72nd OREGON LEGISLATIVE ASSEMBLY--2003 Regular Session
 
SA to A-Eng. SB 437
 
LC 970/SB 437-A22
 
                      SENATE AMENDMENTS TO
                   A-ENGROSSED SENATE BILL 437
 
              By JOINT COMMITTEE ON WAYS AND MEANS
 
                             July 31
 
  On page 1 of the printed A-engrossed bill, line 2, delete '
243.145,'.
  In line 3, after '348.603,' insert '348.606, 348.609, ' and
delete '351.094,'.
  Delete line 21 and pages 2 through 17 and insert:
  '  { +  SECTION 1. + } ORS 348.603 is amended to read:
  ' 348.603. (1) The Oregon Student Assistance Commission,
through the Office of Degree Authorization, shall:
  ' (a) Authorize approved schools to offer academic degree
programs;
  ' (b) Authorize approved degree-granting schools to offer
nondegree programs leading to a certificate or diploma;
  ' (c) Validate claims of degree possession;
  ' (d) Terminate substandard or fraudulent degree activities;
and
  ' (e) Review proposed new publicly funded post-secondary
programs and locations.
  ' (2)(a) Following review of a proposed new publicly funded
post-secondary program or location, the commission shall
recommend resolution to the appropriate governing boards and
mediate between the boards to seek a negotiated resolution if:
  ' (A) There is a   { - seemingly - }  detrimental duplication
of programs; or
  ' (B) The program or location would have a significantly
adverse impact on one or more other segments of education.
  ' (b) If the boards   { - cannot - }   { + do not + } resolve
the issue raised under paragraph (a) of this subsection
 { - , - }   { + within 90 days of the date when the issue was
recommended to the boards for mediation, + } the commission shall
have final authority for approval or disapproval of the program
or location.  { + If the boards do not resolve the issue, the
commission shall approve or disapprove the program or location
within 180 days of the date when the review began.
  ' (c) If the boards do not resolve the issue, the commission
shall approve the program or location if the commission finds
that the program or location meets an unmet workforce need in the
state. + }
  '  { - (c) - }  { +  (d) + } The commission shall establish by
rule a fair and neutral decision-making process in consultation
with representatives designated by the State Board of Education,
the State Board of Higher Education, associations representing
Oregon independent colleges, associations representing Oregon
career colleges, and the governing boards of otherwise
unrepresented post-secondary schools.
  '  { +  (3) The commission, by rule, may impose a fee on any
school or person requesting information from the commission. The
amount of the fee shall be established to recover designated
expenses incurred by the commission in carrying out the
administration of ORS 348.594 to 348.615. Any fees collected
under this subsection shall be deposited in the Office of Degree
Authorization Account established under section 5 of this 2003
Act. + }
  '  { +  SECTION 2. + } ORS 348.606 is amended to read:
  ' 348.606. (1)   { - No - }  { +  A + } school   { - shall - }
 { +  may not + } confer or offer to confer any academic degree
upon a person, or provide services purporting to lead to a degree
in whole or in part, without first obtaining approval from the
Oregon Student Assistance Commission through the Office of Degree
Authorization. The commission shall adopt by rule standards and
procedures for the approval of schools.
  ' (2) The commission shall substitute the standards adopted
under subsection (1) of this section with private accreditation
standards for a school that has conferred degrees under the same
control for five years in Oregon from at least one operationally
separate unit accredited as a separate institution by a regional
accrediting association or its national successor, provided the
school submits for arbitration by the commission any unresolved
dispute in which a person alleges detrimental violation of a
standard guaranteed by the accrediting association but which the
association has declined to arbitrate.
  ' (3) The commission, by rule, may impose a fee on any school
applying for approval to confer or offer to confer a degree upon
a person or to provide academic credit applicable to a degree.
The fee is nonrefundable. The amount of the fee shall be
established to recover designated expenses incurred by the
commission in carrying out the administration of ORS 348.594 to
348.615. { +  Any fees collected under this subsection shall be
deposited in the Office of Degree Authorization Account
established under section 5 of this 2003 Act. + }
  '  { +  SECTION 3. + } ORS 348.609 is amended to read:
  ' 348.609. (1) No person who has been warned by the Oregon
Student Assistance Commission, through the Office of Degree
Authorization, to cease and desist shall claim or represent that
the person possesses any academic degree unless the degree has
been awarded to or conferred upon the person by a school that:
  ' (a) Has accreditation recognized by the United States
Department of Education or the foreign equivalent of such
accreditation;
  ' (b) Has been approved by the Oregon Student Assistance
Commission through the Office of Degree Authorization to offer
and confer degrees in Oregon;
  ' (c) Is described in ORS 348.594 (2); or
  ' (d) Is located in the United States and has been found by the
commission to meet standards of academic quality comparable to
those of an institution located in the United States that has
accreditation, recognized by the United States Department of
Education, to offer degrees of the type and level claimed by the
person.
  ' (2) The Oregon Student Assistance Commission shall adopt, by
rule, standards and procedures for responding to complaints about
degree claims and for validation of degree claims. Failure of a
person to provide documentation of a claimed degree shall be
prima facie evidence that the claim of such person to such degree
is a violation of this section.
  '  { +  (3) The Oregon Student Assistance Commission, by rule,
may impose a fee on any school or person requesting validation of
degree claims. The amount of the fee shall be established to
recover designated expenses incurred by the commission in
carrying out the administration of ORS 348.594 to 348.615. Any
fees collected under this subsection shall be deposited in the
Office of Degree Authorization Account established under section
5 of this 2003 Act. + }
  '  { - (3) - }  { +  (4) + }(a) The Oregon Student Assistance
Commission, through the Office of Degree Authorization, may cause
a civil suit to be instituted in the circuit court for legal or
equitable remedies, including injunctive relief, to ensure
compliance with this section. The commission may recover attorney
fees and court costs for any such action.
  ' (b) The commission shall adopt a schedule of civil penalties
for violations of this section. A civil penalty shall not exceed
$1,000 per violation.
  ' (c) In addition to any action or penalty provided by law, any
person who violates this section shall incur a civil penalty in
an amount prescribed by the schedule adopted by the commission.
Any civil penalty imposed under this subsection shall be imposed
in the manner provided in ORS 183.090. All penalties recovered
under this subsection shall be paid into the State Treasury and
credited to the General Fund.
  '  { +  SECTION 4. + }  { + Section 5 of this 2003 Act is added
to and made a part of ORS 348.594 to 348.615. + }
  '  { +  SECTION 5. + }  { + The Office of Degree Authorization
Account is established separate and distinct from the General
Fund. All moneys received by the office, other than
appropriations from the General Fund, shall be deposited into the
account and are continuously appropriated to the Oregon Student
Assistance Commission to carry out the duties, functions and
powers of the office. + }
  '  { +  SECTION 6. + } ORS 351.060 is amended to read:
  ' 351.060. The State Board of Higher Education may:
  ' (1) Control and provide for, subject to the conditions of
this section, the custody and occupation of the grounds,
buildings, books, papers and documents belonging to each and all
the institutions, departments or activities under the control of
the State Board of Higher Education.
  ' (2) Manage, control and apply all property of whatever nature
given to or appropriated for the use, support or benefit of any
or all of the institutions, departments or activities under the
control of the State Board of Higher Education, according to the
terms and conditions of such gift or appropriation. Moneys
received under this section shall be deposited with the State
Treasurer in an account or fund separate and distinct from the
General Fund. Interest earned by the account or fund shall be
credited to the account or fund.
  ' (3) Erect, improve, repair, maintain, equip and furnish
buildings, structures and lands for higher education.
  ' (4) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lend, invest, improve and develop any and all
property, real or personal:
  ' (a) Given to any of the institutions, departments or
activities under the control of the State Board of Higher
Education by private donors, whether such gifts are made to the
State Board of Higher Education or to the State of Oregon; or
  ' (b) Acquired by any other method or from any source by the
State Board of Higher Education for the benefit of any of the
institutions, departments or activities under the control of the
board,   { - subject, however, to the applicable provisions of
ORS 273.413 to 273.456 and 351.210 - }  { +  except for any
structure, equipment or asset encumbered by a certificate of
participation + }.
  ' (5) Manage mineral and geothermal resource rights and
proceeds therefrom acquired or held for the state by the board
pursuant to this chapter and ORS chapter 567. This includes
leasing mineral and geothermal resource rights consistent with
ORS 273.785.
  ' (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers, duties and authority given to
the board by this section, ORS 351.070 and 351.150.
  ' (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of such mortgages or for the purpose
of carrying into effect any and all of the powers, duties and
authority given to the State Board of Higher Education by this
section  { - , - }   { + and + } ORS 351.070 and 351.150.
  '  { +  (8) Acquire, receive, hold, control, sell, manage,
operate, lease or lend any goods, supplies, materials, equipment,
services and information technology, for the use, support or
benefit of any of the institutions, departments or activities
under the control of the board.
  ' (9) Delegate any of the powers, duties or functions granted
to the board under this section to any state institution of
higher education within the Oregon University System. + }
  '  { +  SECTION 7. + } ORS 351.070 is amended to read:
  ' 351.070. (1) The Oregon University System, in accordance with
rules adopted by the State Board of Higher Education, shall
implement a personnel system and may engage in collective
bargaining with its employees. All collective bargaining with any
certified or recognized exclusive employee representative shall
be under the direction and supervision of the Chancellor of the
Oregon University System. The Oregon University System shall have
payroll authority pursuant to ORS 292.043 to 292.180.
  ' (2)(a) The board shall establish competitive procedures for
the purchasing, procurement and contracting of goods
 { - and - }  { + , + } services  { + and information
technology, + } for the benefit of the Oregon University System
and all the institutions, departments and activities
therein. { +  The board may also establish exemptions from the
competitive procedures when appropriate. + }
  ' (b) The board shall ensure that the hourly rate of wage paid
by any contractor upon all public improvements contracts
undertaken for the board shall not be less than the same rate of
wage as determined by the Bureau of Labor and Industries for an
hour's work in the same trade or occupation in the locality where
such labor is performed. Claims or disputes arising under this
subsection shall be decided by the Commissioner of the Bureau of
Labor and Industries.
  ' (c) The board shall adopt policies and procedures that
achieve results equal to or better than the standards existing on
July 17, 1995, regarding affirmative action, pay equity for
comparable work, recycling, the provision of workers'
compensation insurance to workers on contract and the
participation of emerging small businesses and businesses owned
by minorities and women.
  ' (3) The board may, for each institution under its control:
  ' (a) Appoint and employ a president and the requisite number
of professors, teachers and employees, and prescribe their
compensation and tenure of office or employment.
  ' (b) Demand and receive the interest mentioned in ORS 352.510
and all sums due and accruing to the institutions of higher
education for admission and tuition therein, and apply the same,
or so much thereof as is necessary, to the payment of the
compensation referred to in paragraph (a) of this subsection and
the other current expenses of the institutions.
  ' (c) Prescribe fees for enrollment into the institutions.
Such enrollment fees shall include tuition for education and
general services and such other charges found by the board to be
necessary to carry out its educational programs. The board may
award student aid from any fund other than the General Fund.
  ' (d) Prescribe incidental fees for programs under the
supervision or control of the board found by the board, upon its
own motion or upon recommendation of the recognized student
government of the institution concerned, to be advantageous to
the cultural or physical development of students. Fees realized
in excess of amounts allocated and exceeding required reserves
shall be considered surplus incidental fees and shall be
allocated for programs under the control of the board and found
to be advantageous to the cultural or physical development of
 
students by the institution president upon the recommendation of
the recognized student government at the institution concerned.
  ' (e) Upon recommendation of the recognized student government,
collect optional fees authorized by the institution executive,
for student activities not included in paragraph (c) or (d) of
this subsection. The payment of such optional fees shall be at
the option and selection of the student and shall not be a
prerequisite of enrollment.
  ' (f) Confer, on the recommendation of the faculty of any such
institution, such degrees as usually are conferred by such
institutions, or as they deem appropriate.
  ' (g) Prescribe the qualifications for admission into such
institutions.
  ' (4) Subject to such delegation as the board may decide to
make to the institutions, divisions and departments under its
control, the board, for each institution, division and department
under its control, shall:
  ' (a) Supervise the general course of instruction therein, and
the research, extension, educational and other activities
thereof.
  ' (b) Adopt rules and bylaws for the government thereof,
including the faculty, teachers, students and employees therein.
  ' (c) Maintain cultural and physical development services and
facilities therefor and, in connection therewith, may cooperate
and enter into agreements with any person or governmental agency;
and may provide student health services and contract therefor.
  ' (d) Prescribe and collect charges.
  ' (e) Adopt rules relating to the creation, use, custody and
disclosure, including access, of student education records of the
institutions that are consistent with the requirements of
applicable state and federal law. Whenever a student has attained
18 years of age or is attending an institution of post-secondary
education, the permission or consent required of and the rights
accorded to a parent of the student regarding education records
shall thereafter be required of and accorded to only the student.
  ' (5) For each institution under its jurisdiction, the board
shall provide opportunities for part-time students to obtain
complete undergraduate degrees at unconventional times, which
include but are not limited to early morning and noon hours,
evenings and weekends. In administering these degree programs,
the institution may use any educational facility available for
the use of the institution.
  '  { +  SECTION 8. + } ORS 351.086 is amended to read:
  ' 351.086. (1) Except as otherwise provided in this chapter and
ORS chapter 352, the provisions of ORS chapters 240, 279, 282 and
292 do not apply to the Oregon University System.
  ' (2) Notwithstanding subsection (1) of this section, ORS
240.167, 240.185, 279.029 (4) and (5), 279.321, 279.348, 279.350,
279.352, 279.354, 279.355, 279.356, 279.357, 279.361, 279.363,
279.365, 279.370, 279.375, 279.526 to 279.542, 279.835 to 279.855
and 292.043   { - shall - }  apply to the Oregon University
System.
  ' (3) Notwithstanding any other law, the following provisions
  { - shall - }  { +  do + } not apply to the Oregon University
System:
  ' (a) ORS 182.310 to 182.400;   { - and - }
  '  { +  (b) ORS 273.413 to 273.456; + }
  '  { - (b) - }  { +  (c) + } ORS 276.071 and 276.072 { + ; and
  ' (d) ORS 291.038 + }.
  '  { +  (4) Notwithstanding subsection (3)(b) of this section,
ORS 273.413 to 273.456 apply to any structure, equipment or asset
owned by the Oregon University System that is encumbered by a
certificate of participation. + }
  '  { - (4) - }  { +  (5) + } In carrying out the duties,
functions and powers imposed by law upon the Oregon University
System, the State Board of Higher Education or the Chancellor of
the Oregon University System may contract with any public agency
for the performance of such duties, functions and powers as the
Oregon University System considers appropriate.
  '  { +  SECTION 9. + } ORS 351.210 is amended to read:
  ' 351.210.  { + (1) + } The State Board of Higher Education may
sell or otherwise dispose of any worn out, obsolete or otherwise
unsuitable equipment { + , goods, supplies, + }   { - or - }
material  { + or information technology + }, the disposal of
which would in the board's judgment be to the financial benefit
of the institutions under the board's control.   { - Before such
disposal or sale, the board shall submit to the Oregon Department
of Administrative Services a proposal for such sale or disposal
and shall secure from the department its formal approval
thereof. - }  { +  This section does not apply to any equipment,
goods, supplies, material or information technology encumbered by
a certificate of participation. + }
  '  { +  (2) The board may delegate any of its duties, functions
or powers granted to the board under this section to the
Chancellor of the Oregon University System or any state
institution of higher education within the Oregon University
System.
  ' (3) + } The proceeds from any sales or disposals made
pursuant to authority granted in this section shall be deposited
in the State Treasury to the credit of the   { - board - }
 { + Department + } of Higher Education and may be expended by
 { - it - }  { +  the board + } for any purpose authorized by law
in the same manner as   { - it - }  { +  the board + } is
authorized to make other expenditures.  { + Any moneys deposited
in the State Treasury under this section are continuously
appropriated to the department. + }
  '  { +  SECTION 10. + } ORS 351.240 is amended to read:
  ' 351.240.  { + (1) + } The State Board of Higher Education may
determine the terms and conditions of any transaction authorized
by ORS 351.220 to 351.250 and need not require competitive bids
in connection therewith. No formal publicity or advertising is
required regarding property for the development of which the
board wishes to contract, but the board shall make reasonable
efforts to disseminate such information in appropriate research
and industrial circles.
  '  { +  (2) The board may delegate any of the duties, functions
and powers granted to the board under ORS 351.220 to 351.250 to
any state institution of higher education within the Oregon
University System. + }
  '  { +  SECTION 11. + } ORS 351.511 is amended to read:
  ' 351.511. (1) There is established in the General Fund an
account to be known as the Portland State University Northwest
Engineering Science Center Phase I Account. Funds in the account
shall be used for construction of an engineering science center
at Portland State University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the Portland State
University Northwest Engineering Science Center Phase I project
described in subsection (1) of this section. { +  Interest earned
on moneys in the account shall be credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $26,500,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 12. + } ORS 351.516 is amended to read:
  ' 351.516. (1) There is established in the General Fund an
account to be known as the Eastern Oregon University Regional
Agricultural, Health and Life Sciences Building Account. Funds in
the account shall be used to construct a new building for
agriculture, health and life sciences studies at Eastern Oregon
University.
  ' (2) The account shall consist of  { + proceeds from lottery
bonds and + } federal and local government funds made available
to
  { - the Oregon University System, - }  { +  and + } funds
donated to the Oregon University System   { - and proceeds from
lottery bonds - }  for the purpose of the Eastern Oregon
University Regional Agricultural, Health and Life Sciences
Building project described in subsection (1) of this
section. { +  Interest earned on moneys in the account shall be
credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $14,470,500 in
 { + interest, proceeds from lottery bonds,  + }donations
 { - , - }   { + and + } federal and local government funds
 { - and proceeds from lottery bonds - }  for purposes of this
subsection.
  '  { +  SECTION 13. + } ORS 351.521 is amended to read:
  ' 351.521. (1) There is established in the General Fund an
account to be known as the University of Oregon School of Music
Account. Funds in the account shall be used for additions and
alterations to the School of Music at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the University of Oregon
School of Music project described in subsection (1) of this
section. { +  Interest earned on moneys in the account shall be
credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $7,600,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 14. + } ORS 351.523 is amended to read:
  ' 351.523. (1) There is established in the General Fund an
account to be known as the Campus Development Project Account.
Funds in the account shall be used for remodeling, expansion and
renovation of the current Law School Building and additions to
Gilbert Hall.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Campus Development
Project described in subsection (1) of this section. { +
Interest earned on moneys in the account shall be credited to the
account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account
  { - shall - }  { +  may + } not be credited with more than
$5,700,000 in  { + interest, + } donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 15. + } ORS 351.524 is amended to read:
  ' 351.524. (1) There is established in the General Fund an
account to be known as the Southern Oregon University Library
Account. Funds in the account shall be used for the construction
of an addition to and the remodeling of a library at Southern
Oregon University.
  ' (2) The account shall consist of  { + proceeds from lottery
bonds and + } federal and local government funds made available
to
  { - the Oregon University System, - }  { +  and + } funds
donated to the Oregon University System   { - and proceeds from
lottery bonds - }  for the purpose of the Southern Oregon
University library project described in subsection (1) of this
section. { +  Interest earned on moneys in the account shall be
credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $10,000,000 in
 { + interest, proceeds from lottery bonds, + } donations
 { - , - }   { + and + } federal and local government funds
 { - and proceeds from lottery bonds - }  for purposes of this
subsection.
  '  { +  SECTION 16. + } ORS 351.526 is amended to read:
  ' 351.526. (1) There is established in the General Fund an
account to be known as the Millar Library Research Center
Account.  Funds in the account shall be used for the construction
of a library research center at Portland State University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Millar Library Research
Center project described in subsection (1) of this section.
 { +  Interest earned on moneys in the account shall be credited
to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account
  { - shall - }  { +  may + } not be credited with more than
$1,431,000 in  { + interest, + } donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 17. + } ORS 351.528 is amended to read:
  ' 351.528. (1) There is established in the General Fund an
account to be known as the Urban Center Phase I Project Account.
Funds in the account shall be used for construction, remodeling
and acquisition of land for the Urban Center Phase I.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Urban Center Phase I
project described in subsection (1) of this section.
 { + Interest earned on moneys in the account shall be credited
to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account shall not be credited with more than $7,865,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 18. + } ORS 351.529 is amended to read:
  ' 351.529. (1) There is established in the General Fund an
account to be known as the Portland State University Native
American Center Account. Funds in the account shall be used for
construction of a Native American center at Portland State
University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the Portland State
University Native American Center project described in subsection
 
(1) of this section. { +  Interest earned on moneys in the
account shall be credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department Higher Education + } for that purpose. The account
may not be credited with more than $1,200,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 19. + } ORS 351.533 is amended to read:
  ' 351.533. (1) There is established in the General Fund an
account to be known as the Oregon State University College of
Veterinary Medicine Account. Funds in the account shall be used
for the construction of a new building for the College of
Veterinary Medicine at Oregon State University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the Oregon State University
College of Veterinary Medicine building project described in
subsection (1) of this section. { +  Interest earned on moneys in
the account shall be credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $4,000,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 20. + } ORS 351.534 is amended to read:
  ' 351.534. (1) There is established in the General Fund an
account to be known as the Oregon State University Engineering
Building Account. Funds in the account shall be used for the
construction of an engineering building at Oregon State
University.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the Oregon State University
engineering building project described in subsection (1) of this
section. { +  Interest earned on moneys in the account shall be
credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account may not be credited with more than $20,000,000 in
 { + interest, + } donations and federal and local government
funds for purposes of this subsection.
  '  { +  SECTION 21. + } ORS 351.537 is amended to read:
  ' 351.537. (1) There is established in the General Fund an
account to be known as the Allen Hall Phase II Project Account.
Funds in the account shall be used for the remodeling of Allen
Hall at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Allen Hall Phase II
project described in subsection (1) of this section. { +
Interest earned on moneys in the account shall be credited to the
account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account
  { - shall - }  { +  may + } not be credited with more than
$561,800 in  { + interest, + } donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 22. + } ORS 351.538 is amended to read:
  ' 351.538. (1) There is established in the General Fund an
account to be known as the Museum of Art Project Account. Funds
in the account shall be used for additions to and alterations of
the Museum of Art at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Museum of Art project
described in subsection (1) of this section. { +  Interest earned
on moneys in the account shall be credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account
  { - shall - }   { + may + } not be credited with more than
$6,360,000 in  { + interest, + } donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 23. + } ORS 351.539 is amended to read:
  ' 351.539. (1) There is established in the General Fund an
account to be known as the Straub Hall Project Account. Funds in
the account shall be used for the additions to and alterations of
Straub Hall at the University of Oregon.
  ' (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purposes of the Straub Hall project
described in subsection (1) of this section. { +  Interest earned
on moneys in the account shall be credited to the account. + }
  ' (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated  { + to
the Department of Higher Education + } for that purpose. The
account
  { - shall - }  { +  may + } not be credited with more than
$1,166,000 in  { + interest, + } donations and federal and local
government funds for purposes of this subsection.
  '  { +  SECTION 24. + } ORS 351.540 is amended to read:
  ' 351.540. (1) Unless otherwise provided by law, or by federal
order or regulation with respect to federal funds, the State
Board of Higher Education, with the approval of the State
Treasurer, may deposit with the State Treasurer any moneys coming
into its   { - hands - }  { +  possession + }. Moneys so
deposited shall be credited by the State Treasurer to a special
checking account.
  ' (2)  { + The moneys in the special checking account are
continuously appropriated to the Department of Higher
Education. + } The special checking account may be used for the
purpose of clearing items subject to subsequent debit or credit
to state funds.
  ' (3) Disbursements may be made by check or order of the board
upon the State Treasurer, signed by such officer or
administrative head as the board, by motion or resolution,
nominates for that purpose. Disbursements shall be made only in
payment of claims authorized by law for the ordinary expenditures
of the State Board of Higher Education incurred in the operation
of the state institutions of higher learning.
  ' (4) Funds in the account established under subsection (1) of
this section may be held as petty cash or carried with the State
Treasurer in segregated subaccounts, to be disbursed in
accordance with subsection (3) of this section. With the approval
of the State Treasurer, petty cash funds may be deposited in
banks for safekeeping purposes and disbursed therefrom in payment
of claims authorized by law by employees of the board authorized
by the disbursing officer. The board's duly designated disbursing
officer from time to time shall reimburse the petty cash funds or
 
subaccounts upon the presentation of satisfactory evidence of
disbursements therefrom pursuant to law.
  '  { +  SECTION 25. + } ORS 351.590 is amended to read:
  ' 351.590. (1) The State Board of Higher Education shall
maintain with the State Treasurer a fund, separate and distinct
from the General Fund, known as the Higher Education Student
Activities Fund in which shall be deposited all revenue from
incidental fees, optional fees, health services fees and all
operating revenue from intercollegiate athletics, student unions
and educational activities.
  ' (2)  { + The moneys in the Higher Education Student
Activities Fund are continuously appropriated to the Department
of Higher Education. + } Disbursements from the fund, including
any interest credited thereto, may be made for necessary expenses
for supplies, services and equipment associated with student
activities including but not limited to recruiting, training and
grant-in-aid to intercollegiate athletes.
  ' (3) The fund may be invested by the State Treasurer, and the
earnings from such investments shall be credited to the fund.
The State Board of Higher Education shall distribute annually the
total interest earnings proportionately to each institution based
on each institution's average cash balance in the fund.
  '  { +  SECTION 26. + } ORS 192.501 is amended to read:
  ' 192.501. The following public records are exempt from
disclosure under ORS 192.410 to 192.505 unless the public
interest requires disclosure in the particular instance:
  ' (1) Records of a public body pertaining to litigation to
which the public body is a party if the complaint has been filed,
or if the complaint has not been filed, if the public body shows
that such litigation is reasonably likely to occur. This
exemption does not apply to litigation which has been concluded,
and nothing in this subsection shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation;
  ' (2) Trade secrets. 'Trade secrets,' as used in this section,
may include, but are not limited to, any formula, plan, pattern,
process, tool, mechanism, compound, procedure, production data,
or compilation of information which is not patented, which is
known only to certain individuals within an organization and
which is used in a business it conducts, having actual or
potential commercial value, and which gives its user an
opportunity to obtain a business advantage over competitors who
do not know or use it;
  ' (3) Investigatory information compiled for criminal law
purposes. The record of an arrest or the report of a crime shall
be disclosed unless and only for so long as there is a clear need
to delay disclosure in the course of a specific investigation,
including the need to protect the complaining party or the
victim.  Nothing in this subsection shall limit any right
constitutionally guaranteed, or granted by statute, to disclosure
or discovery in criminal cases. For purposes of this subsection,
the record of an arrest or the report of a crime includes, but is
not limited to:
  ' (a) The arrested person's name, age, residence, employment,
marital status and similar biographical information;
  ' (b) The offense with which the arrested person is charged;
  ' (c) The conditions of release pursuant to ORS 135.230 to
135.290;
  ' (d) The identity of and biographical information concerning
both complaining party and victim;
  ' (e) The identity of the investigating and arresting agency
and the length of the investigation;
  ' (f) The circumstances of arrest, including time, place,
resistance, pursuit and weapons used; and
  ' (g) Such information as may be necessary to enlist public
assistance in apprehending fugitives from justice;
  ' (4) Test questions, scoring keys, and other data used to
administer a licensing examination, employment, academic or other
examination or testing procedure before the examination is given
and if the examination is to be used again. Records establishing
procedures for and instructing persons administering, grading or
evaluating an examination or testing procedure are included in
this exemption, to the extent that disclosure would create a risk
that the result might be affected;
  ' (5) Information consisting of production records, sale or
purchase records or catch records, or similar business records of
a private concern or enterprise, required by law to be submitted
to or inspected by a governmental body to allow it to determine
fees or assessments payable or to establish production quotas,
and the amounts of such fees or assessments payable or paid, to
the extent that such information is in a form which would permit
identification of the individual concern or enterprise. This
exemption does not include records submitted by long term care
facilities as defined in ORS 442.015 to the state for purposes of
reimbursement of expenses or determining fees for patient care.
Nothing in this subsection shall limit the use which can be made
of such information for regulatory purposes or its admissibility
in any enforcement proceeding;
  ' (6) Information relating to the appraisal of real estate
prior to its acquisition;
  ' (7) The names and signatures of employees who sign
authorization cards or petitions for the purpose of requesting
representation or decertification elections;
  ' (8) Investigatory information relating to any complaint filed
under ORS 659A.820 or 659A.825, until such time as the complaint
is resolved under ORS 659A.835, or a final order is issued under
ORS 659A.850;
  ' (9) Investigatory information relating to any complaint or
charge filed under ORS 243.676 and 663.180;
  ' (10) Records, reports and other information received or
compiled by the Director of the Department of Consumer and
Business Services under ORS 697.732;
  ' (11) Information concerning the location of archaeological
sites or objects as those terms are defined in ORS 358.905,
except if the governing body of an Indian tribe requests the
information and the need for the information is related to that
Indian tribe's cultural or religious activities. This exemption
does not include information relating to a site that is all or
part of an existing, commonly known and publicized tourist
facility or attraction;
  ' (12) A personnel discipline action, or materials or documents
supporting that action;
  ' (13) Information developed pursuant to ORS 496.004, 496.172
and 498.026 or ORS 496.192 and 564.100, regarding the habitat,
location or population of any threatened species or endangered
species;
  ' (14) Writings prepared by or under the direction of faculty
of public educational institutions, in connection with research,
until publicly released, copyrighted or patented;
  ' (15) Computer programs developed or purchased by or for any
public body for its own use. As used in this subsection,
'computer program' means a series of instructions or statements
which permit the functioning of a computer system in a manner
designed to provide storage, retrieval and manipulation of data
from such computer system, and any associated documentation and
source material that explain how to operate the computer program.
' Computer program' does not include:
  ' (a) The original data, including but not limited to numbers,
text, voice, graphics and images;
  ' (b) Analyses, compilations and other manipulated forms of the
original data produced by use of the program; or
 
  ' (c) The mathematical and statistical formulas which would be
used if the manipulated forms of the original data were to be
produced manually;
  ' (16) Data and information provided by participants to
mediation under ORS 36.256;
  ' (17) Investigatory information relating to any complaint or
charge filed under ORS chapter 654, until a final administrative
determination is made or, if a citation is issued, until an
employer receives notice of any citation;
  ' (18) Specific operational plans in connection with an
anticipated threat to individual or public safety for deployment
and use of personnel and equipment, prepared and used by a law
enforcement agency, if public disclosure thereof would endanger
the life or physical safety of a citizen or law enforcement
officer or jeopardize the law enforcement activity involved;
  ' (19)(a) Audits or audit reports required of a
telecommunications carrier. As used in this paragraph, 'audit or
audit report' means any external or internal audit or audit
report pertaining to a telecommunications carrier, as defined in
ORS 133.721, or pertaining to a corporation having an affiliated
interest, as defined in ORS 759.010, with a telecommunications
carrier that is intended to make the operations of the entity
more efficient, accurate or compliant with applicable rules,
procedures or standards, that may include self-criticism and that
has been filed by the telecommunications carrier or affiliate
under compulsion of state law. 'Audit or audit report' does not
mean an audit of a cost study that would be discoverable in a
contested case proceeding and that is not subject to a protective
order; and
  ' (b) Financial statements. As used in this paragraph, '
financial statement' means a financial statement of a
nonregulated corporation having an affiliated interest, as
defined in ORS 759.010, with a telecommunications carrier, as
defined in ORS 133.721;
  ' (20) The residence address of an elector if authorized under
ORS 247.965 and subject to ORS 247.967;
  ' (21) The following records, communications and information
submitted to a housing authority as defined in ORS 456.005 by
applicants for and recipients of loans, grants and tax credits:
  ' (a) Personal and corporate financial statements and
information, including tax returns;
  ' (b) Credit reports;
  ' (c) Project appraisals;
  ' (d) Market studies and analyses;
  ' (e) Articles of incorporation, partnership agreements and
operating agreements;
  ' (f) Commitment letters;
  ' (g) Project pro forma statements;
  ' (h) Project cost certifications and cost data;
  ' (i) Audits;
  ' (j) Project tenant correspondence requested to be
confidential;
  ' (k) Tenant files relating to certification; and
  ' (L) Housing assistance payment requests;
  ' (22) Records or information that, if disclosed, would allow a
person to:
  ' (a) Gain unauthorized access to buildings or other property
used or owned by a public body;
  ' (b) Identify those areas of structural or operational
vulnerability that would permit unlawful disruption to, or
interference with, the services provided by a public body; or
  ' (c) Disrupt, interfere with or gain unauthorized access to
public funds or to information processing, communication or
telecommunication systems, including the information contained in
the systems, that are used or operated by a public body;
 
  ' (23) Records or information that would reveal the security
measures taken or recommended to be taken to protect:
  ' (a) An officer or employee of a public body;
  ' (b) Buildings or other property used or owned by a public
body;
  ' (c) Information processing, communication or
telecommunication systems, including the information contained
therein, that are used or operated by a public body; or
  ' (d) Those operations of the Oregon State Lottery the security
of which are subject to study and evaluation under ORS 461.180
(6);
  ' (24) Writings prepared by or under the direction of officials
of Oregon Health and Science University about a person and the
person's potential interest in donating money or property to the
university or  { + about + } the person's actual donation unless
disclosure is authorized by the person;
  '  { +  (25) Writings prepared by or under the direction of
officials of the Oregon University System about a person and the
person's potential interest in donating money or property to the
system or to a state institution of higher education, or about
the person's actual donation, unless disclosure is authorized by
the person; + }
  '  { - (25) - }  { +  (26) + } Records of the name and address
of a person who files a report with or pays an assessment to a
council, board or commission created or organized under ORS
chapter 576, 577, 578 or 579. As used in this subsection,
'council, board or commission ' does not include the advisory
committee established under ORS 576.810; and
  '  { - (26) - }  { +  (27) + } Information provided to,
obtained by or used by a public body to authorize, originate,
receive or authenticate a transfer of funds, including but not
limited to a credit card number, payment card expiration date,
password, financial institution account number and financial
institution routing number.
  '  { +  SECTION 27. + } ORS 291.038 is amended to read:
  ' 291.038. (1) The planning, acquisition, installation and use
of all information and telecommunications technology by state
government and its agencies shall be coordinated so that
statewide plans and activities, as well as those of individual
agencies, are addressed in the most integrated, economic and
efficient manner.  To provide policy direction for and
coordination of information technology for state government, the
Director of the Oregon Department of Administrative Services
shall chair and appoint not fewer than five agency executives to
an Information Resources Management Council. The council
membership shall include at least two members representing the
private sector and political subdivisions of the state.
  ' (2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of
Administrative Services shall adopt by rule policies, procedures,
standards and guidelines to plan for, acquire, implement and
manage the state's information resources. In developing rules,
the department shall consult with state agencies having needs
that may be satisfied by use of information resources. State
agencies shall cooperate with the department in preparing and
complying with rules. The rules must be formulated to promote
electronic communication and information sharing among state
agencies and programs and between state and local governments,
and with the public where appropriate.
  ' (3) Rules, plans and specifications shall be formulated to
  { - insure - }   { + ensure + } that information resources fit
together in a statewide system capable of providing ready access
to information, computing or telecommunication resources. Rules,
plans and specifications shall be based on industry standards for
open systems to the greatest extent possible. Prior to adoption
of rules referred to in subsection (2) of this section, the
Oregon Department of Administrative Services shall present the
proposed rules to the appropriate legislative committee. The
Oregon Department of Administrative Services shall have the
review and oversight responsibility for insuring that agencies'
planning, acquisition and implementation activities support the
statewide information resources management plan. The department
shall be responsible for the fair and competitive procurement of
information technology consistent with the rules of the
department.   { - The State Board of Higher Education shall be
responsible for the fair and competitive procurement of
information technology for the Oregon University System
consistent with rules of the Oregon Department of Administrative
Services. - }
  ' (4)(a) It is the policy of the State of Oregon that state
government telecommunications networks should be designed to
provide state-of-the-art services where economically and
technically feasible, using shared, rather than dedicated, lines
and facilities.
  ' (b) The Oregon Department of Administrative Services shall,
when procuring telecommunications network services, consider the
achievement of the economic development and quality of life
outcomes contained in the Oregon benchmarks.
  ' (5)(a) The Oregon Department of Administrative Services, upon
request, may furnish and deliver statewide integrated
videoconferencing and statewide on-line access service to any
public or private entity that primarily conducts its activities
for the direct good or benefit of the public or
community-at-large in providing educational, economic
development, health care, human services, public safety, library
or other public services. The department shall adopt rules with
respect to furnishing the service.
  ' (b) The department shall establish the statewide integrated
videoconferencing and statewide on-line access user fees,
services, delivery, rates and long range plans in consultation
with the Stakeholders Advisory Committee created pursuant to this
section. The rates shall reflect the department's cost in
providing the service.
  ' (c) The department by rule shall restrict its furnishing or
delivery of Internet access service to private entities when the
service would directly compete with two or more local established
providers of such services within the local exchange
telecommunications service area.
  ' (d) The rates and services established and provided under
this section shall not be subject to the regulation or authority
of the Public Utility Commission.
  ' (6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director
of the Oregon Department of Administrative Services.  In making
appointments, the director shall give consideration to geographic
balance and adequate representation of the department's users and
providers and the general public.
  ' (b) The Stakeholders Advisory Committee shall consist of
members who represent elementary or secondary education, higher
education, community colleges, economic development, health care,
human services and public safety. At least four members shall
reside in areas east of the Cascade Mountains.
  ' (c) The term of office of each member is three years, but a
member serves at the sole discretion of the director. The
director shall appoint a successor to a member before the
expiration of the term of the member. A member is eligible for
reappointment. If a position on the Stakeholders Advisory
Committee is vacant for any cause, the director shall make an
appointment to the position, immediately effective for the
unexpired term.
  ' (d) A member of the Stakeholders Advisory Committee is
entitled to travel expenses pursuant to ORS 292.495. Members of
the Stakeholders Advisory Committee are not entitled to
compensation.
  ' (e) The director may establish additional advisory and
technical committees as the director considers necessary to aid
and advise the Stakeholders Advisory Committee in the performance
of its functions.
  ' (f) The director may delegate to the State Chief Information
Officer any of the duties, functions or powers imposed upon the
director by this subsection.
  ' (7) Any organization or organizations recognized as tax
exempt under section 501(c)(3) of the Internal Revenue Code of
1986 that primarily conduct activities for the direct good or
benefit of the public or community at large in providing
educational, economic development, health care, human services,
public safety, library or other public services and have formed
an affiliation with one or more federal, state or local
governmental units within this state may make application to the
department for designation as a community of interest. The
application shall be in such form and shall contain such
information regarding the governmental affiliation relationship,
the tax exempt status of each organization and the public benefit
services to be provided as the department may prescribe. The
department shall establish an application review and appeal
process to ensure that designation of those organizations as a
community of interest for the purposes of including the
organization in telecommunications contracts under ORS 283.520
will result in providing educational, medical, library or other
services for public benefit.
  '  { +  (8) This section does not apply to the State Board of
Higher Education or any state institution of higher education
within the Oregon University System. + }
  '  { - (8) - }  { +  (9) + } As used in this section:
  ' (a) 'Advanced digital communications' means equipment,
facilities and capability to distribute digital communications
signals for the transmission of voice, data, image and video over
distance.
  ' (b) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  ' (c) 'Information resources management' means the state's
program for managing data and information in its various forms in
furtherance of program and agency objectives, and in such a way
that agency employees are able to obtain and use information
easily, efficiently, effectively and economically.
  ' (d) 'Information technology' includes, but is not limited to,
all present and future forms of hardware, software and services
for data processing, office automation and telecommunications.
  ' (e) 'Data' and 'information' represent facts and
representations about the state's human, natural and commercial
resources.
  '  { +  (f) 'Internet access service' means electronic
connectivity to the Internet and its services. + }
  '  { - (f) - }  { +  (g) + } 'Open systems' means systems that
allow state agencies freedom of choice by providing a
vendor-neutral operating environment where different computers,
applications, system software and networks operate together
easily and reliably.
  '  { - (g) - }  { +  (h) + } 'State-of-the-art services'
includes advanced digital communications.
  '  { - (h) - }  { +  (i) + } 'Telecommunications' means the
hardware, software and services for transmitting voice, data,
video and images over a distance.
  '  { - (i) - }  { +  (j) + } 'Statewide integrated
video-conferencing' means a statewide electronic system capable
of transmitting video, voice and data communications.
 
  '  { - (j) - }  { +  (k) + } 'Statewide on-line access' means
electronic connectivity to information resources such as computer
conferencing, electronic mail, databases and Internet access.
  '  { - (k) 'Internet access service' means electronic
connectivity to the Internet and its services. - }
  '  { +  SECTION 28. + }  { + The Oregon Department of
Administrative Services and the State Board of Higher Education
shall jointly cause a review to be made regarding the duties,
functions and powers vested in the board by ORS 351.060, 351.070,
351.086, 351.210, 351.240 and 291.038 as amended by sections 6 to
10 and 27 of this 2003 Act. The review shall be completed
independently of the department and the board. The department and
board shall jointly report the findings of the review to the
Seventy-fourth Legislative Assembly prior to February 1,
2007. + }
  '  { +  SECTION 29. + }  { + The Oregon Student Assistance
Commission shall study and report to the Seventy-third
Legislative Assembly prior to February 1, 2005, on the impact of
a change to the Oregon Opportunity Grant program that would
restrict award amounts for students at independent colleges to no
more than the amount awarded to students attending state
institutions of higher education within the Oregon University
System. The report shall include the recommendations of the
commission on whether to implement the change and on how to best
implement the change. + }
  '  { +  SECTION 30. + }  { + ORS 351.525, 351.531, 351.535 and
351.536 are repealed. + }
  '  { +  SECTION 31. + }  { + This 2003 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2003 Act
takes effect July 1, 2003. + } ' .
                         ----------