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 1852
 
                           A-Engrossed
 
                         Senate Bill 358
                  Ordered by the Senate March 4
            Including Senate Amendments dated March 4
 
Sponsored by Senator DECKERT, Representative BUTLER (at the
  request of Oregon Council on Knowledge and Economic
  Development)
 
 
                             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.
 
  Directs community colleges, state institutions of higher
education and Oregon Health and Science University to promote
commercialization of research and ideas.
    { - Exempts contracts entered into by state institutions of
higher education from review by Attorney General. - }
  Allows State Board of Higher Education to establish competitive
procedures for purchasing, procurement and contracting of
technology, and exemptions from those procedures.
 
                        A BILL FOR AN ACT
Relating to higher education; creating new provisions; and
  amending ORS 341.009, 351.003, 351.007, 351.009, 351.070 and
  353.030 and section 1, chapter 653, Oregon Laws 1997.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 341.009 is amended to read:
  341.009. The Legislative Assembly finds that:
  (1) The community college is an educational institution which
is intended to fill the institutional gap in education by
offering broad, comprehensive programs in academic as well as
professional technical subjects. It is primarily designed to
provide associate or certificate degree programs for some, serve
a transitional purpose for others who will continue baccalaureate
or other college work, provide the ability to enter the workforce
immediately and serve to determine future educational needs for
other students. It can provide means for continuation of academic
education, professional technical training or the attainment of
entirely new skills as demands for old skills and old occupations
are supplanted by new technologies.  { + It can contribute to
economic development in Oregon by being involved in research and
development activities and commercializing research through
technology transfer efforts. + } It may also provide the means to
coordinate courses and programs with high schools to enhance the
Certificate of Advanced Mastery and to accommodate successful
transition to college degree programs.
  (2) Each community college should be so located as to be within
commuting time of a substantial majority of its students.  As an
economical method of providing education close to the student's
home, the community college should remain a commuting
institution.
  (3) The community college should establish its organizational
patterns to maintain a unique quality of flexibility and the
ability to change to meet changing needs.
  (4) The community college is a post-high-school institution
under the general supervision of the State Board of Education. It
should not be a 'starter' institution intended to evolve into a
four-year baccalaureate institution. It should be concerned with
programs terminating before reaching the baccalaureate degree.
  (5) The community college should continue to be prohibited by
law from becoming a baccalaureate degree granting institution.
  (6) Admission to the community college should be open to high
school graduates or to non-high school graduates who can profit
from the instruction offered.
  (7) There should be close cooperation between those directing
the community college program and those responsible for higher
education, so that lower-division college transfer programs of
the community college will provide adequate preparation for
entering baccalaureate degree granting programs, and so that
students will be able to transfer with a minimum of difficulty.
  (8) The community college should offer as comprehensive a
program as the needs and resources of the area which it serves
dictate. Cost to student and quality of instruction in
established private institutions should be among the factors in
determining necessary duplication of effort.
   { +  (9) The community college should recognize the importance
of technology in the workplace and the reliance on technology by
industries of this state. The community college should
incorporate technology in courses it offers and should provide
accessible and affordable training in the technologies that are
used by the industries of this state. + }
    { - (9) - }  { +  (10) + } It should be the policy of the
community college to open its facilities and make available its
resources to the high schools of its area on a sound contractual
basis, for appropriate secondary or transitional courses, either
academic or professional technical, when it is within its ability
to provide facilities and it is determined that the high school
cannot or does not offer them.
    { - (10) - }  { +  (11) + } Programs designed to meet the
needs of the area served should be based on the actual
educational and service needs of the district. Specific
professional technical courses  { + and technology transfer
efforts + } should be related not only to the employment
opportunities of the area but of the state and nation as well.
Such determination should be made in consultation with
representatives of labor, business, industry, agriculture and
other interested groups.
    { - (11) - }  { +  (12) + } The State Board of Education
should be responsible for coordinating the community college
program of the state and should have general supervisory
responsibilities for that program. The State Board of Education
should prepare estimates and make the requests for legislative
appropriations for a reasonable and consistent basis of support
and establish standards for the distribution of that support.
    { - (12) - }  { +  (13) + } The initiative for the
establishment of new community colleges should come from the
localities to be served, as a response to demonstrated
educational needs of an area.  However, these localities must not
only be willing to assume the responsibility for the institutions
but must be able to provide resources needed for an adequate
educational and service program.
    { - (13) - }  { +  (14) + } The governing board of the
community college should be charged with the policy-making
 
function. With respect to educational programming, the governing
board should in cooperation with the State Board of Education:
  (a) Identify educational needs of the district; and
  (b) Bring together the resources necessary to meet the needs.
    { - (14) - }  { +  (15) + } The state should maintain a
policy of substantial state participation in community college
building costs and the maintenance of an adequate level of state
support for operation.  However, no state funds should be
appropriated for buildings such as dormitories or athletic
facilities for spectator sports. The district should provide a
substantial portion of the funds for capital improvement as well
as for operation of a community college.
    { - (15) - }  { +  (16) + } State appropriations for
community colleges shall be made separately from those for other
segments of education.
    { - (16) - }  { +  (17) + } The formula for the distribution
of funds for operating costs should reflect the heavier operating
costs and capital outlay for certain professional technical
courses. Federal funds received for professional technical
training, adult basic education, workforce development or other
federal initiatives should be used for those purposes only and be
distributed separately from funds appropriated by the state and
should be exempted from the computations of the present
distribution formula for operating costs.
    { - (17) - }  { +  (18) + } The cost of education to the
individual should be sufficiently low to permit students of
low-income families to attend. This is particularly true of
tuition costs. However, students should pay an amount sufficient
to provide an incentive to profit from the instructional program
offered.
    { - (18) - }  { +  (19) + } Any eligible Oregon resident
should have the right to attend a community college even though
not residing in a district operating one, subject to the right of
the governing board to limit the size of classes and to give
preference to students residing in the district. Local school
districts and education service districts should have the
authority to negotiate the terms and conditions with the
governing boards for the enrollment of students residing in such
areas.
  SECTION 2. ORS 351.003 is amended to read:
  351.003. In addition to making the findings under ORS 351.001,
the Legislative Assembly finds that:
  (1) Oregonians need access to post-secondary education
opportunities throughout life in a variety of forms.
  (2) To meet the societal and individual needs described under
ORS 351.001, Oregonians have created and sustained, from
territorial days to the present, many and diverse institutions of
higher education, both independent and state-assisted.
  (3) These institutions have developed the intellectual capacity
of Oregonians and have prepared thousands of them for productive
and fulfilling careers.
  (4) These institutions provide educational access to all
segments of Oregon's diverse population, including many students
for whom higher education creates the first opportunity for their
entry into the mainstream of society.
  (5) These institutions provide  { + basic and applied + }
research  { - , both basic and applied, that generates new
knowledge and applies it to the development of - }   { + and
actively promote the commercialization of research into + } new
products and processes essential for Oregon's economic growth.
  (6) These institutions provide public service activities that
engage the professional expertise of their faculties to solve
social problems.
  (7) These institutions share with our communities many cultural
activities and services of immense importance to the quality of
life enjoyed by Oregonians.
  (8) These institutions are expanding the times, places and
formats of course offerings.
  (9) Oregonians' diverse educational needs will be best met in
an environment in which public and independent schools are
recognized as critical for meeting those needs.
  SECTION 3. ORS 351.007 is amended to read:
  351.007. The Legislative Assembly declares its intent to
promote and enhance higher education in a manner that:
  (1) Enables citizens of all ages, backgrounds and levels of
income to participate in the search for knowledge and individual
development.
  (2) Stresses undergraduate teaching as a high priority.
  (3) Provides for selected graduate and professional programs
that address state, national and global needs.
  (4) Encourages high quality research and scholarship  { - ,
both basic and applied, by its faculty and students - }  { +  and
the application of research to enhance the economic opportunities
of this state + }.
  (5) Fosters diversity of educational opportunity.
  (6) Promotes service to the public.
  (7) Makes effective and efficient use of human, physical and
financial resources.
  (8) Encourages cooperation with other educational institutions.
  SECTION 4. ORS 351.009 is amended to read:
  351.009. The Legislative Assembly declares that the mission of
all higher education in Oregon is to:
  (1) Enable students to extend prior educational experiences in
order to reach their full potential as participating and
contributing citizens by helping them develop scientific,
professional and technological expertise, together with
heightened intellectual, cultural and humane sensitivities and a
sense of purpose.
  (2) Create, collect, evaluate, store and pass on the body of
knowledge necessary to educate future generations.
  (3) Provide appropriate instructional, research and public
service programs to enrich the cultural life of Oregon   { - and
to support and maintain a healthy state economy - } .
   { +  (4) Create the next generation of ideas and technologies
and serve as an engine for economic development. + }
  SECTION 5. Section 1, chapter 653, Oregon Laws 1997, is amended
to read:
   { +  Sec. 1. + } The State Board of Higher Education shall:
  (1) Continue development of accountability and performance
measures with indicators in broad goal areas, including but not
limited to:
  (a) Enhancing existing quality;
  (b) Expanding access;
  (c) Maintaining reasonable cost-effectiveness; and
  (d) Ensuring employability.
  (2) Continue development of a proficiency-based admission
standards system that aligns with school reform requirements for
kindergarten through grade 12 under ORS chapter 329 in order to
improve student performance and better articulate expectations of
student learning among the educational sectors.
  (3) Continue experimentation with and implementation of various
accelerated baccalaureate degree models at state institutions of
higher education in applicable programs. The models may include
but need not be limited to early entry and post-secondary options
and models that are jointly developed with the State Board of
Education.
  (4) Continue development of strategies to provide the broadest
possible access to educational services for both on-campus and
off-campus learners by using technology as well as traditional
options.
  (5) Continue to work with businesses, industries and agencies
to offer increased opportunities for students to participate in
internships, practica and service learning experiences. The board
shall continue to explore faculty internship opportunities with
businesses, industries and agencies.
  (6) Continue to work with the State Board of Education to
develop policies and procedures that ensure maximum transfer of
academic credits between community colleges and state
institutions of higher education.
   { +  (7) Continue to foster basic and applied research and
work closely with businesses and economic development entities to
encourage commercialization of that research by businesses and to
increase the number of jobs that benefit this state. + }
  SECTION 6. ORS 353.030 is amended to read:
  353.030. (1) It shall be the public policy of the Oregon Health
and Science University in carrying out its missions as a public
corporation:
  (a) To serve the people of the State of Oregon by providing
education in health, science, engineering and their management
for students of the state and region.
  (b) To provide:
  (A) An environment that stimulates the spirit of inquiry,
initiative and cooperation between and among students, faculty
and staff;
  (B) Research in health care, engineering, biomedical sciences
and general sciences { + , and the transformation of that
research into products and services + }; and
  (C) The delivery of health care to contribute to the
development and dissemination of new knowledge.
  (2) The university will strive for excellence in education,
research, clinical practice, scholarship and community service
while maintaining compassion, personal and institutional
integrity and leadership in carrying out its missions.
  (3) The university is designated to carry out the following
public purposes and missions on behalf of the State of Oregon:
  (a) Provide high quality educational programs appropriate for a
health and science university;
  (b) Conduct research in health care, engineering, biomedical
sciences and general sciences { + , and transform that research
into products and services + };
  (c) Engage in the provision of inpatient and outpatient
clinical care and health care delivery systems throughout the
state;
  (d) Provide outreach programs in education, research and health
care;
  (e) Serve as a local, regional and statewide resource for
health care providers; and
  (f) Continue a commitment to provide health care to the
underserved patient population of Oregon.
  (4) The university shall carry out the public purposes and
missions of this section in the manner that, in the determination
of the Oregon Health and Science University Board of Directors,
best promotes the public welfare of the people of the State of
Oregon.
  SECTION 7. ORS 351.070 is amended to read:
  351.070. (1) The Oregon University System, in accordance with
rules adopted by the State Board of Higher Education, shall
implement a personnel system and may engage in collective
bargaining with its employees. All collective bargaining with any
certified or recognized exclusive employee representative shall
be under the direction and supervision of the Chancellor of the
Oregon University System. The Oregon University System shall have
payroll authority pursuant to ORS 292.043 to 292.180.
  (2)(a) The board shall establish competitive procedures for the
purchasing, procurement and contracting of goods   { - and - }
 { + , + } services  { + and technology, including information
technology, + } for the benefit of the Oregon University System
and all the institutions, departments and activities
therein. { +  The board may also establish exemptions from the
competitive procedures when appropriate. + }
  (b) The board shall ensure that the hourly rate of wage paid by
any contractor upon all public improvements contracts undertaken
for the board shall not be less than the same rate of wage as
determined by the Bureau of Labor and Industries for an hour's
work in the same trade or occupation in the locality where such
labor is performed. Claims or disputes arising under this
subsection shall be decided by the Commissioner of the Bureau of
Labor and Industries.
  (c) The board shall adopt policies and procedures that achieve
results equal to or better than the standards existing on July
17, 1995, regarding affirmative action, pay equity for comparable
work, recycling, the provision of workers' compensation insurance
to workers on contract and the participation of emerging small
businesses and businesses owned by minorities and women.
  (3) The board may, for each institution under its control:
  (a) Appoint and employ a president and the requisite number of
professors, teachers and employees, and prescribe their
compensation and tenure of office or employment.
  (b) Demand and receive the interest mentioned in ORS 352.510
and all sums due and accruing to the institutions of higher
education for admission and tuition therein, and apply the same,
or so much thereof as is necessary, to the payment of the
compensation referred to in paragraph (a) of this subsection and
the other current expenses of the institutions.
  (c) Prescribe fees for enrollment into the institutions. Such
enrollment fees shall include tuition for education and general
services and such other charges found by the board to be
necessary to carry out its educational programs. The board may
award student aid from any fund other than the General Fund.
  (d) Prescribe incidental fees for programs under the
supervision or control of the board found by the board, upon its
own motion or upon recommendation of the recognized student
government of the institution concerned, to be advantageous to
the cultural or physical development of students. Fees realized
in excess of amounts allocated and exceeding required reserves
shall be considered surplus incidental fees and shall be
allocated for programs under the control of the board and found
to be advantageous to the cultural or physical development of
students by the institution president upon the recommendation of
the recognized student government at the institution concerned.
  (e) Upon recommendation of the recognized student government,
collect optional fees authorized by the institution executive,
for student activities not included in paragraph (c) or (d) of
this subsection. The payment of such optional fees shall be at
the option and selection of the student and shall not be a
prerequisite of enrollment.
  (f) Confer, on the recommendation of the faculty of any such
institution, such degrees as usually are conferred by such
institutions, or as they deem appropriate.
  (g) Prescribe the qualifications for admission into such
institutions.
  (4) Subject to such delegation as the board may decide to make
to the institutions, divisions and departments under its control,
the board, for each institution, division and department under
its control, shall:
  (a) Supervise the general course of instruction therein, and
the research, extension, educational and other activities
thereof.
  (b) Adopt rules and bylaws for the government thereof,
including the faculty, teachers, students and employees therein.
  (c) Maintain cultural and physical development services and
facilities therefor and, in connection therewith, may cooperate
and enter into agreements with any person or governmental agency;
and may provide student health services and contract therefor.
  (d) Prescribe and collect charges.
  (e) Adopt rules relating to the creation, use, custody and
disclosure, including access, of student education records of the
institutions that are consistent with the requirements of
applicable state and federal law. Whenever a student has attained
18 years of age or is attending an institution of post-secondary
education, the permission or consent required of and the rights
accorded to a parent of the student regarding education records
shall thereafter be required of and accorded to only the student.
  (5) For each institution under its jurisdiction, the board
shall provide opportunities for part-time students to obtain
complete undergraduate degrees at unconventional times, which
include but are not limited to early morning and noon hours,
evenings and weekends. In administering these degree programs,
the institution may use any educational facility available for
the use of the institution.
  SECTION 8.  { + The amendments to ORS 351.070 by section 7 of
this 2003 Act apply to contracts entered into on or after the
effective date of this 2003 Act. + }
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