.
  (b) The time limit imposed in this subsection and the
commission's investigation are suspended if:
  (A) There is a pending criminal investigation that relates to
the issues arising out of the underlying facts or conduct at
issue in the matter before the commission, unless the parties
stipulate otherwise; or
  (B) A court has enjoined the commission from continuing its
investigation.
  (c) At the end of the Investigatory Phase, the commission shall
take action by order, which action may include:
  (A) Dismissal, with or without comment;
  (B) Continuation of the investigation to determine further
facts, but no more than one continuation, not to exceed 30 days'
duration, shall be taken;
  (C) Moving to a contested case proceeding;
  (D) Seeking a negotiated settlement; or
  (E) Taking other appropriate action if justified by the
findings.
  (8) If, at the end of the Investigatory Phase, the commission
takes action by order to move to a contested case proceeding, a
person may notify the commission that the person elects to have
the commission file a lawsuit against the person in the Marion
County Circuit Court in lieu of the contested case proceeding.
The court may impose the penalty described in ORS 171.992. The
person shall notify the commission of the election in writing no
later than 21 days after receiving notification of the
commission's action by order to move to the contested case
proceeding. The commission shall file suit within 30 days after
receiving notice that the person has elected the lawsuit
procedure.
  (9) The commission shall not inquire into or investigate any
complaint or act at its own instigation on alleged conduct that
occurred more than four years before the complaint is filed or
action is undertaken.
  (10) Nothing in this section is intended to prevent the
commission and the person alleged to have violated ORS 171.725 to
171.785 from stipulating to a finding of fact concerning the
violation and consenting to an appropriate penalty. The
commission shall enter an order accordingly.
  (11) As used in this section, 'cause' and 'pending' have the
meanings given those terms in ORS 244.260.
  SECTION 11. ORS 192.650 is amended to read:
  192.650. (1)  { + Except for executive sessions described in
ORS 192.660, + } the governing body of a public body shall
provide for the taking of written minutes of all its
meetings { + . The governing body of a public body shall provide
for the electronic recording of all executive sessions + }.
 { - Neither a full transcript nor a recording of the meeting is
required, - }  Except as otherwise provided by law,  { +  written
minutes are not required to contain a full transcript of the
meeting and an electronic recording is not required to be
transcribed. + }   { - but the - }  Written minutes must give a
true reflection of the matters discussed at the meeting and the
views of the participants.  { + Except as provided in subsection
(2) of this section, + } all  { + written + } minutes shall be
available to the public within a reasonable time after the
meeting  { - , and shall - }  { + . Written minutes shall + }
include at least the following information:
  (a) All members of the governing body present;
  (b) All motions, proposals, resolutions, orders, ordinances and
measures proposed and their disposition;
  (c) The results of all votes and, except for public bodies
consisting of more than 25 members unless requested by a member
of that body, the vote of each member by name;
  (d) The substance of any discussion on any matter; and
  (e) Subject to ORS 192.410 to 192.505 relating to public
records, a reference to any document discussed at the meeting
 { - but such reference shall not affect the status of the
document under ORS 192.410 to 192.505 - } .
  (2)  { + In addition to an electronic recording, written + }
minutes of executive sessions   { - shall - }   { + may + } be
kept in accordance with subsection (1) of this section. However,
the  { + written + } minutes of a hearing held under ORS 332.061
shall contain only the material not excluded under ORS 332.061
(2).   { - Instead of written minutes, a record of any executive
session may be kept in the form of a sound tape recording, which
need not be transcribed unless otherwise provided by law. - }  If
the disclosure of certain material is inconsistent with the
purpose for which a meeting under ORS 192.660 is authorized to be
held, that material may be excluded from disclosure. However,
excluded materials are authorized to be examined privately by a
court in any legal action and the court shall determine their
admissibility.
   { +  (3) A reference in minutes or an electronic recording to
a document discussed at a meeting of a governing body of a public
body does not affect the status of the document under ORS 192.410
to 192.505. + }
  SECTION 12. ORS 192.685 is amended to read:
  192.685. (1) Notwithstanding ORS 192.680, complaints of
violations of ORS 192.660 alleged to have been committed by
public officials may be made to the Oregon Government Standards
and Practices Commission for review and investigation as provided
by ORS 244.260 and for possible imposition of civil penalties as
provided by ORS 244.350.
  (2) The commission may interview witnesses, review
minutes { + , electronic recordings required under ORS
192.650 + } and other records and may obtain and consider any
other information pertaining to executive sessions of the
governing body of a public body for purposes of determining
whether a violation of ORS 192.660 occurred. Information related
to an executive session conducted for a purpose authorized by ORS
192.660 shall be made available to the Oregon Government
Standards and Practices Commission for its investigation but
shall be excluded from public disclosure. { +  At the conclusion
of action under ORS 244.260, the commission shall return any
minutes and the electronic recording of the executive session to
the governing body of the public body that held the executive
session. + }
  (3) If the commission chooses not to pursue a complaint of a
violation brought under subsection (1) of this section at any
time before conclusion of a contested case hearing, the public
official against whom the complaint was brought may be entitled
to reimbursement of reasonable costs and attorney fees by the
public body to which the official's governing body has authority
to make recommendations or for which the official's governing
body has authority to make decisions.
  SECTION 13. ORS 351.067 is amended to read:
  351.067. (1) In carrying out its authority under ORS 351.070,
the State Board of Higher Education may authorize receipt of
compensation for any officer or employee of the Oregon University
System from private or public resources, including, but not
limited to, income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the state system;
  (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
state system and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates, which augment an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies and rules
established by the board.
  (2) The board shall not authorize compensation, as defined in
subsection (1) of this section, that, in the board's judgment,
does not comport with the mission of the institution and the
higher education system or substantially interferes with an
officer's or employee's duties to the state system.
  (3) Any compensation, described and authorized under subsection
(1) of this section, shall be considered official salary,
honorarium { + , nonremunerative benefit + } or reimbursement of
expenses for purposes of ORS 244.040. If authorization or receipt
of such compensation creates a potential conflict of interest,
the potential conflict shall be reported in writing in accordance
with rules of the state board. The disclosure is a public record
subject to public inspection.
  (4) The state board shall adopt by rule standards governing
employee outside employment and activities, including potential
conflict of interest, as defined by state board rule and
consistent with ORS 244.020, and the public disclosure thereof,
and procedures for reporting and hearing potential or actual
conflict of interest complaints.
  SECTION 14. ORS 353.270 is amended to read:
  353.270. (1) Oregon Health and Science University may authorize
receipt of compensation for any officer or employee of the
university from private or public resources, including but not
limited to income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the university;
  (d) Providing services or other valuable consideration for a
private corporation, individual or entity, whether paid in cash
or in kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
university and the private entity;
  (e) Performing public duties paid by private organizations,
including university corporate affiliates, that augment an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies
established by the university; and
  (f) Providing medical and other health services.
  (2) The university shall not authorize compensation, as
described in subsection (1) of this section, that, in the
university's judgment, does not comport with the missions of the
university or substantially interferes with an officer's or
employee's duties to the university.
  (3) Any compensation described and authorized under subsection
(1) of this section shall be considered official salary,
honorarium { + , nonremunerative benefit + } or reimbursement of
expenses for purposes of ORS 244.040. If authorization or receipt
of such compensation creates a potential conflict of interest,
the potential conflict shall be reported in writing in accordance
with policies of the university. The disclosure is a public
record subject to public inspection.
  (4) The university shall adopt standards governing employee
outside employment and activities of employees, including
potential conflicts of interest, as defined by the university and
consistent with ORS 244.020, and the public disclosure thereof,
and procedures for reporting and hearing potential or actual
conflict of interest complaints.
  SECTION 15.  { + (1) The amendments to ORS 244.020 and 244.040
by sections 1, 1a and 2 of this 2003 Act apply to:
  (a) Activities that occur on or after the effective date of
this 2003 Act; and
  (b) Complaints received and proceedings, actions, prosecutions
or other business or matters undertaken or commenced under any
provision of ORS chapter 244 on or after the effective date of
this 2003 Act.
  (2) The amendments to ORS 244.060 by section 3 of this 2003 Act
apply to statements filed on or after the effective date of this
2003 Act with respect to food, lodging and payment of travel
expenses received on or after the effective date of this 2003
Act.
  (3) The amendments to ORS 244.100 by section 4 of this 2003 Act
apply to notices regarding food, lodging or travel expenses
provided on or after the effective date of this 2003 Act.
  (4) The amendments to ORS 244.260 by sections 5 and 6 of this
2003 Act apply to complaints filed on or after the effective date
of this 2003 Act.
  (5) The amendments to ORS 244.350 by section 8 of this 2003 Act
apply to civil penalties that may be imposed or letters of
reprimand that may be issued for violations that occur on or
after the effective date of this 2003 Act.
  (6) The amendments to ORS 171.735, 171.740 and 171.778 by
sections 9, 10, 10a and 10b of this 2003 Act become operative
January 1, 2004, and apply to persons acting as lobbyists on or
after January 1, 2004, except that a person shall register with
the Oregon Government Standards and Practices Commission not
later than February 1, 2004, if the person:
  (a) Is a lobbyist on January 1, 2004;
  (b) Is required on January 1, 2004, to register as a lobbyist
under ORS 171.735 and 171.740 as amended by sections 9 and 10 of
this 2003 Act; and
  (c) Was not required to register as a lobbyist under ORS
171.735 and 171.740 prior to January 1, 2004.
  (7) The amendments to ORS 171.778 by sections 10a and 10b of
this 2003 Act apply to complaints filed on or after January 1,
2004.
  (8) The amendments to ORS 192.650 and 192.685 by sections 11
and 12 of this 2003 Act apply to executive sessions held on or
after the effective date of this 2003 Act.
  (9) The amendments to ORS 351.067 and 353.270 by sections 13
and 14 of this 2003 Act apply to compensation authorized on or
after the effective date of this 2003 Act.
  (10) Any proceeding, action, prosecution or other business or
matter undertaken or commenced before the effective date of this
2003 Act by the Oregon Government Standards and Practices
Commission under any provision of ORS chapter 244 or ORS 171.725
to 171.785, 192.650 or 192.685 and still pending on the effective
date of this 2003 Act may be conducted and completed by the
commission in the same manner, under the same terms and
conditions and with the same effect as though undertaken,
conducted or completed before the effective date of this 2003
Act.
  (11) Nothing in the amendments to ORS 171.735, 171.740,
171.778, 192.650, 192.685, 244.020, 244.040, 244.060, 244.100,
244.260, 244.280, 244.350, 351.067 and 353.270 by sections 1 to
14 of this 2003 Act relieves any person of any obligation with
respect to any tax, fee, fine, civil penalty or other charge,
interest, penalty, forfeiture or other liability, duty or
obligation. + }
  SECTION 16.  { + 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 on
its passage. + }
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