74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
Senate Bill 199
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)
CHAPTER ................
AN ACT
Relating to student assistance; amending ORS 348.505, 348.530,
348.570 and 733.650; repealing ORS 348.393, 348.395, 348.397,
348.399, 348.405, 348.410, 348.415, 348.420, 348.425, 348.575,
348.645 and 348.650; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 348.505 is amended to read:
348.505. As used in ORS { - 348.393 to 348.399 and - }
348.505 to 348.695:
(1) 'Commission' means the Oregon Student Assistance
Commission.
(2) 'Financial aid' includes loans, grants, scholarships, work
opportunities and other forms of financial aid to assist students
in completing their post-high-school education.
SECTION 2. ORS 348.530 is amended to read:
348.530. The Oregon Student Assistance Commission may:
(1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.
(2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
(3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
(4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees, which are related to and
necessary for making and protecting guaranteed loans and
recovering moneys and loans and management of property acquired
in connection with such loans.
(5) Sue and be sued.
(6) Pursuant to ORS chapter 183, adopt such rules as may be
necessary to carry out the provisions of ORS 348.040 to 348.280,
{ - 348.393 to 348.399, - } 348.505 to 348.695 and 348.992.
(7) Cooperatively coordinate all types of financial aid
activities.
(8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
Enrolled Senate Bill 199 (SB 199-INTRO) Page 1
(9) Guarantee loans by eligible lending institutions to
students who are enrolled or accepted for enrollment at any
eligible institution and parents of those students, under the
provisions of the Higher Education Act of 1965 as amended.
(10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student.
(11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605.
SECTION 3. ORS 348.530, as amended by section 2, chapter 360,
Oregon Laws 2003, is amended to read:
348.530. The Oregon Student Assistance Commission may:
(1) Negotiate for and contract with private and governmental
agencies for the establishment of financial aid programs.
(2) Receive gifts of any type, including gifts of stock and
real property, for the purpose of establishing, continuing and
increasing financial aid.
(3) Administer any form of financial aid submitted to and
accepted for administration by the commission.
(4) Authorize payment from funds appropriated therefor, of
costs, commissions, attorney fees and other reasonable expenses,
including refund of overpayment of fees, which are related to and
necessary for making and protecting guaranteed loans and
recovering moneys and loans and management of property acquired
in connection with such loans.
(5) Sue and be sued.
(6) Pursuant to ORS chapter 183, adopt such rules as may be
necessary to carry out the provisions of ORS 348.040 to 348.280,
{ - 348.393 to 348.399, - } 348.505 to 348.695 and 348.992.
(7) Cooperatively coordinate all types of financial aid
activities.
(8) Establish a State of Oregon scholar program to recognize
students with outstanding academic achievement and other
demonstrated attributes. The students will not necessarily
receive financial aid.
(9) Guarantee loans by eligible lending institutions to student
residents of the State of Oregon who are enrolled or accepted for
enrollment at any eligible institution, nonresident students
enrolled or accepted for enrollment in an institution of higher
education or community college in Oregon, and parents of those
students, under the provisions of the Higher Education Act of
1965 as amended.
(10) Deny financial aid to any student owing a refund or in
default on financial aid previously made available to that
student.
(11) Establish and implement any program permitted under
federal law to guaranty agencies, including administrative
garnishment and wage withholding under Public Law 102-164,
section 605.
SECTION 4. ORS 348.570 is amended to read:
348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student Assistance Commission in carrying out the purposes
of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and
348.992. Interest earned by the fund shall be credited to the
fund.
Enrolled Senate Bill 199 (SB 199-INTRO) Page 2
{ - (2) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Student Loan Guarantee Fund, which may be invested in the same
manner as the Oregon Student Assistance Fund. This fund shall
receive funds from federal, state or private sources for the
purpose of guarantying payment of loans made by eligible lending
institutions to students who are enrolled or accepted for
enrollment at any eligible institution and parents of those
students, under the provisions of the Higher Education Act of
1965 as amended and for administrative expenses of guarantying
loans. This fund, including the interest earnings on the fund,
if any, is continuously appropriated to the commission for those
purposes for which such funds were provided to, received or
collected by the commission. - }
{ - (3) - } { + (2) + } There is established in the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the Alternative Student Loan Program Fund for
investment as provided by ORS 293.701 to 293.820 and for the
payment of expenses of the commission in carrying out the
purposes of ORS 348.625 to 348.695. This fund, including the
interest earnings on the fund, if any, is continuously
appropriated to the commission for those purposes for which such
funds were provided to, received or collected by the commission.
{ - (4) - } { + (3) + }(a) There is established in the
General Fund an account to be known as the Nursing Services
Account. Funds in the account shall be used for the payment of
expenses of the Nursing Services Program created in ORS 442.540.
(b) The account shall consist of:
(A) Funds appropriated to the Oregon Student Assistance
Commission for deposit into the account;
(B) Collections and penalties received by the commission under
ORS 442.545; and
(C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
(c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
the next biennium.
{ - (5) - } { + (4) + } There is established in the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the Former Foster Youth Scholarship Fund. Moneys
received from appropriations, donations and grants shall be
credited to the fund. Moneys in the fund are continuously
appropriated to the Oregon Student Assistance Commission for the
purposes of investment, as provided by ORS 293.701 to 293.820,
and for carrying out the provisions of ORS 348.270 (1)(b).
Interest earned by the fund shall be credited to the fund.
SECTION 5. ORS 348.570, as amended by section 5, chapter 360,
Oregon Laws 2003, is amended to read:
348.570. (1) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Oregon Student Assistance Fund for investment as provided by ORS
293.701 to 293.820 and for the payment of the expenses of the
Oregon Student Assistance Commission in carrying out the purposes
of ORS 348.210 to 348.250, 348.505 to 348.615, 348.696 and
348.992. Interest earned by the fund shall be credited to the
fund.
{ - (2) There is established in the State Treasury a fund,
separate and distinct from the General Fund, to be known as the
Student Loan Guarantee Fund, which may be invested in the same
manner as the Oregon Student Assistance Fund. This fund shall
Enrolled Senate Bill 199 (SB 199-INTRO) Page 3
receive funds from federal, state or private sources for the
purpose of guarantying payment of loans made by eligible lending
institutions to student residents of the State of Oregon who are
enrolled or accepted for enrollment at any eligible institution,
nonresident students enrolled or accepted for enrollment in an
institution of higher education or community college in Oregon,
and parents of those students, under the provisions of the Higher
Education Act of 1965 as amended and for administrative expenses
of guarantying loans. This fund, including the interest earnings
on the fund, if any, is continuously appropriated to the
commission for those purposes for which such funds were provided
to, received or collected by the commission. - }
{ - (3) - } { + (2) + } There is established in the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the Alternative Student Loan Program Fund for
investment as provided by ORS 293.701 to 293.820 and for the
payment of expenses of the commission in carrying out the
purposes of ORS 348.625 to 348.695. This fund, including the
interest earnings on the fund, if any, is continuously
appropriated to the commission for those purposes for which such
funds were provided to, received or collected by the commission.
{ - (4) - } { + (3) + }(a) There is established in the
General Fund an account to be known as the Nursing Services
Account. Funds in the account shall be used for the payment of
expenses of the Nursing Services Program created in ORS 442.540.
(b) The account shall consist of:
(A) Funds appropriated to the Oregon Student Assistance
Commission for deposit into the account;
(B) Collections and penalties received by the commission under
ORS 442.545; and
(C) Any donations or grants received by the commission for
purposes of the Nursing Services Program.
(c) Any funds in the account that are not expended in any
biennium shall be retained in the account and may be expended in
the next biennium.
{ - (5) - } { + (4) + } There is established in the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the Former Foster Youth Scholarship Fund. Moneys
received from appropriations, donations and grants shall be
credited to the fund. Moneys in the fund are continuously
appropriated to the Oregon Student Assistance Commission for the
purposes of investment, as provided by ORS 293.701 to 293.820,
and for carrying out the provisions of ORS 348.270 (1)(b).
Interest earned by the fund shall be credited to the fund.
SECTION 6. ORS 733.650 is amended to read:
733.650. Funds of an insurer may be invested in the following:
(1) Obligations secured by a mortgage or deed of trust payment
of which is guaranteed by a policy of mortgage insurance.
(2) Obligations issued, assumed or guaranteed by the
International Bank for Reconstruction and Development.
(3) Bank and bankers' acceptances and other bills of exchange
of the kind and nature made eligible by law for purchase in the
open market by federal reserve banks.
(4) Deposits, certificates of deposits, accounts or savings or
certificate shares or accounts of or in banks, trust companies,
savings and loan associations or building and loan associations
insured with the Federal Deposit Insurance Corporation or
qualified to do business under the laws of this state.
(5) Obligations issued by trustees or receivers of a
corporation created or existing under the laws of a sovereign
Enrolled Senate Bill 199 (SB 199-INTRO) Page 4
which, or the assets of which, are being administered under the
direction of a court having jurisdiction if the obligation is
adequately secured as to principal and interest.
(6) Transportation equipment used wholly or in part within a
sovereign, or adequately secured trust certificates of
participation or similar obligations or contracts evidencing an
interest in such transportation equipment, where the investor is
entitled to receive a determined or determinable portion of
rental, purchase or other obligatory payments for use or purchase
of the equipment.
(7) Purchase contracts or lease-purchase agreements executed
under the Federal Public Buildings Purchase Contract Act of 1954,
or the Post Office Department Property Act of 1954.
(8) Stock of the Federal Home Loan Bank to the extent of the
minimum required by the Federal Home Loan Bank Act. An insurer
acquiring such stock may exercise all rights and powers given to
members under such Act, including but not by way of limitation
the right to obtain advances or borrow money from such bank and
to pledge collateral as security therefor.
(9) Obligations issued, assumed or guaranteed by the
Inter-American Development Bank.
{ - (10) Loans guaranteed by the Oregon Student Assistance
Commission pursuant to ORS 348.393 to 348.399 and 348.505 to
348.695. - }
{ - (11) - } { + (10) + } Obligations issued, assumed or
guaranteed by the Asian Development Bank.
{ - (12) - } { + (11) + } Obligations issued, assumed or
guaranteed by the African Development Bank.
SECTION 7. { + ORS 348.393, 348.395, 348.397, 348.399,
348.405, 348.410, 348.415, 348.420, 348.425, 348.575, 348.645 and
348.650 are repealed. + }
SECTION 8. { + 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. + }
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Passed by Senate March 12, 2007
...........................................................
Secretary of Senate
...........................................................
President of Senate
Passed by House May 31, 2007
...........................................................
Speaker of House
Enrolled Senate Bill 199 (SB 199-INTRO) Page 5
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
...........................................................
Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled Senate Bill 199 (SB 199-INTRO) Page 6