74th OREGON LEGISLATIVE ASSEMBLY--2007 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 430
 
                         Senate Bill 198
 
Printed pursuant to Senate Interim Rule 213.28 by order of the
  President of the Senate in conformance with presession filing
  rules, indicating neither advocacy nor opposition on the part
  of the President (at the request of Governor Theodore R.
  Kulongoski for Oregon Student Assistance Commission)
 
 
                             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 as
introduced.
 
  Excludes degree mills and diploma mills from definition of '
school' for purposes of schools authorized to confer academic
degrees. Allows Oregon Student Assistance Commission, through
Office of Degree Authorization, to terminate post-secondary
accrediting bodies not recognized by United States Department of
Education. Removes limitations on fee amount that commission may
charge schools applying for approval to confer degrees or provide
academic credits.
  Declares emergency, effective July 1, 2007.
 
                        A BILL FOR AN ACT
Relating to academic degrees; amending ORS 348.594, 348.596,
  348.603, 348.606 and 348.609; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1. ORS 348.594 is amended to read:
  348.594. As used in ORS 348.594 to 348.615  { - , - }  { + :
  (1) + } 'School' means a person, organization, school or
institution of learning that confers or offers to confer an
academic degree upon a person or to provide academic credit
applicable to a degree.
   { +  (2) 'School' does not mean a degree mill or a diploma
mill, as those terms are defined by rule of the Oregon Student
Assistance Commission. + }
  SECTION 2. ORS 348.596 is amended to read:
  348.596. It is the purpose of ORS 348.594 to 348.615 to provide
for the protection of the citizens of Oregon and their
post-secondary schools by ensuring the quality of higher
education and preserving the integrity of an academic degree as a
 { - public - } credential.
  SECTION 3. 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;
   { +  (e) Terminate the operation of post-secondary accrediting
bodies that are not recognized by the United States Department of
Education or the commission; + } and
    { - (e) - }  { +  (f) + } 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 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 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.
  (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  { + or services + } 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 ORS
348.601.
  SECTION 4. ORS 348.606 is amended to read:
  348.606. (1) A school 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)(a) 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.
  (b) The amount of the fee shall be established  { + by rule + }
to recover designated expenses incurred by the commission in
carrying out the administration of ORS 348.594 to 348.615  { - ,
and may not exceed: - }  { + . + }
    { - (A) For a doctoral degree, $5,500. - }
    { - (B) For a master's degree, $4,150. - }
    { - (C) For a bachelor's degree, $4,150. - }
    { - (D) For an associate degree, $2,750. - }
  (c) Any fees collected under this subsection shall be deposited
in the Office of Degree Authorization Account established under
ORS 348.601.
  SECTION 5. ORS 348.609 is amended to read:
  348.609. (1) A person   { - who has been warned by the Oregon
Student Assistance Commission, through the Office of Degree
Authorization, to cease and desist - }  may not 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 - }   { + Is a United States institution with + }
accreditation recognized by the United States Department of
Education or  { + is a foreign institution with + } the foreign
equivalent of such accreditation { +  as determined by the Oregon
Student Assistance Commission through the Office of Degree
Authorization using standards that are comparable to those
established in paragraph (d) of this subsection + };
  (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 348.597; 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)(a) A person who has been awarded a degree from a school
other than a school described in subsection (1) of this section
may claim or represent that the person possesses an academic
degree if the claim or representation is accompanied by a
disclaimer that states: '(Name of school) does not have
accreditation recognized by the United States Department of
Education and has not been approved by the Office of Degree
Authorization. '
  (b) The disclaimer shall be made in any resume, letterhead,
business card, announcement or advertisement in which the person
is claiming or representing to have an academic degree from a
school that does not meet the requirements of subsection (1) of
this section.
  (c) This subsection does not alter any requirement for
obtaining a license, admission into a school, teaching or
employment or for other areas in which a degree from an
accredited school is required.
  (3) 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.
  (4) 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 ORS
348.601.
  (5)(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 183.745. All penalties recovered
under this subsection shall be paid into the State Treasury and
credited to the General Fund.
  (6) The provisions of this section do not apply to a person who
is a graduate of a veterinary college, or a veterinary department
of a university or college, of good standing and repute, as
determined by the Oregon State Veterinary Medical Examining
Board.
  SECTION 6.  { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect July 1,
2007. + }
                         ----------