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 3677
 
                           B-Engrossed
 
                         Senate Bill 904
                 Ordered by the Senate August 22
     Including Senate Amendments dated July 16 and August 22
 
Sponsored by JOINT COMMITTEE ON WAYS AND MEANS
 
 
                             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.
 
  Abolishes Dispute Resolution Commission. Transfers functions of
commission to Mark O. Hatfield School of Government and
University of Oregon School of Law.
   { +  Allows use of portion of dispute resolution surcharge to
fund arbitration and mediation in courts.
  Eliminates dispute resolution functions of Mark O. Hatfield
School of Government and University of Oregon School of Law, and
use of dispute resolution surcharge by courts, on January 2,
2006. + }
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to dispute resolution; creating new provisions; amending
  ORS 21.480, 36.100, 36.105, 36.110, 36.135, 36.145, 36.150,
  36.155, 36.160, 36.165, 36.170, 36.175, 36.185, 36.200, 36.210,
  36.224, 107.755, 107.775, 135.959, 183.502, 197.830, 339.333,
  352.066 and 390.240; repealing ORS 36.115, 36.120, 36.125,
  36.130, 36.135, 36.140, 36.150, 36.155, 36.160, 36.165, 36.175,
  36.180 and 36.245; appropriating money; limiting expenditures;
  and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + (1) The duties, functions and powers of the
Dispute Resolution Commission under ORS 183.502 are imposed upon,
transferred to and vested in the Mark O. Hatfield School of
Government, as provided in this 2003 Act. The Director of the
Dispute Resolution Commission shall deliver to the director of
the Mark O. Hatfield School of Government all records and
property within the jurisdiction of the Director of the Dispute
Resolution Commission that relate to the duties, functions and
powers of the commission under ORS 183.502.
  (2) The duties, functions and powers of the Dispute Resolution
Commission under ORS 36.100 to 36.238 are imposed upon,
transferred to and vested in the University of Oregon School of
Law, as provided in this 2003 Act. The Director of the Dispute
Resolution Commission shall deliver to the Dean of the University
of Oregon School of Law all records and property within the
jurisdiction of the Director of the Dispute Resolution Commission
 
that relate to the duties, functions and powers of the commission
under ORS 36.100 to 36.238.
  (3) The Dispute Resolution Commission is abolished. The terms
of all members of the commission end on the effective date of
this 2003 Act. + }
  SECTION 2.  { + (1) The transfer of duties, functions and
powers under ORS 183.502 by section 1 of this 2003 Act does not
affect any action, proceeding or prosecution involving or with
respect to those duties, functions and powers begun before and
pending at the time of the transfer, except that the Mark O.
Hatfield School of Government is substituted for the Dispute
Resolution Commission in the action, proceeding or prosecution.
  (2) Nothing in this 2003 Act relieves a person of a liability,
duty or obligation accruing under or with respect to the duties,
functions and powers under ORS 183.502 transferred by section 1
of this 2003 Act. The director of the Mark O. Hatfield School of
Government may undertake the collection or enforcement of any
such liability, duty or obligation.
  (3) The rights and obligations of the Dispute Resolution
Commission legally incurred under contracts, leases and business
transactions executed, entered into or begun before the operative
date of section 1 of this 2003 Act accruing under or with respect
to the duties, functions and powers under ORS 183.502 that are
transferred by section 1 of this 2003 Act are transferred to the
Mark O. Hatfield School of Government. For the purpose of
succession to these rights and obligations, the Mark O. Hatfield
School of Government constitutes a continuation of the Dispute
Resolution Commission and not a new authority.
  (4) Notwithstanding ORS 236.605 to 236.640, employees of the
Dispute Resolution Commission are not to be transferred to the
Mark O. Hatfield School of Government. The director of the Mark
O. Hatfield School of Government may select employees who will
assist the Mark O. Hatfield School of Government in the
performance of the duties, functions and powers under ORS 183.502
transferred by section 1 of this 2003 Act. + }
  SECTION 3.  { + Notwithstanding the transfer of duties,
functions and powers under ORS 183.502 by section 1 of this 2003
Act, the rules of the Dispute Resolution Commission implementing
ORS 183.502 that are in effect on the operative date of section 1
of this 2003 Act continue in effect until superseded or repealed
by rules of the director of the Mark O. Hatfield School of
Government. References to the Dispute Resolution Commission or an
officer or employee of the commission in rules of the commission
implementing ORS 183.502 are considered to be references to the
Mark O. Hatfield School of Government or to an officer or
employee of the school. + }
  SECTION 4.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, in the context
of the duties, functions and powers under ORS 183.502 transferred
by section 1 of this 2003 Act, reference is made to the Dispute
Resolution Commission, or an officer or employee of the Dispute
Resolution Commission, the reference is considered to be a
reference to the Mark O. Hatfield School of Government or to the
officer or employee of the Mark O. Hatfield School of Government
who by this 2003 Act is charged with carrying out those duties,
functions and powers. + }
  SECTION 5.  { + (1) The transfer of duties, functions and
powers under ORS 36.100 to 36.238 by section 1 of this 2003 Act
does not affect any action, proceeding or prosecution involving
or with respect to those duties, functions and powers begun
before and pending at the time of the transfer, except that the
University of Oregon School of Law is substituted for the Dispute
Resolution Commission in the action, proceeding or prosecution.
  (2) Nothing in this 2003 Act relieves a person of a liability,
duty or obligation accruing under or with respect to the duties,
functions and powers under ORS 36.100 to 36.238 that are
transferred by section 1 of this 2003 Act. The Dean of the
University of Oregon School of Law may undertake the collection
or enforcement of any such liability, duty or obligation.
  (3) The rights and obligations of the Dispute Resolution
Commission legally incurred under contracts, leases and business
transactions executed, entered into or begun before the operative
date of section 1 of this 2003 Act accruing under or with respect
to the duties, functions and powers under ORS 36.100 to 36.238
that are transferred by section 1 of this 2003 Act are
transferred to the University of Oregon School of Law. For the
purpose of succession to these rights and obligations, the
University of Oregon School of Law constitutes a continuation of
the Dispute Resolution Commission and not a new authority.
  (4) Notwithstanding ORS 236.605 to 236.640, employees of the
Dispute Resolution Commission are not to be transferred to the
University of Oregon School of Law. The Dean of the University of
Oregon School of Law may select employees who will assist the
University of Oregon School of Law in the performance of the
duties, functions and powers under ORS 36.100 to 36.238
transferred by section 1 of this 2003 Act. + }
  SECTION 6.  { + Notwithstanding the transfer of duties,
functions and powers under ORS 36.100 to 36.238 by section 1 of
this 2003 Act, the rules of the Dispute Resolution Commission
implementing those laws that are in effect on the operative date
of section 1 of this 2003 Act continue in effect until superseded
or repealed by rules of the Dean of the University of Oregon
School of Law.  References to the Dispute Resolution Commission
or an officer or employee of the commission in rules of the
commission implementing ORS 36.100 to 36.238 are considered to be
references to the University of Oregon School of Law or to an
officer or employee of the school. + }
  SECTION 7.  { + Whenever, in any uncodified law or resolution
of the Legislative Assembly or in any rule, document, record or
proceeding authorized by the Legislative Assembly, in the context
of the duties, functions and powers under ORS 36.100 to 36.238
transferred by section 1 of this 2003 Act, reference is made to
the Dispute Resolution Commission, or an officer or employee of
the Dispute Resolution Commission, the reference is considered to
be a reference to the University of Oregon School of Law or to
the officer or employee of the University of Oregon School of Law
who by this 2003 Act is charged with carrying out those duties,
functions and powers. + }
  SECTION 8. ORS 21.480 is amended to read:
  21.480. (1) In all counties wherein legal representation is
provided for the poor without fee by a nonprofit legal aid
program operating under the Legal Services Program established
pursuant to ORS 9.572, the clerk of the circuit court shall
collect the fees provided for in this section to assist in
defraying the operating costs of the legal aid program and to
fund mediation programs offered through the State Department of
Agriculture. The fees provided for in this section are in
addition to all other fees collected by the clerk of the court,
and shall be collected by the clerk in the same manner that other
fees are collected by the clerk.
  (2) The clerk shall collect the following fees from the
plaintiff or other moving party in each civil suit, action or
proceeding in the circuit court when the plaintiff or party files
the first paper in the suit, action or proceeding, and from a
defendant or respondent when the defendant or respondent files an
appearance in the suit, action or proceeding:
  (a) $7, for filings in the small claims department of a circuit
court.
  (b) $13, upon the filing of a complaint that is subject to the
filing fee established under ORS 105.130 (2). If the defendant
demands a trial, the clerk shall collect a fee of $28 from the
defendant, and an additional fee of $15 from the plaintiff. In no
event shall the plaintiff in an action subject to the filing fee
established under ORS 105.130 be required to pay a total fee of
more than $28 under the provisions of this subsection.
  (c) $24, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.111.
  (d) $22, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.110 (2).
  (e) $28, for any other filings in a circuit court not
specifically provided for in this subsection, including all
probate proceedings, protective proceedings under ORS chapter
125, adoption proceedings and change of name proceedings.
  (3) All fees collected under this section shall be deposited
with the State Court Administrator in the manner provided by ORS
9.574.
  (4) Ten percent of the funds deposited with the State Court
Administrator under this section shall be transferred by the
State Court Administrator on a monthly basis to the State
Department of Agriculture, until such time as the amount
specified under subsection (5) of this section has been
transferred to the State Department of Agriculture for the
biennium. Moneys transferred to the State Department of
Agriculture under this section are continuously appropriated to
the department and may be used by the department only for the
purpose of funding mediation programs established by the
department. Moneys appropriated to the department under this
subsection may not be used by the department to fund the costs of
conducting individual farm credit mediations. The department
shall consult with the   { - Dispute Resolution Commission - }
 { +  director of the Mark O. Hatfield School of Government
 + }in establishing and operating mediation programs funded under
this subsection.
  (5) The amount transferred by the State Court Administrator to
the State Department of Agriculture under subsection (4) of this
section shall not exceed:
  (a) $80,000 in the 1997-1999 biennium; and
  (b) $100,000 in all biennia after the 1997-1999 biennium.
  SECTION 8a. ORS 21.480, as amended by section 8 of this 2003
Act, is amended to read:
  21.480. (1) In all counties wherein legal representation is
provided for the poor without fee by a nonprofit legal aid
program operating under the Legal Services Program established
pursuant to ORS 9.572, the clerk of the circuit court shall
collect the fees provided for in this section to assist in
defraying the operating costs of the legal aid program and to
fund mediation programs offered through the State Department of
Agriculture. The fees provided for in this section are in
addition to all other fees collected by the clerk of the court,
and shall be collected by the clerk in the same manner that other
fees are collected by the clerk.
  (2) The clerk shall collect the following fees from the
plaintiff or other moving party in each civil suit, action or
proceeding in the circuit court when the plaintiff or party files
the first paper in the suit, action or proceeding, and from a
defendant or respondent when the defendant or respondent files an
appearance in the suit, action or proceeding:
  (a) $7, for filings in the small claims department of a circuit
court.
  (b) $13, upon the filing of a complaint that is subject to the
filing fee established under ORS 105.130 (2). If the defendant
demands a trial, the clerk shall collect a fee of $28 from the
defendant, and an additional fee of $15 from the plaintiff. In no
event shall the plaintiff in an action subject to the filing fee
established under ORS 105.130 be required to pay a total fee of
more than $28 under the provisions of this subsection.
 
  (c) $24, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.111.
  (d) $22, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.110 (2).
  (e) $28, for any other filings in a circuit court not
specifically provided for in this subsection, including all
probate proceedings, protective proceedings under ORS chapter
125, adoption proceedings and change of name proceedings.
  (3) All fees collected under this section shall be deposited
with the State Court Administrator in the manner provided by ORS
9.574.
  (4) Ten percent of the funds deposited with the State Court
Administrator under this section shall be transferred by the
State Court Administrator on a monthly basis to the State
Department of Agriculture, until such time as the amount
specified under subsection (5) of this section has been
transferred to the State Department of Agriculture for the
biennium. Moneys transferred to the State Department of
Agriculture under this section are continuously appropriated to
the department and may be used by the department only for the
purpose of funding mediation programs established by the
department. Moneys appropriated to the department under this
subsection may not be used by the department to fund the costs of
conducting individual farm credit mediations.   { - The
department shall consult with the director of the Mark O.
Hatfield School of Government in establishing and operating
mediation programs funded under this subsection. - }
  (5) The amount transferred by the State Court Administrator to
the State Department of Agriculture under subsection (4) of this
section shall not exceed:
  (a) $80,000 in the 1997-1999 biennium; and
  (b) $100,000 in all biennia after the 1997-1999 biennium.
  SECTION 8b.  { + The amendments to ORS 21.480 by section 8a of
this 2003 Act become operative on January 2, 2006. + }
  SECTION 9. ORS 36.100 is amended to read:
  36.100. It is the policy and purpose of ORS 36.100 to
  { - 36.245 - }  { +  36.238 + } that, when two or more persons
cannot settle a dispute directly between themselves, it is
preferable that the disputants be encouraged and assisted to
resolve their dispute with the assistance of a trusted and
competent third party mediator, whenever possible, rather than
the dispute remaining unresolved or resulting in litigation.
  SECTION 10. ORS 36.105 is amended to read:
  36.105. The Legislative Assembly declares that it is the
purpose of ORS 36.100 to   { - 36.245 - }  { +  36.238 + } to:
  (1) Foster the development of community-based programs that
will assist citizens in resolving disputes and developing skills
in conflict resolution;
  (2) Allow flexible and diverse programs to be developed in this
state, to meet specific needs in local areas and to benefit this
state as a whole through experiments using a variety of models of
peaceful dispute resolution;
  (3) Find alternative methods for addressing the needs of crime
victims in criminal cases when those cases are either not
prosecuted for lack of funds or can be more efficiently handled
outside the courts;
  (4) Provide a method to evaluate the effect of dispute
resolution programs on communities, local governments, the
justice system and state agencies;
  (5) Encourage the development and use of mediation panels for
resolution of civil litigation disputes;
  (6) Foster the development or expansion of integrated, flexible
and diverse state agency programs that involve state and local
agencies and the public and that provide for use of alternative
means of dispute resolution pursuant to ORS 183.502; and
 
  (7) Foster efforts to integrate community, judicial and state
agency dispute resolution programs.
  SECTION 11. ORS 36.110 is amended to read:
  36.110. As used in ORS 36.100 to   { - 36.245 - }  { +
36.238 + }:
  (1) 'Arbitration' means any arbitration whether or not
administered by a permanent arbitral institution.
    { - (2) 'Commission' means the Dispute Resolution Commission
created under ORS 36.115. - }
   { +  (2) 'Dean' means the Dean of the University of Oregon
School of Law. + }
    { - (3) 'Director' means the director appointed by the
Dispute Resolution Commission under ORS 36.130. - }
    { - (4) - }  { +  (3) + } 'Dispute resolution services'
includes but is not limited to mediation, conciliation and
arbitration.
    { - (5) - }  { +  (4) + } 'Dispute resolution program' means
an entity that receives state funds  { + under ORS 36.155 + } to
provide dispute resolution services  { + under ORS 36.160 + }.
    { - (6) - }  { +  (5) + } 'Mediation' means a process in
which a mediator assists and facilitates two or more parties to a
controversy in reaching a mutually acceptable resolution of the
controversy and includes all contacts between a mediator and any
party or agent of a party, until such time as a resolution is
agreed to by the parties or the mediation process is terminated.
    { - (7) - }  { +  (6) + } 'Mediation agreement' means an
agreement arising out of a mediation, including any term or
condition of the agreement.
    { - (8) - }  { +  (7) + } 'Mediation communications' means:
  (a) All communications that are made, in the course of or in
connection with a mediation, to a mediator, a mediation program
or a party to, or any other person present at, the mediation
proceedings; and
  (b) All memoranda, work products, documents and other
materials, including any draft mediation agreement, that are
prepared for or submitted in the course of or in connection with
a mediation or by a mediator, a mediation program or a party to,
or any other person present at, mediation proceedings.
    { - (9) - }  { +  (8) + } 'Mediation program' means a program
through which mediation is made available and includes the
director, agents and employees of the program.
    { - (10) - }  { +  (9) + } 'Mediator' means a third party who
performs mediation. 'Mediator' includes agents and employees of
the mediator or mediation program and any judge conducting a case
settlement conference.
    { - (11) - }  { +  (10) + } 'Public body' means any state
agency, county or city governing body, school district, special
district, municipal corporation, any board, department,
commission, council, or agency thereof, and any other public
agency of this state.
    { - (12) - }  { +  (11) + } 'State agency' means any state
officer, board, commission, bureau, department, or division
thereof, in the executive branch of state government.
  SECTION 11a. ORS 36.110, as amended by section 11 of this 2003
Act, is amended to read:
  36.110. As used in ORS 36.100 to 36.238:
  (1) 'Arbitration' means any arbitration whether or not
administered by a permanent arbitral institution.
    { - (2) 'Dean' means the Dean of the University of Oregon
School of Law. - }
    { - (3) - }  { +  (2) + } 'Dispute resolution services'
includes but is not limited to mediation, conciliation and
arbitration.
    { - (4) - }  { +  (3) + } 'Dispute resolution program' means
an entity that
 
  { - receives state funds under ORS 36.155 to provide - }  { +
provides + } dispute resolution services   { - under ORS
36.160 - } .
    { - (5) - }  { +  (4) + } 'Mediation' means a process in
which a mediator assists and facilitates two or more parties to a
controversy in reaching a mutually acceptable resolution of the
controversy and includes all contacts between a mediator and any
party or agent of a party, until such time as a resolution is
agreed to by the parties or the mediation process is terminated.
    { - (6) - }  { +  (5) + } 'Mediation agreement' means an
agreement arising out of a mediation, including any term or
condition of the agreement.
    { - (7) - }  { +  (6) + } 'Mediation communications' means:
  (a) All communications that are made, in the course of or in
connection with a mediation, to a mediator, a mediation program
or a party to, or any other person present at, the mediation
proceedings; and
  (b) All memoranda, work products, documents and other
materials, including any draft mediation agreement, that are
prepared for or submitted in the course of or in connection with
a mediation or by a mediator, a mediation program or a party to,
or any other person present at, mediation proceedings.
    { - (8) - }  { +  (7) + } 'Mediation program' means a program
through which mediation is made available and includes the
director, agents and employees of the program.
    { - (9) - }  { +  (8) + } 'Mediator' means a third party who
performs mediation. 'Mediator' includes agents and employees of
the mediator or mediation program and any judge conducting a case
settlement conference.
    { - (10) - }  { +  (9) + } 'Public body' means any state
agency, county or city governing body, school district, special
district, municipal corporation, any board, department,
commission, council, or agency thereof, and any other public
agency of this state.
    { - (11) - }  { +  (10) + } 'State agency' means any state
officer, board, commission, bureau, department, or division
thereof, in the executive branch of state government.
  SECTION 11b.  { + The amendments to ORS 36.110 by section 11a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 12. ORS 36.135 is amended to read:
  36.135.   { - (1) The director of the Dispute Resolution
Commission - }  { +  The Dean of the University of Oregon School
of Law + } shall periodically review dispute resolution programs
in this state. If the   { - director - }  { +  dean + }
determines that there are reasonable grounds to believe that a
program is not in substantial compliance with the standards and
guidelines adopted under ORS 36.175, the
  { - director shall negotiate with the manager of the program to
bring the program into compliance with the standards and
guidelines - }  { + dean may suspend or terminate the funding of
the program and recover any unexpended funds or improperly
expended funds from the program + }.
    { - (2) If the negotiations under subsection (1) of this
section fail, the director shall give written notice to the
program and the county requiring the program to be revised to
comply with the standards and guidelines within 30 days after the
notice. If, after 30 days, the director concludes that the
program is not in compliance, the director shall serve the
manager of the program with a request for mediation. The director
and the program manager shall mutually select a mediator. If a
mediator is not selected within 15 days, the director shall
request the presiding judge for the judicial district in which
the program is located to appoint a mediator. - }
    { - (3) If mediation under subsection (2) of this section
fails, the director shall, after giving the program and county
not less than 30 days' notice, conduct a hearing to ascertain
whether there is substantial compliance or satisfactory progress
being made toward compliance. After the hearing, the Dispute
Resolution Commission may suspend funding of the program until
the required compliance occurs. - }
  SECTION 13. ORS 36.145 is amended to read:
  36.145.  { + (1) + } The Dispute Resolution Account is
established in the State Treasury, separate and distinct from the
General Fund.  All moneys received   { - by the Dispute
Resolution Commission - }  under ORS 36.150 and 36.170 shall be
deposited to the credit of the account. Moneys in the account are
continuously appropriated to the   { - commission to carry out
the provisions of ORS 36.100 to 36.245 - }   { + Department of
Revenue to be distributed according to allocations made by the
Legislative Assembly to:
  (a) The Department of Higher Education on behalf of the
University of Oregon School of Law, for the purpose of
distribution under ORS 36.155;
  (b) The Department of Higher Education on behalf of the
University of Oregon School of Law, for payment of administrative
costs and other expenses of the school in carrying out the
responsibilities of the school under ORS 36.100 to 36.238;
  (c) The Department of Higher Education on behalf of the Mark O.
Hatfield School of Government, for payment of administrative
costs and other expenses of the school in carrying out the
responsibilities of the school under ORS 183.502; and
  (d) The Judicial Department, for the purpose of providing
mediation and arbitration services in the courts of this state.
  (2) Notwithstanding ORS 293.190, moneys in the Dispute
Resolution Account that are in excess of the distributions
required by this section do not revert to the General Fund but
remain in the account and are available for future allocation
under this section + }.
  SECTION 13a. ORS 36.145, as amended by section 13 of this 2003
Act, is amended to read:
  36.145.   { - (1) - }  The Dispute Resolution Account is
established in the State Treasury, separate and distinct from the
General Fund. All moneys received under ORS   { - 36.150 and - }
36.170 shall be deposited to the credit of the account.
 { - Moneys in the account are continuously appropriated to the
Department of Revenue to be distributed according to allocations
made by the Legislative Assembly to: - }
    { - (a) The Department of Higher Education on behalf of the
University of Oregon School of Law, for the purpose of
distribution under ORS 36.155; - }
    { - (b) The Department of Higher Education on behalf of the
University of Oregon School of Law, for payment of administrative
costs and other expenses of the school in carrying out the
responsibilities of the school under ORS 36.100 to 36.238; - }
    { - (c) The Department of Higher Education on behalf of the
Mark O. Hatfield School of Government, for payment of
administrative costs and other expenses of the school in carrying
out the responsibilities of the school under ORS 183.502; and - }
 
    { - (d) The Judicial Department, for the purpose of providing
mediation and arbitration services in the courts of this
state. - }
    { - (2) Notwithstanding ORS 293.190, moneys in the Dispute
Resolution Account that are in excess of the distributions
required by this section do not revert to the General Fund but
remain in the account and are available for future allocation
under this section. - }
  SECTION 13b.  { + The amendments to ORS 36.145 by section 13a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 13c.  { + (1) As soon as possible after the effective
date of this 2003 Act, the Department of Revenue shall distribute
$722,836 from the Dispute Resolution Account to the Department of
Higher Education on behalf of the University of Oregon School of
Law, for the purpose of distribution under ORS 36.155. The
distribution provided for in this subsection is in addition to
the distributions provided for in section 14 of this 2003 Act.
  (2) As soon as possible after the effective date of this 2003
Act, the Department of Revenue shall distribute $180,000 from the
Dispute Resolution Account to the Oregon Department of
Administrative Services. Moneys distributed to the Oregon
Department of Administrative Services under this subsection may
be used by the department only for the purpose of paying
unemployment compensation, accrued paid vacation leave and other
obligations of the Dispute Resolution Commission. + }
  SECTION 14.  { + For the biennium beginning on July 1, 2003,
the Department of Revenue shall distribute from the Dispute
Resolution Account the following amounts:
  (1) $997,279 to the Department of Higher Education on behalf of
the University of Oregon School of Law, for the purpose of
distribution under ORS 36.155;
  (2) $125,000 to the Department of Higher Education on behalf of
the University of Oregon School of Law, for payment of
administrative costs and other expenses of the school in carrying
out the responsibilities of the school under ORS 36.100 to
36.238;
  (3) $125,000 to the Department of Higher Education on behalf of
the Mark O. Hatfield School of Government, for payment of
administrative costs and other expenses of the school in carrying
out the responsibilities of the school under ORS 183.502; and
  (4) $800,000 to the Judicial Department, for the purpose of
providing mediation and arbitration services in the courts of
this state. + }
  SECTION 15. ORS 36.150 is amended to read:
  36.150. The   { - Dispute Resolution Commission - }  { +
Department of Higher Education, on behalf of the Mark O. Hatfield
School of Government and the University of Oregon School of Law,
 + }may accept and expend moneys from any public or private
source, including the federal government, made available for the
purpose of encouraging, promoting or establishing dispute
resolution programs in Oregon or to facilitate and assist the
 { - commission - }  { +  schools  + }in carrying out the
 { - commission's function as provided by law - }  { +
responsibilities of the schools under ORS 36.100 to 36.238 and
183.502 + }. All moneys received by the   { - commission - }
 { +  Department of Higher Education + } under this section shall
be deposited in the Dispute Resolution Account.  Notwithstanding
the provisions of ORS 291.238, all such moneys are continuously
appropriated to the   { - commission - }  { +  Department of
Higher Education  + }for the purposes for which they were made
available and shall be expended in accordance with the terms and
conditions upon which they were made available.
  SECTION 16. ORS 36.155 is amended to read:
  36.155.   { - (1) Funds in the Dispute Resolution Account
attributable to 30 percent of the amounts generated by the filing
fee surcharges imposed under ORS 36.170 may be used by the
Dispute Resolution Commission only for the purpose of carrying
out the provisions of ORS 36.100 to 36.245. Funds in the Dispute
Resolution Account attributable to 20 percent of the amounts
generated by the filing fee surcharges imposed under ORS 36.170
may be used by the Dispute Resolution Commission only for the
purpose of carrying out the provisions of ORS 183.502 (5) to (7).
Funds in the Dispute Resolution Account attributable to 50
percent of the amounts generated by the filing fee surcharges
imposed under ORS 36.170 shall be allocated as provided in
subsection (2) of this section. - }
    { - (2) Funds in the Dispute Resolution Account that are
attributable to 50 percent of the amounts generated by the filing
fee surcharges imposed under ORS 36.170 - }   { + Funds allocated
to the Department of Higher Education on behalf of the University
of Oregon School of Law under ORS 36.145 (1)(a) for distribution
under this section  + }shall be awarded by the
 { - commission - }  { +  Dean of the University of Oregon School
of Law  + }for the purpose of providing dispute resolution
services in the county from which the funds originated. On or
before July 1 of each odd-numbered year, the   { - commission - }
 { +  dean + } shall advise each county of the county's share of
the amount   { - appropriated - }  { +  allocated + } for the
purposes of this   { - subsection - }  { +  section + }. The
determination shall be based upon each county's respective share
of moneys contributed under ORS 36.170. Before
 { - allocating - }  { +  distributing + } these funds in a
county, the county must apply for authority or the
 { - commission - }  { +  dean + } must proceed under ORS 36.160.
If a dispute resolution program is not selected for funding under
ORS 36.160 within three fiscal years after the fiscal year in
which the filing fee surcharge was collected, then the funds from
that fiscal year may be   { - spent - }  { +  distributed + } by
the   { - commission for dispute resolution services as if the
funds were moneys governed by subsection (3) of this section - }
 { +  dean in other counties + }.
    { - (3) Moneys received by the commission from any sources
other than the filing fee surcharges imposed by ORS 36.170 shall
be used as follows: - }
    { - (a) For overhead and administrative expenses of the
commission. - }
    { - (b) For statewide dispute resolution programs or dispute
resolution services in any county in this state including but not
limited to providing special grants for pilot projects, start-up
costs for dispute resolution programs and training programs and
to supplement funds otherwise received by dispute resolution
programs. - }
  SECTION 17. ORS 36.160 is amended to read:
  36.160. (1) To participate in the expenditure of funds for
dispute resolution programs within the county under ORS 36.155, a
county shall notify the   { - Dispute Resolution Commission - }
 { +  Dean of the University of Oregon School of Law  + }in
accordance with the schedule established by rule by the
 { - commission - }  { +  dean + }. Such notification shall be by
resolution of the appropriate board of county commissioners or,
if the programs are to serve more than one county, by joint
resolution. A county providing notice may select the dispute
resolution programs to receive funds under ORS 36.155 for
providing dispute resolution services within the county from
among qualified dispute resolution programs.
  (2) The county's notification to the   { - commission shall - }
 { +  dean must + } include a statement of agreement by the
county to engage in a selection process and to select as the
recipient of funding an entity capable of and willing to provide
dispute resolution services according to the rules of the
 { - commission - }  { +  dean + }. Actual funding by the
 { - commission shall be - }  { +  dean is + } contingent upon
the selection by the county of a qualified entity. The
 { - commission shall - }  { +  dean may + } provide consultation
and technical assistance to a county to identify, develop and
implement dispute resolution programs that meet the standards and
guidelines adopted by the
  { - commission - }  { +  dean + } under ORS 36.175.
  (3) If a county does not issue a notification according to the
schedule established by the   { - commission - }  { +  dean + },
the   { - Dispute Resolution Commission - }  { +  dean  + }may
notify a county board of commissioners that the
 { - commission - }  { +  dean + } intends to fund a dispute
resolution program in the county with funds earmarked for the
county under ORS 36.155. The   { - Dispute Resolution
Commission - }  { +  dean + } may, after such notification,
assume the county's role under subsection (1) of this section
unless the county gives the notice required by subsection (1) of
this section. If the   { - commission - }  { +  dean + } assumes
the county's role, the   { - commission - }  { +  dean + } may
contract with a qualified program for a two-year period. The
county may, 90 days before the expiration of an agreement between
a qualified program and the   { - commission - }  { +  dean + },
notify the   { - Dispute Resolution Commission - }  { +  dean + }
under subsection (1) of this section that the county intends to
assume its role under subsection (1) of this section.
  (4) All dispute resolution programs identified for funding
shall comply with the rules adopted under ORS 36.175.
  (5) All funded dispute resolution programs shall submit
informational reports and statistics as required by the
  { - commission - }  { +  dean + }.
  SECTION 18. ORS 36.165 is amended to read:
  36.165. (1) Any county that receives financial aid under ORS
36.155 may terminate its participation at the end of any month by
delivering a resolution of its board of commissioners to the
  { - director of the Dispute Resolution Commission - }  { +
Dean of the University of Oregon School of Law + } not less than
180 days before the termination date.
  (2) If a county terminates its participation under ORS 36.160,
the remaining portion of the financial aid made available to the
county under ORS 36.160 shall revert to the Dispute Resolution
Account to be used as specified in ORS 36.155.
  SECTION 18a. ORS 36.170 is amended to read:
  36.170. (1) The clerks of the circuit courts shall collect a
dispute resolution surcharge at the time a civil action, suit or
proceeding is filed, including appeals. The surcharge shall be
collected from a plaintiff or petitioner at the time the
proceeding is filed. The surcharge shall be collected from a
defendant or respondent upon making appearance. The amount of the
surcharge shall be:
  (a) $9, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.110 (1), 21.310 or any other
filing fee not specifically provided for in this section.
  (b) $7, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.110 (2) or 105.130, or if the
action is filed in the small claims department of circuit court
and the amount or value claimed exceeds $1,500.
  (c) $5, if the action, suit or proceeding is subject to the
filing fees established by ORS 21.111.
  (d) $3 if the action is filed in the small claims department of
circuit court and the amount or value claimed does not exceed
$1,500.
  (2) All surcharges collected under this section shall be
deposited by the State Court Administrator into the State
Treasury to the credit of the Dispute Resolution Account
 { - and may only be used as provided in ORS 36.155 - } .
  SECTION 18b.  { + The amendments to ORS 36.170 by section 18a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 19. ORS 36.175 is amended to read:
  36.175. (1)   { - In accordance with the applicable provisions
in ORS 183.310 to 183.550, the Dispute Resolution Commission - }
 { +  The Dean of the University of Oregon School of Law + }
shall adopt by rule:
  (a) Standards and guidelines for dispute resolution programs
 { +  receiving funds under ORS 36.155 + };
  (b) Minimum reporting requirements for dispute resolution
programs  { + receiving funds under ORS 36.155 + };
  (c) Methods for evaluating dispute resolution programs  { +
receiving funds under ORS 36.155 + };
 
 
  (d) Minimum qualifications and training for persons conducting
dispute resolution services in dispute resolution programs
 { + receiving funds under ORS 36.155 + };
    { - (e) Minimum qualifications and training qualifications
for personnel performing mediation services for the circuit
courts under ORS 107.755 to 107.785; - }
    { - (f) - }  { +  (e) + } Participating funds requirements,
if any, for entities receiving funds under ORS 36.155;
    { - (g) - }  { +  (f) + } Requirements, if any, for the
payment by participants for services provided by a program
receiving funds under ORS 36.155; and
    { - (h) - }  { +  (g) + } Any other provisions or procedures
 { - necessary - }  for the administration of   { - the laws that
the commission is charged with administering - }  { +  ORS 36.100
to 36.175 + }.
  (2) This section does not apply to state agency dispute
resolution programs.
  SECTION 20. ORS 36.185 is amended to read:
  36.185. After the appearance by all parties in any civil
action, except proceedings under ORS 107.700 to 107.732 or
124.005 to 124.040, a judge of any circuit court may refer a
civil dispute to mediation under the terms and conditions set
forth in ORS 36.180 to 36.210. When a party to a case files a
written objection to mediation with the court, the action shall
be removed from mediation and proceed in a normal fashion. All
civil disputants shall be provided with written information
describing the mediation process,   { - as provided by the
Dispute Resolution Commission, - }   { + as provided or approved
by the State Court Administrator, + } along with information on
established court mediation opportunities. Filing parties shall
be provided with this information at the time of filing a civil
action. Responding parties shall be provided with this
information by the filing party along with the initial service of
filing documents upon the responding party.
  SECTION 21. ORS 36.200 is amended to read:
  36.200. (1) A circuit court providing mediation referral under
ORS 36.180 to 36.210 shall establish mediation panels. The
mediators on such panels shall have such qualifications as
 { - set by the Dispute Resolution Commission - }  { +
established by rules adopted under ORS 1.002 + }. Formal
education in any particular field shall not be a prerequisite to
serving as a mediator.
  (2) Unless instructed otherwise by the court, upon referral by
the court to mediation, the clerk of the court shall select at
least three individuals from the court's panel of mediators and
shall send their names to legal counsel for the parties, or to a
party directly if not represented, with a request that each party
state preferences within five judicial days. If timely objection
is made to all of the individuals named, the court shall select
some other individual from the mediator panel. Otherwise, the
clerk, under the direction of the court, shall select as mediator
one of the three individuals about whom no timely objection was
made.
  (3) Upon the court's or the parties' own selection of a
mediator, the clerk shall:
  (a) Notify the designated person of the assignment as mediator.
  (b) Provide the mediator with the names and addresses of the
parties and their representatives and with copies of the order of
assignment.
  (4) The parties to a dispute that is referred by the court to
mediation may choose, at their option and expense, mediation
services other than those suggested by the court, and entering
into such private mediation services shall be subject to the same
provisions of ORS 36.180 to 36.210.
  (5) Disputing parties in mediation shall be free, at their own
expense, to retain jointly or individually, experts, attorneys,
fact finders, arbitrators and other persons to assist the
mediation, and all such dispute resolution efforts shall be
subject to the protection of ORS 36.180 to 36.210.
  SECTION 22. ORS 36.210 is amended to read:
  36.210. (1) Mediators, mediation programs and dispute
resolution programs providing services under ORS 36.100 to
 { - 36.245 and mediators or other community programs providing
dispute resolution services that the Dispute Resolution
Commission determines comply with the standards established under
ORS 36.175 - }  { + 36.238 and mediators, mediation programs and
other community programs providing dispute resolution services
that comply with the standards established under ORS 36.175,
107.755 or 107.775 + } are not civilly liable for any act or
omission done or made while engaged in efforts to assist or
facilitate a mediation or in providing other dispute resolution
services, unless the act or omission was made or done in bad
faith, with malicious intent or in a manner exhibiting a willful,
wanton disregard of the rights, safety or property of another.
  (2) Mediators, mediation programs and dispute resolution
programs are not civilly liable for the disclosure of a
confidential mediation communication unless the disclosure was
made in bad faith, with malicious intent or in a manner
exhibiting a willful, wanton disregard of the rights, safety or
property of another.
  (3) The limitations on liability provided by this section apply
to the officers, directors, employees and agents of mediation
programs and dispute resolution programs.
  SECTION 22a. ORS 36.210, as amended by section 22 of this 2003
Act, is amended to read:
  36.210. (1) Mediators, mediation programs and dispute
resolution programs   { - providing services under ORS 36.100 to
36.238 and mediators, mediation programs and other community
programs providing dispute resolution services that comply with
the standards established under ORS 36.175, 107.755 or
107.775 - }  are not civilly liable for any act or omission done
or made while engaged in efforts to assist or facilitate a
mediation or in providing other dispute resolution services,
unless the act or omission was made or done in bad faith, with
malicious intent or in a manner exhibiting a willful, wanton
disregard of the rights, safety or property of another.
  (2) Mediators, mediation programs and dispute resolution
programs are not civilly liable for the disclosure of a
confidential mediation communication unless the disclosure was
made in bad faith, with malicious intent or in a manner
exhibiting a willful, wanton disregard of the rights, safety or
property of another.
  (3) The limitations on liability provided by this section apply
to the officers, directors, employees and agents of mediation
programs and dispute resolution programs.
  SECTION 22b.  { + The amendments to ORS 36.210 by section 22a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 23. ORS 36.224 is amended to read:
  36.224. (1) Except as provided in this section, mediation
communications in mediations in which a state agency is a party,
or in which a state agency is mediating a dispute as to which the
state agency has regulatory authority, are not confidential and
may be disclosed or admitted as evidence in subsequent
adjudicatory proceedings, as described in ORS 36.222 (7).
  (2) The Attorney General  { - , in consultation with the
Dispute Resolution Commission, - }  shall develop rules that
provide for the confidentiality of mediation communications in
mediations described in subsection (1) of this section. The rules
shall also provide for limitations on admissibility and
disclosure in subsequent adjudicatory proceedings, as described
in ORS 36.222 (7). The rules shall contain provisions governing
mediations of workplace interpersonal disputes.
  (3) Rules developed by the Attorney General under this section
must include a provision for notice to the parties to a mediation
regarding the extent to which the mediation communications are
confidential or subject to disclosure or introduction as evidence
in subsequent adjudicatory proceedings.
  (4) Subject to the approval of the Governor, a state agency may
adopt any or all of the rules developed by the Attorney General
under this section.
    { - (5) The commission shall maintain a list of state
agencies that have adopted rules under this section. - }
    { - (6) - }  { +  (5) + } Except as provided in ORS 36.222,
mediation communications in any mediation regarding a claim for
workers' compensation benefits conducted pursuant to rules
adopted by the Workers' Compensation Board are confidential, are
not subject to disclosure under ORS 192.410 to 192.505 and may
not be disclosed or admitted as evidence in subsequent
adjudicatory proceedings, as described in ORS 36.222 (7), without
regard to whether a state agency or other public body is a party
to the mediation or is the mediator in the mediation.
    { - (7) - }  { +  (6) + } Mediation communications made
confidential by a rule adopted by a state agency under this
section are not subject to disclosure under ORS 192.410 to
192.505.
  SECTION 24. ORS 107.755 is amended to read:
  107.755. (1) No later than January 1, 1999, each judicial
district shall:
  (a) Provide a mediation orientation session for all parties in
cases in which child custody, parenting time or visitation is in
dispute, and in any other domestic relations case in which
mediation has been ordered. The orientation session may be
structured in any way the circuit court determines best meets the
needs of the parties. The orientation session should be designed
to make the parties aware of:
  (A) What mediation is;
  (B) Mediation options available to them; and
  (C) The advantages and disadvantages of each method of dispute
resolution.
  (b) Except in matters tried under ORS 107.097 and 107.138 or
upon a finding of good cause, require parties in all cases
described in paragraph (a) of this subsection to attend a
mediation orientation session prior to any judicial determination
of the issues.
  (c) Provide mediation under ORS 107.755 to 107.785 in any case
in which child custody, parenting time and visitation are in
dispute.
  (d) Have developed a plan that addresses domestic violence
issues and other power imbalance issues in the context of
mediation orientation sessions and mediation of any issue in
accordance with the following guidelines:
  (A) All mediation programs and mediators must recognize that
mediation is not an appropriate process for all cases and that
agreement is not necessarily the appropriate outcome of all
mediation;
  (B) Neither the existence of nor the provisions of a
restraining order issued under ORS 107.718 may be mediated;
  (C) All mediation programs and mediators must develop and
implement:
  (i) A screening and ongoing evaluation process of domestic
violence issues for all mediation cases;
  (ii) A provision for opting out of mediation that allows a
party to decline mediation after the party has been informed of
the advantages and disadvantages of mediation or at any time
during the mediation; and
  (iii) A set of safety procedures intended to minimize the
likelihood of intimidation or violence in the orientation
 
session, during mediation or on the way in or out of the building
in which the orientation or mediation occurs;
  (D) When a mediator explains the process to the parties, the
mediator shall include in the explanation the disadvantages of
mediation and the alternatives to mediation;
  (E) All mediators shall obtain continuing education regarding
domestic violence and related issues; and
  (F) Mediation programs shall collect appropriate
data. Mediation programs shall be sensitive to domestic violence
issues when determining what data to collect.
  (e) In developing the plan required by paragraph (d) of this
subsection, consult with one or more of the following:
  (A) A statewide or local multidisciplinary domestic violence
coordinating council.
  (B) A nonprofit private organization funded under ORS 108.620.
  (2) Notwithstanding any other provision of law, mediation under
ORS 107.755 to 107.785, including the mediation orientation
session described in subsection (1)(a) of this section, may not
be encouraged or provided in proceedings under ORS 30.866,
107.700 to 107.732, 124.005 to 124.040 or 163.738.
  (3) The court, as provided in ORS 3.220, may make rules
consistent with ORS 107.755 to 107.785 to govern the operation
and procedure of mediation provided under this section.
  (4) If a court provides mediation of financial issues, it shall
develop a list of mediators who meet the minimum education and
experience qualifications   { - required by rule of the Dispute
Resolution Commission - }  { +  established by rules adopted
under ORS 1.002 + }. The rules must require demonstrated
proficiency in mediation of financial issues. Once the list is
developed, the judicial district shall maintain the list.
Mediation of financial issues is subject to the plan developed
under subsection (1)(d) of this section and to the limitations
imposed by subsection (2) of this section.
  (5) A circuit court may provide mediation in connection with
its exercise of conciliation jurisdiction under ORS 107.510 to
107.610, but a circuit court need not provide conciliation
services in order to provide mediation under ORS 107.755 to
107.785.
  SECTION 25. ORS 107.775 is amended to read:
  107.775. (1) A circuit court may obtain mediation services,
with the prior approval of the governing body of each county
involved, by:
  (a) Using personnel performing conciliation services for the
court under ORS 107.510 to 107.610;
  (b) Contracting or entering into agreements with public or
private agencies to provide mediation services to the court; or
  (c) Employing or contracting for mediators directly.
  (2) Personnel performing mediation services for the circuit
court shall have the minimum educational and experience
qualifications   { - required by rule of the Dispute Resolution
Commission - }  { +  established by rules adopted under ORS
1.002 + }.
  (3) Subject to the provisions of the Local Budget Law, the
compensation and expenses of personnel performing mediation
services for the circuit court and other expenses of mediation
services provided by the court shall be paid by the county or as
may be agreed upon by the counties involved. Personnel performing
mediation services are not state employees, and their
compensation and expenses shall not be paid by the state.
  (4) The parties to a child custody, parenting time or
visitation dispute that is referred by the circuit court to
mediation may use, at their option and expense, mediation
services other than those provided by the court.
  (5) Two or more counties may join together to provide services
under ORS 107.510 to 107.610 and 107.755 to 107.785.
  SECTION 26. ORS 135.959 is amended to read:
  135.959. (1) A law enforcement agency, city attorney, district
attorney, county juvenile department or court may contract with
qualified dispute resolution programs to provide mediation
services under ORS 135.951 or 135.953.
    { - (2) The Dispute Resolution Commission in consultation
with referring agencies, courts and mediation service providers
shall establish standards for data collection for disputes
referred to mediation. - }
    { - (3) - }   { + (2) + } As used in this section, 'qualified
dispute resolution program' means a program that meets the
standards for mediators and mediation programs established by the
 { - Dispute Resolution Commission - }  { +  Dean of the
University of Oregon School of Law under ORS 36.175 + }.
  SECTION 26a. ORS 135.959, as amended by section 26 of this 2003
Act, is amended to read:
  135.959.   { - (1) - }  A law enforcement agency, city
attorney, district attorney, county juvenile department or court
may contract with   { - qualified - }  dispute resolution
programs to provide mediation services under ORS 135.951 or
135.953.
    { - (2) As used in this section, 'qualified dispute
resolution program' means a program that meets the standards for
mediators and mediation programs established by the Dean of the
University of Oregon School of Law under ORS 36.175. - }
  SECTION 26b.  { + The amendments to ORS 135.959 by section 26a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 27. ORS 183.502 is amended to read:
  183.502. (1) Unless otherwise prohibited by law, agencies may
use alternative means of dispute resolution in rulemaking
proceedings, contested case proceedings, judicial proceedings in
which the agency is a party, and any other decision-making
process in which conflicts may arise. The alternative means of
dispute resolution may be arbitration, mediation or any other
collaborative problem-solving process designed to encourage
parties to work together to develop mutually agreeable solutions
to disputes. Use of alternative means of dispute resolution by an
agency does not affect the application of ORS 192.410 to 192.505
to the agency, or the application of ORS 192.610 to 192.690 to
the agency.
  (2) An agency that elects to utilize alternative means of
dispute resolution shall inform and may consult with the
 { - Dispute Resolution Commission - }  { +  Mark O. Hatfield
School of Government + }, the Department of Justice and the
Oregon Department of Administrative Services in developing a
policy or program for implementation of alternative means of
dispute resolution.
  (3) The Attorney General, in consultation with the
 { - Dispute Resolution Commission - }  { +  Mark O. Hatfield
School of Government + } and the Oregon Department of
Administrative Services, may develop for agencies model rules for
the implementation of alternative means of dispute resolution. An
agency may adopt all or part of the model rules by reference
without complying with the rulemaking procedures of ORS 183.325
to 183.410. Notice of the adoption of all or part of the model
rules must be filed by the agency with the Secretary of State in
the manner provided by ORS 183.355 for the filing of rules.
  (4) When an agency reviews the standard agreements, forms for
contracts and forms for applying for grants or other assistance
used by the agency, the agency shall determine whether the
agreements and forms should be amended to authorize and encourage
the use of alternative means of dispute resolution in disputes
that arise under the agreement, contract or application.
  (5) The Department of Justice, the   { - Dispute Resolution
Commission - }  { +  Mark O. Hatfield School of Government + },
the Oregon Department of Administrative Services and the Governor
 
shall collaborate to increase the use of alternative dispute
resolution to resolve disputes involving the State of Oregon by:
  (a) Assisting agencies to develop a policy for alternative
means of dispute resolution;
  (b) Assisting agencies to develop or expand flexible and
diverse agency programs that provide alternative means of dispute
resolution;  { + and
  (c) Providing assistance in the efficient and effective
selection of mediators or facilitators. + }
    { - (c) Identifying, advising and assisting groups of
agencies to cooperate in developing alternative means of dispute
resolution; - }
    { - (d) Designating an agency within each group of agencies
identified in paragraph (c) of this subsection to coordinate
alternative means of dispute resolution among those agencies; - }
 
    { - (e) Encouraging the coordination and integration of
activities and programs among state and local governments and the
public to ensure efficiency of alternative means of dispute
resolution; and - }
    { - (f) Developing a method to evaluate the effectiveness of
agencies' alternative dispute resolution programs. - }
  (6)   { - The participating and coordinating - }  Agencies
 { + with alternative dispute resolution programs + } shall seek
to identify cases appropriate for mediation and other means of
alternative dispute resolution and to design systems and
procedures to resolve those cases.
  (7) The purpose of the agency alternative dispute resolution
programs is to:
  (a) Increase agency efficiency;
  (b) Increase public and agency satisfaction with the process
and results of dispute resolution; and
  (c) Decrease the cost of resolving disputes.
    { - (8) The Department of Justice, the Dispute Resolution
Commission and the Oregon Department of Administrative Services
shall jointly report to the Legislative Assembly on or before
January 15 of each odd-numbered year regarding any additional
programs implemented under subsection (5) of this section. - }
  SECTION 27a. ORS 183.502, as amended by section 27 of this 2003
Act, is amended to read:
  183.502. (1) Unless otherwise prohibited by law, agencies may
use alternative means of dispute resolution in rulemaking
proceedings, contested case proceedings, judicial proceedings in
which the agency is a party, and any other decision-making
process in which conflicts may arise. The alternative means of
dispute resolution may be arbitration, mediation or any other
collaborative problem-solving process designed to encourage
parties to work together to develop mutually agreeable solutions
to disputes. Use of alternative means of dispute resolution by an
agency does not affect the application of ORS 192.410 to 192.505
to the agency, or the application of ORS 192.610 to 192.690 to
the agency.
  (2) An agency that elects to utilize alternative means of
dispute resolution shall inform and may consult with   { - the
Mark O. Hatfield School of Government, - }  the Department of
Justice and the Oregon Department of Administrative Services in
developing a policy or program for implementation of alternative
means of dispute resolution.
  (3) The Attorney General, in consultation with   { - the Mark
O. Hatfield School of Government and - }  the Oregon Department
of Administrative Services, may develop for agencies model rules
for the implementation of alternative means of dispute
resolution. An agency may adopt all or part of the model rules by
reference without complying with the rulemaking procedures of ORS
183.325 to 183.410. Notice of the adoption of all or part of the
model rules must be filed by the agency with the Secretary of
State in the manner provided by ORS 183.355 for the filing of
rules.
  (4) When an agency reviews the standard agreements, forms for
contracts and forms for applying for grants or other assistance
used by the agency, the agency shall determine whether the
agreements and forms should be amended to authorize and encourage
the use of alternative means of dispute resolution in disputes
that arise under the agreement, contract or application.
  (5) The Department of Justice,   { - the Mark O. Hatfield
School of Government, - }  the Oregon Department of
Administrative Services and the Governor shall collaborate to
increase the use of alternative dispute resolution to resolve
disputes involving the State of Oregon by:
  (a) Assisting agencies to develop a policy for alternative
means of dispute resolution;
  (b) Assisting agencies to develop or expand flexible and
diverse agency programs that provide alternative means of dispute
resolution; and
  (c) Providing assistance in the efficient and effective
selection of mediators or facilitators.
  (6) Agencies with alternative dispute resolution programs shall
seek to identify cases appropriate for mediation and other means
of alternative dispute resolution and to design systems and
procedures to resolve those cases.
  (7) The purpose of the agency alternative dispute resolution
programs is to:
  (a) Increase agency efficiency;
  (b) Increase public and agency satisfaction with the process
and results of dispute resolution; and
  (c) Decrease the cost of resolving disputes.
  SECTION 27b.  { + The amendments to ORS 183.502 by section 27a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 28. ORS 197.830 is amended to read:
  197.830. (1) Review of land use decisions or limited land use
decisions under ORS 197.830 to 197.845 shall be commenced by
filing a notice of intent to appeal with the Land Use Board of
Appeals.
  (2) Except as provided in ORS 197.620 (1) and (2), a person may
petition the board for review of a land use decision or limited
land use decision if the person:
  (a) Filed a notice of intent to appeal the decision as provided
in subsection (1) of this section; and
  (b) Appeared before the local government, special district or
state agency orally or in writing.
  (3) If a local government makes a land use decision without
providing a hearing, except as provided under ORS 215.416 (11) or
227.175 (10), or the local government makes a land use decision
that is different from the proposal described in the notice of
hearing to such a degree that the notice of the proposed action
did not reasonably describe the local government's final actions,
a person adversely affected by the decision may appeal the
decision to the board under this section:
  (a) Within 21 days of actual notice where notice is required;
or
  (b) Within 21 days of the date a person knew or should have
known of the decision where no notice is required.
  (4) If a local government makes a land use decision without a
hearing pursuant to ORS 215.416 (11) or 227.175 (10):
  (a) A person who was not provided mailed notice of the decision
as required under ORS 215.416 (11)(c) or 227.175 (10)(c) may
appeal the decision to the board under this section within 21
days of receiving actual notice of the decision.
  (b) A person who is not entitled to notice under ORS 215.416
(11)(c) or 227.175 (10)(c) but who is adversely affected or
aggrieved by the decision may appeal the decision to the board
under this section within 21 days after the expiration of the
period for filing a local appeal of the decision established by
the local government under ORS 215.416 (11)(a) or 227.175
(10)(a).
  (c) A person who receives mailed notice of a decision made
without a hearing under ORS 215.416 (11) or 227.175 (10) may
appeal the decision to the board under this section within 21
days of receiving actual notice of the nature of the decision, if
the mailed notice of the decision did not reasonably describe the
nature of the decision.
  (d) Except as provided in paragraph (c) of this subsection, a
person who receives mailed notice of a decision made without a
hearing under ORS 215.416 (11) or 227.175 (10) may not appeal the
decision to the board under this section.
  (5) If a local government makes a limited land use decision
which is different from the proposal described in the notice to
such a degree that the notice of the proposed action did not
reasonably describe the local government's final actions, a
person adversely affected by the decision may appeal the decision
to the board under this section:
  (a) Within 21 days of actual notice where notice is required;
or
  (b) Within 21 days of the date a person knew or should have
known of the decision where no notice is required.
  (6)(a) Except as provided in paragraph (b) of this subsection,
the appeal periods described in subsections (3), (4) and (5) of
this section shall not exceed three years after the date of the
decision.
  (b) If notice of a hearing or an administrative decision made
pursuant to ORS 197.195 or 197.763 is required but has not been
provided, the provisions of paragraph (a) of this subsection do
not apply.
  (7)(a) Within 21 days after a notice of intent to appeal has
been filed with the board under subsection (1) of this section,
any person may intervene in and be made a party to the review
proceeding upon a showing of compliance with subsection (2) of
this section.
  (b) Notwithstanding the provisions of paragraph (a) of this
subsection, persons who may intervene in and be made a party to
the review proceedings, as set forth in subsection (1) of this
section, are:
  (A) The applicant who initiated the action before the local
government, special district or state agency; or
  (B) Persons who appeared before the local government, special
district or state agency, orally or in writing.
  (c) Failure to comply with the deadline set forth in paragraph
(a) of this subsection shall result in denial of a motion to
intervene.
  (8) If a state agency whose order, rule, ruling, policy or
other action is at issue is not a party to the proceeding, it may
file a brief with the board as if it were a party. The brief
shall be due on the same date the respondent's brief is due.
  (9) A notice of intent to appeal a land use decision or limited
land use decision shall be filed not later than 21 days after the
date the decision sought to be reviewed becomes final. A notice
of intent to appeal plan and land use regulation amendments
processed pursuant to ORS 197.610 to 197.625 shall be filed not
later than 21 days after notice of the decision sought to be
reviewed is mailed or otherwise submitted to parties entitled to
notice under ORS 197.615. Failure to include a certificate of
mailing with the notice mailed under ORS 197.615 shall not render
the notice defective. Copies of the notice of intent to appeal
shall be served upon the local government, special district or
state agency and the applicant of record, if any, in the local
government, special district or state agency proceeding. The
notice shall be served and filed in the form and manner
prescribed by rule of the board and shall be accompanied by a
filing fee of $175 and a deposit for costs to be established by
the board. If a petition for review is not filed with the board
as required in subsections (10) and (11) of this section, the
filing fee and deposit shall be awarded to the local government,
special district or state agency as cost of preparation of the
record.
  (10)(a) Within 21 days after service of the notice of intent to
appeal, the local government, special district or state agency
shall transmit to the board the original or a certified copy of
the entire record of the proceeding under review. By stipulation
of all parties to the review proceeding the record may be
shortened. The board may require or permit subsequent corrections
to the record; however, the board shall issue an order on a
motion objecting to the record within 60 days of receiving the
motion.
  (b) Within 10 days after service of a notice of intent to
appeal, the board shall provide notice to the petitioner and the
respondent of their option to enter into mediation pursuant to
ORS 197.860. Any person moving to intervene shall be provided
such notice within seven days after a motion to intervene is
filed. The notice required by this paragraph shall be accompanied
by a statement that mediation information or assistance may be
obtained from the Department of Land Conservation and Development
 { - , the coordinating agency for the Natural Resources Section
of the Public Policy Dispute Resolution Program - } .
  (11) A petition for review of the land use decision or limited
land use decision and supporting brief shall be filed with the
board as required by the board under subsection (13) of this
section.
  (12) The petition shall include a copy of the decision sought
to be reviewed and shall state:
  (a) The facts that establish that the petitioner has standing.
  (b) The date of the decision.
  (c) The issues the petitioner seeks to have reviewed.
  (13)(a) The board shall adopt rules establishing deadlines for
filing petitions and briefs and for oral argument.
  (b) At any time subsequent to the filing of a notice of intent
and prior to the date set for filing the record, the local
government or state agency may withdraw its decision for purposes
of reconsideration. If a local government or state agency
withdraws an order for purposes of reconsideration, it shall,
within such time as the board may allow, affirm, modify or
reverse its decision. If the petitioner is dissatisfied with the
local government or agency action after withdrawal for purposes
of reconsideration, the petitioner may refile the notice of
intent and the review shall proceed upon the revised order. An
amended notice of intent shall not be required if the local
government or state agency, on reconsideration, affirms the order
or modifies the order with only minor changes.
  (14) The board shall issue a final order within 77 days after
the date of transmittal of the record. If the order is not issued
within 77 days the applicant may apply in Marion County or the
circuit court of the county where the application was filed for a
writ of mandamus to compel the board to issue a final order.
  (15)(a) Upon entry of its final order the board may, in its
discretion, award costs to the prevailing party including the
cost of preparation of the record if the prevailing party is the
local government, special district or state agency whose decision
is under review. The deposit required by subsection (9) of this
section shall be applied to any costs charged against the
petitioner.
  (b) The board shall also award reasonable attorney fees and
expenses to the prevailing party against any other party who the
board finds presented a position without probable cause to
believe the position was well-founded in law or on factually
supported information.
  (16) Orders issued under this section may be enforced in
appropriate judicial proceedings.
  (17)(a) The board shall provide for the publication of its
orders that are of general public interest in the form it deems
best adapted for public convenience. The publications shall
constitute the official reports of the board.
  (b) Any moneys collected or received from sales by the board
shall be paid into the Board Publications Account established by
ORS 197.832.
  (18) Except for any sums collected for publication of board
opinions, all fees collected by the board under this section that
are not awarded as costs shall be paid over to the State
Treasurer to be credited to the General Fund.
  SECTION 29. ORS 339.333 is amended to read:
  339.333. (1) The Center for School Safety shall be governed by
a board of directors. The board of directors shall consist of:
  (a) The Superintendent of Public Instruction or a designee of
the superintendent;
  (b) The Director of the Oregon Youth Authority or a designee of
the director;
  (c) The Attorney General or a designee of the Attorney General;
  (d) The Superintendent of State Police or a designee of the
superintendent;
  (e) The Director of Human Services or a designee of the
director;
    { - (f) The director of the Dispute Resolution Commission or
a designee of the director; - }
    { - (g) - }  { +  (f) + } Nine members appointed by the
Governor, as follows:
  (A) One member representing the Oregon School Boards
Association;
  (B) One member representing the Confederation of Oregon School
Administrators;
  (C) One member representing the Oregon Education Association;
  (D) One member representing the Oregon School Employees
Association;
  (E) One member representing the Oregon State Sheriffs'
Association;
  (F) One member representing the Oregon Association Chiefs of
Police;
  (G) One member representing the Oregon District Attorneys
Association;
  (H) One member representing the National Resource Center for
Safe Schools on the Northwest Regional Educational Laboratory;
and
  (I) One member representing the Oregon School Safety Officers
Association; and
    { - (h) - }  { +  (g) + } Other members that the board may
appoint.
  (2) When making appointments to the board of directors, the
Governor shall solicit recommendations from professional
organizations that represent school employees, school district
boards, school administrators and other education providers.
  (3) The term of office of each board member appointed by the
Governor is two years, but a member serves at the pleasure of the
Governor. Before the expiration of the term of a board member,
the Governor shall appoint a successor. A board member is
eligible for reappointment but shall not serve for more than two
consecutive terms. If there is a vacancy for any cause, the
Governor shall make an appointment to become immediately
effective for the unexpired term.
  (4) A member of the board of directors is entitled to
compensation and expenses as provided in ORS 292.495.
  (5) The board of directors shall meet a minimum of four times
per year.
 
  (6) The board of directors shall annually elect a chairperson
and vice chairperson from the membership. The board of directors
may form committees as needed.
  SECTION 30. ORS 352.066 is amended to read:
  352.066. (1) Pursuant to ORS 351.870, there is created within
the Department of Higher Education the Mark O. Hatfield School of
Government. The Mark O. Hatfield School of Government shall be
administered by Portland State University.  { + The president of
Portland State University shall appoint the director of the Mark
O. Hatfield School of Government. + }
  (2) The purpose of the Mark O. Hatfield School of Government
is { + :
  (a) + } To prepare students for careers in political service,
public administration and the administration of justice.
   { +  (b) To perform the duties required of the school under
ORS 183.502. + }
  SECTION 30a. ORS 352.066, as amended by section 30 of this 2003
Act, is amended to read:
  352.066. (1) Pursuant to ORS 351.870, there is created within
the Department of Higher Education the Mark O. Hatfield School of
Government. The Mark O. Hatfield School of Government shall be
administered by Portland State University. The president of
Portland State University shall appoint the director of the Mark
O. Hatfield School of Government.
  (2) The purpose of the Mark O. Hatfield School of Government is
 { - : - }
    { - (a) - }  to prepare students for careers in political
service, public administration and the administration of justice.
    { - (b) To perform the duties required of the school under
ORS 183.502. - }
  SECTION 30b.  { + The amendments to ORS 352.066 by section 30a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 31.  { + (1) There is created within the Department of
Higher Education the University of Oregon School of Law. The
school shall be administered by the University of Oregon.
  (2) The purpose of the school is:
  (a) To prepare students for careers in the legal profession;
and
  (b) To perform the duties required of the school under ORS
36.100 to 36.238.
  (3) The president of the University of Oregon shall appoint the
Dean of the University of Oregon School of Law. + }
  SECTION 31a. Section 31 of this 2003 Act is amended to read:
   { +  Sec. 31. + } (1) There is created within the Department
of Higher Education the University of Oregon School of Law. The
school shall be administered by the University of Oregon.
  (2) The purpose of the school is  { - : - }
    { - (a) - }  to prepare students for careers in the legal
profession  { - ; and - }
    { - (b) To perform the duties required of the school under
ORS 36.100 to 36.238 - } .
  (3) The president of the University of Oregon shall appoint the
Dean of the University of Oregon School of Law.
  SECTION 31b.  { + The amendments to section 31 of this 2003 Act
by section 31a of this 2003 Act become operative on January 2,
2006. + }
  SECTION 32. ORS 390.240 is amended to read:
  390.240. (1) The following disputes shall be submitted to
mediation and if mediation is not successful to arbitration as
described in this section:
  (a) A dispute with regard to the issuance of an archaeological
permit under ORS 390.235; or
  (b) A dispute over the disposition of human skeletal remains or
burial goods under ORS 97.750.
  (2) The State Parks and Recreation Commission in consultation
with the   { - Dispute Resolution Commission - }  { +  Mark
O. Hatfield School of Government + } and the governing bodies of
the Oregon Indian tribes shall adopt rules to establish mediation
and arbitration procedures. Such rules shall provide for appeal
as described in ORS 36.365.
    { - (3) Until rules are adopted and procedures implemented
under subsection (2) of this section, the State Parks and
Recreation Commission shall adopt interim rules that provide for
resolution of disputes. The arbitration panel under such a
program shall consist of: - }
    { - (a) The State Historic Preservation Officer or the
officer's designee; - }
    { - (b) A representative of the Commission on Indian
Services; - }
    { - (c) A representative of the Oregon State Museum of
Anthropology; - }
    { - (d) A representative of a governing body of a federally
recognized Oregon Indian tribe; and - }
    { - (e) A representative of the public, selected by the
Dispute Resolution Commission. - }
  SECTION 32a. ORS 390.240, as amended by section 32 of this 2003
Act, is amended to read:
  390.240. (1) The following disputes shall be submitted to
mediation and if mediation is not successful to arbitration as
described in this section:
  (a) A dispute with regard to the issuance of an archaeological
permit under ORS 390.235; or
  (b) A dispute over the disposition of human skeletal remains or
burial goods under ORS 97.750.
  (2) The State Parks and Recreation Commission in consultation
with   { - the Mark O. Hatfield School of Government and - }  the
governing bodies of the Oregon Indian tribes shall adopt rules to
establish mediation and arbitration procedures. Such rules shall
provide for appeal as described in ORS 36.365.
  SECTION 32b.  { + The amendments to ORS 390.240 by section 32a
of this 2003 Act become operative on January 2, 2006. + }
  SECTION 33.  { + ORS 36.115, 36.120, 36.125, 36.130, 36.140,
36.180 and 36.245 are repealed. + }
  SECTION 34.  { + Notwithstanding any other law limiting
expenditures, the amount of $1,970,115 is established for the
biennium beginning July 1, 2003, as the maximum limit for
expenditures by the Department of Higher Education for the
purpose of distribution under ORS 36.155, for payment of
administrative costs and other expenses of the University of
Oregon School of Law in carrying out the responsibilities of the
school under ORS 36.100 to 36.238 and for payment of
administrative costs and other expenses of the Mark O. Hatfield
School of Government in carrying out the responsibilities of the
school under ORS 183.502. + }
  SECTION 35.  { + Notwithstanding any other law limiting
expenditures, the amount of $180,000 is established for the
biennium beginning July 1, 2003, as the maximum limit for payment
by the Oregon Department of Administrative Services of
unemployment compensation, accrued paid vacation leave and other
obligations of  + }  { +  the Dispute Resolution Commission. + }
  SECTION 36.  { + Notwithstanding any other law limiting
expenditures, the amount of $800,000 is established for the
biennium beginning July 1, 2003, as the maximum limit for payment
of expenses of the Judicial Department in providing mediation and
arbitration services in the courts of this state from moneys
distributed to the department from the Dispute Resolution
Account. + }
  SECTION 37.  { + Notwithstanding any other law appropriating
moneys, the appropriation out of the General Fund for the
Judicial Department established in section 1 (1), chapter ___,
Oregon Laws 2003 (Enrolled Senate Bill 5523), for the biennium
beginning July 1, 2003, is decreased by $800,000. + }
  SECTION 38.  { + ORS 36.135, 36.150, 36.155, 36.160, 36.165 and
36.175 are repealed. + }
  SECTION 39.  { + The repeal of ORS 36.135, 36.150, 36.155,
36.160, 36.165 and 36.175 by section 38 of this 2003 Act becomes
operative on January 2, 2006. + }
  SECTION 40.  { + This 2003 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2003 Act takes effect on
its passage. + }
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