75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
 
                            Enrolled
 
                         House Bill 2208
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor Theodore R.
  Kulongoski for Oregon University System)
 
 
                     CHAPTER ................
 
 
                             AN ACT
 
 
Relating to Oregon University System; creating new provisions;
  amending ORS 36.145, 36.150, 36.155, 182.415, 183.635, 238.005,
  238A.005, 240.185, 270.100, 270.110, 283.143, 291.357, 291.375,
  292.043, 293.115, 293.701, 295.195, 339.331, 339.336, 341.440,
  341.739, 343.465, 344.259, 348.010, 348.210, 348.283, 348.849,
  348.890, 351.010, 351.060, 351.085, 351.100, 351.110, 351.130,
  351.165, 351.170, 351.210, 351.250, 351.450, 351.455, 351.460,
  351.470, 351.507, 351.508, 351.517, 351.518, 351.545, 351.590,
  351.615, 351.626, 351.627, 351.633, 351.638, 351.642, 351.663,
  351.666, 351.668, 351.840, 351.875, 351.880, 351.885, 352.043,
  352.046, 352.048, 352.049, 352.063, 352.066, 352.068, 352.071,
  352.074, 352.221, 352.223, 352.239, 352.247, 352.360, 352.510,
  352.520, 352.530, 352.560, 352.570, 352.580, 352.610, 352.620,
  352.650, 352.655, 542.710, 567.005, 567.010, 576.768 and
  759.445 and section 2, chapter 788, Oregon Laws 2005, and
  sections 5, 11, 12, 13, 14, 15, 16 and 17, chapter 761, Oregon
  Laws 2007; repealing ORS 351.456, 351.513, 351.515, 351.523,
  351.524, 351.526, 351.528, 351.529, 351.533, 351.534, 351.537,
  351.540, 352.600 and 352.630 and section 3, chapter 788, Oregon
  Laws 2005; appropriating money; and declaring an emergency.
 
Be It Enacted by the People of the State of Oregon:
 
  SECTION 1. ORS 351.010 is amended to read:
  351.010. The   { - Department of Higher Education - }
 { + Oregon University System is established and is organized as
described in ORS 352.002. The system + } shall be conducted under
the control of a board of 12 directors, to be known as the State
Board of Higher Education. The board shall consist of:
  (1) Two students, who at the time of their appointment to the
board, are admitted at different public institutions of higher
education in Oregon listed in ORS 352.002.
  (2) One member of the faculty at Oregon State University,
Portland State University or University of Oregon.
  (3) One member of the faculty at Eastern Oregon University,
Oregon Institute of Technology, Southern Oregon University or
Western Oregon University.
  (4) Eight members of the general public who are not students or
faculty at the time of their appointment.
  SECTION 2.  { + (1) The amendments to ORS 351.010 by section 1
of this 2009 Act are intended to change the name of the
 
 
 
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'Department of Higher Education' to the 'Oregon University
System.  '
  (2) For the purpose of harmonizing and clarifying statute
sections published in Oregon Revised Statutes, the Legislative
Counsel may substitute for words designating the 'Department of
Higher Education,' wherever they occur in Oregon Revised
Statutes, other words designating the 'Oregon University
System.' + }
  SECTION 3.  { + (1) The Oregon University System Fund is
established in the State Treasury, separate and distinct from the
General Fund. Any interest or other investment income derived
from moneys in the Oregon University System Fund is credited to
the fund. Except when otherwise specified by a statute
establishing an account, the interest or other investment income
credited to the Oregon University System Fund that was derived
from tuition and fees, facility and administrative cost
recoveries, sales and services revenues, housing fees, food
service fees, parking fees and General Fund appropriations shall
be transferred to the General Fund by the State Board of Higher
Education.
  (2) Except for moneys otherwise designated by statute or
federal law, all moneys received by the State Board of Higher
Education or the Oregon University System shall be paid into the
State Treasury and credited to the Oregon University System Fund.
All moneys in the fund are continuously appropriated to the State
Board of Higher Education for purposes authorized by law.
  (3) The moneys in the Oregon University System Fund may be
invested as provided in ORS 293.701 to 293.820.
  (4) The board may establish accounts and subaccounts within the
Oregon University System Fund when the board determines that
accounts or subaccounts are necessary or desirable. Except when
otherwise specified by a statute establishing an account, the
board may credit any interest or income derived from moneys in
the fund to any account or subaccount within the fund.
  (5) The board shall keep a record of all moneys deposited into
the fund. The record shall indicate by separate cumulative
accounts and subaccounts the sources from which the moneys are
derived and the individual activity or program against which each
withdrawal is charged. + }
   { +  NOTE: + } Section 4 was deleted by amendment. Subsequent
sections were not renumbered.
  SECTION 5. ORS 348.010 is amended to read:
  348.010. (1)   { - The Department of Higher Education shall
maintain with the State Treasurer a fund separate and distinct
from the General Fund known as the Higher Education Student Loan
Fund, which shall consist of: - }   { + An account in the Oregon
University System Fund established under section 3 of this 2009
Act is designated for the purpose of granting student loans under
the terms established by the National Defense Education Act of
1958, as amended, under the terms of the Health Professions
Educational Assistance Act of 1963, as amended, and under the
terms of the Nurses Training Act of 1964, as amended.
  (2) The account designated under this section consists of: + }
  (a) All moneys made available to the State Board of Higher
Education for student loan purposes by state appropriations and
by the federal government under terms of the National Defense
Education Act of 1958 { + , as amended, + }   { - and amendments
thereto, and - } under  { + the + } terms of the Health
Professions Educational Assistance Act of 1963 { + , as
amended, + } and  { + under the terms of + } the Nurses Training
 
 
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Act of 1964 { + , as amended + }   { - and amendments thereto - }
;
  (b) Repayments of loans identified in paragraph (a) of this
subsection;
  (c) Interest earned on student loans identified in paragraph
(a) of this subsection; and
  (d) Earnings from investments of the   { - Higher Education
Student Loan Fund - }  { +  account + }.
    { - (2) All moneys in the Higher Education Student Loan Fund
are continuously appropriated to the Department of Higher
Education for the purpose of granting student loans under the
terms established by the National Defense Education Act of 1958
and amendments thereto, under terms of the Health Professions
Educational Assistance Act of 1963 and the Nurses Training Act of
1964 and amendments thereto. - }
  (3) The repayment in whole or part of any student loan made
under terms of the National Defense Education Act of 1958 { + ,
as amended, + }   { - and amendments thereto, - }  under
 { + the + } terms of the Health Professions Educational
Assistance Act of 1963 { + , as amended, + } and  { +  under the
terms of + } the Nurses Training Act of 1964 { + , as amended + }
  { - and amendments thereto - } , shall be made pursuant to the
provisions of the applicable federal statutes and repayment to
the   { - Higher Education Student Loan Fund - }   { + account
designated under this section + } shall be made in accordance
with applicable federal statutes.
    { - (4) Funds in the Higher Education Student Loan Fund not
needed for student loans may be invested by the State Treasurer
as other public funds are invested under ORS 293.701 to 293.820.
The State Treasurer shall credit to the Higher Education Student
Loan Fund any interest or other income derived from such
investment. - }
   { +  (4) Income and interest derived from moneys in the
account designated by this section are credited to the
account. + }
  SECTION 6. ORS 351.060 is amended to read:
  351.060. The State Board of Higher Education may:
  (1) Control and provide for, subject to the conditions of this
section, the custody and occupation of the grounds, buildings,
books, papers and documents belonging to each and all the
institutions, departments or activities under the control of the
State Board of Higher Education.
  (2) Manage, control and apply all property of whatever nature
given to or appropriated for the use, support or benefit of any
or all of the institutions, departments or activities under the
control of the State Board of Higher Education, according to the
terms and conditions of such gift or appropriation. Moneys
received under this section shall be deposited   { - with the
State Treasurer in an account or fund separate and distinct from
the General Fund - }  { +  in a designated account in the Oregon
University System Fund established by section 3 of this 2009
Act + }. Interest earned by the account   { - or fund - }  shall
be credited to the account
  { - or fund - } .
  (3) Erect, improve, repair, maintain, equip and furnish
buildings, structures and lands for higher education.
  (4) Acquire, receive, hold, control, convey, sell, manage,
operate, lease, lend,   { - invest, - }  improve and develop any
and all property, real or personal:
 
 
 
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  (a) Given to any of the institutions, departments or activities
under the control of the State Board of Higher Education by
private donors, whether such gifts are made to the State Board of
Higher Education or to the State of Oregon; or
  (b) Acquired by any other method or from any source by the
State Board of Higher Education for the benefit of any of the
institutions, departments or activities under the control of the
board, except for any structure, equipment or asset encumbered by
a certificate of participation.
  (5) Manage mineral and geothermal resource rights and proceeds
therefrom acquired or held for the state by the board pursuant to
this chapter and ORS chapter 567. This includes leasing mineral
and geothermal resource rights consistent with ORS 273.785.
  (6) Take and hold mortgages on real and personal property
acquired by way of gift or arising out of transactions entered
into in accordance with the powers, duties and authority given to
the board by this section, ORS 351.070 and 351.150.
  (7) Institute, maintain and participate in suits and actions
and other judicial proceedings, in the name of the State of
Oregon, for the foreclosure of such mortgages or for the purpose
of carrying into effect any and all of the powers, duties and
authority given to the State Board of Higher Education by this
section and ORS 351.070 and 351.150.
  (8) Acquire, receive, hold, control, sell, manage, operate,
lease or lend any goods, supplies, materials, equipment, services
and information technology, for the use, support or benefit of
any of the institutions, departments or activities under the
control of the board.
  (9) Delegate any of the powers, duties or functions granted to
the board under this section to any state institution of higher
education within the Oregon University System.
  SECTION 7. ORS 351.170 is amended to read:
  351.170. (1) The State Board of Higher Education shall
establish such rates, charges and fees for use of buildings,
structures or projects referred to in ORS 351.160 (1), including
revenue-producing buildings and structures already constructed,
as, in the judgment of the board, will provide the required
revenues to make the particular new building, project or
structure self-liquidating and self-supporting, and as will
provide the funds with which to amortize the principal of and pay
the interest on the bonds issued to finance such buildings,
structures or projects.
  (2) The board shall charge and collect from each regular
student a building fee at a rate not to exceed $45 for each
regular term, for not less than three terms in each regular
academic year, and not to exceed $67.50 if instruction is on a
semester basis, or an equivalent rate of charge when instruction
is on a different basis. The board is authorized to maintain
adequate   { - sinking funds - }   { + accounts + } for bonds
outstanding. The fee shall be in addition to tuition and other
fees charged to students and shall be deposited   { - with the
State Treasurer and credited to the appropriate subfund of the
Higher Education Bond Sinking Fund - }  { + in the appropriate
subaccount of the account maintained in the Oregon University
System Fund under ORS 351.460 + }.
  SECTION 8. ORS 351.210 is amended to read:
  351.210. (1) The State Board of Higher Education may sell or
otherwise dispose of any worn out, obsolete or otherwise
unsuitable equipment, goods, supplies, material or information
technology, the disposal of which would in the board's judgment
 
 
Enrolled House Bill 2208 (HB 2208-B)                       Page 4
 
 
 
be to the financial benefit of the institutions under the board's
control. This section does not apply to any equipment, goods,
supplies, material or information technology encumbered by a
certificate of participation.
  (2) The board may delegate any of its duties, functions or
powers granted to the board under this section to the Chancellor
of the Oregon University System or any state institution of
higher education within the Oregon University System.
  (3) The proceeds from any sales or disposals made pursuant to
authority granted in this section shall be deposited in   { - the
State Treasury to the credit of the Department of Higher
Education - }   { + a designated account in the Oregon University
System Fund established by section 3 of this 2009 Act  + }and may
be expended by the board for any purpose authorized by law in the
same manner as the board is authorized to make other
expenditures.   { - Any moneys deposited in the State Treasury
under this section are continuously appropriated to the
department. - }
  SECTION 9. ORS 351.250 is amended to read:
  351.250. Moneys received by the board as a result of ownership
or management of property acquired under ORS 351.220 to 351.250
or of transactions regarding such property shall be credited to
 { - a special fund in the State Treasury, separate and distinct
from the General Fund, to be designated 'Higher Education
Invention Fund' - }   { + a designated account in the Oregon
University System Fund established by section 3 of this 2009 Act
 + }and shall only be applied by the State Board of Higher
Education to payment of the agreed share, if any, to assignors,
and for the advancement of research or for the acquisition and
development of intellectual property, or both. Interest earned by
the   { - fund - }   { + account  + }shall be credited to the
 { - fund - }  { +  account + }.   { +  + }
  SECTION 10. ORS 351.450 is amended to read:
  351.450. (1) The moneys realized from sales of bonds issued to
construct, improve, repair, equip and furnish buildings and other
structures for higher education, and to purchase and improve
sites therefor, shall be credited to   { - a special fund in the
State Treasury separate and distinct from the General Fund, to be
designated the Higher Education Bond Building Fund - }  { +  a
designated account in the Oregon University System Fund
established by section 3 of this 2009 Act + }.
    { - (2) In the Higher Education Bond Building Fund there
shall be: - }
   { +  (2) The account designated by this section shall
have: + }
  (a) A separate   { - subfund - }   { + subaccount + } for the
credit of moneys realized from sales of bonds issued pursuant to
Article XI-F(1) of the Oregon Constitution and ORS 351.350;
  (b) A separate   { - subfund - }   { + subaccount + } for the
credit of moneys realized from sales of bonds issued pursuant to
Article XI-G of the Oregon Constitution and ORS 351.345; and
  (c) A separate   { - subfund - }   { + subaccount + } for the
credit of moneys realized from the sales of revenue bonds issued
pursuant to ORS chapter 286A.
  (3) The moneys received from the issuance of temporary bonds
under ORS 351.470 for the purpose of interim financing pending
the sale of the bonds shall also be credited to the appropriate
  { - subfund of the Higher Education Bond Building Fund - }
 { +  subaccount of the account designated by this section + }.
 
 
 
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  (4) The moneys in the   { - fund are continuously appropriated
to defray - }   { + account designated by this section shall be
used for the purpose of defraying + } the costs of the projects
to be financed through sale of the bonds and for the purpose of
retiring temporary bonds issued under ORS 351.470 and
 { - shall - }   { + may + } not be used for any other purpose
 { - , except that such moneys may, with the approval of the
State Treasurer, be invested until needed - }  { +  unless
designated for investment by the Chancellor of the Oregon
University System + }. If a surplus remains after application to
 { - such purpose - }  { +  the purposes described in this
subsection + }, the surplus  { - , - } and earnings from
temporary investments  { - , - }  shall be credited to
  { - the Higher Education Bond Sinking Fund by the appropriate
subfund - }  { +  the account maintained in the Oregon University
System Fund under ORS 351.460 + }.
  SECTION 11. ORS 351.455 is amended to read:
  351.455. Notwithstanding any other provisions of law, the
  { - Department of Higher Education - }   { + Oregon University
System + } may expend moneys from the   { - Higher Education Bond
Building Fund subfund established - }   { + appropriate
subaccount of the account in the Oregon University System Fund
designated + } by ORS 351.450 { + , + } including moneys realized
from the sale of bonds issued pursuant to Article XI-F(1) of the
Oregon Constitution and ORS 351.350, and from the sale of revenue
bonds authorized by ORS 351.315, for the planning, constructing,
altering, repairing, furnishing and equipping of buildings and
facilities of the kind and character prescribed by Article
XI-F(1) of the Oregon Constitution and for the acquisition of
land.
  SECTION 12. ORS 351.460 is amended to read:
  351.460. (1) The State Board of Higher Education shall maintain
 { - with the State Treasurer a Higher Education Bond Sinking
Fund, separate and distinct from the General Fund. The Higher
Education Bond Sinking Fund shall comprise - }   { + an account
within the Oregon University System Fund established by section 3
of this 2009 Act  + }  { - four separate subfunds - }  to provide
for the payment of the principal of and the interest upon { + :
  (a) + } The bonds issued under authority of Article XI-F(1) of
the Oregon Constitution and ORS 351.350  { - , and - }  { + ;
  (b) The bonds issued + } under authority of Article XI-G of the
Oregon Constitution and ORS 351.345  { - , - }  { + ;
  (c) + } Revenue bonds authorized by ORS 351.315  { - , and - }
 { + ; and
  (d) + } Amounts due under financial agreements entered into
under ORS 351.356.   { - The moneys in the sinking fund are
continuously appropriated to the board for such purposes. The
fund may be invested by the State Treasurer, and the earnings
from such investments shall be credited to the appropriate
subfunds of the fund. - }
   { +  (2) The account maintained under this section comprises
one subaccount for each of the purposes of the account identified
in subsection (1) of this section.
  (3) Income and interest derived from moneys in the subaccounts
of the account maintained under this section are credited to the
appropriate subaccount. + }
    { - (2) - }   { + (4) + }   { - The Higher Education Bond
Sinking Fund shall consist of - }   { + The sources of moneys for
the account maintained under this section are:
 
 
 
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  (a)  + }All moneys received from ad valorem taxes levied
pursuant to ORS 291.445  { - , - }  { + ;
  (b) + } All moneys that the Legislative Assembly may provide in
lieu of such taxes  { - , - }  { + ;
  (c) + } All of the net revenues received from the projects or
undertakings for the financing of which the bonds were issued,
including gifts, grants and building fees  { - , such - }  { + ;
  (d) + } Unpledged revenues of buildings and projects of like
character   { - as shall be - }   { + that are + } allocated by
the board  { - , - }  { + ;
  (e) + } All moneys received as accrued interest upon bonds sold
 { - , - }  { + ;
  (f) + } All earnings from investments of the   { - fund, - }
 { +  account;
  (g) + } All proceeds of the sale of refunding bonds { + ; + }
and  { +
  (h) + } All moneys that the State of Oregon has agreed to hold
in the   { - Higher Education Bond Sinking Fund - }
 { + account + } to pay amounts due under financial agreements
entered into under ORS 351.356.
  { - Moneys credited to the Higher Education Bond Sinking Fund
shall be credited to the appropriate subfunds of the fund. - }
    { - (3) - }   { + (5) + } The board may credit the
 { - Higher Education Bond Sinking Fund - }   { + account
maintained under this section + } with moneys received from
either a sale or interfund transfer of land, buildings and
facilities. When the land, buildings or facilities are sold
 { - , - }  or the use   { - thereof is - }   { + of the land,
buildings or facilities is + } rededicated so that a transfer
from one   { - subfund - }  { +  subaccount + } to   { - the
other - }   { + another subaccount + } is appropriate, the moneys
received shall be credited to the appropriate   { - subfund - }
 { +  subaccount + }.
    { - (4) - }  { +  (6) + } The board shall apply student
building fees, revenues, gifts and grants for the payment of the
principal of and the interest upon the bonds issued under
authority of Article XI-F(1) of the Oregon Constitution and upon
revenue bonds authorized by ORS 351.315 until such time as the
proper   { - subfund of the sinking fund - }   { + subaccount + }
and investments   { - thereof - }  { +  of the subaccount + }, as
supplemented by expected future income will, in the judgment of
the board, be sufficient to meet in full the principal of and the
interest upon all such outstanding bonds. Except for student
building fees, income not   { - thus - }  required for the
 { - sinking fund - }  { +  account as described in this
subsection  + }shall be transferred to   { - such other fund and
account as the board shall designate - }  { + other accounts and
subaccounts within the Oregon University System Fund that are
designated by the board + }. Student building fees for buildings
constructed from the proceeds of bonds issued under Article
XI-F(1) of the Oregon Constitution or ORS 351.315 shall be
applied only to those bonds authorized under Article XI-F(1) of
the Oregon Constitution or ORS 351.315.
    { - (5) The board may create a subfund in the Higher
Education Bond Sinking Fund to pay amounts due under financial
agreements entered into under ORS 351.356 and may credit to that
subfund any moneys that the State of Oregon is obligated to use
to pay those amounts due. - }
    { - (6)(a) - }  { +  (7)(a) + } The board may not use the
 { - sinking fund - }  { + account maintained under this section
 
 
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 + }for any purpose other than the purposes for which the
 { - fund - }   { + account + } was created.
  (b) Notwithstanding paragraph (a) of this subsection, the board
may transfer any surplus in the   { - sinking fund - }
 { + account  + }to other   { - funds designated by the board - }
 { + accounts in the Oregon University System Fund + } if a
balance remains in the   { - sinking fund - }  { + account
 + }from sources other than student building fees for buildings
constructed from the proceeds of bonds issued under Article
XI-F(1) of the Oregon Constitution and:
  (A) The purposes for which the   { - fund - }   { + account + }
was created have been fulfilled; or
  (B) A reserve sufficient to meet all existing and future
obligations and liabilities of the   { - fund - }
 { + account + } has been set aside.
  SECTION 13. ORS 351.470 is amended to read:
  351.470. Pending receipt of the proceeds from the expected sale
of bonds authorized by this chapter, to the State of Oregon or to
the United States Government or any agency thereof, the State
Board of Higher Education may, with the approval of the State
Treasurer, procure interim financing from the State of Oregon,
the United States Government or any agency thereof, or from any
private lending agency, by issuing to such private or public
lending agency temporary bonds, without advertisement of such
bonds for sale, in order to finance temporarily building projects
authorized by the board pursuant to Article XI-F(1) or Article
XI-G of the Oregon Constitution or ORS 351.160, if the bond issue
to be temporarily financed by the issuance of temporary bonds has
been authorized by the State Board of Higher Education and a
purchase plan has been formulated with and is being considered by
the State of Oregon or the United States Government or any agency
thereof. The proceeds from the sale of the bonds shall be
deposited in the   { - Higher Education Bond Building Fund and
credited to the appropriate subfund of such fund - }  { +
account in the Oregon University System Fund designated by ORS
351.450 + }, and shall be used to retire the temporary bonds
issued under this section.  The principal amount of temporary
bonds issued under this section may not exceed the principal
amount of the bond issue for which a purchase plan has been
formulated. The temporary bonds may be extended, renewed or
refunded but maturity dates may not be later than two years from
the date of issue of the original temporary bonds for the related
building project.
  SECTION 13a. ORS 351.507 is amended to read:
  351.507. (1) There is established in the General Fund an
account to be known as the Oregon State University Animal
Sciences Pavilion Account. Funds in the account shall be used for
the construction, remodeling, expansion and renovation of
facilities for an animal sciences education and research pavilion
at Oregon State University.
  (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the animal sciences pavilion
project described in subsection (1) of this section. Interest
earned on moneys in the account shall be credited to the account.
The account may not be credited with more than $4,000,000 in
interest, donations and federal and local government funds for
purposes of this subsection.
 
 
 
 
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  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the animal sciences pavilion
project described in subsection (1) of this section.
  SECTION 13b. ORS 351.508 is amended to read:
  351.508. (1) There is established in the General Fund an
account to be known as the Oregon State University Steam Plant
Account. Funds in the account shall be used for the construction,
remodeling, expansion and renovation of facilities for a steam
plant at Oregon State University.
  (2) The account shall consist of grant funds, loan funds,
business energy tax credit proceeds and federal and local
government funds made available to and funds donated to the
Oregon University System for the purpose of the steam plant
project described in subsection (1) of this section. Interest
earned on moneys in the account shall be credited to the account.
The account may not be credited with more than $12,000,000 in
interest, donations, grant funds, loan funds, tax credit proceeds
and federal and local government funds for purposes of this
subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the steam plant project
described in subsection (1) of this section.
  SECTION 13c. ORS 351.517 is amended to read:
  351.517. (1) There is established in the General Fund an
account to be known as the University of Oregon Education
Building and Complex Account. Funds in the account shall be used
for the construction, remodeling, expansion and renovation of
facilities for an education building and complex at the
University of Oregon.
  (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the education building and
complex project described in subsection (1) of this section.
Interest earned on moneys in the account shall be credited to the
account.  The account may not be credited with more than
$19,400,000 in interest, donations and federal and local
government funds for purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the education building and
complex project described in subsection (1) of this section.
  SECTION 13d. ORS 351.518 is amended to read:
  351.518. (1) There is established in the General Fund an
account to be known as the University of Oregon Gilbert Hall
Account. Funds in the account shall be used for the construction,
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                       Page 9
 
 
 
remodeling, expansion and renovation of facilities for Gilbert
Hall at the University of Oregon.
  (2) The account shall consist of federal and local government
funds made available to and funds donated to the Oregon
University System for the purpose of the Gilbert Hall project
described in subsection (1) of this section. Interest earned on
moneys in the account shall be credited to the account. The
account may not be credited with more than $3,300,000 in
interest, donations and federal and local government funds for
purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the Gilbert Hall project
described in subsection (1) of this section.
  SECTION 14. ORS 351.545 is amended to read:
  351.545. (1)   { - The State Board of Higher Education shall
maintain with the State Treasurer, a Higher Education Isolation
Facility Bond Sinking Fund, separate and distinct from the
General Fund. The Higher Education Isolation Facility Bond
Sinking Fund shall - }   { + An account in the Oregon University
System Fund established by section 3 of this 2009 Act is
designated to + } provide for the payment of principal and
interest of bonds issued under the authority of Article XI-F(1)
of the Oregon Constitution and ORS 351.350 in an amount equal to
the amount authorized for expenditure by section 3 (2)(b),
chapter 709, Oregon Laws 1971, and expended as provided therein.
 { - The sinking fund may be invested by the State Treasurer, and
the earnings from such investments shall be credited to the
sinking fund. - }  { +  Income and interest derived from moneys
in the account are credited to the account. + }
  (2)   { - The Higher Education Isolation Facility Bond Sinking
Fund shall consist - }   { + The account designated by this
section consists + } of moneys received as net revenues from the
isolation facilities for which the expenditure of funds is
authorized by section 3 (2)(b), chapter 709, Oregon Laws 1971,
including gifts, grants and building fees, moneys received as
accrued interest on bonds sold, earnings from investments on the
 { - sinking fund - }  { +  account + }, the proceeds of the sale
of refunding bonds and any accrued interest on such refunding
bonds, moneys appropriated to the   { - sinking fund - }
 { + account + } by the Legislative Assembly and moneys received
for the purposes of the   { - sinking fund - }   { + account + }
from all other sources.   { - All moneys in the sinking fund are
continuously appropriated to the board for the - }   { + Moneys
in the account may be used only for the + } purposes provided in
subsection (1) of this section.
  (3)   { - The sinking fund shall not be used for any purpose
other than that for which the fund was created; but should a
balance remain therein - }   { + If the account designated by
this section has a balance + } after the purpose for which the
 { - fund - }   { + account + } was created has been fulfilled,
or the   { - sinking fund - }   { + account + } and  { + the + }
investments   { - thereof - }  { +  of the account + }, will, in
the judgment of the board, be sufficient to meet in full the
principal of and the interest upon all Higher Education Isolation
Facility bonds { + , + } then
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 10
 
 
 
  { - such excess funds - }   { + any excess moneys + } may be
transferred by the board to   { - funds - }   { + an account + }
to be used for research related to veterinary medicine.
  SECTION 15. ORS 351.590 is amended to read:
  351.590. (1)   { - The State Board of Higher Education shall
maintain with the State Treasurer a fund, separate and distinct
from the General Fund, known as the Higher Education Student
Activities Fund in which shall be deposited - }   { + An account
in the Oregon University System Fund established by section 3 of
this 2009 Act is designated for the purpose of receiving + } all
revenue from incidental fees, optional fees, health services fees
and all operating revenue from intercollegiate athletics, student
unions and educational activities.
  (2)   { - The moneys in the Higher Education Student Activities
Fund are continuously appropriated to the Department of Higher
Education. - }  Disbursements from the   { - fund - }  { +
account designated by this section + }, including any interest
credited   { - thereto - }  { +  to the account + }, may be made
for necessary expenses for supplies, services and equipment
associated with student activities including but not limited to
recruiting, training and grant-in-aid to intercollegiate
athletes.
  (3)   { - The fund may be invested by the State Treasurer, and
the earnings from such investments shall be credited to the
fund. - }  { + Income and interest derived from moneys in the
account designated by this section are credited to the
account. + } The State Board of Higher Education shall distribute
annually the total interest earnings proportionately to each
institution based on each institution's average cash balance in
the   { - fund - }  { +  account + }.
  SECTION 16. ORS 351.615 is amended to read:
  351.615. Moneys set aside by higher education auxiliary
activities for repair and alteration of buildings and replacement
of equipment shall be credited to   { - a special fund in the
State Treasury, separate and distinct from the General Fund, to
be designated Higher Education Auxiliary Enterprise Building
Repair and Equipment Replacement Fund. The fund may be invested
by the State Treasurer, and the earnings from such investments
will be - }  { + an account designated for that purpose in the
Oregon University System Fund established by section 3 of this
2009 Act. Income and interest derived from moneys in the account
are + } credited to the
  { - fund - }   { + account + } for distribution to the several
auxiliary activities in accord with rules   { - to be - }
adopted by the   { - board - }  { +  State Board of Higher
Education + }. The moneys in the   { - Higher Education Auxiliary
Enterprise Building Repair and Equipment Replacement Fund are
continuously appropriated - }   { + account may be used only + }
for the repair and alteration of auxiliary enterprise buildings
and replacement of equipment as designated by the board, after
hearing any recommendations by recognized student governments.
  SECTION 17. ORS 351.626 is amended to read:
  351.626.   { - (1) The Department of Higher Education Capital
Construction Fund is established separate and distinct from the
General Fund. Interest earned on moneys in the Department of
Higher Education Capital Construction Fund shall be credited to
the fund. - }
    { - (2) Moneys in the Department of Higher Education Capital
Construction Fund are appropriated continuously to the Department
of Higher Education and may be disbursed by the department
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 11
 
 
 
for - }   { + An account in the Oregon University System Fund
established by section 3 of this 2009 Act is designated for + }
the construction, remodeling, expansion and renovation of
facilities within the Oregon University System. { +  Income and
interest from moneys in the account are credited to the
account. + }
  SECTION 18. ORS 351.627 is amended to read:
  351.627. (1)   { - There is created a Higher Education Capital
Construction Fund, separate and distinct from the General Fund,
to consist of all moneys credited thereto, including moneys from
the Administrative Services Economic Development Fund. Interest
earned by the fund shall be credited to the fund. The fund is
continuously appropriated to the State Board of Higher Education
for purposes of capital construction. - }  { +  An account in the
Oregon University System Fund established by section 3 of this
2009 Act is designated for the purpose of capital construction.
  (2) The account designated by this section consists of moneys
credited to the account, including moneys from the Administrative
Services Economic Development Fund. Interest earned on moneys in
the account is credited to the account. + }
    { - (2) - }   { + (3) + }   { - No - }   { + A + } building,
facility or project to be funded from the   { - Higher Education
Capital Construction Fund shall be - }  { + account designated by
this section may not be + } commenced and   { - no expenditure
therefor shall - }   { + an expenditure for the building,
facility or project may not + } be made or incurred except for
land purchases  { - , - }   { + and + } architectural or
engineering planning until a plan   { - therefor - }   { + for
the building, facility or project + } has been submitted by the
State Board of Higher Education to and approved by the Emergency
Board.
  SECTION 19. ORS 351.633 is amended to read:
  351.633. Any contract entered into by the State Board of Higher
Education to be paid from the   { - Higher Education Capital
Construction Fund - }   { + account designated by ORS 351.627 + }
for which there are insufficient funds   { - therein - }   { + in
the account + } at the time the contract is entered into must
contain a provision authorizing cancellation   { - thereof - }
 { + of the contract + } if the funds do not become available.
  SECTION 20. ORS 351.638 is amended to read:
  351.638. (1)   { - A Faculty Recruitment Fund is created in the
General Fund of the State Treasury. All moneys in the fund are
appropriated continuously and shall be expended by the State
Board of Higher Education for - }   { + An account in the Oregon
University System Fund established by section 3 of this 2009 Act
is designated for + } the purpose of attracting new, outstanding
faculty members to the institutions in the Oregon University
System. This purpose includes payment of costs incurred in
relocating new faculty, retraining necessary teaching assistants
for new faculty, acquisition of equipment such as laboratory
equipment and facilities to support research by new faculty,
payment of other costs incurred in recruiting new faculty and
payment of costs associated with committing salary supplements to
newly recruited faculty over a period of more than one year.
  (2) The state board shall seek funds from private sources for
deposit to the credit of the   { - fund - }  { +  account
designated by this section + }. Funds from other sources
 { - shall - }   { + may + } not be transferred or credited to
the   { - fund - }   { + account + } without prior authorization
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 12
 
 
 
of the appropriate legislative review agency as described in ORS
291.375 (1).
  SECTION 21. ORS 351.642 is amended to read:
  351.642. (1) As used in this section:
  (a) 'Active member of the Armed Forces of the United States'
includes officers and enlisted personnel of the Armed Forces of
the United States who:
  (A) Reside in this state while assigned to duty at any base,
station, shore establishment or other facility in this state;
  (B) Reside in this state while serving as members of the crew
of a ship that has an Oregon port or shore establishment as its
home port or permanent station; or
  (C) Reside in another state or a foreign country and establish
Oregon residency by filing Oregon state income taxes no later
than 12 months before leaving active duty.
  (b) 'Armed Forces of the United States' includes:
  (A) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (B) Reserve components of the Army, Navy, Air Force, Marine
Corps and Coast Guard of the United States; and
  (C) The National Guard of the United States and the Oregon
National Guard.
  (c) 'Dependent children' includes any children of an active
member of the Armed Forces of the United States who:
  (A) Are under 18 years of age and not married, otherwise
emancipated or self-supporting; or
  (B) Are under 23 years of age, unmarried, enrolled in a
full-time course of study in an institution of higher learning
and dependent on the member for over one-half of their support.
  (2) Active members of the Armed Forces of the United States and
their spouses and dependent children shall be considered
residents of this state for the purpose of admission and for the
purpose of determining fees and tuition to be paid by such
individuals while attending any educational institution in this
state that is under the control of the State Board of Higher
Education.
  (3) The State Board of Higher Education may contract with the
Armed Forces of the United States to furnish educational service
in Oregon institutions to active members of the Armed Forces of
the United States.
  (4) The State Board of Higher Education shall determine the
number of such students that should be accepted and shall make
final decisions on admission of individual applicants.
  (5) Students attending Oregon institutions under contracts with
the Armed Forces of the United States under this section shall
pay fees and tuition customarily charged Oregon students.
  (6) Payments made by the Armed Forces of the United States
under such contracts shall be deposited in   { - the State
Treasury and credited to the accounts of the State Board of
Higher Education - }   { + a designated account in the Oregon
University System Fund established by section 3 of this 2009
Act + } in the same manner that fees and tuition payments for
resident students are deposited and credited.
  SECTION 22. ORS 351.663 is amended to read:
  351.663. (1) The   { - State Board of Higher Education shall
establish an - }  Engineering and Technology Industry
Council { +  is established + }. A majority of the council
members   { - shall be - }   { + are + } representatives of high
technology companies in Oregon. The council shall be consulted on
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 13
 
 
 
the work plans and resource allocations for engineering
education.
  (2) The council shall establish criteria and measurements that
will be used for determining investments made from the
  { - Oregon Engineering Education Investment Fund - }  { +
account designated by ORS 351.666 + }.
  (3) The criteria and measurements established by the council
  { - shall - }  include:
  (a) Responding to the urgent engineering educational needs of
Oregon's fast growing high technology industry, especially in the
Portland metropolitan area.
  (b) Increasing this state's faculty and program capacity to
meet the graduate level, professional education needs of
engineers working in Oregon's high technology industry through
investments in public and private institutions.
  (c) Creating additional opportunities for Oregonians to pursue
education in electrical engineering, computer engineering and
other engineering disciplines critical to the advancement of
Oregon's high technology industry.
  (d) Investing relatively scarce state financial resources to:
  (A) Address the high technology industry's most demonstrated
and pressing needs;
  (B) Produce the greatest amount of educational benefits with
the least   { - short- - }   { + short-term  + }and long-term
costs to the public;
  (C) Avoid duplicating existing public or private resources; and
  (D) Leverage existing and future private resources for the
public benefit.
  (e) Making all investments in public and private institutions
through performance-based contracts with measurable outcomes in
order to ensure strong linkage between the most urgent
engineering education needs and implemented solutions.
  (f) Maximizing the leverage of state investment funds to build
faculty and program capacity and share existing and new faculty
and program resources.
  (4) Priority   { - shall be - }   { + is + } given to
investments where private financial resources from Oregon high
technology companies or individuals with significant interests in
the growth of high technology in Oregon are made available to
augment public funds.
  (5) The council   { - shall - }   { + must + } submit biennial
performance reviews of all investments made to improve
engineering education with public funds in public and private
institutions. The reviews
  { - shall - }   { + must + } be submitted to the Chancellor of
the Oregon University System and the State Board of Higher
Education.
  SECTION 23. ORS 351.666 is amended to read:
  351.666.   { - (1) There is established an Oregon Engineering
Education Investment Fund, separate and distinct from the General
Fund. Interest earned by the Oregon Engineering Education
Investment Fund shall be credited to the fund. - }
    { - (2) - }   { + (1) + }   { - The moneys in the fund are
appropriated continuously to the Department of Higher
Education - }   { + An account in the Oregon University System
Fund established by section 3 of this 2009 Act is designated + }
for the purpose of investments in engineering education. { +
Interest earned on moneys in the account is credited to the
account. + }
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 14
 
 
 
    { - (3) There is established a goal of at least $100 million
that will be invested in engineering education through the fund
prior to July 1, 2007. - }
   { +  (2) The State Board of Higher Education shall use the
moneys in the account designated by this section solely for the
purpose of investing in engineering education. The board shall
follow the criteria and measurements established by the
Engineering and Technology Industry Council in allocating moneys
for investments in engineering education. + }
  SECTION 23a. ORS 351.668 is amended to read:
  351.668. The State Board of Higher Education shall use the
money from the   { - Oregon Engineering Education Investment
Fund - }  { +  account designated by ORS 351.666 + } solely for
the purpose of investing in engineering education. The board
shall follow the criteria and measurements established by the
Engineering and Technology Industry Council in allocating money
for investments in engineering education.
  SECTION 24. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education and the Oregon
Health and Science University Board of Directors may contract
with the Western Interstate Commission for Higher Education to
furnish educational service in their respective Oregon
institutions to out-of-state students.
  (2) The State Board of Higher Education and the Oregon Health
and Science University Board of Directors shall determine the
number of out-of-state students that should be accepted into
their respective institutions, and shall make final decisions on
admission of individual applicants.
  (3) Payments made by the commission under such contracts shall
be deposited in   { - the State Treasury and credited to the
accounts of the State Board of Higher Education - }   { + and
credited to a designated account in the Oregon University System
Fund established by section 3 of this 2009 Act + } for students
enrolled in institutions under the jurisdiction of   { - that
board - }   { + the State Board of Higher Education + } in the
same manner that fees and tuition payments for resident students
are deposited and credited. The estimated amount of
 { - such - }   { + the + } payments   { - shall - }
 { + must + } be considered by the board in making its biennial
budgetary requests. Payments made by the commission under such
contracts   { - shall - }   { + must + } be deposited with the
Oregon Health and Science University for students who enroll in
that university under the terms of such contracts.
  SECTION 25. ORS 351.875 is amended to read:
  351.875. (1)   { - There is hereby created within the State
Treasury a fund, separate and distinct from the General Fund, to
be known as the Basic Research Fund. - }   { + An account in the
Oregon University System Fund established by section 3 of this
2009 Act is designated to provide grants for research.
  (2) + }   { - Moneys may be credited to the fund - }   { + The
account designated by this section may consist of moneys + } from
any public or private source. Interest   { - earnings of the fund
from whatever source shall be - }   { + earned on the account
is + } credited to the   { - fund - }  { +  account + }.
    { - (2) - }   { + (3) + } The   { - fund - }   { + account
designated by this section + } shall be administered by the State
Board of Higher Education according to policies and procedures
adopted pursuant to ORS 351.880 and 351.885.
    { - (3) - }   { + (4) + } Expenditures from the
 { - fund - }   { + account designated by this section + } shall
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 15
 
 
 
take the form of grants for a time certain and may extend beyond
the biennium in which the expenditure is made.  Grants may not be
used for capital construction.
  SECTION 26. ORS 351.880 is amended to read:
  351.880. For the purpose of recommending policies and
procedures for the administration of the   { - fund - }  { +
account designated by ORS 351.875 + }, the   { - board - }
 { + State Board of Higher Education + } shall establish a
Council for Research Policy Recommendations.
  SECTION 27. ORS 351.885 is amended to read:
  351.885. (1) With the advice and recommendations of the
  { - council - }  { +  Council for Research Policy
Recommendations established by ORS 351.880 + }, the
 { - board - }   { + State Board of Higher Education + } shall
adopt policies and procedures for the administration of the
 { - fund - }  { +  account designated by ORS 351.875 + }.
  (2) The policies and procedures shall give consideration to:
  (a) The promotion of basic research of the highest caliber
  { - within our public universities - }  { +  at institutions of
higher education within the Oregon University System + };
  (b) The identification of areas of inquiry   { - which - }
 { + that + } should be supported so as to recognize both the
intrinsic value and extrinsic economic value of basic research;
  (c) The capacity of each   { - university - }   { + institution
of higher education + } to decide where basic research moneys
could best be spent within that   { - university - }  { +
institution + };
  (d) Administrative and accounting requirements   { - which - }
 { + that + } place upon the   { - university - }
 { + institution of higher education + } receiving moneys from
the   { - fund - }   { + account designated by ORS 351.875 + } a
minimum burden sufficient to guarantee an appropriate degree of
public accountability; and
  (e) Methods of assuring nondiscriminatory access to the
  { - fund - }  { +  account designated by ORS 351.875 + }.
  SECTION 28. ORS 352.360 is amended to read:
  352.360. (1) The State Board of Higher Education may enact such
regulations as   { - it shall deem - }   { + the board deems + }
convenient or necessary to provide for the policing, control and
regulation of traffic and parking of vehicles on the property of
any institution  { +  of higher education + } under the
jurisdiction of the board.   { - Such - }  { +  The + }
regulations may provide for the registration of vehicles, the
designation of parking areas, and the assessment and collection
of reasonable fees and charges for parking, and shall be filed in
accordance with the provisions of ORS chapter 183. The board may
require that before a quarterly or yearly parking privilege for
any vehicle is granted to any full-time or part-time student to
use board property, the student must show that the vehicle is
operated by a student holding a valid driver's license, that the
vehicle is currently registered and that the student driving the
vehicle is insured under a motor vehicle liability insurance
policy that meets the requirements described under ORS 806.080 or
that the student or owner of the vehicle has provided the
Department of Transportation with other satisfactory proof of
compliance with the financial responsibility requirements of this
state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by the board for each institution  { + of higher
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 16
 
 
 
education + } under   { - its - }   { + the + } jurisdiction { +
of the board + }. Administrative and disciplinary sanctions may
be imposed upon students, faculty and staff for violation of the
regulations, including but not limited to, a reasonable monetary
penalty which may be deducted from student deposits, and faculty
or staff salaries or other funds in the possession of the
institution. The board shall provide opportunity for hearing for
the determination of controversies in connection with imposition
of fines or penalties. The board may prescribe procedures for
such hearings despite the provisions of ORS 183.413 to 183.470.
Persons other than students, faculty or staff may voluntarily
submit to the hearing procedures prescribed by the board, and
shall be bound by the results   { - thereof - }  { +  of the
hearing + }. The powers granted to the board by this section are
supplemental to the existing powers of the board with respect to
the government of activities of students, faculty and staff and
the control and management of property under its jurisdiction.
  (3) The regulations enacted pursuant to subsection (1) of this
section may also be enforced by the impoundment of vehicles, and
a reasonable fee may be enacted for the cost of impoundment and
storage, if any, prior to the release of the vehicles to their
owners.
  (4) All fees and charges for parking privileges and violations
are   { - hereby continuously appropriated to the State Board of
Higher Education to be used to defray - }   { + deposited in a
designated account in the Oregon University System Fund
established by section 3 of this 2009 Act for the purpose of
defraying + } the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations, and maintenance and operation of parking facilities
and for the purpose of acquiring and constructing additional
parking facilities for vehicles at the various institutions,
departments or activities under the control of the board  { - ,
and - }  { + .  Fees and charges + } may also be credited to the
 { - Higher Education Bond Sinking Fund provided for in - }
 { + account in the Oregon University System Fund designated by
 + }ORS 351.460. Parking fees shall be established at levels no
greater than those required to finance the construction,
operation and maintenance of parking facilities on the same
campus of the state institution of higher education on which the
parking is provided. Notwithstanding ORS 351.072, parking fees or
changes in fees shall be adopted by rule of the state board
subject to the procedure for rules adopted in ORS chapter 183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section. The board, for the
purpose of enforcing its rules and regulations governing traffic
control, may appoint peace officers who   { - shall - }  have the
same authority as other peace officers as defined in ORS 133.005.
  (6) The   { - State - }  board   { - of Higher Education - }
and any municipal corporation or any department, agency or
political subdivision of this state may enter into agreements or
contracts with each other for the purpose of providing a uniform
system of enforcement of the rules and regulations of the board
enacted pursuant to subsection (1) of this section.
  (7) In proceedings brought to enforce regulations enacted
pursuant to subsection (1) of this section, it shall be
sufficient to charge the defendant by an unsworn written notice
in accordance with the provisions of ORS 221.333. In any case in
which the defendant is not subject to and does not voluntarily
submit to the hearing procedures prescribed under subsection (2)
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 17
 
 
 
of this section, proceedings to enforce regulations enacted
pursuant to subsection (1) of this section shall be brought in
the name of the board in a circuit court, a justice court or a
city court for offenses committed within the territorial
jurisdiction of such court. Such courts shall have concurrent
jurisdiction over offenses committed within their respective
jurisdictions. All fines, penalties and court costs recovered
shall be paid to the clerk of the court involved and shall be
disposed of as provided in ORS 153.630.
  SECTION 29. ORS 352.510 is amended to read:
  352.510. The interest that may   { - hereafter - }  accrue on
 { - the fund - }   { + an account + } arising from the sale of
 { - the university - }  lands  { +  for institutions of higher
education that were + } donated to the state by Act of Congress
of February 14, 1859,   { - is set apart, separate and distinct
from the General Fund, and continuously appropriated to - }
 { + may be deposited in and credited to an account in the Oregon
University System Fund established by section 3 of this 2009 Act
for the purpose of + } the maintenance, use and support of the
University of Oregon.   { - Until otherwise provided by law, no
part of said interest shall - }   { + No part of the interest may
 + }be expended otherwise than in the payment of the salaries of
 { - its - }  { +  the + } president, professors and teachers
 { - , - }   { + of the University of Oregon + } and other
current expenses { +  of the University of Oregon + }. If at the
close of any fiscal year   { - a sum - }   { + an amount + }
equal to  { + or greater than + } $500 of   { - said - }  { +
the + } interest remains unexpended after the full payment of
 { - such - }  { +  the + } salaries and expenses for
 { - said - }  { + the fiscal + } year, the   { - same - }
 { + amount + } shall be added to and become a part of the
principal of   { - said fund forever - }  { +  the account + }.
The State Board of Higher Education  { - , - }   { + or + } the
faculty or other officers of the   { - state university shall in
no case - }   { + University of Oregon may not  + }pledge the
faith or credit of the   { - university of the state - }
 { + University of Oregon + } in excess of the interest annually
accruing on the   { - University Fund - }  { +  account + },
together with the receipts from tuitions and other sources during
the current year.
  SECTION 30. ORS 293.115 is amended to read:
  293.115. The following moneys shall be separate and distinct
from the General Fund:
  (1) Moneys paid into the State Treasury for fiduciary purposes
and moneys that are in trust funds, as defined in ORS 291.002.
  (2) Moneys by law directed and required to be placed by the
State Treasurer to the credit of:
  (a) The Agricultural College Fund principal and the interest
accruing from the investment thereof.
  (b) The Burbank Trust Fund and the interest accruing from the
investment thereof.
  (c) The Common School Fund and the interest accruing from the
investment thereof.
  (d) The Industrial Accident Fund under ORS 656.632 and the
interest accruing from the investment thereof.
  (e) The Consumer and Business Services Fund under ORS 705.145
and the interest accruing from the investment thereof.
  (f) The Workers' Benefit Fund created in ORS 656.605 and the
interest accruing from the investment thereof.
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 18
 
 
 
    { - (g) The University Fund principal and the interest
accruing from the investment thereof. - }
    { - (h) - }   { + (g) + } The University of Oregon Villard
Endowment Interest Fund.
    { - (i) - }   { + (h) + } The Oregon Commercialized Research
Fund created by ORS 284.725 and the interest accruing from the
investment thereof.
    { - (j) - }   { + (i) + } The Oregon Innovation Fund created
by ORS 284.720 and the interest accruing from the investment
thereof.
  (3) All sums received by the state from the federal government
from forest reserves, rentals, sales of timber and other sources
from forest reserves, under ORS 293.560 and the interest accruing
from the investment thereof.
  (4) All sums received from the five percentum of sales of
public lands and apportioned under ORS 272.085 and the interest
accruing from the investment thereof.
  (5) All sums received from the federal government under ORS
293.565 to 293.575 under Mineral Leasing Act, federal Flood
Control Act and the Taylor Grazing Act and the interest accruing
from the investment thereof.
  (6) Any other funds or accounts created by law that are not
specifically established in the law creating them as funds or
accounts in the General Fund.
  SECTION 31. ORS 352.520 is amended to read:
  352.520. All moneys belonging to the   { - University Fund - }
 { + account designated by ORS 352.510 + } shall be loaned by the
Department of State Lands in accordance with the provisions of
ORS 327.425 to 327.455 governing loans from the Common School
Fund.
  SECTION 32. ORS 352.530 is amended to read:
  352.530. The Department of State Lands shall pay the interest
received on loans from the   { - University Fund - }
 { + account designated by ORS 352.510 + } to the State Board of
Higher Education semiannually.
  SECTION 33. ORS 352.560 is amended to read:
  352.560.  { + (1) An account in the Oregon University System
Fund established by section 3 of this 2009 Act is designated
 + }for the endowment, maintenance and support of Oregon State
University { + . + }  { - , there is set apart, separate and
distinct from the General Fund, and continuously appropriated the
interest on the Oregon State University Fund, - }
   { +  (2) The account designated by this section consists of
moneys + } arising from the sale of all lands granted to the
State of Oregon, or to which the state was entitled, under the
Act of July 2, 1862 (12 Stat. 503), as amended  { - , or so much
thereof as may be necessary - } .   { - In no case shall the - }
Interest arising from the
  { - fund - }   { + account may not + } be applied to the
purchase of sites  { - , - }  or for buildings for Oregon State
University  { - , but - }  { + . Interest from the account may be
used + } only in the payment of the salaries of professors,
officers and other current expenses. The remainder of
  { - such - }   { + any + } interest remaining   { - over - }
at the close of each fiscal year after the payment of
 { - such - }   { + the + } expenses  { + described in this
section + } shall be added to and become a part of the principal
 { - or endowment fund forever - }  { +  of the account + }.
  SECTION 34. ORS 352.570 is amended to read:
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 19
 
 
 
  352.570. All moneys belonging to the   { - Oregon State
University Fund - }   { + account designated by ORS 352.560 + }
shall be loaned by the Department of State Lands in accordance
with ORS 327.425 to 327.455, governing loans from the Common
School Fund.
  SECTION 35. ORS 352.580 is amended to read:
  352.580. The Department of State Lands shall pay the interest
received on loans from the   { - Oregon State University Fund - }
 { + account designated by ORS 352.560 + } to the State Board of
Higher Education semiannually.
  SECTION 36. ORS 352.610 is amended to read:
  352.610.  { + (1) Oregon State University shall execute the
trust created by the last will and testament of John T. Apperson,
deceased. The university shall administer the trust fund provided
for and designated in the will as the J. T. Apperson Agricultural
College Educational Fund.
  (2) + } Oregon State University may accept, receive, own, hold,
sell and dispose of any and all real and personal property given,
devised or bequeathed to the State Land Board by John T. Apperson
in trust for the purpose of creating the J. T. Apperson
Agricultural College Educational Fund. The university shall
manage and use it in accordance with the directions contained in
the will of John T. Apperson, deceased, for the purpose of
defraying the expenses and assisting in the education at Oregon
State University of deserving young men and women who are
 { - actual bona fide - } residents of Oregon and are unable to
bear the expense of a collegiate course at that institution.
   { +  (3) All necessary expenses incurred by Oregon State
University in connection with the administration of the trust
fund shall be payable out of the fund. The State Board of Higher
Education or the university, if authority is delegated under ORS
351.070, may adopt any necessary rules for the transaction of
business related to and the carrying out of ORS 352.600 to
352.630. + }
  SECTION 36a. ORS 352.620 is amended to read:
  352.620. Oregon State University may execute all deeds,
conveyances, contracts, mortgage releases and all other
instruments necessary to be executed in carrying out the terms of
the trust referred to in ORS   { - 352.600 - }  { +  352.610 + }.
All such deeds and other instruments may be executed in manner
and form as prescribed by the university and shall be entitled to
record without acknowledgment.
  SECTION 37. ORS 352.650 is amended to read:
  352.650. Whenever   { - there remains in the hands of the
trustee of - }   { + any moneys in  + }the J. T. Apperson
Agricultural College Educational Fund or   { - of - }  the
Burbank Trust Fund   { - any portion of either of such funds not
then - }   { + are not + } required for investment or loan
purposes, the trustee may require the State Treasurer to deposit
 { - such fund or portions thereof, until the same is required by
it, in qualified state depositories in the same manner as state
funds belonging to the State of Oregon are deposited therein, but
separate and distinct from the General Fund - }  { +  the moneys
in a designated account in the Oregon University System Fund
established by section 3 of this 2009 Act + }. Any interest
received from the deposit of any   { - such - }  trust funds
shall be credited to the particular fund on which   { - such - }
 { +  the + } interest was earned.
 
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 20
 
 
 
  SECTION 38. Section 2, chapter 788, Oregon Laws 2005, as
amended by section 2, chapter 746, Oregon Laws 2007, and section
149, chapter 783, Oregon Laws 2007, is amended to read:
   { +  Sec. 2. + } (1) Pursuant to ORS 286A.560 to 286A.585,
lottery bonds may be issued by the State Treasurer at the request
of the
  { - Department of Higher Education - }   { + Oregon University
System + } for deferred maintenance and capital renewal, code
compliance and safety projects.
  (2) The use of lottery bond proceeds is authorized based on the
following findings:
  (a) Major subsystems within university buildings are wearing
out and must be replaced in order that universities have adequate
facilities for teaching.
  (b) Having safe and fully functioning university facilities is
essential to Oregon's healthy economic growth.
  (3) The aggregate principal amount of lottery bonds issued
pursuant to subsection (1) of this section by the State Treasurer
for deferred maintenance and capital renewal, code compliance and
safety projects may not exceed the amount of $69.43 million and
an additional amount estimated by the State Treasurer to be
necessary to pay bond-related costs as defined in ORS 286.560.
    { - (4) Of the net proceeds of lottery bonds issued pursuant
to this section for the biennium beginning July 1, 2007, an
amount not to exceed $50 million shall be deposited in the
Department of Higher Education Deferred Maintenance and Capital
Repair Project Fund established by section 3, chapter 788, Oregon
Laws 2005. - }
   { +  (4) Net proceeds of lottery bonds issued pursuant to this
section shall be deposited into an account in the Oregon
University System Fund established by section 3 of this 2009 Act.
Moneys in the account shall be used for deferred maintenance and
capital repair projects. + }
  SECTION 39.  { + (1) On the effective date of this 2009 Act,
the unexpended balances of amounts received by the Department of
Higher Education, the State Board of Higher Education or the
Oregon University System, prior to the effective date of this
2009 Act, from the General Fund that are not designated by
statute or otherwise as matching funds or for repayment of bonds
issued under Article XI-G of the Oregon Constitution, are
appropriated and transferred to the Oregon University System Fund
established by section 3 of this 2009 Act.
  (2) On the effective date of this 2009 Act, the unexpended
balances of amounts received by the Department of Higher
Education, the State Board of Higher Education or the Oregon
University System, from sources other than the General Fund and
for purposes not otherwise designated by statute or federal law,
are appropriated and transferred to the Oregon University System
Fund established by section 3 of this 2009 Act.
  (3) On the effective date of this 2009 Act, the unexpended
balances of amounts in the following accounts shall be
transferred to the appropriate designated accounts within the
Oregon University System Fund established by section 3 of this
2009 Act as follows:
  (a) The fund or account to which moneys are deposited under ORS
351.060, 351.210, 351.642, 351.840, 352.360, 352.510 or 352.650
shall be transferred to the appropriate account designated by ORS
351.060, 351.210, 351.642, 351.840, 352.360, 352.510 or 352.650.
  (b) The Higher Education Student Loan Fund shall be transferred
to the account designated by ORS 348.010.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 21
 
 
 
  (c) The Higher Education Invention Fund shall be transferred to
the account designated by ORS 351.250.
  (d) The Higher Education Bond Building Fund shall be
transferred to the account designated by ORS 351.450.
  (e) The Higher Education Bond Sinking Fund shall be transferred
to the account designated by ORS 351.460.
  (f) The Higher Education Isolation Facility Bond Sinking Fund
shall be transferred to the account designated by ORS 351.545.
  (g) The Higher Education Student Activities Fund shall be
transferred to the account designated by ORS 351.590.
  (h) The Higher Education Auxiliary Enterprise Building Repair
and Equipment Replacement Fund shall be transferred to the
account designated by ORS 351.615.
  (i) The Department of Higher Education Capital Construction
Fund shall be transferred to the account designated by ORS
351.626.
  (j) The Higher Education Capital Construction Fund shall be
transferred to the account designated by ORS 351.627.
  (k) The Faculty Recruitment Fund shall be transferred to the
account designated by ORS 351.638.
  (L) The Oregon Engineering Education Investment Fund shall be
transferred to the account designated by ORS 351.666.
  (m) The Basic Research Fund shall be transferred to the account
designated by ORS 351.875.
  (n) The Oregon State University Fund shall be transferred to
the account designated by ORS 352.560.
  (o) The University Fund shall be transferred to the account
designated by ORS 352.510.
  (p) The Department of Higher Education Deferred Maintenance and
Capital Repair Project Fund shall be transferred to the Oregon
University System Fund. + }
  SECTION 40. ORS 351.130 is amended to read:
  351.130. (1) The State Board of Higher Education shall
encourage gifts  { + and donations + } to   { - the - }
institutions  { + of higher education within the Oregon
University System + } by faithfully devoting   { - such funds - }
 { + the gifts or donations  + }to the institution for which
 { + the gift or donation is  + }intended.
   { +  (2) The Higher Education Donation Fund is established in
the State Treasury, separate and distinct from the General
Fund. Moneys in the Higher Education Donation Fund are
continuously appropriated to the State Board of Higher Education
for the purpose for which the moneys were donated. Moneys in the
fund may be invested as provided in ORS 293.701 to 293.820,
subject to the terms or restrictions of any gifts or donations.
Any interest or other income derived from the investment of the
fund shall be credited to the fund.
  (3) + } All gifts and donations received   { - are appropriated
to be - }  { +  shall be  + }used in accordance with the terms of
the gift { +  or donation + }.   { - Such gifts shall be placed
by the State Treasurer to the credit of a separate fund to be
known as the Higher Education Donation Fund, separate and
distinct from the General Fund. - }  { +  Gifts or donations may
be deposited in the Oregon University System Fund established by
section 3 of this 2009 Act or in the Higher Education Donation
Fund. The board shall consider the amount, nature and purpose of,
and any restriction placed on, gifts and donations, and determine
whether to deposit the gift or donation in the Oregon University
System Fund or the Higher Education Donation Fund. Gifts and
donations may be split or transferred between the Oregon
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 22
 
 
 
University System Fund and the Higher Education Donation
Fund. + }
    { - (2) Subject to the terms of the gift, such gifts to the
Department of Higher Education may be invested by the State
Treasurer. The State Treasurer shall credit to the Higher
Education Donation Fund any interest or other income derived from
the investment of such fund. - }
    { - (3) - }   { + (4) + } The interest, income, dividends or
profits received on any property or funds of the   { - Department
of Higher Education - }  { + State Board of Higher Education or
the Oregon University System + } derived from gifts  { - , - }
 { + and donations, including + } legacies, devises, bequests or
endowments { + , + } are continuously appropriated to the use,
maintenance and support of the   { - Department of Higher
Education - }  { + Oregon University System + } in the same
manner as the principal or corpus of each such gift or donation
in accordance with the terms of the gift { +  or donation + }.
    { - (4) - }   { + (5) + } As used in this section,   { -  '
gifts' - }   { +  ' gifts or donations' + } includes funds
donated to the   { - Department of Higher Education - }
 { + State Board of Higher Education or the Oregon University
System + } to which by agreement the donor receives consideration
in return for the gift  { + or donation + } or retains a
reversionary interest but does not include grant or contract
funds received from government sources.
  SECTION 41. ORS 293.701 is amended to read:
  293.701. As used in ORS 293.701 to 293.820, unless the context
requires otherwise:
  (1) 'Council' means the Oregon Investment Council.
  (2) 'Investment funds' means:
  (a) Public Employees Retirement Fund referred to in ORS
238.660;
  (b) Industrial Accident Fund referred to in ORS 656.632;
  (c) Consumer and Business Services Fund referred to in ORS
705.145;
  (d) Employment Department Special Administrative Fund referred
to in ORS 657.822;
  (e) Insurance Fund referred to in ORS 278.425;
  (f) Funds under the control and administration of the
Department of State Lands;
  (g) Oregon Student Assistance Fund referred to in ORS 348.570;
  (h) Moneys made available to the Commission for the Blind under
ORS 346.270 and 346.540 or rules adopted thereunder;
  (i) Forest rehabilitation bonds sinking fund referred to in ORS
530.280;
  (j) Oregon War Veterans' Fund referred to in ORS 407.495;
  (k) Oregon War Veterans' Bond Sinking Account referred to in
ORS 407.515;
  (L) World War II Veterans' Compensation Fund;
  (m) World War II Veterans' Bond Sinking Fund;
  (n) Savings and loan association funds in the hands of the
Director of the Department of Consumer and Business Services;
  (o) Funds in the hands of the State Treasurer that are not
required to meet current demands;
  (p) State funds that are not subject to the control and
administration of officers or bodies specifically designated by
law;
  (q) Funds derived from the sale of state bonds;
  (r) Social Security Revolving Account referred to in ORS
237.490;
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 23
 
 
 
    { - (s) Investment funds of the State Board of Higher
Education lawfully available for investment or reinvestment; - }
   { +  (s) Oregon University System Fund established by section
3 of this 2009 Act and the Higher Education Donation Fund
established by ORS 351.130; + }
  (t) Local Government Employer Benefit Trust Fund referred to in
ORS 657.513;
  (u) Elderly and Disabled Special Transportation Fund
established by ORS 391.800;
  (v) Education Stability Fund established by ORS 348.696;
  (w) Deferred Compensation Fund established under ORS 243.411;
and
  (x) Trust for Cultural Development Account established under
ORS 359.405.
  (3) 'Investment officer' means the State Treasurer in the
capacity as investment officer for the council.
  SECTION 42. ORS 36.145 is amended to read:
  36.145. The Dispute Resolution Account is established in the
State Treasury, separate and distinct from the General Fund. All
moneys received under ORS 36.150 shall be deposited to the credit
of the account. Notwithstanding the provisions of ORS 291.238,
all moneys in the account are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } for the purposes for which the moneys were made
available and shall be expended in accordance with the terms and
conditions upon which the moneys were made available.
  SECTION 43. ORS 36.150 is amended to read:
  36.150. The   { - Department of Higher Education - }  { +
Oregon University System + }, 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 schools in
carrying out the responsibilities of the schools under ORS 36.100
to 36.238 and 183.502. All moneys received by the
 { - Department of Higher Education - }  { +  Oregon University
System + } under this section shall be deposited in the Dispute
Resolution Account.
  SECTION 44. ORS 36.155 is amended to read:
  36.155. The Dean of the University of Oregon School of Law
shall award grants for the purpose of providing dispute
resolution services in counties. Grants under this section shall
be made from funds appropriated to the   { - Department of Higher
Education - }   { + Oregon University System + } on behalf of the
University of Oregon School of Law for distribution under this
section. The State Board of Higher Education may adopt rules for
the operation of the grant program.
  SECTION 45. ORS 182.415 is amended to read:
  182.415. As used in ORS 182.415 to 182.435 and 240.086 unless
the context requires otherwise:
  (1) 'Furnishings' includes furniture usually used in connection
with occupancy of a household but does not include rugs,
draperies, range, refrigerator, washer, dryer or any item of
furnishings received by the state or one of its agencies as a
gift, nor does it include any furniture purchased for the
state-owned residence required in relation to the official duties
of an institutional executive or the Chancellor of the
 { - Department of Higher Education - }   { + Oregon University
System + } prior to September 9, 1971.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 24
 
 
 
  (2) 'Housing' includes single and multiple family dwellings,
apartments, and manufactured dwellings and manufactured dwelling
pads, available on a monthly tenancy but does not include guard
stations maintained by the State Forestry Department or dormitory
facilities at any state institution or at any state institution
of higher education.
  (3) 'Dormitory' includes any facility which houses students and
those facilities used primarily for sleeping purposes by the
employees of the Department of Human Services.
  (4) 'State agency' has the same meaning as in ORS 291.002.
  SECTION 46. ORS 183.635 is amended to read:
  183.635. (1) Except as provided in this section, all agencies
must use administrative law judges assigned from the Office of
Administrative Hearings established under ORS 183.605 to conduct
contested case hearings, without regard to whether those hearings
are subject to the procedural requirements for contested case
hearings.
  (2) The following agencies need not use administrative law
judges assigned from the office:
  (a) Attorney General.
  (b) Boards of stewards appointed by the Oregon Racing
Commission.
  (c) Bureau of Labor and Industries and the Commissioner of the
Bureau of Labor and Industries.
  (d) Department of Corrections.
  (e) Department of Education, State Board of Education and
Superintendent of Public Instruction.
    { - (f) Department of Higher Education and institutions of
higher education listed in ORS 352.002. - }
    { - (g) - }   { + (f) + } Department of Human Services for
vocational rehabilitation services cases under 29 U.S.C. 722(c)
and disability determination cases under 42 U.S.C. 405.
    { - (h) - }   { + (g) + } Department of Revenue.
    { - (i) - }   { + (h) + } Department of State Police.
    { - (j) - }   { + (i) + } Employment Appeals Board.
    { - (k) - }   { + (j) + } Employment Relations Board.
    { - (L) - }   { + (k) + } Energy Facility Siting Council.
    { - (m) - }   { + (L) + } Fair Dismissal Appeals Board.
    { - (n) - }   { + (m) + } Governor.
    { - (o) - }   { + (n) + } Land Conservation and Development
Commission.
    { - (p) - }   { + (o) + } Land Use Board of Appeals.
    { - (q) - }   { + (p) + } Local government boundary
commissions created pursuant to ORS 199.430.
   { +  (q) Oregon University System and institutions of higher
education listed in ORS 352.002. + }
  (r) Oregon Youth Authority.
  (s) Psychiatric Security Review Board.
  (t) Public Utility Commission.
  (u) Secretary of State.
  (v) State Accident Insurance Fund Corporation.
  (w) State Apprenticeship and Training Council.
  (x) State Board of Parole and Post-Prison Supervision.
  (y) State Land Board.
  (z) State Treasurer.
  (aa) Wage and Hour Commission.
  (3) The Workers' Compensation Board is exempt from using
administrative law judges assigned from the office for any
hearing conducted by the board under ORS chapters 147, 654 and
656. Except as specifically provided in this subsection, the
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 25
 
 
 
Department of Consumer and Business Services must use
administrative law judges assigned from the office only for
contested cases arising out of the department's powers and duties
under:
  (a) ORS chapter 59;
  (b) ORS 200.005 to 200.075;
  (c) ORS chapter 455;
  (d) ORS chapter 674;
  (e) ORS chapters 706 to 716;
  (f) ORS chapter 717;
  (g) ORS chapters 722, 723, 725 and 726; and
  (h) ORS chapters 731, 732, 733, 734, 735, 737, 742, 743, 743A,
744, 746, 748 and 750.
  (4) Notwithstanding any other provision of law, in any
proceeding in which an agency is required to use an
administrative law judge assigned from the office, an officer or
employee of the agency may not conduct the hearing on behalf of
the agency.
  (5) Notwithstanding any other provision of ORS 183.600 to
183.690, an agency is not required to use an administrative law
judge assigned from the office if:
  (a) Federal law requires that a different administrative law
judge or hearing officer be used; or
  (b) Use of an administrative law judge from the office could
result in a loss of federal funds.
  (6) Notwithstanding any other provision of this section, the
Department of Environmental Quality must use administrative law
judges assigned from the office only for contested case hearings
conducted under the provisions of ORS 183.413 to 183.470.
  SECTION 47. ORS 238.005 is amended to read:
  238.005. For purposes of this chapter:
  (1) 'Annuity' means payments for life derived from
contributions made by a member as provided in this chapter.
  (2) 'Board' means the Public Employees Retirement Board.
  (3) 'Calendar year' means 12 calendar months commencing on
January 1 and ending on December 31 following.
  (4) 'Continuous service' means service not interrupted for more
than five years, except that such continuous service shall be
computed without regard to interruptions in the case of:
  (a) An employee who had returned to the service of the employer
as of January 1, 1945, and who remained in that employment until
having established membership in the Public Employees Retirement
System.
  (b) An employee who was in the armed services on January 1,
1945, and returned to the service of the employer within one year
of the date of being otherwise than dishonorably discharged and
remained in that employment until having established membership
in the Public Employees Retirement System.
  (5) 'Creditable service' means any period of time during which
an active member is being paid a salary by a participating public
employer and for which benefits under this chapter are funded by
employer contributions and earnings on the fund. For purposes of
computing years of 'creditable service,' full months and major
fractions of a month shall be considered to be one-twelfth of a
year and shall be added to all full years.  ' Creditable service'
includes all retirement credit received by a member.
  (6) 'Earliest service retirement age' means the age attained by
a member when the member could first make application for
retirement under the provisions of ORS 238.280.
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 26
 
 
 
  (7) 'Employee' includes, in addition to employees, public
officers, but does not include:
  (a) Persons engaged as independent contractors.
  (b) Seasonal, emergency or casual workers whose periods of
employment with any public employer or public employers do not
total 600 hours in any calendar year.
  (c) Persons, other than workers in the Oregon Industries for
the Blind under ORS 346.190, provided sheltered employment or
made-work by a public employer in an employment or industries
program maintained for the benefit of such persons.
  (d) Persons employed and paid from federal funds received under
the Emergency Job and Unemployment Assistance Act of 1974 (Public
Law 93-567) or any other federal program intended primarily to
alleviate unemployment. However, any such person shall be
considered an 'employee' if not otherwise excluded by paragraphs
(a) to (c) of this subsection and the public employer elects to
have the person so considered by an irrevocable written notice to
the board.
  (e) Persons who are employees of a railroad, as defined in ORS
824.020, and who, as such employees, are included in a retirement
plan under federal railroad retirement statutes. This paragraph
shall be deemed to have been in effect since the inception of the
system.
  (8) 'Final average salary' means whichever of the following is
greater:
  (a) The average salary per calendar year paid by one or more
participating public employers to an employee who is an active
member of the system in three of the calendar years of membership
before the effective date of retirement of the employee, in which
three years the employee was paid the highest salary. The three
calendar years in which the employee was paid the largest total
salary may include calendar years in which the employee was
employed for less than a full calendar year. If the number of
calendar years of active membership before the effective date of
retirement of the employee is three or fewer, the final average
salary for the employee is the average salary per calendar year
paid by one or more participating public employers to the
employee in all of those years, without regard to whether the
employee was employed for the full calendar year.
  (b) One-third of the total salary paid by a participating
public employer to an employee who is an active member of the
system in the last 36 calendar months of active membership before
the effective date of retirement of the employee.
  (9) 'Firefighter' does not include a volunteer firefighter, but
does include:
  (a) The State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals; and
  (b) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  (10) 'Fiscal year' means 12 calendar months commencing on July
1 and ending on June 30 following.
  (11) 'Fund' means the Public Employees Retirement Fund.
  (12)(a) 'Member' means a person who has established membership
in the system and whose membership has not been terminated as
described in ORS 238.095. 'Member' includes active, inactive and
retired members.
  (b) 'Active member' means a member who is presently employed by
a participating public employer in a qualifying position and who
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 27
 
 
 
has completed the six-month period of service required by ORS
238.015.
  (c) 'Inactive member' means a member who is not employed in a
qualifying position, whose membership has not been terminated in
the manner described by ORS 238.095, and who is not retired for
service or disability.
  (d) 'Retired member' means a member who is retired for service
or disability.
  (13)(a) 'Member account' means the regular account and the
variable account.
  (b) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  (c) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
  (14) 'Normal retirement age' means:
  (a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (15) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  (16) 'Police officer' includes:
  (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
  (b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
  (c) Employees of the Oregon Liquor Control Commission who are
classified as enforcement officers by the administrator of the
commission.
  (d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
  (e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
  (f) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 28
 
 
 
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
  (g) Police officers appointed under ORS 276.021 or 276.023.
  (h) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  (i) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  (j) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
  (k) Investigators of the Criminal Justice Division of the
Department of Justice.
  (L) Corrections officers as defined in ORS 181.610.
  (m) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
  (n) The Director of the Department of Corrections.
  (o) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
  (p) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
  (q) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
  (r) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
  (s) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  (t) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
  (17) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
  (18) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
  (19) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 29
 
 
 
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
  (20) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
  (21)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
  (b) 'Salary' includes but is not limited to:
  (A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
  (B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
  (C) Retroactive payments made to an employee to correct a
clerical error or pursuant to an award by a court or by order of
or a conciliation agreement with an administration agency charged
with enforcing federal or state law protecting the employee's
rights to employment or wages, which shall be allocated to and
deemed paid in the periods in which the work was done or in which
it would have been done; and
  (D) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' or 'other advantages' does not include:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer;
  (B) Payments for insurance coverage by an employer on behalf of
employee or employee and dependents, for which the employee has
no cash option;
  (C) Payments made on account of an employee's death;
  (D) Any lump sum payment for accumulated unused sick leave;
  (E) Any accelerated payment of an employment contract for a
future period or an advance against future wages;
  (F) Any retirement incentive, retirement severance pay,
retirement bonus or retirement gratuitous payment;
  (G) Payments for periods of leave of absence after the date the
employer and employee have agreed that no future services
qualifying pursuant to ORS 238.015 (3) will be performed, except
for sick leave and vacation;
  (H) Payments for instructional services rendered to
institutions of the   { - Department of Higher Education - }
 { + Oregon University System + } or the Oregon Health and
Science University when such services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months to which the contract pertains; or
  (I) Payments made by an employer for insurance coverage
provided to a domestic partner of an employee.
  (22) 'School year' means the period beginning July 1 and ending
June 30 next following.
  (23) 'System' means the Public Employees Retirement System.
  (24) 'Vested' means being an active member of the system in
each of five calendar years.
  (25) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
  SECTION 48. ORS 238A.005 is amended to read:
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 30
 
 
 
  238A.005. For the purposes of this chapter:
  (1) 'Active member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan who is actively employed in a qualifying
position.
  (2) 'Actuarial equivalent' means a payment or series of
payments having the same value as the payment or series of
payments replaced, computed on the basis of interest rate and
mortality assumptions adopted by the board.
  (3) 'Board' means the Public Employees Retirement Board.
  (4) 'Eligible employee' means a person who performs services
for a participating public employer, including elected officials
other than judges. 'Eligible employee' does not include:
  (a) Persons engaged as independent contractors;
  (b) Aliens working under a training or educational visa;
  (c) Persons, other than workers in the Industries for the Blind
Program under ORS 346.190, provided sheltered employment or
make-work by a public employer;
  (d) Persons categorized by a participating public employer as
student employees;
  (e) Any person who is an inmate of a state institution;
  (f) Employees of foreign trade offices of the Economic and
Community Development Department who live and perform services in
foreign countries under the provisions of ORS 285A.075 (1)(g);
  (g) An employee actively participating in an alternative
retirement program established under ORS 353.250 or an optional
retirement plan established under ORS 341.551;
  (h) Employees of the Oregon University System who are actively
participating in an optional retirement plan offered under ORS
243.800;
  (i) Any employee who belongs to a class of employees that was
not eligible on August 28, 2003, for membership in the system
under the provisions of ORS chapter 238 or other law;
  (j) Any person who belongs to a class of employees who are not
eligible to become members of the Oregon Public Service
Retirement Plan under the provisions of ORS 238A.070 (2);
  (k) Any person who is retired under ORS 238A.100 to 238A.245 or
ORS chapter 238 and who continues to receive retirement benefits
while employed; and
  (L) Judges.
  (5) 'Firefighter' means:
  (a) A person employed by a local government, as defined in ORS
174.116, whose primary job duties include the fighting of fires;
  (b) The State Fire Marshal, the chief deputy state fire marshal
and deputy state fire marshals; and
  (c) An employee of the State Forestry Department who is
certified by the State Forester as a professional wildland
firefighter and whose primary duties include the abatement of
uncontrolled fires as described in ORS 477.064.
  (6) 'Fund' means the Public Employees Retirement Fund.
  (7)(a) 'Hour of service' means:
  (A) An hour for which an eligible employee is directly or
indirectly paid or entitled to payment by a participating public
employer for performance of duties in a qualifying position; and
  (B) An hour of vacation, holiday, illness, incapacity, jury
duty, military duty or authorized leave during which an employee
does not perform duties but for which the employee is directly or
indirectly paid or entitled to payment by a participating public
employer for services in a qualifying position, as long as the
hour is within the number of hours regularly scheduled for the
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 31
 
 
 
performance of duties during the period of vacation, holiday,
illness, incapacity, jury duty, military duty or authorized
leave.
  (b) 'Hour of service' does not include any hour for which
payment is made or due under a plan maintained solely for the
purpose of complying with applicable workers' compensation laws
or unemployment compensation laws.
  (8) 'Inactive member' means a member of the pension program or
the individual account program of the Oregon Public Service
Retirement Plan whose membership has not been terminated, who is
not a retired member and who is not employed in a qualifying
position.
  (9) 'Individual account program' means the defined contribution
individual account program of the Oregon Public Service
Retirement Plan established under ORS 238A.025.
  (10) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
  (11) 'Participating public employer' means a public employer as
defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
  (12) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  (13) 'Police officer' means a police officer as described in
ORS 238.005.
  (14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
  (15) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  (16)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
  (b) 'Salary' includes the following amounts:
  (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on August 29, 2003.
  (D) Any amount that is contributed to a cash or deferred
arrangement by the employer at the election of the employee and
that is not included in the taxable income of the employee by
reason of 26 U.S.C. 402(e)(3), as in effect on August 29, 2003.
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 32
 
 
 
  (E) Retroactive payments made to an employee to correct a
clerical error, pursuant to an award by a court or by order of or
pursuant to a conciliation agreement with an administration
agency charged with enforcing federal or state law protecting the
employee's rights to employment or wages, which shall be
allocated to and deemed paid in the periods in which the work was
done or in which the work would have been done.
  (F) The amount of an employee contribution to the individual
account program that is paid by the employer and deducted from
the compensation of the employee, as provided under ORS 238A.335
(1) and (2)(a).
  (G) The amount of an employee contribution to the individual
account program that is not paid by the employer under ORS
238A.335.
  (H) Wages of a deceased member paid to a surviving spouse or
dependent children under ORS 652.190.
  (c) 'Salary' does not include the following amounts:
  (A) Travel or any other expenses incidental to employer's
business which is reimbursed by the employer.
  (B) Payments made on account of an employee's death.
  (C) Any lump sum payment for accumulated unused sick leave,
vacation leave or other paid leave.
  (D) Any severance payment, accelerated payment of an employment
contract for a future period or advance against future wages.
  (E) Any retirement incentive, retirement bonus or retirement
gratuitous payment.
  (F) Payment for a leave of absence after the date the employer
and employee have agreed that no future services in a qualifying
position will be performed.
  (G) Payments for instructional services rendered to
institutions of the   { - Department of Higher Education - }
 { + Oregon University System + } or the Oregon Health and
Science University when those services are in excess of full-time
employment subject to this chapter. A person employed under a
contract for less than 12 months is subject to this subparagraph
only for the months covered by the contract.
  (H) The amount of an employee contribution to the individual
account program that is paid by the employer and is not deducted
from the compensation of the employee, as provided under ORS
238A.335 (1) and (2)(b).
  (I) Any amount in excess of $200,000 for a calendar year. If
any period over which salary is determined is less than 12
months, the $200,000 limitation for that period shall be
multiplied by a fraction, the numerator of which is the number of
months in the determination period and the denominator of which
is 12. The board shall adopt rules adjusting this dollar limit to
incorporate cost-of-living adjustments authorized by the Internal
Revenue Service.
  (17) 'System' means the Public Employees Retirement System.
  SECTION 49. ORS 240.185 is amended to read:
  240.185. (1) On and after January 1, 1984, the number of
persons employed by the state shall not exceed 1.5 percent of the
state's population of the prior year.
  (2) The population figure shall be that required by ORS 190.510
to 190.610.
  (3) This section applies to all full-time equivalent budgeted
positions.
  (4) This section does not apply to the Governor, the Secretary
of State, the State Treasurer, the Supreme Court or the
Legislative Assembly in the conduct of duties vested in any of
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 33
 
 
 
them by the Oregon Constitution. However, this exception applies
only to the office of the Governor and not to the executive
branch of government.
  (5) This section does not apply to personnel who administer
unemployment insurance benefits programs of the Employment
Department, to personnel who administer programs required to be
implemented as a condition for the continued certification of the
Employment Division Law by the United States Secretary of Labor
or to personnel who administer programs implemented by the United
States Department of Labor under federal law if the state is
required to enter into contracts to provide such programs.
  (6) This section does not apply to personnel whose positions
are funded by the gifts, grants and contracts program in the
  { - Department of Higher Education - }  { +  Oregon University
System + }.
  (7) In order to assess the effect of subsection (1) of this
section, the Oregon Department of Administrative Services by
December 31 of each even-numbered year shall conduct a workload
analysis of each state agency, regardless of whether the agency
is exempt from the application of subsection (1) of this section.
The workload analysis of each agency shall be submitted to the
Legislative Assembly prior to its convening in regular session
and shall accompany the agency's budget request before the Joint
Ways and Means Committee.
  SECTION 50. ORS 270.100 is amended to read:
  270.100. (1)(a) Before offering for sale any real property or
equitable interest therein owned by the state, the state agency
acting for the state in such transaction shall report its intent
of sale or transfer to the Oregon Department of Administrative
Services. The department, or the agency specifically designated
by the department, shall notify other state agencies authorized
to own real property of the intended sale or transfer to
determine whether acquisition of the real property or interest
therein would be advantageous to another state agency.
  (b) The department shall give political subdivisions, as
defined in ORS 271.005, the first opportunity after other state
agencies to acquire, purchase, exchange or lease real property to
be sold or disposed of by the State of Oregon. The state agency
responsible for selling or transferring the property may require
at the time of the sale or transfer that any state real property
sold or transferred to a political subdivision, as defined in ORS
271.005, shall be for use for a public purpose or benefit, and
not be for resale to a private purchaser.
  (c) If property is not disposed of under paragraph (a) or (b)
of this subsection, in accordance with rules adopted by the
department, the state agency desiring to sell or transfer the
property shall cause it to be appraised by one or more competent
and experienced appraisers. Except as provided in ORS 273.825, if
such property has an appraised value exceeding $5,000 it shall
not be sold to any private person except after notice calling for
such proposals as set forth in ORS 270.130.
  (d) The department shall adopt rules to carry out the
provisions of this section.
  (2) Before acquisition of any real property or interest therein
by any state agency, except for highway right of way acquired by
the Department of Transportation and park properties acquired by
the State Parks and Recreation Department and property within the
approved projected campus boundaries for institutions of the
 { - Department of Higher Education - }  { +  Oregon University
System + }, the state agency shall report its intent of
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 34
 
 
 
acquisition to the Oregon Department of Administrative Services.
The department shall notify other state agencies owning land of
the intended acquisition to determine whether another state
agency desires to sell or transfer property which would meet the
needs of the purchasing agency. In accordance with rules adopted
by the Oregon Department of Administrative Services, if no other
state agency desires to sell or transfer property which would
meet the needs of the agency, the agency may acquire the real
property or interest therein, consistent with applicable
provisions of law.
  (3) Before any terminal disposition of real property or an
interest in real property, the state agency acting for the state
in the transaction must secure approval of the transaction from
the Oregon Department of Administrative Services.
  (4) Subsection (3) of this section does not apply to terminal
disposition of the following real property:
  (a) Property controlled by the State Department of Fish and
Wildlife;
  (b) State forestlands controlled by the State Forestry
Department;
  (c) Property controlled by the Department of Transportation;
  (d) Property controlled by the Department of State Lands;
  (e) Property controlled by the   { - Department of Higher
Education - }  { +  Oregon University System + };
  (f) Property controlled by the legislative or judicial branches
of state government; and
  (g) Property controlled by the State Parks and Recreation
Department.
  (5) Notwithstanding the provisions of subsection (4) of this
section, prior approval by the Oregon Department of
Administrative Services is required for the terminal disposition
of public land for less than the fair market value of that land.
  (6) The provisions of ORS 184.634, 270.005 to 270.015, 270.100
to 270.190, 273.416, 273.426 to 273.436, 273.551 and 308A.709 (1)
to (4) do not apply to a home or farm acquired, sold, or both, by
the Department of Veterans' Affairs under ORS 88.720, 273.388,
406.050, 407.135, 407.145, 407.375 and 407.377.
  SECTION 51. ORS 270.110 is amended to read:
  270.110. (1) Except as provided in subsection (2) of this
section, whenever the state or any agency thereof possesses or
controls real property not needed for public use, or whenever the
public interest may be furthered, the state or its agency may
sell, exchange, convey or lease for any period not exceeding 99
years all or any part of its interest in the property to or with
the state or any political subdivision of the state or the United
States or any agency thereof or private individual or
corporation.  Except where the state is exchanging real property,
the consideration for the transfer or lease may be cash or real
property, or both.
  (2) If the ownership, right or title of the state to any real
property set apart by deed, will or otherwise for a burial ground
or cemetery, or for the purpose of interring the remains of
deceased persons, is limited or qualified or the use of such real
property is restricted, whether by dedication or otherwise, the
state or its agency may, after first declaring by resolution that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease thereof will further the
public interest, file a complaint in the circuit court for the
county in which such real property is located against all persons
claiming any right, title or interest in such real property,
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 35
 
 
 
whether the interest be contingent, conditional or otherwise, for
authority to sell, exchange, convey or lease all or any part of
such real property. The resolution is prima facie evidence that
such real property is not needed for public use, or that the
sale, exchange, conveyance or lease will further the public
interest. The action shall be commenced and prosecuted to final
determination in the same manner as an action not triable by
right to a jury. The complaint shall contain a description of
such real property, a statement of the nature of the
restrictions, qualifications or limitations, and a statement that
the defendants claim some interest therein. The court shall make
such judgment as it shall deem proper, taking into consideration
the limitations, qualifications or restrictions, the resolution
and all other matters pertinent thereto. Neither costs nor
disbursements may be recovered against any defendant.
  (3) The authority to lease property granted by this section
includes authority to lease property not owned or controlled by
the state at the time of entering into the lease. Such lease
shall be conditioned upon the subsequent acquisition of the
interest covered by the lease.
  (4) Any lease of state real property exceeding five years must
be approved in advance by the Oregon Department of Administrative
Services, except for leases:
  (a) Negotiated by the Oregon Department of Aviation;
  (b) Of state forestlands;
  (c) Of property controlled by the Department of State Lands,
Department of Transportation or   { - Department of Higher
Education - }  { + Oregon University System + }; or
  (d) Of property controlled by the legislative or judicial
branches of state government.
  SECTION 52. ORS 283.143 is amended to read:
  283.143. (1) To encourage utilization of statewide integrated
videoconferencing and statewide online access services, the
Oregon Department of Administrative Services shall, in addition
to any other charge or assessment for providing
telecommunications services to state agencies, impose upon each
agency and public corporation a surcharge, in an amount
established by the department. All surcharge moneys collected
shall be deposited in the Oregon Department of Administrative
Services Operating Fund, and may be expended only for state
agency and public corporation telecommunication and
videoconferencing activities, under such terms and conditions as
the department may prescribe.
  (2) Notwithstanding subsection (1) of this section, the Oregon
Department of Administrative Services shall not impose the
surcharge established by this section on the   { - Department of
Higher Education - }   { + Oregon University System + } or the
Oregon Health and Science University. The Oregon Department of
Administrative Services shall enter into an agreement with the
 { - Department of Higher Education - }   { + Oregon University
System + } and the Oregon Health and Science University on the
amounts to be paid by the
  { - Department of Higher Education - }   { + Oregon University
System + } and the Oregon Health and Science University to the
Oregon Department of Administrative Services in lieu of the
surcharge provided for in this section.
  SECTION 53. ORS 291.357 is amended to read:
  291.357. (1) As used in this section, 'general governmental
purposes' means:
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 36
 
 
 
  (a) Those activities defined as governmental activities under
the accounting standards promulgated by the Governmental
Accounting Standards Board of the Financial Accounting Foundation
that are in effect on August 10, 2001; and
  (b) Post-secondary educational activities that are partially
funded by student tuition and fees.
  (2) Each biennium, state governmental appropriations for
general governmental purposes shall be no greater than eight
percent of projected personal income in Oregon for the same
biennium. Projected personal income shall be based on the United
States Department of Commerce projections used by the Oregon
Department of Administrative Services in the last forecast given
to the Legislative Assembly before adjournment sine die of the
regular session on which the printed, adopted budget is based.
  (3) For purposes of this section, the following are considered
to be appropriations:
  (a) An authorization, given by law, to expend moneys in a
biennium;
  (b) A limitation, imposed by law, on the expenditure in a
biennium of moneys that are continuously appropriated; and
  (c) An estimate of amounts of moneys that are continuously
appropriated that will be spent in a biennium without limitation.
  (4) The following appropriations are not subject to the
limitation on appropriations contained in this section:
  (a) Appropriations for the construction or acquisition of
assets that are financed by state bonds, certificates of
participation or other forms of borrowing.
  (b) Appropriations of moneys received directly or indirectly
from the federal government.
  (c) Appropriations for fee remission programs of the
  { - Department of Higher Education - }  { +  Oregon University
System + }.
  (d) Appropriations of moneys voluntarily donated to a state
agency.
  (e) Appropriations of moneys from revenue increases or new
revenue sources if the increases or sources result from approval
of a measure by the people at an election held on or after August
10, 2001.
  (f) Appropriations to fund new programs or to increase funding
for existing programs if the need for new or increased funding
results from approval of a measure by the people at an election
held on or after August 10, 2001.
  (5) The limitation on appropriations established by this
section may be exceeded for a biennium if the Governor declares
an emergency and three-fifths of the members serving in each
house of the Legislative Assembly affirmatively vote to exceed
the limitation for the biennium.
  SECTION 54. ORS 291.375 is amended to read:
  291.375. (1) Prior to the submission of any application for
financial assistance or grants from the United States or any
agency thereof by or on behalf of any agency of this state, the
application must be submitted for legislative review in the
following manner:
  (a) If the application is to be submitted to the federal
government when the Legislative Assembly is in session, the
application shall be submitted to the Joint Committee on Ways and
Means for review.
  (b) If the application is to be submitted to the federal
government when the Legislative Assembly is not in session, the
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 37
 
 
 
application shall be submitted to the Emergency Board or to the
interim Joint Committee on Ways and Means for review.
  (2) If the legislative agency authorized under subsection (1)
of this section to review applications described therein approves
the application, it may be submitted to the appropriate federal
agency. If the legislative agency disapproves of the application,
it shall not be submitted to any federal agency unless it is or
can be modified to meet the objections of the legislative agency.
  (3) Notwithstanding subsection (1) of this section, the Joint
Committee on Ways and Means and the Emergency Board may exempt
any state agency from the requirements of this section. Project
grants for departmental research, organized activities related to
instruction, sponsored research or other sponsored programs
carried on within the   { - Department of Higher Education - }
 { +  Oregon University System + }, for which no biennial
expenditure limitations have been established, are exempt from
the requirements of this section.
  (4) The review required by this section is in addition to and
not in lieu of the requirements of ORS 293.550.
  SECTION 55. ORS 292.043 is amended to read:
  292.043. (1) As used in this section:
  (a) 'Foundation' means:
  (A) A tax exempt organization designated by a rule adopted by a
state agency; or
  (B) A tax exempt organization designated by the State Board of
Higher Education to solicit contributions for the support of an
institution of higher education under the jurisdiction of the
board.
  (b) 'Salary and wages' has the meaning given that term in ORS
292.014.
  (2) Any state official authorized to disburse funds in payment
of salaries or wages of the officers and employees of a state
agency, or of the officers, teachers, instructors and other
employees of the   { - Department of Higher Education - }  { +
Oregon University System + }, is authorized, upon written request
of the individual, to deduct each month from the salary or wages
of the individual the amount of money designated by the
individual for payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency or the State Board of Higher
Education, the state official authorized to disburse the funds in
payment of salaries and wages may prescribe any procedures
necessary to carry out this section.
  SECTION 56. ORS 295.195 is amended to read:
  295.195. (1) Notwithstanding any other provision of ORS chapter
295, the   { - Department of Higher Education - }  { +  Oregon
University System + }, with the approval of the State Treasurer,
may deposit funds in a financial institution in a foreign
country, if the circumstances under which the funds are to be
used render it impracticable to keep the funds in a domestic
financial institution or if the terms of a grant, gift or
contract require that the funds be kept in a foreign country.
  (2) Notwithstanding any other provision of this chapter, to the
extent estimated to be necessary to fund operations or activities
for one biennium of the State of Oregon in a foreign country, the
State Treasurer may deposit funds in a financial institution in a
foreign country.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 38
 
 
 
  (3) When funds are deposited in a financial institution in a
foreign country pursuant to subsection (1) or (2) of this
section, the institution shall not be required to maintain
collateral as provided in ORS 295.015. Reasonable and prudent
measures to protect the public funds from loss shall be exercised
to the extent permitted under the laws of the foreign country.
  (4) The State Treasurer shall report to the Legislative
Assembly biennially on the amounts of deposits in foreign
countries, and the operation and activities funded by such
deposits. The report shall be submitted to the offices of the
President of the Senate and the Speaker of the House of
Representatives and shall be referred by each of them to
appropriate standing committees other than committees concerned
with budgets of the State Treasurer or the activity or operation
so funded.
  SECTION 57. ORS 339.331 is amended to read:
  339.331. (1) There is created the Center for School Safety
within the   { - Department of Higher Education - }  { +  Oregon
University System + }. The mission of the center shall be to:
  (a) Serve as the central point for data analysis;
  (b) Conduct research;
  (c) Disseminate information about successful school safety
programs, research results and new programs; and
  (d) Provide technical assistance for improving the safety of
schools in collaboration with the Department of Education and
others.
  (2) To fulfill its mission, the Center for School Safety shall:
  (a) Establish a clearinghouse for information and materials
concerning school violence prevention and intervention services.
As used in this paragraph, 'intervention services' means any
preventive, developmental, corrective or supportive service or
treatment provided to a student who is at risk of school failure,
is at risk of participation in violent behavior or juvenile crime
or has been expelled from the school district. 'Intervention
services' may include, but is not limited to:
  (A) Screening to identify students at risk for emotional
disabilities or antisocial behavior;
  (B) Direct instruction in academic, social, problem-solving and
conflict resolution skills;
  (C) Alternative education programs;
  (D) Psychological services;
  (E) Identification and assessment of abilities;
  (F) Counseling services;
  (G) Medical services;
  (H) Day treatment;
  (I) Family services; and
  (J) Work and community service programs.
  (b) Provide program development and implementation expertise
and technical support to schools, law enforcement agencies and
communities. The expertise and support may include coordinating
training for administrators, teachers, students, parents and
other community representatives.
  (c) Analyze the data collected in compliance with section 5,
chapter 618, Oregon Laws 2001.
  (d) Research and evaluate school safety programs so schools and
communities are better able to address their specific needs.
  (e) Promote interagency efforts to address discipline and
safety issues within communities throughout the state.
  (f) Prepare and disseminate information regarding the best
practices in creating safe and effective schools.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 39
 
 
 
  (g) Advise the State Board of Education on rules and policies.
  (h) Provide an annual report on the status of school safety in
Oregon by July 1 of each year to:
  (A) The Governor;
  (B) The Attorney General;
  (C) The State Board of Education; and
  (D) All relevant legislative committees.
  (3) The University of Oregon Institute on Violence and
Destructive Behavior shall provide staff support to the Center
for School Safety board of directors and shall manage the center.
  (4) The Center for School Safety board of directors may seek
and accept public and private funds for the center.
  SECTION 58. ORS 339.336 is amended to read:
  339.336. (1) The   { - Department of Higher Education - }
 { + Oregon University System + } may seek and accept
contributions of funds and assistance from the United States, its
agencies or from any other source, public or private, and agree
to conditions thereon not inconsistent with ORS 339.331, 339.333
and 339.339. All such funds are to aid in financing the functions
of the Center for School Safety and shall be deposited in the
Center for School Safety Account and shall be disbursed for the
purpose for which contributed.
  (2) The Center for School Safety Account is established in the
General Fund of the State Treasury. Except for moneys otherwise
designated by statute, all federal funds or other moneys received
by the   { - department - }   { + Oregon University System + }
for the center shall be paid into the State Treasury and credited
to the account. All moneys in the account are appropriated
continuously to the   { - department - }   { + Oregon University
System + } and shall be used by the   { - department - }
 { + system + } for the purposes of carrying out ORS 339.331,
339.333 and 339.339.
  SECTION 59. ORS 341.440 is amended to read:
  341.440. (1) A community college district may contract with
another community college district, common or union high school
district, education service district, the   { - Department of
Higher Education - }  { +  Oregon University System + }, the
Oregon Health and Science University, with a private educational
institution accredited by the Northwest Association of Schools
and Colleges or its successor or a career school as defined in
ORS 345.010 to obtain educational services for students enrolled
in the community college of the district. However, the
educational services so obtained must meet the standards for
educational services provided by the college and the contract
price to the college for such services must not exceed the costs
which would otherwise be incurred by the college to provide its
students the same or similar services.
  (2) Educational services for which a district operating a
community college may contract include services offered by
correspondence and services offered electronically or through
telecommunications if such services are accredited by a
nationally recognized accrediting association.
  (3) For purposes of ORS 341.626, costs incurred under
subsection (1) of this section shall be considered operating
expenses of the district if the contract is approved by the
Commissioner for Community College Services.
  SECTION 60. ORS 341.739 is amended to read:
  341.739. The Department of Community Colleges and Workforce
Development may receive bond counsel services and financial
advisory services through the   { - Department of Higher
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 40
 
 
 
Education - }  { + Oregon University System + }. If the
Department of Community Colleges and Workforce Development
receives services through the
  { - Department of Higher Education - }  { +  Oregon University
System + }, the Department of Community Colleges and Workforce
Development is not obligated to obtain bond counsel services or
financial advisory services as otherwise prescribed in ORS
286A.130 and 286A.132.
  SECTION 61. ORS 343.465 is amended to read:
  343.465. (1) It is the policy of this state to respect the
unique nature of each child, family and community with particular
attention to cultural and linguistic diversity, and to support a
system of services for preschool children with disabilities and
their families that:
  (a) Recognizes the importance of the child's family, supports
and builds on each family's strengths and respects family
decision-making and input regarding service options and public
policy.
  (b) Identifies, evaluates and refers services for preschool
children with disabilities at the earliest possible time.
  (c) Uses specialized services and all other community services
and programs for children, including community preschools, Head
Start programs, community health clinics, family support programs
and other child-oriented agencies.
  (d) Uses a variety of funding sources for preschool children
with disabilities and their families, including public and
private funding, insurance and family resources.
  (e) Assists families in utilizing necessary services in the
most cost-effective and efficient manner possible by using a
coordinated planning and implementation process.
  (f) Insures that all children and their families, regardless of
disability, risk factors or cultural or linguistic differences,
are able to utilize services for which they would otherwise be
qualified.
  (g) Encourages services and supports for preschool children
with disabilities and their families in their home communities
and in settings with children without disabilities.
  (h) Recognizes the importance of developing and supporting
well-trained and competent personnel to provide services to
preschool children with disabilities, and their families.
  (i) Evaluates the system's impact on the child and family,
including child progress, service quality, family satisfaction,
transition into public schooling, longitudinal and cumulative
reporting over several biennia and interagency coordination at
both the state and local level.
  (j) Reports information described in paragraph (i) of this
subsection to the State Interagency Coordinating Council, the
Governor, the Superintendent of Public Instruction, the State
Board of Education and the Legislative Assembly each biennium.
  (2) In carrying out the provisions of subsection (1) of this
section, the Department of Education, the Department of Human
Services and the   { - Department of Higher Education - }
 { + Oregon University System + } shall coordinate services to
preschool children with disabilities, or who are at risk of
developing disabling conditions, and their families. All program
planning, standards for service, policies regarding services
delivery and budget development for services for preschool
children with disabilities, and their families shall reflect the
policy outlined in subsection (1) of this section and elaborated
through rules and agreements.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 41
 
 
 
  SECTION 62. ORS 344.259 is amended to read:
  344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult
self-improvement, professional and technical education for
agencies under its regulatory authority. The State Board of
Higher Education shall coordinate continuing education in upper
division and graduate education for institutions under its
jurisdiction.
  (2) When significantly adverse impact is alleged by one or more
of the agencies listed in this subsection, the affected parties
jointly shall provide for written agreements. These agreements
shall allocate responsibility for planning and providing
continuing education or off-campus instruction in specific areas
or by specific types. The agencies are:
  (a) The State Board of Education.
  (b) The State Board of Higher Education.
  (c) Community college districts.
  (d) Independent colleges.
  (e) Proprietary schools.
  (3) In the event the affected parties fail to reach a written
agreement within 120 days following receipt of written notice of
the allegation, either party may request the Education and
Workforce Policy Advisor to review and to recommend resolution.
  (4) Nothing in this section prohibits the offering of upper
division or graduate programs within 30 miles of the campus of
the
  { - Department of Higher Education - }   { + Oregon University
System + } institution offering the program, or the offering of
lower division programs within 30 miles of the campus offering
the program in areas outside a community college district. Such
programs are entitled to the same college credit and financial
support as programs offered on the campus of the institution.
  SECTION 63. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student Assistance Commission may award
scholarships at Eastern Oregon University to resident
undergraduate students applying for enrollment in the university
or who are pursuing courses therein. The number of students who
receive scholarships under this subsection may not exceed two and
one-half percent of the number of students who are enrolled at
the university. The scholarships shall be awarded upon the basis
of a record of high intellectual standing and deportment in the
school or institution where the applicant has received or is
receiving preparatory training, the necessity for financial
assistance and other qualifications of such nature that the
awarding of scholarships will operate not only to the advantage
of the applicant but to the people of Oregon. A scholarship
awarded under this subsection may not exceed in value the amount
of the tuition and other fees, including the fees that are levied
against the recipient of the scholarship by the State Board of
Higher Education at the university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
state institutions of higher education. A student may not receive
a scholarship under this subsection that exceeds the amount of
tuition and fees owed by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the   { - Department of Higher
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 42
 
 
 
Education - }  { + Oregon University System + } by students
enrolled in state institutions of higher education who were not
Oregon residents.
  SECTION 64. ORS 348.283 is amended to read:
  348.283. (1) There is established within the Oregon Student
Assistance Commission the Oregon Troops to Teachers program.
Through the program, the commission shall pay for all of the
resident tuition charges of a veteran imposed by a public
post-secondary institution, provided the veteran:
  (a) Was discharged from the Armed Forces of the United States;
  (b) Is a resident of Oregon; and
  (c) Agrees to teach:
  (A) In an Oregon school district or public charter school
classified as serving a high poverty area for not less than three
years; or
  (B) In the area of mathematics, science or special education
for not less than four years.
  (2) An award under subsection (1) of this section shall be used
for the purpose of paying resident tuition. The commission may
not award funds under subsection (1) of this section for the
purpose of paying for books, supplies, housing, food or any other
costs associated with attending a public post-secondary
institution.
  (3) The commission shall adopt rules necessary for the
implementation and administration of this section in consultation
with the Department of Education and the   { - Department of
Higher Education - }  { +  Oregon University System + }.
  SECTION 65. ORS 348.849 is amended to read:
  348.849. (1) There is established the Oregon 529 College
Savings Board to administer ORS 348.841 to 348.873.
  (2) The board shall consist of:
  (a) The State Treasurer, who shall serve as the board
chairperson;
  (b) A member of the State Board of Higher Education, to be
selected by the State Board of Higher Education;
  (c) A representative of accredited private colleges and
universities located in this state, who shall be appointed by the
State Treasurer; and
  (d) Two public members, who by reason of their education and
experience are qualified to serve, and who shall be appointed by
the State Treasurer.
  (3)(a) The board member who is a member of the State Board of
Higher Education shall serve at the pleasure of the State Board
of Higher Education but may not serve on the board following the
end of the member's term on the State Board of Higher Education.
  (b) The representative of private colleges and universities and
the public members of the board shall serve at the pleasure of
the State Treasurer for a term of office of three years. These
members of the board may be reappointed to subsequent terms.
  (4) The State Treasurer and the   { - Department of Higher
Education - }   { + Oregon University System + } shall provide
staff and assistance to the board in the administration of the
Oregon 529 College Savings Network as directed by the board.
  (5) A member of the board is entitled to compensation and
expenses as provided in ORS 292.495.
  (6) A majority of the members of the board constitutes a quorum
for the transaction of business.
  SECTION 66. ORS 348.890 is amended to read:
  348.890. (1) The State Board of Higher Education and the State
Board of Education shall hold at least one meeting annually as
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 43
 
 
 
the Joint Boards of Education for the purpose of coordinating
their activities and reaching joint agreement on matters of
education policy and opportunities of mutual interest to the two
boards and to the populations served by the boards.
  (2) Bylaws to be adopted by the members shall determine
procedures for setting meeting dates, locations, chairperson
rotation, agendas and staff support.
  (3) The Joint Boards of Education shall provide policy
direction to implement regional partnership proposals and any
other joint program or activity approved by both boards.
  (4) Notwithstanding ORS 351.070 (3)(c), the Department of
Community Colleges and Workforce Development and the
 { - Department of Higher Education - }   { + Oregon University
System + } may use appropriations from the General Fund to
implement agreements approved by the Joint Boards of Education
that provide direct aid to a student, or other incentives that
encourage shared use of facilities, programs and other resources
of state institutions of higher education and community colleges.
  SECTION 67. ORS 351.085 is amended to read:
  351.085. The Chancellor of the Oregon University System shall
exercise, under the direction of the State Board of Higher
Education, the administrative authority necessary to carry out
the policies of the board with respect to the institutions,
departments or activities under the control of the board. In
carrying out the duties of the chancellor, the chancellor shall:
  (1) Act as administrative officer of the State Board of Higher
Education.
  (2) Maintain a centralized service program for all
institutions, departments and activities, including but not
limited to, accounting, statistical services, capital
construction, management analysis, legal services, academic
affairs and educational research.
  (3) Collect and compile information and statistics relative to
the operation of the institutions, departments and activities of
the State Board of Higher Education.
  (4) Prepare and submit to the State Board of Higher Education
an annual operating budget for all institutions, departments and
activities of the board.
  (5) Oversee the preparation and submission to the State Board
of Higher Education of the biennial budget requests of the
institutions, departments and activities for consideration by the
board as the budget request to the Governor under ORS 351.090.
The chancellor shall provide analyses of the budget requests of
the institutions, departments and activities, including in such
analyses alternative considerations as may be necessary or
desirable for the board in the adoption of its budget request.
  (6) Appoint, subject to the State Personnel Relations Law, and
with the approval of the State Board of Higher Education, such
personnel as may be necessary for the performance of the duties
of the chancellor.
  (7) Designate, if the chancellor wishes, one or more suitable
persons to sign or countersign warrants, vouchers, certificates,
or other papers and documents requiring the signature of the
chancellor.
  (8) Prepare the agendas for State Board of Higher Education
meetings and provide an analysis of proposals made to the board,
including such alternatives as may be necessary or desirable for
their consideration, and make recommendations thereon.
  (9) Prepare and submit to the State Board of Higher Education
on or about December 31 of each year an annual report in which
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 44
 
 
 
the chancellor describes the principal activities of the
 { - Department of Higher Education - }   { + Oregon University
System + } during the fiscal year ending June 30. The report
shall include a statement of all funds received, the source or
sources from which received, the expenditure and disbursement of
all funds and the purposes for which they were expended. The
report shall contain a statement of the number of students
enrolled in each institution, department or activity, the number
of degrees conferred, the improvements made and new courses of
instruction added, together with a statement showing in a general
way the status of all activities and functions of the State Board
of Higher Education.
  (10) Keep a record of the transactions of the State Board of
Higher Education.
  (11) Have the custody of all books, papers, documents and other
property belonging to the State Board of Higher Education.
  (12) Give such instructions as may be necessary to carry out
the directives of the State Board of Higher Education and forward
them to the various institution presidents and heads of
departments and activities.
  (13) Provide for meetings of the presidents and principal
executives of the institutions, departments and activities, at
such times as the State Board of Higher Education may direct,
such meetings to be open to any member of the board. At such
meetings, the executives of the   { - Department of Higher
Education - }   { + Oregon University System + } may propose
policies or policy changes or statements for consideration by the
board and develop recommendations concerning allocations of
funds.
  (14) Perform such other administrative assistance and consider
other administrative matters as the State Board of Higher
Education may require.
  SECTION 68. ORS 351.100 is amended to read:
  351.100. All advertising and publicity on behalf of all
branches of state-supported higher education shall emanate from
and bear the name of the   { - Department of Higher Education - }
 { +  Oregon University System + }, and shall be conducted in
such a way as to present to the citizens of the state and
prospective students a fair and impartial view of the higher
educational facilities provided by the state and the prospects
for useful employment in the various fields for which those
facilities afford preparation.
  SECTION 69. ORS 351.110 is amended to read:
  351.110. All relationships and negotiations between the
Legislative Assembly and its various committees and the
institutions of higher education shall be carried on through the
  { - Department of Higher Education - }  { +  Oregon University
System + }.   { - No - }   { + A + } subordinate official
representing any of the separate institutions
  { - shall - }   { + may not + } appear before the Legislative
Assembly or any committee except upon the written authority of
the State Board of Higher Education.
  SECTION 70. ORS 351.165 is amended to read:
  351.165. No later than March 1 of each odd-numbered year, the
State Board of Higher Education shall submit a report to the
Legislative Assembly concerning the status of all previously
approved   { - Department of Higher Education - }   { + Oregon
University System + } capital construction projects that have not
been completed or have been completed within the preceding
24-month period. The report shall include the project title,
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 45
 
 
 
funding sources, the amount of the original appropriation or
expenditure limitation, the amount of unexpected funds, the
construction status and the anticipated completion date.
  SECTION 71. ORS 352.043 is amended to read:
  352.043. (1) There is created within the   { - Department of
Higher Education - }   { + Oregon University System + } the
University of Oregon School of Law. The school shall be
administered by the University of Oregon.
  (2) The University of Oregon School of Law shall:
  (a) Prepare students for careers in the legal profession.
  (b) 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 72. ORS 352.046 is amended to read:
  352.046. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } the Center for Brain, Biology and Machine.
The center shall be administered by the University of Oregon.
  (2) The purpose of the center is to promote interdisciplinary
teaching and research in scientific areas, including but not
limited to brain structure, development and functions, genetics
and genomics, cognitive neuroscience, molecular biology,
computational science, computing, magnetic resonance imaging and
optics.
  (3) The   { - Department of Higher Education - }   { + Oregon
University System + } may receive moneys from any public or
private source to support the Center for Brain, Biology and
Machine created under subsections (1) and (2) of this section.
Gifts or grants received to support the center shall be deposited
in an appropriate fund at the University of Oregon by the
 { - Department of Higher Education - }  { +  Oregon University
System + }.
  SECTION 73. ORS 352.048 is amended to read:
  352.048. (1) There is created within the   { - Department of
Higher Education - }   { + Oregon University System + } the
Industrialized Housing Development Program. The program shall be
administered in conjunction with the Center for Housing
Innovation at the University of Oregon.
  (2) The purpose of the program is to provide assistance to
industrialized housing manufacturers to help them achieve
demonstrated best practice by researching, evaluating and
disseminating information on opportunities to improve design
technology, including but not limited to:
  (a) Methods to improve the affordability of housing;
  (b) Better utilization of new products in industrialized
housing;
  (c) Improving the energy efficiency of industrialized housing;
and
  (d) Specialized training for workers and management.
  SECTION 74. ORS 352.049 is amended to read:
  352.049. (1) In fulfilling the purpose described in ORS
352.048, the Industrialized Housing Development Program shall:
  (a) Emphasize client-directed problem solving with the planning
and design of appropriate design technologies;
  (b) Provide or arrange for the provision of management
assistance, specialized training for workers and other consulting
services;
 
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 46
 
 
 
  (c) Supplement the design skills and expertise of program staff
by developing relations with experts who may work in a consulting
role;
  (d) Research new and developing design technology in the United
States and overseas with the purpose of adapting proven
technologies and management practices to Oregon conditions; and
  (e) Disseminate research findings to all interested firms
throughout the industrialized housing industry.
  (2) The Industrialized Housing Development Program shall
establish a schedule of fees for the services it provides. The
program may establish a minimum level of service for which it
does not charge fees.
  (3) The Industrialized Housing Development Program may hire
individuals on a contract basis, to provide either full-time or
part-time staffing. However, employees of the program shall not
be considered tenured employees of the   { - Department of Higher
Education - }  { +  Oregon University System + }.
  SECTION 75. ORS 352.063 is amended to read:
  352.063. The   { - Department of Higher Education - }
 { + Oregon University System + } may receive moneys from any
public or private source to support the Mark O. Hatfield School
of Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies created under ORS 352.066, 352.068, 352.071 and 352.074.
Gifts and grants received to support the Mark O. Hatfield School
of Government, the Center for Lakes and Reservoirs, the Graduate
School of Social Work or the Institute of Portland Metropolitan
Studies shall be credited to the appropriate fund at Portland
State University by the   { - Department of Higher Education - }
 { +  Oregon University System + }.
  SECTION 76. ORS 352.066 is amended to read:
  352.066. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } 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 purposes of the Mark O. Hatfield School of Government
are:
  (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
21.480, 36.179, 183.502 and 390.240; and
  (c) To assist the Criminal Justice Research and Policy
Institute in carrying out the duties under subsection (3) of this
section.
  (3) There is created within the Mark O. Hatfield School of
Government the Criminal Justice Research and Policy Institute.
The institute may assist the Legislative Assembly and state and
local governments in developing policies to reduce crime and
delinquency by:
  (a) Providing the Legislative Assembly with objective,
nonpartisan analyses of existing or proposed state criminal
justice policies, which analyses may not be inconsistent with
state or federal law or the Oregon or United States Constitution;
  (b) Evaluating programs, including but not limited to programs
dealing with public safety professionalism, ethics in leadership
and childhood development, funded directly or indirectly by the
State of Oregon that are intended to reduce criminal and
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 47
 
 
 
delinquent behavior or to improve professionalism in public
safety careers;
  (c) Managing reviews and evaluations relating to major
long-term issues confronting the state involving criminal and
juvenile justice, public safety professionalism, ethics in
leadership and early childhood development programs;
  (d) Initiating, sponsoring, conducting and publishing research
on criminal and juvenile justice, public safety professionalism,
ethics in leadership and early childhood development that is peer
reviewed and directly useful to policymakers;
  (e) Organizing conferences on current state issues that bring
together policymakers, public agencies and leading academicians;
and
  (f) Seeking to strengthen the links among the Legislative
Assembly, state and local governments, the Oregon Criminal
Justice Commission, the Department of Public Safety Standards and
Training and the academic community in the interest of more
informed policymaking, the application of best practices and more
relevant academic research.
  (4) The Governor, the Chief Justice of the Supreme Court, the
President of the Senate, the Speaker of the House of
Representatives or the chairperson of a legislative committee
with responsibility over criminal or juvenile justice systems or
childhood development programs may request the assistance of the
Criminal Justice Research and Policy Institute in evaluating
criminal or juvenile justice programs developed for, but not
necessarily limited to, preventing delinquency, reducing crime
and improving professionalism in public safety careers.
  (5) Agencies, departments and officers of state and local
governments may assist the Criminal Justice Research and Policy
Institute in the performance of its functions and furnish
information, data and advice as requested by the institute.
  SECTION 77. ORS 352.068 is amended to read:
  352.068. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } the Center for Lakes and Reservoirs. The
Center for Lakes and Reservoirs shall be administered by Portland
State University.
  (2) The purpose of the Center for Lakes and Reservoirs is to
assist state and federal agencies in researching and mitigating
nonindigenous, invasive aquatic species in this state and to work
with communities in developing effective management of lakes and
reservoirs.
  SECTION 78. ORS 352.071 is amended to read:
  352.071. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } the Graduate School of Social Work. The
Graduate School of Social Work shall be administered by Portland
State University.
  (2) The purpose of the Graduate School of Social Work is to
provide a center for specialized education and research in the
social services for the betterment of communities in the Portland
metropolitan area, the state and the Pacific Northwest.
  SECTION 79. ORS 352.074 is amended to read:
  352.074. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } the Institute of Portland Metropolitan
Studies. The Institute of Portland Metropolitan Studies shall be
administered by Portland State University.
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 48
 
 
 
  (2) The purpose of the Institute of Portland Metropolitan
Studies is to build partnerships between Portland State
University's urban studies programs and the surrounding
communities of metropolitan Portland and to sponsor public
service research.
  SECTION 80. ORS 352.221 is amended to read:
  352.221. (1) Pursuant to ORS 351.870, there is created within
the   { - Department of Higher Education - }   { + Oregon
University System + } the Oregon Renewable Energy Center. The
Oregon Renewable Energy Center shall be administered by the
Oregon Institute of Technology.
  (2) The purpose of the Oregon Renewable Energy Center is to
engage in renewable energy system engineering and applied
research.
  (3) The   { - Department of Higher Education - }   { + Oregon
University System + } may receive moneys from any public or
private source to support the Oregon Renewable Energy Center.
Gifts and grants received to support the Oregon Renewable Energy
Center shall be credited to the appropriate fund at the Oregon
Institute of Technology by the   { - Department of Higher
Education - }  { +  Oregon University System + }.
  SECTION 81. ORS 352.223 is amended to read:
  352.223. (1) As used in this section:
  (a) 'Allied health education programs' includes, but is not
limited to:
  (A) Radiologic science;
  (B) Nuclear medicine;
  (C) Sonography;
  (D) Vascular technology;
  (E) Dental hygiene;
  (F) Respiratory care;
  (G) Clinical laboratory sciences; and
  (H) Emergency medical technician education.
  (b) 'Allied health education programs' does not include any
undergraduate or graduate nursing program administered by Oregon
Health and Science University.
  (2) There is created within the   { - Department of Higher
Education - }   { + Oregon University System + } the Oregon
Center for Health Professions. The Oregon Center for Health
Professions shall be administered by the Oregon Institute of
Technology.
  (3) The purposes of the Oregon Center for Health Professions
are to:
  (a) Provide continued development of bachelor's degree level
education programs in areas of allied health;
  (b) Facilitate the creation of new partnerships between the
health care industry and community colleges, private institutions
of higher education and state institutions of higher education in
order to increase the number of students and graduates in allied
health education programs;
  (c) Provide continuing education, professional development and
certificate programs for allied health care professionals; and
  (d) Align with and complement educational partnerships between
the Oregon Institute of Technology and Oregon Health and Science
University focusing on allied health education programs.
  (4) The   { - Department of Higher Education - }   { + Oregon
University System + } may receive moneys from any public or
private source to support the Oregon Center for Health
Professions. Gifts and grants received to support the Oregon
Center for Health Professions shall be credited to the
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 49
 
 
 
appropriate fund at the Oregon Institute of Technology by the
 { - Department of Higher Education - }  { +  Oregon University
System + }.
  SECTION 82. ORS 352.239 is amended to read:
  352.239. (1) There is created within the   { - Department of
Higher Education - }   { + Oregon University System + } the
Institute for Natural Resources. The Institute for Natural
Resources shall be administered by Oregon State University.
  (2) The Institute for Natural Resources shall serve the
following purposes:
  (a) Serve as a clearinghouse for scientifically based natural
resources information.
  (b) Provide scientifically based natural resources information
to the public in integrated and accessible formats.
  (c) Coordinate efforts with other state agencies and bodies to
provide natural resources information to the public in a
comprehensive manner.
  (d) Facilitate and conduct research.
  (e) Provide information and technical tools to assist
decision-making on natural resources issues.
  (f) Assist the State Land Board in carrying out the Natural
Heritage Program by maintaining a data bank containing a
classification of natural heritage elements and an inventory of
the locations of the elements. All data obtained through personal
observation on private land by employees of Oregon State
University working in the Natural Heritage Program may be entered
into the data bank only with the written permission of the
landowner.
  (3) Using existing resources, state agencies designated by the
Governor shall enter into a memorandum of understanding, or other
agreement deemed appropriate by the Governor, with the institute
that defines and clarifies the roles and responsibilities of the
agencies in order to prevent duplication of effort and to ensure
that agency resources are used efficiently.
  (4) State agencies may contract with the institute to fulfill
agency needs regarding the collection, storage, integration,
analysis, dissemination and monitoring of natural resources
information and natural resources research and training.
  SECTION 83. ORS 352.247 is amended to read:
  352.247. (1) There is created within the   { - Department of
Higher Education - }   { + Oregon University System + } the
Oregon Climate Change Research Institute. The institute shall be
administered by Oregon State University and institutional
partners within the Oregon University System.
  (2) The purpose of the Oregon Climate Change Research Institute
is to:
  (a) Facilitate research by Oregon University System faculty on
climate change and its effects on natural and human systems in
Oregon;
  (b) Serve as a clearinghouse for climate change information;
  (c) Provide climate change information to the public in
integrated and accessible formats;
  (d) Support the Oregon Global Warming Commission in developing
strategies to prepare for and to mitigate the effects of climate
change on natural and human systems; and
  (e) Provide technical assistance to local governments to assist
them in developing climate change policies, practices and
programs.
  (3) The Oregon Climate Change Research Institute shall assess,
at least once each biennium, the state of climate change science,
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 50
 
 
 
including biological, physical and social science, as it relates
to Oregon and the likely effects of climate change on the state.
The institute shall submit the assessment to the Legislative
Assembly in the manner provided in ORS 192.245 and to the
Governor.
  (4) State agencies may contract with the Oregon Climate Change
Research Institute to fulfill agency needs regarding the
collection, storage, integration, analysis, dissemination and
monitoring of climate change information, research and training.
  SECTION 84. ORS 352.655 is amended to read:
  352.655. The Domestic Violence Clinical Legal Education Account
is created within the General Fund. The account shall consist of
moneys paid into the account under ORS 21.111 (4).  Moneys
credited to the account are continuously appropriated to the
 { - Department of Higher Education - }  { +  Oregon University
System + }, and may be used only for the purpose of funding
clinical legal education programs at accredited institutions of
higher education that provide civil legal services to victims of
domestic violence, stalking or sexual assault. The
 { - department - }   { + Oregon University System + } may
provide funding to a program from the account only if the program
operates in conjunction with at least one nonprofit service
provider to victims of domestic violence, stalking or sexual
assault, and as part of the program the provider performs victim
counseling services and student training. The
 { - department - }  { +  Oregon University System + } shall
distribute moneys from the account to programs in amounts that
are proportional to the number of victims of domestic violence,
stalking or sexual assault served by the program in the preceding
year as compared to the number of victims of domestic violence,
stalking or sexual assault served by all programs in the
preceding year.
  SECTION 85. ORS 542.710 is amended to read:
  542.710. (1) The   { - Department of Higher Education - }  { +
Oregon University System + }, under the direction of the State
Board of Higher Education acting through the Agricultural
Experiment Station of Oregon State University, is authorized to
conduct a test stream and watershed study in order to ascertain
in a scientific manner the interrelation between all factors
operating in watersheds upon maximum resource productivity of the
area for the greatest public benefit.
  (2) In conducting the study the   { - Department of Higher
Education - }  { +  Oregon University System + }, under the
direction of the State Board of Higher Education acting through
the Agricultural Experiment Station of Oregon State University,
may:
  (a) Enlist the cooperation of other state agencies concerned
with fields under study and may reimburse such agencies for use
made of facilities and personnel.
  (b) Acquire the services of other persons as necessary for the
purposes of this section.
  SECTION 86. ORS 567.005 is amended to read:
  567.005. The   { - Department of Higher Education - }
 { + Oregon University System + } is authorized to construct at
the site of Oregon State University at Corvallis, such greenhouse
facilities as may be necessary for testing seed potatoes for
diseases, experimentation on insect control methods and
materials, research on potato disease problems and for the
development and testing of special varieties and strains of
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 51
 
 
 
potatoes. The greenhouse facilities shall be under the control
and management of the experiment station.
  SECTION 87. ORS 567.010 is amended to read:
  567.010. A separate account in the General Fund is established
for the purposes described in ORS 567.005. Moneys in the account
are continuously appropriated to the   { - Department of Higher
Education - }   { + Oregon University System + } for the purposes
described in ORS 567.005.
  SECTION 88. ORS 576.768 is amended to read:
  576.768. (1) The report submitted by the Oregon Wine Board
under ORS 182.472 must include a description of the long term
strategic plan created by the board and a description of the
progress made in implementing the statewide strategic objectives
of the board during the most recent biennium.
  (2) Notwithstanding ORS 182.462:
  (a) The board shall prepare and submit annual plans and a
budget recommended by the board for promotion and for research
during the next fiscal year.
  (b) The board shall adopt rules specifying the procedures,
criteria and timelines for the preparation and approval of the
annual plans and budget for promotion and for research.
  (c) The Director of the Economic and Community Development
Department shall review the budget and plans submitted under this
section. In reviewing the annual plans and budget, the director
shall consider whether the information supplied by the board is
factual and consistent with ORS 576.750 to 576.775 and the
positive development of the Oregon wine grape growing and wine
making industries. The director shall either approve the budget
and plans prior to the commencement of the next fiscal year or
disapprove and return the budget and plans to the board with
conditions necessary for approval prior to the commencement of
the next fiscal year. In reviewing the budget and plans, the
director may consult with and receive coordinated support from:
  (A) The State Department of Agriculture;
  (B) The Oregon Tourism Commission;
    { - (C) The Department of Higher Education; - }
   { +  (C) The Oregon University System; + }
  (D) The Department of Community Colleges and Workforce
Development; and
  (E) The Oregon Liquor Control Commission.
  SECTION 89. ORS 759.445 is amended to read:
  759.445. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Connecting
Oregon Communities Fund. Moneys in the fund shall consist of
amounts deposited in the fund under ORS 759.405 and any other
moneys deposited by a telecommunications carrier that elects to
be subject to ORS 759.405 and 759.410, including amounts
deposited pursuant to a performance assurance plan implemented by
a telecommunications carrier in connection with an application
under 47 U.S.C. 271, as in effect on January 1, 2002. Interest
earned on moneys in the fund shall accrue to the fund. Moneys in
the fund may be invested as provided in ORS 293.701 to 293.820.
Moneys in the fund shall be used to provide access to advanced
telecommunications technology in elementary schools and high
schools, colleges and universities, community colleges, public
television corporations, rural health care providers, public
libraries and other eligible persons.
  (2) Two dedicated accounts shall be established within the
Connecting Oregon Communities Fund for purposes of supporting
education and public access to advanced telecommunications
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 52
 
 
 
services. The first $25 million of the moneys deposited in the
Connecting Oregon Communities Fund in both 2000 and 2001 shall be
appropriated to the School Technology Account established under
subsection (3) of this section. Except as provided in subsection
(8) of this section, any additional moneys available in the fund
shall be appropriated to the Public Access Account established
under subsection (4) of this section.
  (3) There is established the School Technology Account within
the Connecting Oregon Communities Fund. The purpose of the School
Technology Account is to improve access to advanced
telecommunications services for students attending public school
in kindergarten through grade 12. Moneys in the account shall be
expended as provided in section 34, chapter 1093, Oregon Laws
1999.
  (4)(a) There is established the Public Access Account within
the Connecting Oregon Communities Fund. The purpose of the Public
Access Account is to improve access to advanced
telecommunications services for community colleges, universities,
public libraries and rural health care providers.
  (b) If funding has not been provided from other sources, the
first $3 million available in the Public Access Account shall be
transferred to the   { - Department of Higher Education - }
 { + Oregon University System + } for the purpose of funding the
Oregon Wide Area Network project to provide and expand Internet
access for the Oregon University System. The   { - Department of
Higher Education - }  { + Oregon University System + } shall
complete an audit of bandwidth utilization and report to the
Joint Legislative Committee on Information Management and
Technology during the Seventy-first Legislative Assembly in the
manner provided in ORS 192.245.
  (c) Following the transfer of funds described in paragraph (b)
of this subsection, the next $1 million available in the Public
Access Account shall be transferred to the   { - Department of
Higher Education - }   { + Oregon University System + } for
Oregon State University for the purpose of providing virtual
access to persons with disabilities.
  (d) Following the transfer of funds as described in paragraphs
(b) and (c) of this subsection, the next $2 million available in
the Public Access Account shall be transferred to the Department
of Community Colleges and Workforce Development for distribution
to community colleges for the purpose of developing connectivity
and distance education programs.
  (e) Following the transfer of funds described in paragraphs (b)
to (d) of this subsection, the next $4 million available in the
Public Access Account shall be transferred to the
 { - Department of Higher Education - }   { + Oregon University
System + } for video transport and network management services
for the Oregon University System.
  (f) Following the transfer of funds described in paragraphs (b)
to (e) of this subsection, the next $5.5 million available in the
Public Access Account shall be transferred to the Oregon Public
Broadcasting Corporation for the purpose of digitizing the state
television network, using the Oregon Enterprise Network when
possible.
  (g) Following the transfer of funds described in paragraphs (b)
to (f) of this subsection, the next $500,000 available in the
Public Access Account shall be transferred to the Southern Oregon
Public Television Corporation for the purpose of digitizing the
state television network, using the Oregon Enterprise Network
when possible.
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 53
 
 
 
  (h) Following the transfer of funds described in paragraphs (b)
to (g) of this subsection, a state institution of higher
education, including the Oregon Health and Science University,
may apply for one-time matching funds up to $1 million from the
Public Access Account to endow a telecommunications chair for the
purpose of increasing research and development of advanced
telecommunications services applications. Only one chair may be
endowed under this paragraph.
  (5)(a) The Oregon Economic and Community Development Commission
shall approve expenditure of any remaining moneys in the Public
Access Account consistent with this section and ORS 759.430.
  (b) Community colleges, state institutions of higher education,
public libraries, public television corporations and rural health
care providers may apply to the Oregon Economic and Community
Development Commission for funding from the Public Access Account
under this subsection.
  (c) Funds received from the account shall be used for the
purchase of advanced telecommunications services, equipment or
recurring costs of telecommunications connectivity. Priority
shall be given to collaborative projects that improve access to
advanced telecommunications services.
  (d) Funds available in the Public Access Account under this
subsection are continuously appropriated to the Economic and
Community Development Department for the purposes described in
this subsection.
  (6) Public libraries and rural health care providers must apply
for federal universal service support in order to be eligible for
a grant from the Public Access Account.
  (7) The video transport and network management services
purchased with funds made available under this section shall be
purchased through the Oregon Department of Administrative
Services.
  (8) Any moneys deposited in the Connecting Oregon Communities
Fund under subsection (1) of this section pursuant to a
performance assurance plan implemented by a telecommunications
carrier in connection with an application under 47 U.S.C. 271, as
in effect on January 1, 2002, shall be placed in the School
Technology Account to be expended as provided in section 34,
chapter 1093, Oregon Laws 1999.
  SECTION 90. Section 5, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 5. + } (1) The project approvals and expenditure
limitations in   { - this 2007 Act - }  { +  chapter 761, Oregon
Laws 2007 + }, and the expenditure limitations established by the
Emergency Board during the biennium beginning July 1, 2007, for
capital construction or acquisition projects of the
 { - Department of Higher Education - }  { + Oregon University
System + } and of the Department of Community Colleges and
Workforce Development for community colleges, expire on June 30,
2013, unless otherwise noted or unless changed by the Legislative
Assembly.
  (2) The project approvals and expenditure limitations
established by section 2 (3)(h), (4)(f) and (5)(g), chapter 845,
Oregon Laws 2001, for capital construction or acquisition
projects of the   { - Department of Higher Education - }
 { + Oregon University System + } expire on June 30, 2009, unless
otherwise changed by  { + the + } Legislative Assembly.
  (3)(a) The project approvals and expenditure limitations
established by section 2 (5)(f)   { - of this 2007 Act - }  { + ,
chapter 761, Oregon Laws 2007, + } are in lieu of the project
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 54
 
 
 
approvals and expenditure limitations adopted by the Emergency
Board during the 2005-2007 biennium for the   { - Department of
Higher Education - }   { + Oregon University System + } for the
Portland State University PCAT Redevelopment Project.
  (b) Any action taken by the State Board of Higher Education
prior to   { - the effective date of this 2007 Act - }   { + July
12, 2007, + } or any contract entered into by the board prior to
 { - the effective date of this 2007 Act - }   { + July 12,
2007, + } necessary for the acquisition of and improvements to
land and the acquisition, planning, constructing, altering,
repairing, furnishing and equipping of buildings and facilities
for the PCAT Redevelopment Project that was within the project
approvals and expenditures limit authorized by the Emergency
Board during the 2005-2007 biennium is hereby authorized.
  SECTION 91. Section 11, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 11. + } (1) There is established in the General Fund
an account to be known as the Western Oregon University Business,
Math and Computer Science Facility Project Account. Funds in the
account shall be used for the construction, remodeling, expansion
and renovation of facilities for a facility project at Western
Oregon University.
  (2) The account shall consist of proceeds from lottery bonds,
grant funds, gift funds, federal and local government funds made
available to and funds donated to the   { - Department of Higher
Education - }   { + Oregon University System + } for the purpose
of the facility project described in subsection (1) of this
section.  Interest earned on moneys in the account shall be
credited to the account. The account may not be credited with
more than $500,000 for purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the facility project described
in subsection (1) of this section.
  SECTION 92. Section 12, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 12. + } (1) There is established in the General Fund
an account to be known as the Oregon State University Pauling
Research and Education Building Account. Funds in the account
shall be used for the construction, remodeling, expansion and
renovation of facilities for the Pauling Research and Education
Building at the Oregon State University.
  (2) The account shall consist of grant funds, gift funds,
federal and local government funds made available to and funds
donated to the   { - Department of Higher Education - }
 { + Oregon University System + } for the purpose of the Pauling
Research and Education Building project described in subsection
(1) of this section.  Interest earned on moneys in the account
shall be credited to the account. The account may not be credited
with more than $31,256,035 for purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 55
 
 
 
designated by ORS 351.626 + } for the Pauling Research and
Education Building project described in subsection (1) of this
section.
  SECTION 93. Section 13, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 13. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
Research and Teaching Center and Hazardous Waste Facility
Account.  Funds in the account shall be used for the
construction, remodeling, expansion and renovation of facilities
for a Science Research and Teaching Center and Hazardous Waste
Facility at Portland State University.
  (2) The account shall consist of grant funds, gift funds,
proceeds of legal settlements, federal and local government funds
made available to and funds donated to the   { - Department of
Higher Education - }   { + Oregon University System + } for the
purpose of the center and facility project described in
subsection (1) of this section.  Interest earned on moneys in the
account shall be credited to the account. The account may not be
credited with more than $9,500,000 for purposes of this
subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the center and facility project
described in subsection (1) of this section.
  SECTION 94. Section 14, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 14. + } (1) There is established in the General Fund
an account to be known as the University of Oregon Integrative
Science Complex, Phase 2 Account. Funds in the account shall be
used for the construction, remodeling, expansion and renovation
of facilities for an Interactive Science Complex, Phase 2 at the
University of Oregon.
  (2) The account shall consist of grant funds, gift funds,
federal and local government funds made available to and funds
donated to the   { - Department of Higher Education - }
 { + Oregon University System + } for the purpose of the
Interactive Science Complex, Phase 2 project described in
subsection (1) of this section. Interest earned on moneys in the
account shall be credited to the account.  The account may not be
credited with more than $30,000,000 for purposes of this
subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the Interactive Science
Complex, Phase 2 project described in subsection (1) of this
section.
  SECTION 95. Section 15, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 15. + } (1) There is established in the General Fund
an account to be known as the University of Oregon Hayward Field
Account. Funds in the account shall be used for the construction,
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 56
 
 
 
remodeling, expansion and renovation of Hayward Field at the
University of Oregon.
  (2) The account shall consist of funds received from
not-for-profit organizations, grant funds, gift funds, federal
and local government funds made available to and funds donated to
the
  { - Department of Higher Education - }   { + Oregon University
System + } for the purpose of the Hayward Field project described
in subsection (1) of this section. Interest earned on moneys in
the account shall be credited to the account. The account may not
be credited with more than $2,500,000 for purposes of this
subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the Hayward Field project
described in subsection (1) of this section.
  SECTION 96. Section 16, chapter 761, Oregon Laws 2007, as
amended by section 14, chapter 15, Oregon Laws 2008, is amended
to read:
   { +  Sec. 16. + } (1) There is established in the General Fund
an account to be known as the Oregon Institute of Technology
Center for Health Professions Account. Funds in the account shall
be used for the construction, remodeling, expansion and
renovation of facilities for a Center for Health Professions
project for the Oregon Institute of Technology.
  (2) The account shall consist of grant funds, gift funds,
federal and local government funds made available to and funds
donated to the   { - Department of Higher Education - }
 { + Oregon University System + } for the purpose of the Center
for Health Professions project described in subsection (1) of
this section. Interest earned on moneys in the account shall be
credited to the account.  The account may not be credited with
more than $9,000,000 for purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the Center for Health
Professions project described in subsection (1) of this section.
  SECTION 97. Section 17, chapter 761, Oregon Laws 2007, is
amended to read:
   { +  Sec. 17. + } (1) There is established in the General Fund
an account to be known as the Portland State University Science
PCAT Redevelopment Account. Funds in the account shall be used
for the construction, remodeling, expansion and renovation of
facilities on the current site of the Portland Center for
Advanced Technology at Portland State University.
  (2) The account shall consist of grant funds, gift funds,
proceeds of legal settlements, federal and local government funds
made available to and funds donated to the   { - Department of
Higher Education - }   { + Oregon University System + } for the
purpose of the project described in subsection (1) of this
section. Interest earned on moneys in the account shall be
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 57
 
 
 
credited to the account. The account may not be credited with
more than $10,000,000 for purposes of this subsection.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, are continuously appropriated to the
  { - Department of Higher Education - }   { + Oregon University
System + } and may be transferred to the   { - Department of
Higher Education Capital Construction Fund - }   { + account
designated by ORS 351.626 + } for the project described in
subsection (1) of this section.
  SECTION 98.  { + ORS 351.456, 351.513, 351.515, 351.523,
351.524, 351.526, 351.528, 351.529, 351.533, 351.534, 351.537,
351.540, 352.600 and 352.630 and section 3, chapter 788, Oregon
Laws 2005, as amended by section 3, chapter 746, Oregon Laws
2007, are repealed. + }
  SECTION 99.  { + This 2009 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2009 Act takes effect
July 1, 2009. + }
                         ----------
 
 
Passed by House June 26, 2009
 
 
      ...........................................................
                                             Chief Clerk of House
 
      ...........................................................
                                                 Speaker of House
 
Passed by Senate June 29, 2009
 
 
      ...........................................................
                                              President of Senate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 58
 
 
 
 
 
Received by Governor:
 
......M.,............., 2009
 
Approved:
 
......M.,............., 2009
 
 
      ...........................................................
                                                         Governor
 
Filed in Office of Secretary of State:
 
......M.,............., 2009
 
 
      ...........................................................
                                               Secretary of State
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Enrolled House Bill 2208 (HB 2208-B)                      Page 59