Chapter 18 Oregon Laws 2008 Special Session
AN ACT
HB 3626
Relating to public financial administration; creating new provisions;
amending ORS 294.145, 294.847, 396.515, 401.280, 410.851 and 443.420 and
section 2, chapter 981, Oregon Laws 2001, and section 8, chapter 690, Oregon
Laws 2005; repealing ORS 401.535 and 410.125 and sections 2, 3 and 5, chapter
911, Oregon Laws 2007; appropriating money; and declaring an emergency.
Be It Enacted by the People of
the State of
SECTION 1.
ORS 294.145 is amended to read:
294.145. In making
investments pursuant to ORS 294.035, the custodial officer [shall] may not:
(1) Make a commitment to
invest funds or sell securities more than 14 business days prior to the
anticipated date of settlement of the purchase or sale transaction;
(2) Enter into any
agreement to invest funds or sell securities for future delivery for a fee
other than interest;
(3) Lend securities to
any person or institution, except:
(a) On a fully collateralized basis[, and except]; and
(b) When [such]
the lending is specifically permitted under an investment policy adopted
pursuant to ORS 294.135 (1)(a);
(4) Pay for any
securities purchased by the custodial officer until the officer has received
sufficient evidence of title [thereof]
to the securities. Evidence of title [shall]
must be consistent with modern investment, banking and commercial
practices and may include physical possession, book entry and automated
recordation of such title. However, the custodial officer may instruct one or
more [custodian banks, as defined in ORS
295.001,] custodial agents or banks to accept or release securities
as that custodial officer considers advisable to be held in safekeeping for
collection of principal and interest or other income; or
(5) Deliver securities
to the purchaser [thereof] of the
securities upon sale prior to receiving payment in full [therefor] for the securities.
However, the custodial officer may deliver the securities to any [custodian bank, defined in ORS 295.001] custodial
agent or bank upon instructions to hold the [same] securities pending receipt by the [institution] custodial agent or bank
of full payment [therefor] for the
securities.
SECTION 2.
ORS 294.847 is amended to read:
294.847. In making
investments pursuant to ORS 294.805 to 294.895, the investment officer [shall] may not:
(1) Make a commitment to
invest funds or sell securities more than 14 business days prior to the
anticipated date of settlement of the purchase or sale transaction;
(2) Enter into any
agreement to invest funds or sell securities for future delivery for a fee
other than interest;
(3) Lend securities to
any person or institution, except on a fully collateralized basis;
(4) Pay for any
securities purchased by the investment officer until the investment officer has
received physical possession, or other sufficient evidence, as determined under
ORS 293.751 (1), of title [thereof]
to the securities. However, the investment officer may instruct any [custodian bank, defined in ORS 295.001,]
custodial agent or bank to accept securities on the investment officer’s
behalf against payment [therefor] for
the securities previously deposited with the [institution] custodial agent or bank by the investment
officer; or
(5) Deliver securities
to the purchaser [thereof] of the
securities upon sale prior to receiving payment in full [therefor] for the securities.
However, the investment officer may deliver the securities to any [custodian bank, defined in ORS 295.001,]
custodial agent or bank upon instructions to hold the [same] securities pending receipt
by the [institution] custodial
agent or bank of full payment [therefor]
for the securities.
SECTION 3.
ORS 294.847, as operative until July 1, 2008, is amended to read:
294.847. In making
investments pursuant to ORS 294.805 to 294.895, the investment officer [shall] may not:
(1) Make a commitment to
invest funds or sell securities more than 14 business days prior to the
anticipated date of settlement of the purchase or sale transaction;
(2) Enter into any agreement
to invest funds or sell securities for future delivery for a fee other than
interest;
(3) Lend securities to
any person or institution, except on a fully collateralized basis;
(4) Pay for any
securities purchased by the investment officer until the investment officer has
received physical possession, or other sufficient evidence, as determined under
ORS 293.751 (1), of title [thereof]
to the securities. However, the investment officer may instruct any [custodian bank, defined in ORS 295.001 (2),]
custodial agent or bank to accept securities on the investment officer’s
behalf against payment [therefor] for
the securities previously deposited with the [institution] custodial agent or bank by the investment
officer; or
(5) Deliver securities
to the purchaser [thereof] of the
securities upon sale prior to receiving payment in full [therefor] for the securities.
However, the investment officer may deliver the securities to any [custodian bank, defined in ORS 295.001 (2),]
custodial agent or bank upon instructions to hold the [same] securities pending receipt
by the [institution] custodial
agent or bank of full payment [therefor]
for the securities.
SECTION 4. (1)
The
(a) Help state agencies
and local government units with Federal Emergency Management Agency approved
mitigation plans in this state prior to the occurrence of natural disasters;
and
(b) Ensure, to the
extent possible, that state and local agencies and officials are prepared to
respond to threats of human-caused disaster, including but not limited to acts
of terrorism.
(2) The
(3) The Oregon Military
Department shall adopt rules for the disbursement of moneys from the
SECTION 5. (1)
The
(a) Help state agencies
and local government units with immediate disaster response and recovery
efforts related to federally declared disasters in this state; and
(b) Implement long-term
hazard mitigation measures after a federally declared disaster in this state
during the period of immediate recovery from the disaster.
(2) The
(3) The Office of
Emergency Management of the Oregon Military Department shall adopt rules for
the disbursement of moneys from the
(4) If there are
expenditures from the
(a) The nature and
severity of the disaster;
(b) The actual and
projected deposits into the fund;
(c) The sources of
actual and projected expenditures from the fund;
(d) The nature of
in-kind donations received; and
(e) The rationale for
expenditures and allocation of payments to state agencies and local government
units.
(5) Following the final
expenditure for a particular disaster, the Adjutant General of the Oregon
Military Department shall issue a final report to the Emergency Board, or to
the Legislative Assembly if it is in session. The report must include an
aggregate description of the factors described in subsection (4) of this
section.
SECTION 6. (1)
The
(2) Moneys in the
account are continuously appropriated to the Oregon Military Department for:
(a) Providing loans to
local governments, as defined in ORS 174.116, and school districts to match,
either in full or in part, moneys from federal programs for federally declared
disaster relief that require a match; and
(b) Subject to
subsection (4) of this section, paying the department’s expenses for
administering the account.
(3) The department shall
deposit into the account any amounts repaid on loans made under this section.
(4) The department may
not charge the account more than five percent of the maximum amount in the
account during a biennium for administrative expenses.
(5) An applicant may
apply to the department for a loan from the account. The department shall
consider the application, make a recommendation and submit the application and
recommendation to the Local Disaster Assistance Review Board established under
subsection (6) of this section.
(6) The department shall
establish a Local Disaster Assistance Review Board to:
(a) Review the
recommendations of the department regarding loans from the account;
(b) Approve, by a
majority vote of members, the amount of any loan; and
(c) Approve, by a
majority vote of members, the terms and conditions of any loan.
(7) The review board
shall include:
(a) Three members of
county governing bodies, with at least one member representing a county from
east of the crest of the Cascade Mountains, with membership determined by the
Association of Oregon Counties;
(b) Three members of
city governing bodies, with at least one member representing a city from east
of the crest of the Cascade Mountains, with membership determined by the League
of Oregon Cities;
(c) A representative of
the office of the State Treasurer;
(d) A representative of
the Oregon Military Department;
(e) A representative of
school districts, with membership determined by the
(f) A representative of
special districts, with membership determined by the Special Districts
Association of
(g) A representative of
the
(h) Two additional
members determined jointly by the department, the Association of Oregon
Counties and the League of Oregon Cities.
(8) The Office of
Emergency Management of the Oregon Military Department shall adopt rules
establishing:
(a) A loan application
process and application forms;
(b) Reasonable financial
terms and conditions for loans, including interest and the repayment of the
loans;
(c) Eligibility
requirements for loan applicants;
(d) The maximum amount
an applicant for a loan may receive;
(e) The methodology the
department will use for charging the account for administrative expenses; and
(f) Procedures for
submission of loan recommendations to the review board.
(9) The Oregon Military
Department shall provide staff support for the review board.
SECTION 7. (1)
ORS 401.535 is repealed.
(2) Moneys remaining on
the effective date of this 2008 Act in the Emergency Management Revolving
Account created in ORS 401.535 are transferred to the General Fund and may be
used for general governmental purposes.
SECTION 8.
ORS 401.280 is amended to read:
401.280. (1) The Office
of Emergency Management is designated as the sole agency of the State of Oregon
for the purpose of negotiating agreements with the United States Department of
Homeland Security or other appropriate federal agency, on behalf of the state,
for the acquisition of federal funds for the purpose of providing emergency
program management and emergency services. All city or county emergency
management programs, emergency service agencies and state agencies applying for
such funds shall coordinate with the office on development of proposals and
shall submit applications to the department to be reviewed or processed, or
both.
(2) The office is
authorized to accept and receive on behalf of the state, counties and cities
federal funds for [purpose] the
purposes of emergency program management and emergency services[, to deposit such funds in the Emergency
Management Revolving Account and to authorize the disbursement and distribution
of these funds in accordance with the applicable agreement].
SECTION 9.
ORS 396.515 is amended to read:
396.515. (1) Subject to
the restriction contained in subsection (4) of this section, the Oregon
Military Department may sell, exchange or lease any military department real
property that is found to have become unsuitable for military department
purposes. The Adjutant General shall make a determination of the unsuitability
of the property for military department purposes and the advisability or
necessity of sale, exchange or lease of the property.
(2) Title to any real
property sold or exchanged shall be given in the name of the State of
(3) Military department
real property owned jointly by the State of Oregon and the United States, or
military department real property subject to federal restrictions in conflict
with ORS 396.505 to 396.545, shall, with appropriate federal authorization, be
subject to the provisions of ORS 396.505 to 396.545.
(4) Prior to the sale of
military department real property, the military department shall submit to the
Legislative Assembly [if in regular
session], or to the Emergency Board when the legislature is not in [regular] session, the proposed sale of
military department real property, for approval.
SECTION 10. (1)
Not later than March 1, 2009, and March 1, 2011, the Department of Higher Education
shall report to the Joint Committee on Ways and Means and to any other
committee of the Legislative Assembly assigned to examine the budget of the
department.
(2) Each report shall
include:
(a) Current information
on the finances and status of the
(b) Current projections
of arena-related revenues and expenditures; and
(c) Current information
on the balance and projected balances of the athletic department Legacy Fund
established within the
SECTION 11.
ORS 410.851 is amended to read:
410.851. (1) The
Legislative Assembly finds and declares that patients admitted to and cared for
by long term care facilities in Oregon are more impaired than in the past. In
keeping with the traditional commitment of the State of Oregon to the care and
protection of its citizens who are frail or elderly or who have disabilities,
as expressed in ORS 410.020 (1) to (6), the Legislative Assembly declares that
a patient-based reimbursement system emphasizing quality incentives is
appropriate for long term care facilities. Such a system would reward long term
care facilities for outcomes, such as maintaining or improving a patient’s
condition, and meet the legitimate costs of caring for patients.
(2) As used in this
section, “patient-based reimbursement” means reimbursement for direct
patient care according to the needs of the patient, based on multiple levels of
patient health, functioning and impairment.
(3) [Notwithstanding the above,] A
patient-based reimbursement system does not require the Department of
Human Services to assess each patient and reimburse long term care facilities
according to the constantly changing conditions of the patients except for
changes between skilled and intermediate levels of care which shall result in
prompt readjustment of rates.
[(3)] (4) The department [of
Human Services] shall establish by rule definitions of levels of care and
the payment rates for the patient-based reimbursement system. The rates
shall be designed to maintain and enhance access to community-based care
services.
(5) Notwithstanding ORS
410.555, the department, in cooperation with representatives of community-based
care providers, shall implement policies that offer incentives to providers for
entering into Medicaid contracts with the department and that enable a patient,
to the greatest extent possible, to remain in the residential setting offering
the scope of services that best meets the patient’s needs.
SECTION 12.
ORS 443.420 is amended to read:
443.420. (1) A person
applying for a license under ORS 443.415 must, in the judgment of the Director
of Human Services, be a person:
(a) Who demonstrates an
understanding and acceptance of the rules governing residential facilities;
(b) Mentally and
physically capable of caring for such residents; and
(c) Who employs or
utilizes only individuals whose presence does not jeopardize the health, safety
or welfare of residents.
(2) A residential
facility shall not be operated or maintained in combination with a nursing home
or hospital unless licensed, maintained and operated as a separate and distinct
part.
(3) All physical
residential facilities used for residents shall meet applicable requirements of
the State Fire Marshal.
(4) Prior to licensure,
a residential facility must be in substantial compliance with applicable state
and local laws, rules, codes, ordinances and permit requirements.
(5) Prior to licensure,
a residential facility that proposes to house persons under the age of 21 years
shall submit written proof of compliance with ORS 336.575 to the Department of
Human Services.
(6) Prior to an
initial licensure of a residential care facility, the department shall
consider:
(a) The license
applicant’s history of regulatory compliance and operational experience;
(b) The need in the
local community for the services offered by the license applicant, as
demonstrated by a market study produced by the license applicant;
(c) The willingness of
the license applicant to serve underserved populations; and
(d) The willingness of
the license applicant to contract with the department to provide services
through the state medical assistance program.
SECTION 13.
Section 2, chapter 981, Oregon Laws 2001, as amended by section 2, chapter 308,
Oregon Laws 2003, and section 2, chapter 690, Oregon Laws 2005, is amended to
read:
Sec. 2. Section
1, chapter 981, Oregon Laws 2001, is repealed on [June 30, 2009] December 31, 2008.
SECTION 14.
Section 8, chapter 690, Oregon Laws 2005, is amended to read:
Sec. 8. Sections
1, 3, 4, 5 and 6, chapter 690,
SECTION 15. (1)
The Department of Human Services, in cooperation with representatives of
residential facilities and adult foster homes, shall:
(a) Assess the capacity
on January 1, 2008, of residential facilities and adult foster homes to serve
residents who qualify for state medical assistance;
(b) Establish targets
for expansion of the capacity assessed in paragraph (a) of this subsection in
each area of the state; and
(c) Issue a report on
changes in capacity on a quarterly basis.
(2) The department shall
report semiannually to the Legislative Assembly or the Emergency Board the
findings in subsection (1) of this section and any recommendations for
legislative action.
SECTION 16. ORS
410.125 is repealed.
SECTION 17. The
repeal of ORS 410.125 by section 16 of this 2008 Act becomes operative on June
30, 2009.
SECTION 18. The
amendments to ORS 443.420 by section 12 of this 2008 Act do not apply to a
license applicant who, as of September 30, 2008:
(1) Has submitted
schematic plans or construction drawings pursuant to section 3, chapter 690,
(2) Is current in fees
paid pursuant to sections 3 and 4, chapter 690, Oregon Laws 2005; and
(3) Has submitted copies
of necessary permits in accordance with section 5, chapter 690,
SECTION 19. (1)
As used in this section:
(a) “Deployment” means
an act in which a person was ordered to active duty and was deployed outside
the
(b) “Mobilization” means
an act in which a person left the person’s home station and was transferred to
a mobilization site for federal service.
(c) “Small business”
means a business that:
(A) Is a corporation,
partnership, sole proprietorship or other legal entity licensed and located in
Oregon and formed for the purpose of making a profit, and that is independently
owned and operated from all other businesses; and
(B) Employs 50 or fewer
persons.
(d) “Veteran” means a
person who owns a controlling interest in a small business and who, at the time
of the person’s mobilization or deployment, is:
(A) A member of the
(B) A member of the
reserves of the Army, Navy, Air Force, Marine Corps or Coast Guard of the
United States and a resident of Oregon.
(2) There is established
in the Department of Veterans’ Affairs the Veterans’ Small Business Repair Loan
Program. The purpose of the program is to assist any veteran whose small
business, due to the veteran’s absence, incurred a setback during the veteran’s
mobilization or deployment by providing an interest-free loan to the veteran
upon the veteran’s return from mobilization or deployment. The loan shall be
used by the veteran to restore the veteran’s small business, to the extent
feasible, to the condition the small business was in prior to the veteran’s
mobilization or deployment.
(3) A veteran may receive
a maximum of two loans under the program. Each loan may not exceed $20,000.
Application for a loan must be made within 12 months after demobilization.
(4) The department shall
adopt by rule:
(a) Criteria that a
small business must meet to qualify as having incurred a business setback while
the veteran was mobilized or deployed;
(b) The application
process and any necessary forms;
(c) Terms of loan
repayment; and
(d) Other criteria and
processes necessary to carry out the purposes of the program.
(5) If a veteran is
deceased as a result of the veteran’s mobilization or deployment, the
unremarried surviving spouse of the deceased veteran is eligible to apply for
and receive a loan to continue the veteran’s small business.
(6) If a veteran is at
the time of the loan application no longer a member of the
(7) The Department of
Veterans’ Affairs, in consultation with the Economic and Community Development
Department, shall review and reject or approve loan applications submitted by
veterans.
(8) Repayments of loans
made under this section shall be deposited in the Veterans’ Small Business
Repair Loan Fund established under section 20 of this 2008 Act.
SECTION 20. The
Veterans’ Small Business Repair Loan Fund is established in the State Treasury,
separate and distinct from the General Fund. Interest earned by the Veterans’
Small Business Repair Loan Fund shall be credited to the fund. Moneys received
from legislative appropriations and repayments of loans shall be credited to
the fund. Moneys in the fund are continuously appropriated to the Department of
Veterans’ Affairs for the purposes of funding loans under section 19 of this
2008 Act.
SECTION 21. (1)
There is established a grant program to improve access to and the effectiveness
of health care delivery for families.
(2) The goals of the
program are to:
(a) Improve preventive
health services;
(b) Increase access to
appropriate, affordable and efficiently delivered primary care for families;
(c) Provide new access
to health care for children;
(d) Explore alternative
models for reimbursement of health care services; and
(e) Collect information
to allow for an evaluation of each grant-funded project.
(3) The Department of
Human Services shall award grants for two projects. One of the grants shall be
awarded for a project that predominantly serves a rural area as defined by the
Office of Rural Health.
(4) The department shall
adopt rules in accordance with ORS 183.333 to:
(a) Establish criteria
for awarding grants based on the goals of the program.
(b) Determine the amount
of each grant.
(c) Administer the
program.
(5) The department shall
award grants under this section for projects that:
(a) Create incentives
for collaborative, community-based organizations to bring diverse stakeholders
together to coordinate, communicate and improve access to health care for local
residents of the community; and
(b) Improve health care
delivery in the community by providing:
(A) Patient-centered
care in which there is a sustained relationship between a patient and a
culturally competent provider team and that utilizes patient-driven goals and
evidence-based practices;
(B) Team-based care that
takes advantage of nursing services, including care coordination, school-based
health services, home visits, telephone triage and clinical case management,
and that maximizes services during each patient visit;
(C) Coordinated care
that links patients to comprehensive services in the community, including
specialty care, mental health care, dental care, vision care and social
services;
(D) Provider
accessibility through the use of telephone and electronic mail, and the removal
of transportation, language, cultural and other barriers to timely care; and
(E) Collaboration with
the community that ensures that health-related interests and services are
coordinated, psychosocial services are incorporated, resources are leveraged
and maximized and assessments are conducted on health status, disparities and
effectiveness of services.
(6) To be awarded
grants, applicants must demonstrate the ability to leverage nonstate resources
given the strengths and limitations of their geographic locations.
(7) Each project must
include an evaluation component that accurately monitors and measures:
(a) The impact of the
project on the cost and quality of and access to health care; and
(b) How the structure
and operation of the organization reflects the interests of and is accountable
to the diverse needs of the local community.
SECTION 22. Section
21 of this 2008 Act is repealed January 2, 2012.
SECTION 23. (1)
During the 2007-2009 biennium, the Department of Human Services shall conduct
an assessment and evaluation of the community mental health care component of
the mental health care delivery system in
(2) The assessment
conducted under subsection (1) of this section shall include but is not limited
to:
(a) An assessment of the
gap between the number of Oregonians in need of community mental health care
and the number who receive community mental health care;
(b) An assessment of the
investment that the Department of Human Services, the Department of Corrections
and local governments make in community mental health care, including an
examination of the amount spent on community mental health care;
(c) As assessment of the
community mental health needs of particularly vulnerable populations in this
state; and
(d) A catalog of the
information that agencies and local governments use to evaluate the performance
of providers of community mental health care, including the data collected and
the performance measures and outcomes that are tracked by each agency and local
government.
(3) The assessment
conducted under subsection (2)(a) of this section must include a separate
analysis of the gap between the demand for community mental health care by
veterans returning from tours in Iraq, Afghanistan and other hostile fire areas
and the community mental health care that is provided at United States
Department of Veterans Affairs facilities.
(4) The evaluation
conducted under subsection (1) of this section must contain:
(a) An analysis of the
strengths and weaknesses in the state community mental health care delivery
system;
(b) An overview of
future community mental health care delivery system needs; and
(c) Recommendations from
the Department of Human Services for improving the quality, effectiveness and
efficiency of the community mental health care delivery system.
(5) The department shall
provide a written report of the results of the assessment and evaluation
conducted under subsection (1) of this section to the Senate Interim Committee
on Health and Human Services and the House Interim Committee on Health Care no
later than October 1, 2008.
(6) The department may
contract with a private entity or individual to conduct the assessment and
evaluation and to produce the report required by this section.
SECTION 24. Section
23 of this 2008 Act is repealed January 2, 2009.
SECTION 25. Sections
2, 3 and 5, chapter 911,
SECTION 26. This
2008 Act being necessary for the immediate preservation of the public peace,
health and safety, an emergency is declared to exist, and this 2008 Act takes
effect on its passage.
Approved by the Governor March 11, 2008
Filed in the office of Secretary of State March 11, 2008
Effective date March 11, 2008
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