72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
Enrolled
Senate Bill 185
Printed pursuant to Senate Interim Rule 213.28 by order of the
President of the Senate in conformance with presession filing
rules, indicating neither advocacy nor opposition on the part
of the President (at the request of Governor Theodore R.
Kulongoski for the Oregon Student Assistance Commission)
CHAPTER ................
AN ACT
Relating to student assistance loans; creating new provisions;
amending ORS 348.530 and 348.570; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 348.530 is amended to read:
348.530. The Oregon Student Assistance Commission may:
(1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.
(2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
(3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
(4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees, which are related to and
necessary for making and protecting guaranteed loans and
recovering moneys and loans and management of property acquired
in connection with such loans.
(5) Sue and be sued.
(6) Pursuant to ORS 183.310 to 183.550, adopt such rules as may
be necessary to carry out the provisions of ORS 348.040 to
348.280, 348.393 to 348.399, 348.505 to 348.695 and 348.992.
(7) Cooperatively coordinate all types of financial aid
activities.
(8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
(9) Guarantee loans by eligible lending institutions to
{ - student residents of the State of Oregon - } { +
students + } who are enrolled or accepted for enrollment at any
eligible institution { - , nonresident students enrolled or
accepted for enrollment in an institution of higher education or
community college in Oregon, - } and parents of those students,
under the provisions of the Higher Education Act of 1965 as
amended.
Enrolled Senate Bill 185 (SB 185-A) Page 1
(10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student.
(11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605.
SECTION 2. ORS 348.530, as amended by section 1 of this 2003
Act, is amended to read:
348.530. The Oregon Student Assistance Commission may:
(1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.
(2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
(3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
(4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees, which are related to and
necessary for making and protecting guaranteed loans and
recovering moneys and loans and management of property acquired
in connection with such loans.
(5) Sue and be sued.
(6) Pursuant to ORS 183.310 to 183.550, adopt such rules as may
be necessary to carry out the provisions of ORS 348.040 to
348.280, 348.393 to 348.399, 348.505 to 348.695 and 348.992.
(7) Cooperatively coordinate all types of financial aid
activities.
(8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
(9) Guarantee loans by eligible lending institutions to
{ - students - } { + student residents of the State of
Oregon + } { + + }who are enrolled or accepted for enrollment
at any eligible institution { + , nonresident students enrolled
or accepted for enrollment in an institution of higher education
or community college in Oregon, + } and parents of those
students, under the provisions of the Higher Education Act of
1965 as amended.
(10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student.
(11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605.
SECTION 3. { + The amendments to ORS 348.530 by section 2 of
this 2003 Act become operative on June 30, 2009. + }
SECTION 4. ORS 348.570 is amended to read:
348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student Assistance Commission in carrying out the purposes
of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and
348.992. Interest earned by the fund shall be credited to the
fund.
Enrolled Senate Bill 185 (SB 185-A) Page 2
(2) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Student
Loan Guarantee Fund, which may be invested in the same manner as
the Oregon Student Assistance Fund. This fund shall receive funds
from federal, state or private sources for the purpose of
guarantying payment of loans made by eligible lending
institutions to { - student residents of the State of
Oregon - } { + students + } who are enrolled or accepted for
enrollment at any eligible institution { - , nonresident
students enrolled or accepted for enrollment in an institution of
higher education or community college in Oregon, - } and parents
of those students, under the provisions of the Higher Education
Act of 1965 as amended and for administrative expenses of
guarantying loans. This fund, including the interest earnings on
the fund, if any, is continuously appropriated to the commission
for those purposes for which such funds were provided to,
received or collected by the commission.
(3) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the
Alternative Student Loan Program Fund for investment as provided
by ORS 293.701 to 293.820 and for the payment of expenses of the
commission in carrying out the purposes of ORS 348.625 to
348.695. This fund, including the interest earnings on the fund,
if any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission.
(4)(a) There is established in the General Fund an account to
be known as the Nursing Services Account. Funds in the account
shall be used for the payment of expenses of the Nursing Services
Program created in ORS 442.540.
(b) The account shall consist of:
(A) Funds appropriated to the Oregon Student Assistance
Commission for deposit into the account;
(B) Collections and penalties received by the commission under
ORS 442.545; and
(C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
(c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
the next biennium.
(5) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Former
Foster Youth Scholarship Fund. Moneys received from
appropriations, donations and grants shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Oregon Student Assistance Commission for the purposes of
investment, as provided by ORS 293.701 to 293.820, and for
carrying out the provisions of ORS 348.270 (1)(b). Interest
earned by the fund shall be credited to the fund.
SECTION 5. ORS 348.570, as amended by section 4 of this 2003
Act, is amended to read:
348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student Assistance Commission in carrying out the purposes
of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and
348.992. Interest earned by the fund shall be credited to the
fund.
Enrolled Senate Bill 185 (SB 185-A) Page 3
(2) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Student
Loan Guarantee Fund, which may be invested in the same manner as
the Oregon Student Assistance Fund. This fund shall receive funds
from federal, state or private sources for the purpose of
guarantying payment of loans made by eligible lending
institutions to { - students - } { + student residents of the
State of Oregon + } who are enrolled or accepted for enrollment
at any eligible institution { + , nonresident students enrolled
or accepted for enrollment in an institution of higher education
or community college in Oregon, + } and parents of those
students, under the provisions of the Higher Education Act of
1965 as amended and for administrative expenses of guarantying
loans. This fund, including the interest earnings on the fund, if
any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission.
(3) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the
Alternative Student Loan Program Fund for investment as provided
by ORS 293.701 to 293.820 and for the payment of expenses of the
commission in carrying out the purposes of ORS 348.625 to
348.695. This fund, including the interest earnings on the fund,
if any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission.
(4)(a) There is established in the General Fund an account to
be known as the Nursing Services Account. Funds in the account
shall be used for the payment of expenses of the Nursing Services
Program created in ORS 442.540.
(b) The account shall consist of:
(A) Funds appropriated to the Oregon Student Assistance
Commission for deposit into the account;
(B) Collections and penalties received by the commission under
ORS 442.545; and
(C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
(c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
the next biennium.
(5) There is established in the State Treasury a fund, separate
and distinct from the General Fund, to be known as the Former
Foster Youth Scholarship Fund. Moneys received from
appropriations, donations and grants shall be credited to the
fund. Moneys in the fund are continuously appropriated to the
Oregon Student Assistance Commission for the purposes of
investment, as provided by ORS 293.701 to 293.820, and for
carrying out the provisions of ORS 348.270 (1)(b). Interest
earned by the fund shall be credited to the fund.
SECTION 6. { + The amendments to ORS 348.570 by section 5 of
this 2003 Act become operative on June 30, 2009. + }
SECTION 7. { + (1) The amendments to ORS 348.530 and 348.570
by sections 1 and 4 of this 2003 Act apply to loans that are
disbursed on or after the effective date of this 2003 Act and
prior to June 30, 2009.
(2) The amendments to ORS 348.530 and 348.570 by sections 2 and
5 of this 2003 Act apply to loans that are disbursed on or after
June 30, 2009. + }
SECTION 8. { + Prior to February 15, 2005, the Oregon Student
Assistance Commission shall report to the Seventy-third
Enrolled Senate Bill 185 (SB 185-A) Page 4
Legislative Assembly, and prior to February 15, 2007, the
commission shall report to the Seventy-fourth Legislative
Assembly, on the implementation of ORS 348.530 and 348.570 as
amended by sections 1 and 4 of this 2003 Act. Each report shall:
(1) Specify the actual revenue and fiscal impacts of
guarantying loans to nonresident students who attend eligible
post-secondary institutions not located in Oregon; and
(2) Include an evaluation of the effect of the implementation
of ORS 348.530 and 348.570 as amended by sections 1 and 4 of this
2003 Act on the commission's ability to serve resident students
who attend eligible post-secondary institutions in Oregon. + }
SECTION 9. { + This 2003 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2003 Act takes effect July 1,
2003. + }
----------
Passed by Senate March 21, 2003
Repassed by Senate May 27, 2003
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 19, 2003
...........................................................
Speaker of House
Enrolled Senate Bill 185 (SB 185-A) Page 5
Received by Governor:
......M.,............., 2003
Approved:
......M.,............., 2003
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2003
...........................................................
Secretary of State
Enrolled Senate Bill 185 (SB 185-A) Page 6