Chapter 637 Oregon Laws 2011

 

AN ACT

 

SB 242

 

Relating to education; creating new provisions; amending ORS 30.264, 131.594, 182.122, 182.415, 183.635, 184.475, 184.477, 190.610, 192.501, 205.450, 205.455, 238.005, 238.148, 238.300, 238.350, 238.580, 238.608, 238A.005, 238A.140, 243.105, 243.107, 243.778, 243.910, 243.956, 244.050, 270.100, 273.155, 273.785, 276.227, 276.229, 276.612, 279A.025, 283.305, 283.310, 284.633, 284.701, 285B.168, 285B.174, 286A.615, 286A.700, 291.038, 291.055, 292.043, 292.044, 310.155, 315.237, 326.075, 326.543, 326.587, 329.757, 329.765, 329.775, 329.780, 329.822, 329.840, 332.114, 332.155, 336.057, 337.500, 337.511, 338.115, 339.885, 340.005, 340.085, 341.009, 341.527, 341.531, 342.144, 342.147, 342.360, 342.390, 342.443, 344.259, 344.557, 345.015, 345.017, 348.005, 348.040, 348.050, 348.070, 348.095, 348.115, 348.117, 348.180, 348.183, 348.186, 348.205, 348.210, 348.230, 348.250, 348.260, 348.265, 348.270, 348.280, 348.282, 348.283, 348.290, 348.310, 348.320, 348.330, 348.340, 348.350, 348.360, 348.370, 348.390, 348.394, 348.427, 348.429, 348.436, 348.444, 348.448, 348.500, 348.505, 348.510, 348.520, 348.530, 348.540, 348.550, 348.560, 348.563, 348.570, 348.580, 348.590, 348.592, 348.597, 348.601, 348.603, 348.604, 348.605, 348.606, 348.607, 348.608, 348.609, 348.611, 348.612, 348.615, 348.616, 348.618, 348.621, 348.625, 348.630, 348.635, 348.640, 348.655, 348.660, 348.665, 348.670, 348.675, 348.685, 348.690, 348.696, 348.890, 348.900, 348.910, 351.001, 351.010, 351.020, 351.050, 351.060, 351.062, 351.065, 351.067, 351.070, 351.072, 351.075, 351.077, 351.085, 351.086, 351.088, 351.094, 351.097, 351.110, 351.117, 351.130, 351.140, 351.150, 351.155, 351.203, 351.205, 351.210, 351.230, 351.240, 351.300, 351.310, 351.317, 351.320, 351.340, 351.450, 351.460, 351.506, 351.590, 351.628, 351.638, 351.642, 351.643, 351.644, 351.646, 351.647, 351.649, 351.653, 351.656, 351.658, 351.700, 351.704, 351.840, 351.870, 351.885, 352.002, 352.004, 352.008, 352.010, 352.015, 352.017, 352.021, 352.223, 352.360, 352.370, 352.375, 352.380, 352.385, 352.390, 352.510, 352.669, 352.720, 352.730, 352.740, 352.750, 353.080, 353.200, 353.260, 353.440, 353.600, 353.603, 357.004, 399.245, 399.255, 399.265, 399.275, 408.095, 411.894, 418.658, 431.690, 433.090, 442.535, 442.540, 442.545, 461.543, 541.375, 634.660, 657.665, 659.855, 660.312, 660.315, 660.358, 678.425, 679.020, 680.515, 684.040, 685.060, 696.182, 743.550 and 759.445 and section 9, chapter 802, Oregon Laws 2007; repealing ORS 348.599, 351.005, 351.007, 351.090, 351.200 and 351.315; appropriating money; and declaring an emergency.

          Whereas the Legislative Assembly declares its intent to promote a system of higher education in which:

          (1) Institutions of higher education have the flexibility to make effective and efficient use of human, physical and financial resources;

          (2) Education beyond high school is accessible, regardless of each student’s geographic or socioeconomic position;

          (3) High-quality research and scholarship by faculty and students is coordinated;

          (4) Funding and metrics of accountability are aligned and measured against statewide goals and benchmarks; and

          (5) Citizens of all ages, backgrounds and income levels are enabled to participate in the search for knowledge and individual development.

 

Be It Enacted by the People of the State of Oregon:

 

HIGHER EDUCATION

COORDINATING COMMISSION

 

          SECTION 1. (1) There is established a Higher Education Coordinating Commission, consisting of 15 members appointed by the Governor.

          (2) The Governor shall appoint:

          (a) One student at a public university listed in ORS 352.002;

          (b) One student at a community college in this state;

          (c) At least one member from each congressional district in this state;

          (d) At least four members who represent employers in Oregon, at least two of whom represent small employers and at least two of whom represent large employers; and

          (e) At least one member who serves on a district school board as defined in ORS 332.002.

          (3) The Governor shall solicit recommendations from the Speaker of the House of Representatives for at least three members and from the President of the Senate for at least three members.

          (4) The Governor may appoint members who satisfy more than one of the qualifications for membership listed in subsection (2) of this section.

          (5) The term of office of each member is four years, except that the term of office for the two student members is two years. A member serves at the pleasure of the Governor. Before the expiration of the term of a member, the Governor shall appoint a successor whose term begins on July 1 next following. A member is eligible for reappointment. If there is a vacancy for any cause, the Governor shall make an appointment to become immediately effective for the unexpired term.

          (6) The appointment of the commission is subject to confirmation by the Senate in the manner prescribed in ORS 171.562 and 171.565.

          (7) A member of the commission is entitled to compensation and expenses as provided in ORS 292.495.

 

          SECTION 2. Notwithstanding the term of office specified by section 1 of this 2011 Act, of the members first appointed to the Higher Education Coordinating Commission:

          (1) Five, including the two student members, shall serve for a term ending June 30, 2014.

          (2) Five shall serve for a term ending June 30, 2015.

          (3) Five shall serve for a term ending June 30, 2016.

 

          SECTION 3. (1) The members of the Higher Education Coordinating Commission must be residents of this state who are well informed on the principles of higher education.

          (2) A member of the State Board of Higher Education, Oregon Health and Science University Board of Directors or the governing board of a community college district may not serve as a member of the Higher Education Coordinating Commission.

 

          SECTION 4. (1) The Higher Education Coordinating Commission shall select one of its members as chairperson and another as vice chairperson, for such terms and with duties and powers necessary for the performance of the functions of such offices as the commission determines.

          (2) A majority of the members of the commission constitutes a quorum for the transaction of business.

          (3) The commission shall meet at least once every three months at a place, day and hour determined by the chairperson. The commission may also meet at other times and places specified by the call of the chairperson or of a majority of the members of the commission.

 

          SECTION 5. (1) The Higher Education Coordinating Commission shall appoint an executive officer to serve at the pleasure of the commission.

          (2) The appointment of the executive officer must be by written order, filed with the Secretary of State.

          (3) Subject to any applicable provisions of ORS chapter 240, the executive officer shall appoint all subordinate officers and employees of the commission, prescribe their duties and fix their compensation.

 

          SECTION 6. In accordance with applicable provisions of ORS chapter 183, the Higher Education Coordinating Commission may adopt rules necessary for the administration of the laws that the commission is charged with administering.

 

          SECTION 7. (1) The Higher Education Coordinating Commission may establish such advisory and technical committees as it considers necessary to aid and advise the commission in the performance of its functions. These committees may be continuing or temporary committees. The commission shall determine the representation, membership, terms and organization of the committees and shall appoint their members.

          (2) Members of the committees are not entitled to compensation, but at the discretion of the commission may be reimbursed from funds available to the commission for actual and necessary travel and other expenses incurred by them in the performance of their official duties in the manner and amount provided in ORS 292.495.

 

          SECTION 8. The Higher Education Coordinating Commission shall:

          (1) Develop state goals and associated accountability measures for the state post-secondary education system, including community colleges and public universities listed in ORS 352.002, and for the Oregon Student Access Commission.

          (2) Develop a strategic plan for achieving state higher education goals, identifying priority areas for attention and taking into consideration the contributions of this state’s independent institutions and other organizations dedicated to helping Oregonians reach state goals. Goals should include, but need not be limited to:

          (a) Increasing the educational attainment of the population;

          (b) Increasing this state’s global economic competitiveness and the quality of life of its citizens;

          (c) Ensuring affordable access for qualified Oregon students at each college or public university; and

          (d) Ensuring that public higher education in this state is provided in a cost-effective manner.

          (3) Evaluate and recommend changes to statutory goals and missions described for community colleges in ORS 341.009 and for public universities in ORS 351.003 and 351.009 after receiving recommendations from the appropriate governing board. The appropriate governing board shall have decision-making authority over program offerings to implement established goals and missions.

          (4) Develop a finance model for higher education aligned with the goals in the system strategic plan, including:

          (a) Recommended biennial appropriations to institutions, including a component specifically tied to institutional contributions to state educational priorities;

          (b) Recommended limits regarding the setting of tuition rates at public universities listed in ORS 352.002 in accordance with criteria set by the State Board of Higher Education, with the goal of encouraging tuition affordability for students;

          (c) Tuition rates set by each community college governing board for community colleges in this state;

          (d) Recommended biennial appropriations for student financial aid; and

          (e) Recommended biennial appropriations for any future statewide higher education initiatives.

          (5) Each biennium, recommend to the Governor and the Legislative Assembly a consolidated higher education budget request consistent with the finance model, including appropriations for:

          (a) Ongoing operations of the Oregon Student Access Commission;

          (b) Ongoing operations for the Oregon University System;

          (c) Ongoing operations for community colleges;

          (d) Needed new facilities or programs; and

          (e) Capital improvements.

          (6) Design and maintain a statewide educational data system, in collaboration with the State Board of Education.

          (7) Coordinate with the Oregon Student Access Commission to maximize the effectiveness of student financial assistance programs, including the Oregon Opportunity Grant program under ORS 348.260.

          (8) Approve and authorize degrees for the Oregon University System.

          (9) Authorize degrees to be offered in this state in accordance with ORS 348.594 to 348.615, and adopt any rules to implement that authority.

 

          SECTION 8a. The Higher Education Coordinating Commission may delegate any of the actions listed in section 8 of this 2011 Act to its executive director.

 

ABOLITION OF

OFFICE OF DEGREE AUTHORIZATION

 

          SECTION 9. (1) The Office of Degree Authorization within the Oregon Student Assistance Commission is abolished.

          (2) All the duties, functions and powers of the Office of Degree Authorization are imposed upon, transferred to and vested in the Higher Education Coordinating Commission.

 

          SECTION 10. (1) The Office of Degree Authorization shall:

          (a) Deliver to the Higher Education Coordinating Commission all records and property within the jurisdiction of the Office of Degree Authorization that relate to the duties, functions and powers transferred by section 9 of this 2011 Act; and

          (b) Transfer to the Higher Education Coordinating Commission those employees engaged primarily in the exercise of the duties, functions and powers transferred by section 9 of this 2011 Act.

          (2) The executive officer of the Higher Education Coordinating Commission shall take possession of the records and property, and shall take charge of the employees and employ them in the exercise of the duties, functions and powers transferred by section 9 of this 2011 Act, without reduction of compensation but subject to change or termination of employment or compensation as provided by law.

          (3) The Governor shall resolve any dispute between the Office of Degree Authorization and the Higher Education Coordinating Commission relating to transfers of records, property and employees under this section, and the Governor’s decision is final.

 

          SECTION 11. (1) The unexpended balances of amounts authorized to be expended by the Office of Degree Authorization for the biennium beginning July 1, 2011, from revenues dedicated, continuously appropriated, appropriated or otherwise made available for the purpose of administering and enforcing the duties, functions and powers transferred by section 9 of this 2011 Act are transferred to and are available for expenditure by the Higher Education Coordinating Commission for the biennium beginning July 1, 2011, for the purpose of administering and enforcing the duties, functions and powers transferred by section 9 of this 2011 Act.

          (2) The expenditure classifications, if any, established by Acts authorizing or limiting expenditures by the Office of Degree Authorization remain applicable to expenditures by the Higher Education Coordinating Commission under this section.

 

          SECTION 12. The transfer of duties, functions and powers to the Higher Education Coordinating Commission by section 9 of this 2011 Act does not affect any action, proceeding or prosecution involving or with respect to such duties, functions and powers begun before and pending at the time of the transfer, except that the Higher Education Coordinating Commission is substituted for the Office of Degree Authorization in the action, proceeding or prosecution.

 

          SECTION 13. (1) Nothing in sections 9 to 16 of this 2011 Act or the repeal of ORS 348.599 by section 291a of this 2011 Act relieves a person of a liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred by section 9 of this 2011 Act. The Higher Education Coordinating Commission may undertake the collection or enforcement of any such liability, duty or obligation.

          (2) The rights and obligations of the Office of Degree Authorization, or the Oregon Student Assistance Commission on behalf of the Office of Degree Authorization, legally incurred under contracts, leases and business transactions executed, entered into or begun before the operative date specified in section 292 of this 2011 Act are transferred to the Higher Education Coordinating Commission. For the purpose of succession to these rights and obligations, the Higher Education Coordinating Commission is a continuation of the Office of Degree Authorization and not a new authority.

 

          SECTION 14. Notwithstanding the transfer of duties, functions and powers by section 9 of this 2011 Act, the rules of the Office of Degree Authorization in effect on the operative date specified in section 292 of this 2011 Act continue in effect until superseded or repealed by rules of the Higher Education Coordinating Commission. References in rules of the Office of Degree Authorization, or an officer or employee of that office, are considered to be references to the Higher Education Coordinating Commission or an officer or employee of the Higher Education Coordinating Commission.

 

          SECTION 15. Whenever, in any uncodified law or resolution of the Legislative Assembly or in any rule, document, record or proceeding authorized by the Legislative Assembly, reference is made to the Office of Degree Authorization or an officer or employee of that office, the reference is considered to be a reference to the Higher Education Coordinating Commission or an officer or employee of the Higher Education Coordinating Commission.

 

          SECTION 16. (1) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel may substitute for words designating the “Office of Degree Authorization” or its officers or employees, wherever they occur in statutory law, words designating the “Higher Education Coordinating Commission” or its officers or employees.

          (2)(a) The amendments to ORS 348.601 by section 179 of this 2011 Act are intended to change the name of the Office of Degree Authorization Account to the Degree Authorization Account.

          (b) For the purpose of harmonizing and clarifying statutory law, the Legislative Counsel may substitute for words designating the “Office of Degree Authorization Account,” wherever they occur in statutory law, words designating the “Degree Authorization Account.”

 

OREGON UNIVERSITY SYSTEM

 

          SECTION 17. The Legislative Assembly finds that public higher education is necessary to accomplish the findings in ORS 351.001 and recognizes the following as fundamental goals of public higher education in this state:

          (1) Creating an educated citizenry to support responsible roles in a democratic society and provide a globally competitive workforce to drive this state’s economy, while ensuring access for all qualified Oregonians to a high-quality post-secondary education;

          (2) Ensuring a high-quality learning environment that allows students to succeed;

          (3) Creating original knowledge and advancing innovation; and

          (4) Contributing positively to the economic, civic and cultural life of communities in all regions of Oregon.

 

          SECTION 18. Sections 19 to 21b and 23 of this 2011 Act are added to and made a part of ORS 351.010 to 351.070.

 

          SECTION 19. The Oregon University System is established as a public university system, consisting of the office of the Chancellor of the Oregon University System, the public universities listed in ORS 352.002 and any related offices, departments or activities. The State Board of Higher Education, on behalf of the Oregon University System, shall exercise and carry out all of the powers, rights and duties that are expressly conferred upon the board or that are implied by law or incident to such powers, rights and duties. The Oregon University System is an instrumentality of the state and a government entity performing governmental functions and exercising governmental powers. Notwithstanding the status of the Oregon University System as an instrumentality of the state, the Oregon University System is not eligible to request or receive legal services from the Attorney General and the Department of Justice pursuant to ORS chapter 180, except as otherwise expressly provided by law. The Oregon University System is not considered a unit of local or municipal government.

 

          SECTION 20. (1) The State Board of Higher Education shall set enrollment fees for each public university listed in ORS 352.002. Enrollment fees include tuition for education and services and any other charges found by the State Board of Higher Education to be necessary to carry out the educational program of the Oregon University System.

          (2) The State Board of Higher Education shall, by rule, establish a process under which each public university may develop and submit proposed enrollment fees for board consideration. The process must provide for participation of enrolled students and the recognized student government of the public university.

          (3) Each public university listed in ORS 352.002 is authorized to offer fee remissions to its students, including remissions offered on the basis of need, from any authorized source of revenue. Moneys appropriated from the General Fund may not be used to fund fee remissions to students of the public university.

 

          SECTION 20a. The Higher Education Coordinating Commission may set limits on the enrollment fees established by the State Board of Higher Education under section 20 (1) of this 2011 Act.

 

          SECTION 21. (1) For the purposes of this section, “performance compact” means an agreement between the State Board of Higher Education and the State of Oregon to achieve certain performance targets in order to enhance the success of Oregon University System students in exchange for consideration of the appropriations sought in a funding request submitted by the State Board of Higher Education to the Oregon Department of Administrative Services.

          (2)(a) On or before May 1 of each even-numbered year, the State Board of Higher Education shall submit a draft funding request to the Higher Education Coordinating Commission for the Oregon University System, applicable to the biennium beginning on July 1 of the following year. The draft funding request must include a performance compact.

          (b) If the Higher Education Coordinating Commission approves the draft funding request and performance compact, or approves the draft funding request and performance compact with modifications, the commission shall take such action prior to August 15 of the same even-numbered year.

          (c) If the Higher Education Coordinating Commission rejects the draft funding request and performance compact, the commission shall take such action prior to June 15 of the same even-numbered year. In returning the rejected draft funding request and performance compact to the State Board of Higher Education, the commission shall give specific direction to the board regarding the changes necessary to earn commission approval.

          (3) On or before September 1 of each even-numbered year, the State Board of Higher Education shall submit the funding request and performance compact to the Oregon Department of Administrative Services for the Oregon University System.

          (4) The Governor’s biennial budget submitted to the Legislative Assembly may include the State Board of Higher Education’s funding request submitted to the Oregon Department of Administrative Services for the Oregon University System. Any funding request approved by the Legislative Assembly must specify that the moneys be appropriated to the Oregon Department of Administrative Services for allocation to the Oregon University System.

          (5) The funding request must include, in addition to the performance compact, a report on performance from the previous biennium’s performance compact.

          (6) The State Board of Higher Education shall, by rule, establish a framework for the development of a performance compact that must accompany the funding request to the Oregon Department of Administrative Services. The framework must address, among other issues, the issue of tuition affordability for students.

 

          SECTION 21a. The State Board of Higher Education is authorized to:

          (1) Request, as part of the funding request under section 21 of this 2011 Act, appropriations for budgetary items, including but not limited to education and general operations, statewide public services, state funded debt service, capital improvements and other special initiatives and investments; and

          (2) Allocate moneys, from funds appropriated to the board and other available moneys, among the office of the Chancellor of the Oregon University System, public universities listed in ORS 352.002 and offices, departments and activities under the control of the board.

 

          SECTION 21b. The State Board of Higher Education is not required to seek expenditure limitation approval from the Legislative Assembly to spend any available moneys, including but not limited to moneys from enrollment fees collected pursuant to section 20 of this 2011 Act.

 

          SECTION 22. Sections 21 and 21a of this 2011 Act apply to biennia beginning on or after July 1, 2015.

 

          SECTION 22a. (1) On or before September 1, 2012, the State Board of Higher Education shall submit a funding request and performance compact for the biennium beginning July 1, 2013, to the Oregon Department of Administrative Services for the Oregon University System.

          (2) The Governor’s biennial budget submitted to the Legislative Assembly for the biennium beginning July 1, 2013, may include the State Board of Higher Education’s funding request submitted to the Oregon Department of Administrative Services for the Oregon University System. Any funding request approved by the Legislative Assembly must specify that the moneys be appropriated to the Oregon Department of Administrative Services for allocation to the Oregon University System.

          (3) The State Board of Higher Education shall, by rule, establish a framework for the development of the performance compact that must accompany the funding request to the Oregon Department of Administrative Services for the biennium beginning July 1, 2013. The framework must address, among other issues, the issue of tuition affordability for students.

          (4) The State Board of Higher Education is authorized to:

          (a) Request, as part of the funding request under subsection (1) of this section, appropriations for budgetary items, including but not limited to education and general operations, statewide public services, state funded debt service, capital improvements and other special initiatives and investments; and

          (b) Allocate moneys, from funds appropriated to the board and other available moneys, among the office of the Chancellor of the Oregon University System, public universities listed in ORS 352.002 and offices, departments and activities under the control of the board.

 

          SECTION 23. The State Board of Higher Education shall:

          (1) Review all mission statements of the public universities listed in ORS 352.002; and

          (2) Approve all academic programs offered at the public universities, and shall ensure that the academic programs:

          (a) Are consistent with the mission statement of the respective public university;

          (b) Do not unnecessarily duplicate academic programs offered by other public universities listed in ORS 352.002; and

          (c) Are allocated among the public universities in the Oregon University System to maximize the achievement of statewide needs and requirements.

 

          SECTION 23a. The State Board of Higher Education shall forward all mission statements of the public universities listed in ORS 352.002 to the Higher Education Coordinating Commission for approval.

 

          SECTION 24. As used in sections 24 to 28 of this 2011 Act:

          (1) “Bond-related costs” means:

          (a) The costs and expenses of issuing, administering and maintaining higher education revenue bonds including, but not limited to, the costs of:

          (A) Paying or redeeming higher education revenue bonds.

          (B) Paying amounts due in connection with credit enhancement devices or agreements for exchange of interest rates.

          (C) Paying the fees, administrative costs and expenses of the State Treasurer and the Oregon University System, including the costs of consultants or advisers retained by the State Treasurer or the Chancellor of the Oregon University System, for the higher education revenue bonds.

          (b) The costs of funding reserves for the higher education revenue bonds.

          (c) Capitalized interest for the higher education revenue bonds.

          (d) Rebates or penalties due to the United States in connection with the higher education revenue bonds.

          (e) Any other costs or expenses that the State Treasurer or the chancellor determines are necessary or desirable in connection with issuing and maintaining the higher education revenue bonds.

          (2) “Higher education revenue bonds” means revenue bonds issued pursuant to section 25 of this 2011 Act.

          (3) “Higher education revenues” includes:

          (a) Tuition, fees and charges imposed or collected by the Oregon University System, or by one of the public universities in the system; and

          (b) Moneys appropriated, allocated or otherwise made available to the Oregon University System, or to one of its universities, by the Legislative Assembly, if those moneys are lawfully available to pay the bond-related costs of higher education revenue bonds.

 

          SECTION 25. (1) At the request of the Chancellor of the Oregon University System, the State Treasurer may issue, as provided in ORS chapter 286A, higher education revenue bonds from time to time, the net proceeds of which must be used to:

          (a) Finance projects that the State Board of Higher Education determines will assist the Oregon University System in carrying out its statutory powers;

          (b) Refund bonds issued for the projects; and

          (c) Pay bond-related costs.

          (2)(a) Before pledging all or a portion of higher education revenues, pursuant to ORS 286A.102, to secure higher education revenue bonds, higher education credit enhancement devices or agreements for exchange of interest rates related to such revenue bonds or credit enhancement devices, the chancellor shall reserve sufficient funds each biennium to satisfy any payment or reserve requirements relating to:

          (A) General obligation bonds or certificates of participation issued for the benefit of the Oregon University System;

          (B) Credit enhancement devices or agreements for exchange of interest rates entered into in connection with obligations related to general obligation bonds or certificates of participation issued for the benefit of the Oregon University System; and

          (C) Loans to the Oregon University System funded by state general obligation bonds.

          (b) Pursuant to ORS 286A.010, the Oregon University System shall provide cash flow projections and other information requested by the State Treasurer to determine the sufficiency of higher education revenues to satisfy the requirements of paragraph (a) of this subsection and any proposed revenue bonds.

          (c) For purposes of the issuance of bonds and ORS chapter 286A, the Oregon University System shall be considered a related agency as defined in ORS 286A.001 (9).

          (d) The chancellor shall identify the specific higher education revenues that will be pledged to secure each series of higher education revenue bonds and specify the status of the lien of each pledge.

          (3) The chancellor may enter into covenants, pursuant to ORS 286A.025 (4)(c), on behalf of the State of Oregon for the benefit of holders of higher education revenue bonds, providers of credit enhancement for higher education revenue bonds and counterparties to agreements for exchange of interest rates to:

          (a) Adjust the rates, charges or fees that produce higher education revenues so that higher education revenues equal or exceed specified levels during specified periods.

          (b) Create only those pledges or liens on higher education revenues that are permitted by the covenants authorized by this section.

          (c) Budget and apply higher education revenues, or otherwise allow higher education revenues to be applied, in amounts that, when added to other moneys lawfully available for the purpose, will be sufficient:

          (A) To pay in full and when due the principal, interest and premium on outstanding higher education revenue bonds;

          (B) To pay amounts due in connection with agreements for exchange of interest rates and credit enhancement devices for higher education revenue bonds; and

          (C) To maintain the balance required by covenants in any debt service reserves established for the higher education revenue bonds.

          (4) The chancellor shall operate the properties of the Oregon University System in compliance with the higher education revenue bond covenants until all higher education revenue bonds are paid or defeased.

          (5) Higher education revenue bonds are not a general obligation of the State of Oregon, and neither the full faith and credit nor the taxing power of the State of Oregon may be pledged to secure or pay the higher education revenue bonds.

          (6) The State Treasurer and the Oregon University System do not have an obligation to pay bond-related costs except as provided in sections 24 to 28 of this 2011 Act. A holder of higher education revenue bonds issued under this section does not have the right to compel the exercise of the taxing power of the State of Oregon to pay bond-related costs.

          (7) As long as any higher education revenue bonds issued under this section are outstanding, covenants related to the higher education revenue bonds are deemed to be contracts between the State of Oregon and holders of the higher education revenue bonds. The State of Oregon may not give force or effect to a statute or initiative or referendum measure approved by the electors of this state if doing so would unconstitutionally impair existing covenants made with the holders of existing higher education revenue bonds or would unconstitutionally impair other obligations or agreements regarding the security of higher education revenue bonds to which the moneys deposited in the accounts established by sections 26, 27 and 28 of this 2011 Act are pledged and assigned.

          (8) The principal, interest and any premium and any issuance costs on a financing agreement under ORS 283.085 to 283.092, any general obligation bond, any revenue bond and any related credit enhancement device or interest rate exchange agreement shall be paid from the sources specified in the laws and documents authorizing the financing agreement, bond, credit enhancement device or interest rate exchange agreement. The Oregon University System shall pay any other expenses and liabilities, including but not limited to legal expenses, costs of settling claims, judgments, federal arbitrage rebates and penalties and expenses arising from an inquiry, audit or other action by a federal or state regulatory body, unless the expense or liability results solely from the negligence or willful misconduct of a state agency.

          (9) Pursuant to ORS chapter 180, on behalf of the State Treasurer or any other state agency, the Attorney General shall appear, commence, prosecute or defend any action, suit, matter, cause or proceeding arising from any financing agreement under ORS 283.085 to 283.092, any bond issued for the benefit of the Oregon University System and any related credit enhancement device or interest rate exchange agreement.

 

          SECTION 26. An account in the Oregon University System Fund established by ORS 351.506 is designated for the purposes described in section 25 (1) of this 2011 Act. The account consists of net proceeds of higher education revenue bonds issued under section 25 of this 2011 Act and other moneys made available for the purposes described in section 25 (1) of this 2011 Act. Moneys in the account may be invested as provided in ORS 293.701 to 293.820, and interest earned by the account must be credited to the account. Moneys in the account are continuously appropriated to the Oregon University System for the purposes described in section 25 (1) of this 2011 Act.

 

          SECTION 27. (1) An account in the Oregon University System Fund established by ORS 351.506 is designated for the purposes of paying, when due, the principal of, the interest on and the premium, if any, on outstanding higher education revenue bonds. Moneys in the account may be invested as provided in ORS 293.701 to 293.820, and interest earned by the account must be credited to the account. Moneys in the account are continuously appropriated to the Oregon University System for the purposes described in this section.

          (2) The Oregon University System shall deposit in the account:

          (a) Capitalized or accrued interest on higher education revenue bonds;

          (b) Amounts appropriated or otherwise made available by the Legislative Assembly for deposit in the account; and

          (c) Reserves established for the payment of higher education revenue bonds.

 

          SECTION 28. (1) An account in the Oregon University System Fund established by ORS 351.506 is designated for the purpose of paying bond-related costs under sections 24 to 28 of this 2011 Act. Moneys in the account may be invested as provided in ORS 293.701 to 293.820, and interest earned by the account must be credited to the account. Moneys in the account are continuously appropriated to the Oregon University System for payment of bond-related costs under sections 24 to 28 of this 2011 Act.

          (2) The Oregon University System shall deposit in the account:

          (a) Proceeds of higher education revenue bonds that were issued to pay bond-related costs; and

          (b) Amounts appropriated or otherwise made available by the Legislative Assembly for deposit in the account.

 

          SECTION 29. Except for risk management and insurance functions, the State Board of Higher Education and the Oregon University System shall assume responsibility, in accordance with agreements entered into with the Department of Justice and the State Treasurer, for the indemnity and defense of their officers, agents and employees or other persons designated by the board or the system to carry out or further their missions with regard to claims asserted and actions commenced as of the operative date of this section.

 

          SECTION 29a. For risk management and insurance functions, the State Board of Higher Education and the Oregon University System shall assume responsibility, in accordance with agreements entered into with the Oregon Department of Administrative Services regarding its risk management function and the manager of the Insurance Fund established in ORS 278.425, for the indemnity and defense of their officers, agents and employees or other persons designated by the board or the system to carry out or further their missions with regard to claims asserted and actions commenced as of the operative date of this section.

 

          SECTION 29b. Before the operative date of section 29 of this 2011 Act or the operative date of section 29a of this 2011 Act, the State Board of Higher Education and the Oregon University System shall enter into an agreement, as applicable, with the Department of Justice, the Oregon Department of Administrative Services regarding its risk management function, the State Treasurer and the manager of the Insurance Fund established in ORS 278.425 with regard to:

          (1) The transfer of duties and responsibilities concerning legal actions and liabilities in existence before the operative date of section 29 of this 2011 Act or the operative date of section 29a of this 2011 Act, as applicable;

          (2) The reimbursement of reasonable costs and expenses associated with the legal representation of the State Treasurer for bonds issued for the board and the system on and after the operative date of section 29 of this 2011 Act or the operative date of section 29a of this 2011 Act, as applicable; and

          (3) Any other topic necessary for the orderly transfer of duties and responsibilities incident to the previous statutory duty of the Department of Justice to provide legal representation to the board and the system and the responsibility of the Department of Administrative Services to insure the board and the system.

 

          SECTION 30. Except as otherwise provided by law, all liabilities, known and unknown, of the State Board of Higher Education and the Oregon University System existing on or arising after the operative date of this section or, for liabilities related to risk management or insurance functions, arising after the operative date of section 29a of this 2011 Act, are the sole responsibility of the board and system. Damages, costs and other expenses arising out of and related to liabilities of the board and the system after the operative date of this section shall be payable from the Oregon University System Fund or from insurance purchased, a self-insurance program established or another insurance equivalent arranged for under section 36a of this 2011 Act.

 

          SECTION 30a. The State Board of Higher Education is a continuation of the former State Board of Higher Education with respect to its duties, liabilities, functions and powers, and is not a new authority, for the purpose of succession to all rights and obligations of the former State Board of Higher Education as constituted as of the effective date of this 2011 Act, except as otherwise provided by law.

 

          SECTION 31. ORS 351.001 is amended to read:

          351.001. The Legislative Assembly finds that:

          (1) For its survival and political well-being, Oregon needs wise and effective leadership and an informed citizenry.

          (2) For its survival and economic well-being, Oregon needs able and imaginative men and women for the direction and operation of all its institutions, for the production of goods and services and for the management of its fiscal affairs. Oregon also needs alert and informed consumers.

          (3) For its cultural advancement, Oregon needs creative talent as well as appreciative and discriminating readers, viewers and listeners. Oregon also needs people who understand the diverse patterns of behavior, communication and belief that make up the common cultures of the various communities in which we all must function.

          (4) For its survival, Oregon needs citizens who understand the interdependence of human beings and our shared dependence on the resources provided by our natural environment.

          (5) Oregon needs people who, in the roles of parents and teachers and in other capacities, are able to transmit the state’s and the nation’s ideals and heritage to future generations.

          (6) For their personal well-being, individual Oregonians need to cultivate an advanced literacy essential to leading productive and rewarding lives. This includes the capacity to think logically and critically; to internalize and exemplify humane values; to write, speak and figure clearly and accurately; to understand, in some depth, a variety of psychological, historical, cultural, aesthetic and scientific concepts and theories; and to master a range of occupational, professional, avocational, social and personal skills.

 

          SECTION 32. ORS 351.010 is amended to read:

          351.010. The 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] 15 directors, to be known as the State Board of Higher Education. Except as otherwise provided by law, the board has sole authority to govern, set policy and otherwise manage the affairs of the public universities listed in ORS 352.002. The board shall consist of:

          (1) Two students[,] who at the time of their appointment to the board[,] are [admitted at] attending different public [institutions of higher education in Oregon] universities 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] Eleven members of the general public who are not students or faculty members at the time of [their] appointment.

 

          SECTION 33. (1) The directors added to the State Board of Higher Education by the amendments to ORS 351.010 in section 32 of this 2011 Act shall be appointed for terms beginning July 1, 2012.

          (2) Notwithstanding the term of office specified in ORS 351.040, of the directors added to the board by the amendments to ORS 351.010 in section 32 of this 2011 Act:

          (a) One shall serve for a term ending June 30, 2014;

          (b) One shall serve for a term ending June 30, 2015; and

          (c) One shall serve for a term ending June 30, 2016.

 

          SECTION 34. ORS 351.020 is amended to read:

          351.020. (1) The directors of the State Board of Higher Education [shall] must be residents of Oregon and [shall be] are appointed by the Governor. The [appointment is] appointments are subject to the confirmation of the Senate in the manner provided by ORS 171.562 and 171.565. No director who is not a student or faculty member at the time of appointment may be an employee of any of the [institutions or departments] public universities or offices, departments or activities under the control of the State Board of Higher Education[, nor shall more than seven graduates of or students admitted at these institutions, nor more than three graduates of or students admitted at any one of these institutions or departments, be members of the board at any time]. The faculty members appointed under this section may not participate in any discussions or action by the board or attend any executive session of the board involving collective bargaining issues that affect faculty at any public [institution of higher education] university listed in ORS 352.002.

          (2) To assist the Governor in making appointments of the student members as provided in ORS 351.010, the duly organized and recognized entities of student government at each [state institution of higher education] public university shall submit a list of nominees to the Governor. The entities are entitled to no more than three nominees per [school] public university. The Governor shall consider these lists in the selection of the student members to be appointed to the State Board of Higher Education.

          (3) To assist the Governor in making appointments of the faculty members as provided in ORS 351.010, a duly organized and recognized association of faculty members may submit a list of nominees to the Governor. The Governor shall consider any submitted list in the selection of the faculty members to be appointed to the State Board of Higher Education.

          (4) When making an appointment of the faculty or student members as provided in ORS 351.010, the Governor shall rotate the appointments among representatives from various public [institutions of higher education] universities to ensure equal representation among the [institutions] public universities.

 

          SECTION 35. ORS 351.050 is amended to read:

          351.050. The board shall elect one of its members as president who shall serve for the fiscal year for which the president is elected. The board shall meet [regularly once every three months] at least four times each fiscal year at such times and places as the president may determine. [Special meetings may be called by the president upon the written request of any six members of the board. Six] Eight members shall constitute a quorum for the transaction of business.

 

          SECTION 36. 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 of the [institutions] public universities and offices, 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] public universities or offices, 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 in a designated account in the Oregon University System Fund established by ORS 351.506. Interest earned by the account shall be credited to the account.

          (3) Design, acquire, erect, improve, repair, maintain, lease, renovate, demolish, equip, [and] furnish and dispose of buildings, structures and lands [for higher education] necessary for carrying out its powers, rights and duties.

          (4) Acquire, receive, hold, control, convey, sell, manage, operate, lease, lend, license, improve and develop any and all property, real or personal:

          (a) Given to any of the [institutions] public universities or offices, 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] public universities or offices, 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.]

          (5) Exercise the power of eminent domain for the condemnation of property of any kind and all water rights, easements and appurtenances thereto that the State Board of Higher Education considers necessary for carrying out the powers, rights and duties of the board.

          (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, rights and duties [and authority given to the board by this section, ORS 351.070 and 351.150] of the State Board of Higher Education.

          (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, rights and duties [and authority given to the State Board of Higher Education by this section and ORS 351.070 and 351.150.] of the State Board of Higher Education. Except as otherwise provided by ORS 30.260 to 30.300, the board has the authority to defend and indemnify its employees, officers and agents when they are acting in good faith within the course and scope of their duties for public purposes.

          (8) Acquire, receive, hold, control, sell, manage, operate, lease, license or lend any goods, supplies, materials, equipment, services and information technology, for the use, support or benefit of any of the [institutions] public universities or offices, departments or activities under the control of the State Board of Higher Education.

          [(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.]

          (9) With the approval of the State Treasurer, request that the Oregon Department of Administrative Services enter into financing agreements in accordance with ORS 283.085 to 283.092 on behalf of the Oregon University System. The Oregon University System shall be considered a state agency for purposes of ORS 286A.730.

          (10) Own, control and operate Oregon University System motor vehicles for use by public universities and offices, departments and activities under the control of the State Board of Higher Education. The board shall, by rule, establish requirements governing the use and operation of Oregon University System motor vehicles.

          (11) Hire or retain attorneys for the provision of legal services, including but not limited to general advice, representation in litigation and representation in appellate matters. The State Board of Higher Education shall reimburse the State Treasurer for legal fees incurred in connection with borrowings done at the request of the Oregon University System.

 

          SECTION 36a. The State Board of Higher Education may purchase any insurance, operate a self-insurance program or otherwise arrange for the equivalent of insurance coverage of any nature.

 

          SECTION 37. ORS 351.062 is amended to read:

          351.062. Except for the power to prescribe enrollment fees under [ORS 351.070 (3)(c)] section 20 of this 2011 Act and the power to adopt rules, the State Board of Higher Education may delegate any of the powers, duties or functions of the board to a committee of the board, the Chancellor of the Oregon University System or a president of a public university listed in ORS 352.002.

 

          SECTION 38. ORS 351.070 is amended to read:

          351.070. (1) The [Oregon University System, in accordance with rules adopted by the] State Board of Higher Education[,] shall, by rule, implement a personnel system for the Oregon University System and may engage in collective bargaining with [its] the employees. All collective bargaining with any certified or recognized exclusive employee representative shall be under the direction and supervision of the Chancellor of the Oregon University System. The board and the Oregon University System shall have payroll authority [pursuant to ORS 292.043 to 292.180].

          (2)(a) The board shall establish competitive procedures for the purchasing, procurement and contracting of goods, services and information technology, for the benefit of the Oregon University System and all the [institutions, departments and activities therein] public universities and offices, departments and activities under the control of the board. The board may also establish exemptions from the competitive procedures when appropriate.

          (b) The board shall ensure that the hourly rate of wage paid by any contractor upon all public improvements contracts undertaken for the board shall not be less than the same rate of wage as determined by the Bureau of Labor and Industries for an hour’s work in the same trade or occupation in the locality where such labor is performed. Claims or disputes arising under this subsection shall be decided by the Commissioner of the Bureau of Labor and Industries.

          (c) The board shall adopt policies and procedures that achieve results equal to or better than the standards existing on July 17, 1995, regarding affirmative action, pay equity for comparable work, recycling, the provision of workers’ compensation insurance to workers on contract and the participation of emerging small businesses and businesses owned by minorities and women.

          (3) The board may, for each [institution] public university listed in ORS 352.002 [under its control]:

          (a) Appoint and employ a president and the requisite number of [professors, teachers and] employees[,] and prescribe their compensation and tenure of office or employment.

          (b) Demand and receive the interest mentioned in ORS 352.510 and all sums due and accruing [to the institutions of higher education] for admission and tuition [therein], and apply the same, or so much thereof as is necessary, to the payment of the compensation referred to in paragraph (a) of this subsection and the other current expenses [of the institutions].

          [(c) Prescribe fees for enrollment into the institutions. Such enrollment fees shall include tuition for education and general services and such other charges found by the board to be necessary to carry out its educational programs. The board may award student aid from any fund other than the General Fund.]

          [(d)] (c) Prescribe incidental fees for programs under the supervision or control of the board found by the board, upon its own motion or upon recommendation of the recognized student government [of the institution concerned], to be advantageous to the cultural or physical development of students. Fees realized in excess of amounts allocated and exceeding required reserves shall be considered surplus incidental fees and shall be allocated for programs under the control of the board and found to be advantageous to the cultural or physical development of students by the [institution] president upon the recommendation of the recognized student government [at the institution concerned].

          [(e)] (d) Upon recommendation of the recognized student government, collect optional fees [authorized by the institution executive,] for student activities not included in paragraph (c) [or (d)] of this subsection or section 20 of this 2011 Act as authorized by the president. The payment of such optional fees [shall be] is at the option and selection of the student and [shall not be] is not a prerequisite of enrollment.

          [(f)] (e) Confer, consistent with the mission and programs of each public university and on the recommendation of the faculty of [any such institution] the public university, such degrees as usually are conferred by [such institutions] public universities, or as [they deem] the faculty deems appropriate.

          [(g)] (f) Prescribe the qualifications for admission [into such institutions].

          (4) Subject to such delegation as the board may decide to make to the [institutions, divisions and departments] public universities and offices, departments and activities under its control, the board, for each [institution, division and department] public university, office, department or activity under its control:

          (a) Shall supervise the general course of instruction therein, and the research, extension, educational and other activities thereof.

          (b) Shall adopt rules and bylaws for the government thereof, including the faculty, teachers, students and employees therein.

          (c) Shall maintain cultural and physical development services and facilities therefor and, in connection therewith, may cooperate and enter into agreements with any person or governmental agency.

          (d) May contract to provide health services at student health centers.

          (e) Shall provide health services at student health centers to students.

          (f) May provide health services at student health centers to any of the following:

          (A) Dependents of students.

          (B) Staff.

          (C) Faculty.

          (g) Shall prescribe and collect charges.

          (h) Shall adopt rules relating to the creation, use, custody and disclosure, including access, of student education records [of the institutions] that are consistent with the requirements of applicable state and federal law. Whenever a student has attained 18 years of age or is attending [an institution of post-secondary education] a public university listed in ORS 352.002, the permission or consent required of and the rights accorded to a parent of the student regarding education records shall thereafter be required of and accorded to only the student.

          (5) For each [institution under its jurisdiction] public university listed in ORS 352.002, the board shall provide opportunities for part-time students to obtain complete undergraduate degrees at unconventional times, which include but are not limited to early morning and noon hours, evenings and weekends. In administering these degree programs, the [institution] public university may use any educational facility available for the use of the [institution] public university.

          (6) For all [institutions of higher education] public universities listed in ORS 352.002, the board shall, [no later than October 1, 2010, and] to the extent feasible and cost beneficial, develop and [begin implementation of] implement a common admissions process that permits applicants to be considered for admission to more than one [institution] public university.

 

          SECTION 39. ORS 351.075 is amended to read:

          351.075. [(1)] The State Board of Higher Education shall appoint a chief executive officer who shall be known as the Chancellor of the Oregon University System and who shall serve at the pleasure of the board. [The board may appoint one or more assistants as may be necessary.]

          [(2) The chancellor and the assistants of the chancellor shall be persons who by training and experience are well qualified to perform the duties of their offices and to assist in carrying out the functions of the board under ORS 351.010 to 351.070, 351.075 to 351.260, 351.310 to 351.615, 351.770 to 351.840, 352.002 to 352.006, 352.010 to 352.053, 352.230, 352.360, 352.370, 352.390, 352.400 and 352.510 to 352.760.]

          [(3) The State Board of Higher Education shall fix the compensation of the chancellor and the assistants of the chancellor.]

 

          SECTION 40. 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 and management authority necessary to carry out the policies and directives of the board with respect to the [institutions, departments or activities] public universities and offices, departments and activities under the control of the board. In carrying out the duties of the chancellor, the chancellor shall:

          (1) [Act as] Serve as chief executive officer of the Oregon University System and administrative officer of the State Board of Higher Education.

          (2) Supervise the presidents of the public universities listed in ORS 352.002 and recommend the terms and conditions of their employment to the board, including but not limited to appointment, compensation and termination.

          [(2)] (3) Maintain a centralized service program for all [institutions, departments] public universities and offices, departments and activities under the control of the board, including but not limited to[,] accounting, statistical services, capital construction, management analysis, legal services, academic affairs and educational research.

          [(3)] (4) Collect and compile information and statistics relative to the operation of the [institutions, departments] public universities and offices, departments and activities under the control of the [State] board [of Higher Education].

          [(4)] (5) Prepare and submit to the [State] board [of Higher Education] an annual operating budget for all [institutions, departments] public universities and offices, departments and activities under the control of the board, including but not limited to budget allocations to the public universities and offices, departments and activities.

          [(5)] (6) Oversee the preparation and submission to the [State Board of Higher Education of the biennial budget requests of the institutions, departments and activities] board of the funding request for the Oregon University System for consideration by the board as the [budget] funding request [to the Governor] under [ORS 351.090] section 21 of this 2011 Act. [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)] (7) 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)] (8) 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)] (9) 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)] (10) Prepare and submit to the [State] board [of Higher Education] on or about December 31 of each year an annual report in which the chancellor describes the principal activities of the 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)] (11) Keep a record of the transactions of the [State] board [of Higher Education].

          [(11)] (12) Have the custody of all books, papers, documents and other property belonging to the [State] board [of Higher Education].

          [(12)] (13) 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 offices, departments and activities.

          [(13)] (14) Provide for meetings of the presidents and principal executives of the [institutions, departments] public universities and offices, departments and activities under the control of the board, at such times as the [State] board [of Higher Education] may direct[, such meetings to]. The meetings shall be open to any member of the board. [At such meetings, the executives of the Oregon University System may propose policies or policy changes or statements for consideration by the board and develop recommendations concerning allocations of funds.]

          [(14)] (15) Perform such other administrative or management assistance and consider other administrative or management matters as the [State] board [of Higher Education] may require.

 

          SECTION 41. ORS 351.086 is amended to read:

          351.086. (1) Except as otherwise provided in this chapter and ORS chapter 352, the provisions of ORS chapters 182, 240, 270, 273, 276, 278, 279A, 279B, 279C, 282, 283, 291 and 292 and ORS 180.060, 180.160, 180.210, 180.220, 180.225 and 180.230 do not apply to the Oregon University System.

          (2) Notwithstanding subsection (1) of this section, ORS [240.167, 240.185] 182.100, 182.109, 240.167, 276.073 to 276.090, 279A.065 (2), 279B.055 (3), 279C.380 (1)(a) and (3), 279C.600 to 279C.625, 279C.800, 279C.810, 279C.825, 279C.830, 279C.835, 279C.840, 279C.845, 279C.850, 279C.855, 279C.860, 279C.865, 279C.870, 283.085 to 283.092, 291.200, 291.201 to 291.222, 291.223, 291.224 (2) and (6), 291.226, 291.272 to 291.278, 291.322 to 291.334, 291.405, 291.407, 291.445, [and] 292.043 and 292.044apply to the Oregon University System.

          [(3) Notwithstanding any other law, the following provisions do not apply to the Oregon University System:]

          [(a) ORS 182.310 to 182.400;]

          [(b) ORS 273.413 to 273.456;]

          [(c) ORS 276.071 and 276.072; and]

          [(d) ORS 291.038.]

          [(4)] (3) Notwithstanding subsection [(3)(b)] (1) of this section, ORS 273.413 to 273.456 apply to any structure, equipment or asset owned by the Oregon University System that is encumbered by a certificate of participation.

          (4) Notwithstanding subsection (6) of this section:

          (a) The provisions of ORS chapters 35, 190, 192, 244, 286A, 295 and 297 and ORS 30.260 to 30.460, 184.480, 184.483, 184.486, 184.488, 200.005 to 200.025, 200.045 to 200.090, 200.100 to 200.120, 200.160 to 200.200, 236.605 to 236.640, 243.650 to 243.782, 243.800, 243.820, 243.830, 243.850, 243.910 to 243.945, 307.090 and 307.112 apply to the Oregon University System under the same terms as they apply to other public bodies other than the State of Oregon.

          (b) The provisions of ORS 293.115, 293.117, 293.130, 293.169, 293.171, 293.205 to 293.225, 293.250, 293.265 to 293.280, 293.285, 293.295, 293.321, 293.353, 293.375, 293.406, 293.465 to 293.485, 293.490, 293.495, 293.525, 293.701 to 293.820, 293.875, 293.880 and 293.990 apply to the Oregon University System under the same terms as they apply to state agencies with moneys held by the State Treasurer, to the Oregon University System Fund established in ORS 351.506 and to any other moneys deposited with or held by the State Treasurer for the Oregon University System.

          (5) Notwithstanding subsections (1) and (6) of this section, the Oregon University System and its agents and employees remain subject to all statutes and administrative rules of this state that create rights, benefits or protections in favor of military veterans, service members and families of service members to the same extent as an agency of this state would be subject to such statutes and administrative rules.

          (6) The Oregon University System, as a distinct governmental entity, is not subject to any provision of law enacted after January 1, 2011, with respect to any governmental entity, that is unique to governmental entities, unless the provision specifically provides that it applies to the Oregon University System.

          [(5)] (7) In carrying out the duties, functions and powers imposed by law upon the Oregon University System, the State Board of Higher Education or the Chancellor of the Oregon University System may contract with any public agency for the performance of such duties, functions and powers as the [Oregon University System] board or chancellor considers appropriate.

 

          SECTION 41a. Notwithstanding ORS 351.086 (1) as amended by section 41 of this 2011 Act, ORS chapter 278 and ORS 283.100, 283.110, 283.120, 283.130, 283.140, 283.143, 283.305 to 283.350, 283.415 to 283.425, 283.500 to 283.520 and 283.524 apply to the Oregon University System prior to July 1, 2012.

 

          SECTION 42. ORS 351.094 is amended to read:

          351.094. (1) [Notwithstanding any other provision of law, the Oregon University System] The State Board of Higher Education shall provide group insurance to [its] employees of the Oregon University System through the Public Employees’ Benefit Board[, but] or may elect[, at the discretion of the State Board of Higher Education,] to provide alternative group health and welfare insurance benefit plans to [its] employees[, should] of the Oregon University System if the same level of benefits [be] is available at a lower cost than through the Public Employees’ Benefit Board.

          (2) For the purposes of ORS 243.555 to 243.575, if the State Board of Higher Education chooses not to participate in the benefit plans offered through the Public Employees’ Benefit Board, the State Board of Higher Education may have the authority granted to the Public Employees’ Benefit Board under ORS 243.555 to 243.575 for the administration of an appropriate expense reimbursement plan.

          (3) The [Oregon University System] State Board of Higher Education shall offer [a] one or more deferred compensation [plan for its] plans to employees of the Oregon University System. The Oregon University System shall, at the discretion of the board, choose whether to offer its employees the state deferred compensation plan established under ORS 243.401 to 243.507 or another deferred compensation plan that the board elects to make available to the employees of the Oregon University System.

 

          SECTION 43. (1) The State Board of Higher Education shall establish a committee consisting of representatives of public university management and of employees, both represented and unrepresented, to evaluate options for:

          (a) An optional retirement plan as described in ORS 243.800; and

          (b) Continued participation in the Public Employees’ Benefit Board, transfer of employee participation to the Oregon Educators Benefit Board or participation in other, alternative group health and welfare insurance benefit plans.

          (2) The State Board of Higher Education shall make a report based upon the recommendations of the committee to the Legislative Assembly prior to October 1, 2012. The State Board of Higher Education may not make any changes to retirement plans based on the report until July 1, 2013. The State Board of Higher Education must make any changes to group health and welfare insurance benefit plans between January 1, 2013, and May 1, 2013, to become effective on January 1, 2014.

 

          SECTION 44. 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] a public university listed in ORS 352.002 must be carried on through the office of the Chancellor of the Oregon University System. [A subordinate official] An employee representing any of the [separate institutions] public universities may not appear before the Legislative Assembly or any committee except upon the written authority of the State Board of Higher Education or the chancellor.

 

          SECTION 45. ORS 351.130 is amended to read:

          351.130. (1) The State Board of Higher Education shall encourage gifts and donations to [institutions of higher education within the Oregon University System by faithfully devoting] the board and the Oregon University System. For purposes of the public universities listed in ORS 352.002, the board, to encourage gifts and donations, shall faithfully devote the gifts or donations to the [institution] public university 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 shall be used in accordance with the terms of the gift or donation. Gifts or donations may be deposited in the Oregon University System Fund established by ORS 351.506 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 University System Fund and the Higher Education Donation Fund.

          (4) The interest, income, dividends or profits received on any property or funds of the 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 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.

          (5) As used in this section, “gifts or donations” includes funds donated to the 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 46. ORS 351.140 is amended to read:

          351.140. (1) The State Board of Higher Education may purchase such real property as in its sole discretion may be necessary for the present or future development of any of the [schools or institutions under its jurisdiction] public universities and offices, departments and activities under its control. The board may enter into contracts of purchase or agreements [which it] that the board deems necessary in carrying out this authorization.

          (2) The board may apply any funds coming into its hands, and applicable thereto, toward the purchase of property authorized under this section. The board may also mortgage or pledge any property so purchased, or its contracts to purchase, or in relation thereto, together with the income from such property, to secure the payment of the purchase price thereof.

          (3) The State Board of Higher Education is authorized, without seeking specific approval from the Legislative Assembly, to purchase real property or undertake capital construction projects that do not require the use of moneys appropriated from state funds or obtained through general obligation bonds, for purposes consistent with the promotion and enhancement of public higher education.

 

          SECTION 47. ORS 351.150 is amended to read:

          351.150. (1) As used in this section, “university lands” means lands granted to this state under the Act of February 14, 1859 (11 Stat. 383), for the support and maintenance of the University of Oregon.

          (2) Legal title to all real property acquired by any of the [institutions] public universities under the control of the State Board of Higher Education shall be taken and held in the name of the State of Oregon. Legal title to all real property heretofore or hereafter conveyed to any [such institutions shall be] of the public universities is deemed to be conveyed to and vested in the State of Oregon. Authorized conveyances of all real property, other than university lands, acquired by or vested in the State of Oregon for the use or benefit of any [such institutions, other than the university lands referred to in ORS 273.251,] of the public universities shall be executed in the name of the State of Oregon by the president and secretary of the board [of higher education]. Nothing in this section or in ORS 351.060 shall be considered as exempting such property from taxation.

          (3) The Oregon University System shall have custody and control of and shall care for all real property used for public university purposes. Management, maintenance and preservation of all real property used for public university purposes is the responsibility of the Oregon University System.

 

          SECTION 48. ORS 351.155 is amended to read:

          351.155. Notwithstanding the applicable provisions of ORS 279.835 to 279.855, 279A.140 to 279A.155, 279A.250 to 279A.290, 279A.990, 279B.200 to 279B.240, 279B.270, 279B.275, 279B.280, 279C.360, 279C.365, 279C.370, 279C.375, 279C.380, 279C.385, 279C.500 to 279C.530, 279C.540, 279C.545, 279C.600 to 279C.625, 279C.650 to 279C.670 and 279C.800 to 279C.870, the State Board of Higher Education may, in the management of all forestlands under its control and supervision, sell the forest products on such lands in the same manner as is provided in ORS 530.059, and for that purpose the [State] board [of Higher Education] shall have the same powers with respect to experimental or research projects in the field of forestland management or for forest product utilization on forestlands under its control as the State Forester has pursuant to the provisions of ORS 530.050 and 530.059. [In the management of its forestlands, the State Board of Higher Education may lease mineral and geothermal resource rights as provided in ORS 351.060 (5)].

 

          SECTION 49. 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 be to the financial benefit of the [institutions] public universities 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)] (2) The proceeds from any sales or disposals made pursuant to authority granted in this section shall be deposited in a designated account in the Oregon University System Fund established by ORS 351.506 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.

 

          SECTION 50. ORS 351.240 is amended to read:

          351.240. [(1)] The State Board of Higher Education may determine the terms and conditions of any transaction authorized by ORS 351.220 to 351.250 and need not require competitive bids in connection therewith. No formal publicity or advertising is required regarding property for the development of which the board wishes to contract, but the board shall make reasonable efforts to disseminate such information in appropriate research and industrial circles.

          [(2) The board may delegate any of the duties, functions and powers granted to the board under ORS 351.220 to 351.250 to any state institution of higher education within the Oregon University System.]

 

          SECTION 51. ORS 351.317 is amended to read:

          351.317. An obligation incurred under ORS 351.140 [or 351.315] is not an indebtedness of the State of Oregon and does not create a general indebtedness of the [State Board of Higher Education. A bond issued by the State Treasurer at the request of the board may be paid only from the property, income or revenues pledged to secure its payment] Oregon University System.

 

          SECTION 52. ORS 351.450, as amended by section 6, chapter 2, Oregon Laws 2011 (Enrolled House Bill 3338), is amended to read:

          351.450. (1) Except as provided in ORS 351.460, the [moneys] net proceeds realized from sales of bonds authorized by Article XI-F(1) and Article XI-G of the Oregon Constitution for the Oregon University System shall be credited to a designated account in the Oregon University System Fund established by ORS 351.506.

          (2) The account designated by this section shall have:

          (a) A separate subaccount for the credit of [moneys] net proceeds realized from sales of bonds issued pursuant to Article XI-F(1) of the Oregon Constitution and ORS 351.350; and

          (b) A separate subaccount for the credit of [moneys] net proceeds realized from sales of bonds issued pursuant to Article XI-G of the Oregon Constitution and ORS 351.345.[; and]

          [(c) A separate subaccount for the credit of moneys realized from the sales of revenue bonds issued pursuant to ORS chapter 286A.]

          (3) The moneys in the account designated by this section shall be invested as provided in ORS 286A.025.

          NOTE: Section 53 was deleted by amendment. Subsequent sections were not renumbered.

 

          SECTION 54. ORS 351.460, as amended by section 8, chapter 2, Oregon Laws 2011 (Enrolled House Bill 3338), is amended to read:

          351.460. (1) The State Board of Higher Education shall maintain an account within the Oregon University System Fund established by ORS 351.506 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;

          (b) The bonds issued under authority of Article XI-G of the Oregon Constitution and ORS 351.345; and

          [(c) Revenue bonds authorized by ORS 351.315; and]

          [(d)] (c) Amounts due under financial agreements entered into under ORS 351.356.

          (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.

          (4) The sources of moneys for the account maintained under this section are:

          (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] ad valorem taxes;

          (c) The revenues transferred to the account maintained under this section pursuant to subsection (6) of this section;

          (d) All moneys received as accrued interest upon bonds sold;

          (e) All earnings from investments of the account;

          (f) Net proceeds of the sale of refunding bonds; and

          (g) All moneys that the State of Oregon has agreed to hold in the account to pay amounts due under financial agreements entered into under ORS 351.356.

          (5) The board may credit the account maintained under this section with moneys received from either a sale or interfund transfer of buildings, structures, land or other projects. When the buildings, structures, land or other projects are sold or the use of the buildings, structures, land or other projects is rededicated so that a transfer from one subaccount to another subaccount is appropriate, the moneys received shall be credited to the appropriate subaccount.

          (6)(a) The board shall transfer revenues to the account maintained under this section in amounts sufficient to pay, when due, the principal of and the interest and any premium upon the bonds issued under authority of Article XI-F(1) of the Oregon Constitution [and upon revenue bonds authorized by ORS 351.315]. Revenues not required for the account as described in this subsection shall be transferred to other accounts and subaccounts within the Oregon University System Fund that are designated by the Chancellor of the Oregon University System. The portion of student building fees that are imposed under ORS 351.170 to provide the funds with which to amortize the principal of and pay the interest on bonds issued under Article XI-F(1) of the Oregon Constitution shall be applied only to pay those bonds.

          (b) For purposes of this subsection, “revenues” includes all funds available to the board except:

          (A) Amounts appropriated by the Legislative Assembly from the General Fund; and

          (B) Lottery funds allocated for debt service.

          (7)(a) The board may not use the account maintained under this section for any purpose other than the purposes for which the account was created.

          (b) Notwithstanding paragraph (a) of this subsection, if the balance in any subaccount exceeds the amount required to pay debt service during a fiscal period, the board may transfer the surplus in the subaccount to other accounts in the Oregon University System Fund. This paragraph does not apply to any surplus consisting of General Fund moneys appropriated for debt service or lottery funds allocated for debt service. Any surplus consisting of General Fund moneys appropriated for debt service shall revert to the General Fund as provided in ORS 293.190.

 

          SECTION 55. ORS 351.506 is amended to read:

          351.506. (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 Oregon University System 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.

 

          SECTION 56. ORS 351.638 is amended to read:

          351.638. (1) An account in the Oregon University System Fund established by ORS 351.506 is designated for the purpose of attracting new, outstanding faculty members to the [institutions in the Oregon University System] public universities listed in ORS 352.002. 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 of Higher Education shall seek funds from private sources for deposit to the credit of the account designated by this section. [Funds from other sources may not be transferred or credited to the account without prior authorization of the appropriate legislative review agency as described in ORS 291.375 (1)].

 

          SECTION 57. ORS 351.704 is amended to read:

          351.704. (1) Subject to ORS 351.094 and any group health and welfare insurance benefit plan developed under ORS 351.094, a part-time faculty member at a public institution of higher education is eligible for the same health care benefits as full-time faculty members if the part-time faculty member is eligible for membership in the Public Employees Retirement System or another plan authorized under ORS chapter 238 or 238A by teaching either at a single public institution of higher education or in aggregate at multiple public institutions of higher education during the prior year.

          (2) A part-time faculty member at a public institution of higher education shall pay all insurance premiums for health care benefits unless otherwise provided for by the policy of the institution or by collective bargaining at the institution.

          [(3) The Oregon Educators Benefit Board and the Public Employees’ Benefit Board shall each adopt rules to implement subsections (1) and (2) of this section.]

 

          SECTION 58. ORS 352.002 is amended to read:

          352.002. The Oregon University System established in section 19 of this 2011 Act consists of the [programs, activities and institutions of higher education] following public universities under the jurisdiction of the State Board of Higher Education [including the following]:

          (1) University of Oregon.

          (2) Oregon State University.

          (3) Portland State University.

          (4) Oregon Institute of Technology.

          (5) Western Oregon University.

          (6) Southern Oregon University.

          (7) Eastern Oregon University.

 

          SECTION 59. ORS 352.010 is amended to read:

          352.010. The president and professors constitute the faculty of each of the [state institutions of higher education] public universities listed in ORS 352.002 and as such have the immediate government and discipline of [it] the public university and the students therein, except as otherwise provided by statute or action of the State Board of Higher Education. The faculty may, subject to the supervision of the [State] board [of Higher Education] under ORS 351.070, prescribe the course of study to be pursued in the [institution] public university and the textbooks to be used.

 

MISCELLANEOUS PROVISIONS

 

          SECTION 60. ORS 30.264 is amended to read:

          30.264. (1) The State Board of Higher Education may authorize [higher education institutions under the control of the board] public universities listed in ORS 352.002 to provide liability insurance coverage for students involved in off-campus experiential activities, including, but not limited to, student teaching, internships, clinical experiences, capstone projects and related activities.

          (2) If commercial liability insurance coverage is not available to [higher education institutions] the public universities, students participating in the activities described in subsection (1) of this section shall be considered to be acting within the course and scope of state employment duties for purposes of ORS 30.260 to 30.300.

 

          SECTION 61. ORS 131.594 is amended to read:

          131.594. (1) After the seizing agency distributes property under ORS 131.588, and when the seizing agency is not the state, the seizing agency shall dispose of and distribute property as follows:

          (a) The seizing agency shall pay costs first from the property or its proceeds. As used in this subsection, “costs” includes the expenses of publication, service of notices, towing, storage and servicing or maintaining the seized property under ORS 131.564.

          (b) After costs have been paid, the seizing agency shall distribute to the victim any amount the seizing agency was ordered to distribute under ORS 131.588 (4).

          (c) After costs have been paid and distributions under paragraph (b) of this subsection have been made, the seizing agency shall distribute the rest of the property to the general fund of the political subdivision that operates the seizing agency.

          (2) Of the property distributed under subsection (1)(c) of this section, the political subdivision shall distribute:

          (a) Three percent to the Asset Forfeiture Oversight Account established in ORS 131A.460;

          (b) Seven percent to the Illegal Drug Cleanup Fund established in ORS 475.495 for the purposes specified in ORS 475.495 (5) and (6); and

          (c) Ten percent to the state General Fund.

          (3) Of the property distributed under subsection (1)(c) of this section that remains in the general fund of the political subdivision after the distributions required by subsection (2) of this section have been made:

          (a) Fifty percent must be for official law enforcement use; and

          (b) Fifty percent must be used for substance abuse treatment pursuant to a plan developed under ORS 430.420.

          (4) Except as otherwise provided by intergovernmental agreement, the seizing agency may:

          (a) Sell, lease, lend or transfer the property or proceeds to any federal, state or local law enforcement agency or district attorney.

          (b) Sell the forfeited property by public or other commercially reasonable sale and pay from the proceeds the expenses of keeping and selling the property.

          (c) Retain the property.

          (d) With written authorization from the district attorney for the seizing agency’s jurisdiction, destroy any firearms or controlled substances.

          (5) A political subdivision may sell as much property as may be needed to make the distributions required by subsections (1) and (2) of this section. A political subdivision shall make distributions to the Asset Forfeiture Oversight Account, the Illegal Drug Cleanup Fund and the state General Fund that are required by subsection (2) of this section once every three months. The distributions are due within 20 days of the end of each quarter. Interest does not accrue on amounts that are paid within the period specified by this subsection.

          (6) A seizing agency may donate growing equipment and laboratory equipment that was used, or intended for use, in manufacturing of controlled substances to a public school, community college or [state institution of higher education] public university listed in ORS 352.002.

          (7) This section applies only to criminal forfeiture proceeds arising out of prohibited conduct.

 

          SECTION 62. ORS 182.122 is amended to read:

          182.122. (1) As used in this section:

          (a) “Executive department” has the meaning given that term in ORS 174.112.

          (b) “Information systems” means computers, hardware, software, storage media, networks, operational procedures and processes used in the collection, processing, storage, sharing or distribution of information within, or with any access beyond ordinary public access to, the state’s shared computing and network infrastructure.

          (2) The Oregon Department of Administrative Services has responsibility for and authority over information systems security in the executive department, including taking all measures reasonably necessary to protect the availability, integrity or confidentiality of information systems or the information stored in information systems. The Oregon Department of Administrative Services shall, after consultation and collaborative development with agencies, establish a state information systems security plan and associated standards, policies and procedures.

          (3) The Oregon Department of Administrative Services, in its sole discretion, shall:

          (a) Review and verify the security of information systems operated by or on behalf of agencies;

          (b) Monitor state network traffic to identify and react to security threats; and

          (c) Conduct vulnerability assessments of agency information systems for the purpose of evaluating and responding to the susceptibility of information systems to attack, disruption or any other event that threatens the availability, integrity or confidentiality of information systems or the information stored in information systems.

          (4) The Oregon Department of Administrative Services shall contract with qualified, independent consultants for the purpose of conducting vulnerability assessments under subsection (3) of this section.

          (5) In collaboration with agencies, the Oregon Department of Administrative Services shall develop and implement policies for responding to events that damage or threaten the availability, integrity or confidentiality of information systems or the information stored in information systems, whether those systems are within, interoperable with or outside the state’s shared computing and network infrastructure. In the policies, the department shall prescribe actions reasonably necessary to:

          (a) Promptly assemble and deploy in a coordinated manner the expertise, tools and methodologies required to prevent or mitigate the damage caused or threatened by an event;

          (b) Promptly alert other persons of the event and of the actions reasonably necessary to prevent or mitigate the damage caused or threatened by the event;

          (c) Implement forensic techniques and controls developed under subsection (6) of this section;

          (d) Evaluate the event for the purpose of possible improvements to the security of information systems; and

          (e) Communicate and share information with agencies, using preexisting incident response capabilities.

          (6) After consultation and collaborative development with agencies, the Oregon Department of Administrative Services shall implement forensic techniques and controls for the security of information systems, whether those systems are within, interoperable with or outside the state’s shared computing and network infrastructure. The techniques and controls must include the use of specialized expertise, tools and methodologies, to investigate events that damage or threaten the availability, integrity or confidentiality of information systems or the information stored in information systems. The department shall consult with the Oregon State Police, the Office of Emergency Management, the Governor and others as necessary in developing forensic techniques and controls under this section.

          (7) The Oregon Department of Administrative Services shall ensure that reasonably appropriate remedial actions are undertaken when the department finds that such actions are reasonably necessary by reason of vulnerability assessments of information systems under subsection (3) of this section, evaluation of events under subsection (5) of this section and other evaluations and audits.

          (8)(a) Agencies are responsible for the security of computers, hardware, software, storage media, networks, operational procedures and processes used in the collection, processing, storage, sharing or distribution of information outside the state’s shared computing and network infrastructure following information security standards, policies and procedures established by the Oregon Department of Administrative Services and developed collaboratively with agencies. Agencies may establish plans, standards and measures that are more stringent than the standards established by the department to address specific agency needs if those plans, standards and measures do not contradict or contravene the state information systems security plan. Independent agency security plans shall be developed within the framework of the state information systems security plan.

          (b) An agency shall report the results of any vulnerability assessment, evaluation or audit conducted by the agency to the department for the purposes of consolidating statewide security reporting and, when appropriate, to prompt a state incident response.

          (9) This section does not apply to:

          (a) Research and student computer systems used by or in conjunction with the State Board of Higher Education or any [state institution of higher education within the Oregon University System] public university listed in ORS 352.002; and

          (b)(A) Gaming systems and networks operated by the Oregon State Lottery or its contractors; or

          (B) The results of Oregon State Lottery reviews, evaluations and vulnerability assessments of computer systems outside the state’s shared computing and network infrastructure.

          (10) The Oregon Department of Administrative Services shall adopt rules to carry out its responsibilities under this section.

 

          SECTION 63. ORS 182.415 is amended to read:

          182.415. As used in ORS 182.415 to 182.435 unless the context requires otherwise:

          (1) “Furnishings” includes furniture usually used in connection with occupancy of a household but does not include rugs, draperies, ranges, refrigerators, washers, dryers 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 Oregon University System prior to September 9, 1971.

          (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] public university listed in ORS 352.002.

          (3) “Dormitory” includes any facility that houses students and those facilities used primarily for sleeping purposes by the employees of the Department of Human Services or the Oregon Health Authority.

          (4) “State agency” has the meaning given that term in ORS 291.002.

 

          SECTION 64. 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 Human Services for vocational rehabilitation services cases under 29 U.S.C. 722(c) and disability determination cases under 42 U.S.C. 405.

          (g) Department of Revenue.

          (h) Department of State Police.

          (i) Employment Appeals Board.

          (j) Employment Relations Board.

          (k) Energy Facility Siting Council.

          (L) Fair Dismissal Appeals Board.

          (m) Governor.

          (n) Land Conservation and Development Commission.

          (o) Land Use Board of Appeals.

          (p) Local government boundary commissions created pursuant to ORS 199.430.

          (q) Oregon University System and [institutions of higher education] public universities listed in ORS 352.002.

          (r) Oregon Youth Authority.

          (s) Psychiatric Security Review Board.

          (t) Public Utility Commission.

          (u) State Accident Insurance Fund Corporation.

          (v) State Apprenticeship and Training Council.

          (w) State Board of Parole and Post-Prison Supervision.

          (x) State Land Board.

          (y) State Treasurer.

          (z) 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 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 86A.095 to 86A.198, 86A.990 and 86A.992 and ORS chapter 59;

          (b) ORS chapter 455;

          (c) ORS chapter 674;

          (d) ORS chapters 706 to 716;

          (e) ORS chapter 717;

          (f) ORS chapters 723, 725 and 726; and

          (g) 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 183.605 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 65. ORS 184.475 is amended to read:

          184.475. (1) The purposes of information technology portfolio-based management are to:

          (a) Ensure that state agencies link their information technology investments with business plans;

          (b) Facilitate risk assessment of information technology projects and investments;

          (c) Ensure that state agencies justify information technology investments on the basis of sound business cases;

          (d) Ensure that state agencies facilitate development and review of information technology performance related to business operations;

          (e) Identify projects that can cross agency and program lines to leverage resources; and

          (f) Assist in state government-wide planning for common, shared information technology infrastructure.

          (2) The Oregon Department of Administrative Services shall integrate state agency strategic and business planning, technology planning and budgeting and project expenditure processes into the department’s information technology portfolio-based management.

          (3) In cooperation with state agencies, the department shall conduct and maintain a continuous inventory of each state agency’s current and planned investments in information technology, a compilation of information about those assets and the total life cycle cost of those assets. The department shall develop and implement state government-wide standards, processes and procedures for the required inventory and for the management of the state government-wide information technology portfolio. State agencies shall participate in the information technology portfolio-based management and shall comply with the standards, processes and procedures established by the department under this subsection. The provisions of this subsection do not relieve any state agency from accountability for equipment, materials, supplies and tangible and intangible personal property under its control.

          (4) The department shall ensure that state agencies implement portfolio-based management of information technology resources in accordance with this section and with rules adopted by the Director of the Oregon Department of Administrative Services.

          (5) This section does not apply to competitive research grants and contracts at [institutions of higher education] public universities listed in ORS 352.002.

          (6) In implementing the provisions of this section, the department shall submit state government-wide policies for review to the Joint Legislative Committee on Information Management and Technology.

 

          SECTION 66. ORS 184.477 is amended to read:

          184.477. (1) The purpose of enterprise management is to create a plan and implement a state government-wide approach for managing distributed information technology assets to minimize total ownership costs from acquisition through retirement, while realizing maximum benefits for transacting the state’s business and delivering services to its citizens.

          (2) With input and recommendations from state agencies, the Oregon Department of Administrative Services shall develop a plan for the state government-wide management of distributed information technology assets. The plan shall prescribe the state government-wide infrastructure and services for managing these assets. The plan shall be submitted to the Joint Legislative Committee on Information Management and Technology for review.

          (3) Following review by the Joint Legislative Committee on Information Management and Technology, the department shall ensure state agency implementation of the plan, including the development of appropriate standards, processes and procedures.

          (4) State agencies shall participate in the enterprise management of information technology assets and shall comply with the standards, processes and procedures of the department.

          (5) This section does not apply to competitive research grants and contracts at [institutions of higher education] public universities listed in ORS 352.002.

 

          SECTION 67. ORS 190.610 is amended to read:

          190.610. The State Board of Higher Education shall establish a program at one or more of the [institutions] public universities under its control, designed to perform the duties imposed upon it by ORS 190.510 to 190.610.

 

          SECTION 68. ORS 192.501 is amended to read:

          192.501. The following public records are exempt from disclosure under ORS 192.410 to 192.505 unless the public interest requires disclosure in the particular instance:

          (1) Records of a public body pertaining to litigation to which the public body is a party if the complaint has been filed, or if the complaint has not been filed, if the public body shows that such litigation is reasonably likely to occur. This exemption does not apply to litigation which has been concluded, and nothing in this subsection shall limit any right or opportunity granted by discovery or deposition statutes to a party to litigation or potential litigation.

          (2) Trade secrets. “Trade secrets,” as used in this section, may include, but are not limited to, any formula, plan, pattern, process, tool, mechanism, compound, procedure, production data, or compilation of information which is not patented, which is known only to certain individuals within an organization and which is used in a business it conducts, having actual or potential commercial value, and which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it.

          (3) Investigatory information compiled for criminal law purposes. The record of an arrest or the report of a crime shall be disclosed unless and only for so long as there is a clear need to delay disclosure in the course of a specific investigation, including the need to protect the complaining party or the victim. Nothing in this subsection shall limit any right constitutionally guaranteed, or granted by statute, to disclosure or discovery in criminal cases. For purposes of this subsection, the record of an arrest or the report of a crime includes, but is not limited to:

          (a) The arrested person’s name, age, residence, employment, marital status and similar biographical information;

          (b) The offense with which the arrested person is charged;

          (c) The conditions of release pursuant to ORS 135.230 to 135.290;

          (d) The identity of and biographical information concerning both complaining party and victim;

          (e) The identity of the investigating and arresting agency and the length of the investigation;

          (f) The circumstances of arrest, including time, place, resistance, pursuit and weapons used; and

          (g) Such information as may be necessary to enlist public assistance in apprehending fugitives from justice.

          (4) Test questions, scoring keys, and other data used to administer a licensing examination, employment, academic or other examination or testing procedure before the examination is given and if the examination is to be used again. Records establishing procedures for and instructing persons administering, grading or evaluating an examination or testing procedure are included in this exemption, to the extent that disclosure would create a risk that the result might be affected.

          (5) Information consisting of production records, sale or purchase records or catch records, or similar business records of a private concern or enterprise, required by law to be submitted to or inspected by a governmental body to allow it to determine fees or assessments payable or to establish production quotas, and the amounts of such fees or assessments payable or paid, to the extent that such information is in a form which would permit identification of the individual concern or enterprise. This exemption does not include records submitted by long term care facilities as defined in ORS 442.015 to the state for purposes of reimbursement of expenses or determining fees for patient care. Nothing in this subsection shall limit the use which can be made of such information for regulatory purposes or its admissibility in any enforcement proceeding.

          (6) Information relating to the appraisal of real estate prior to its acquisition.

          (7) The names and signatures of employees who sign authorization cards or petitions for the purpose of requesting representation or decertification elections.

          (8) Investigatory information relating to any complaint filed under ORS 659A.820 or 659A.825, until such time as the complaint is resolved under ORS 659A.835, or a final order is issued under ORS 659A.850.

          (9) Investigatory information relating to any complaint or charge filed under ORS 243.676 and 663.180.

          (10) Records, reports and other information received or compiled by the Director of the Department of Consumer and Business Services under ORS 697.732.

          (11) Information concerning the location of archaeological sites or objects as those terms are defined in ORS 358.905, except if the governing body of an Indian tribe requests the information and the need for the information is related to that Indian tribe’s cultural or religious activities. This exemption does not include information relating to a site that is all or part of an existing, commonly known and publicized tourist facility or attraction.

          (12) A personnel discipline action, or materials or documents supporting that action.

          (13) Information developed pursuant to ORS 496.004, 496.172 and 498.026 or ORS 496.192 and 564.100, regarding the habitat, location or population of any threatened species or endangered species.

          (14) Writings prepared by or under the direction of faculty of public educational institutions, in connection with research, until publicly released, copyrighted or patented.

          (15) Computer programs developed or purchased by or for any public body for its own use. As used in this subsection, “computer program” means a series of instructions or statements which permit the functioning of a computer system in a manner designed to provide storage, retrieval and manipulation of data from such computer system, and any associated documentation and source material that explain how to operate the computer program. “Computer program” does not include:

          (a) The original data, including but not limited to numbers, text, voice, graphics and images;

          (b) Analyses, compilations and other manipulated forms of the original data produced by use of the program; or

          (c) The mathematical and statistical formulas which would be used if the manipulated forms of the original data were to be produced manually.

          (16) Data and information provided by participants to mediation under ORS 36.256.

          (17) Investigatory information relating to any complaint or charge filed under ORS chapter 654, until a final administrative determination is made or, if a citation is issued, until an employer receives notice of any citation.

          (18) Specific operational plans in connection with an anticipated threat to individual or public safety for deployment and use of personnel and equipment, prepared or used by a public body, if public disclosure of the plans would endanger an individual’s life or physical safety or jeopardize a law enforcement activity.

          (19)(a) Audits or audit reports required of a telecommunications carrier. As used in this paragraph, “audit or audit report” means any external or internal audit or audit report pertaining to a telecommunications carrier, as defined in ORS 133.721, or pertaining to a corporation having an affiliated interest, as defined in ORS 759.390, with a telecommunications carrier that is intended to make the operations of the entity more efficient, accurate or compliant with applicable rules, procedures or standards, that may include self-criticism and that has been filed by the telecommunications carrier or affiliate under compulsion of state law. “Audit or audit report” does not mean an audit of a cost study that would be discoverable in a contested case proceeding and that is not subject to a protective order; and

          (b) Financial statements. As used in this paragraph, “financial statement” means a financial statement of a nonregulated corporation having an affiliated interest, as defined in ORS 759.390, with a telecommunications carrier, as defined in ORS 133.721.

          (20) The residence address of an elector if authorized under ORS 247.965 and subject to ORS 247.967.

          (21) The following records, communications and information submitted to a housing authority as defined in ORS 456.005, or to an urban renewal agency as defined in ORS 457.010, by applicants for and recipients of loans, grants and tax credits:

          (a) Personal and corporate financial statements and information, including tax returns;

          (b) Credit reports;

          (c) Project appraisals;

          (d) Market studies and analyses;

          (e) Articles of incorporation, partnership agreements and operating agreements;

          (f) Commitment letters;

          (g) Project pro forma statements;

          (h) Project cost certifications and cost data;

          (i) Audits;

          (j) Project tenant correspondence requested to be confidential;

          (k) Tenant files relating to certification; and

          (L) Housing assistance payment requests.

          (22) Records or information that, if disclosed, would allow a person to:

          (a) Gain unauthorized access to buildings or other property;

          (b) Identify those areas of structural or operational vulnerability that would permit unlawful disruption to, or interference with, services; or

          (c) Disrupt, interfere with or gain unauthorized access to public funds or to information processing, communication or telecommunication systems, including the information contained in the systems, that are used or operated by a public body.

          (23) Records or information that would reveal or otherwise identify security measures, or weaknesses or potential weaknesses in security measures, taken or recommended to be taken to protect:

          (a) An individual;

          (b) Buildings or other property;

          (c) Information processing, communication or telecommunication systems, including the information contained in the systems; or

          (d) Those operations of the Oregon State Lottery the security of which are subject to study and evaluation under ORS 461.180 (6).

          (24) Personal information held by or under the direction of officials of the Oregon Health and Science University or the Oregon University System about a person who has or who is interested in donating money or property to the university, the system or a [state institution of higher education] public university listed in ORS 352.002, if the information is related to the family of the person, personal assets of the person or is incidental information not related to the donation.

          (25) The home address, professional address and telephone number of a person who has or who is interested in donating money or property to the Oregon University System.

          (26) Records of the name and address of a person who files a report with or pays an assessment to a commodity commission established under ORS 576.051 to 576.455, the Oregon Beef Council created under ORS 577.210 or the Oregon Wheat Commission created under ORS 578.030.

          (27) Information provided to, obtained by or used by a public body to authorize, originate, receive or authenticate a transfer of funds, including but not limited to a credit card number, payment card expiration date, password, financial institution account number and financial institution routing number.

          (28) Social Security numbers as provided in ORS 107.840.

          (29) The electronic mail address of a student who attends a [state institution of higher education] public university listed in ORS 352.002 or Oregon Health and Science University.

          (30) The name, home address, professional address or location of a person that is engaged in, or that provides goods or services for, medical research at Oregon Health and Science University that is conducted using animals other than rodents. This subsection does not apply to Oregon Health and Science University press releases, websites or other publications circulated to the general public.

          (31) If requested by a public safety officer, as defined in ORS 181.610:

          (a) The home address and home telephone number of the public safety officer contained in the voter registration records for the public safety officer.

          (b) The home address and home telephone number of the public safety officer contained in records of the Department of Public Safety Standards and Training.

          (c) The name of the public safety officer contained in county real property assessment or taxation records. This exemption:

          (A) Applies only to the name of the public safety officer and any other owner of the property in connection with a specific property identified by the officer in a request for exemption from disclosure;

          (B) Applies only to records that may be made immediately available to the public upon request in person, by telephone or using the Internet;

          (C) Applies until the public safety officer requests termination of the exemption;

          (D) Does not apply to disclosure of records among public bodies as defined in ORS 174.109 for governmental purposes; and

          (E) May not result in liability for the county if the name of the public safety officer is disclosed after a request for exemption from disclosure is made under this subsection.

          (32) Unless the public records request is made by a financial institution, as defined in ORS 706.008, consumer finance company licensed under ORS chapter 725, mortgage banker or mortgage broker licensed under ORS 86A.095 to 86A.198, 86A.990 and 86A.992 and ORS chapter 59, or title company for business purposes, records described in paragraph (a) of this subsection, if the exemption from disclosure of the records is sought by an individual described in paragraph (b) of this subsection using the procedure described in paragraph (c) of this subsection:

          (a) The home address, home or cellular telephone number or personal electronic mail address contained in the records of any public body that has received the request that is set forth in:

          (A) A warranty deed, deed of trust, mortgage, lien, deed of reconveyance, release, satisfaction, substitution of trustee, easement, dog license, marriage license or military discharge record that is in the possession of the county clerk; or

          (B) Any public record of a public body other than the county clerk.

          (b) The individual claiming the exemption from disclosure must be a district attorney, a deputy district attorney, the Attorney General or an assistant attorney general, the United States Attorney for the District of Oregon or an assistant United States attorney for the District of Oregon, a city attorney who engages in the prosecution of criminal matters or a deputy city attorney who engages in the prosecution of criminal matters.

          (c) The individual claiming the exemption from disclosure must do so by filing the claim in writing with the public body for which the exemption from disclosure is being claimed on a form prescribed by the public body. Unless the claim is filed with the county clerk, the claim form shall list the public records in the possession of the public body to which the exemption applies. The exemption applies until the individual claiming the exemption requests termination of the exemption or ceases to qualify for the exemption.

          (33) Land management plans required for voluntary stewardship agreements entered into under ORS 541.423.

          (34) Sensitive business records or financial or commercial information of the State Accident Insurance Fund Corporation that is not customarily provided to business competitors. This exemption does not:

          (a) Apply to the formulas for determining dividends to be paid to employers insured by the State Accident Insurance Fund Corporation;

          (b) Apply to contracts for advertising, public relations or lobbying services or to documents related to the formation of such contracts;

          (c) Apply to group insurance contracts or to documents relating to the formation of such contracts, except that employer account records shall remain exempt from disclosure as provided in ORS 192.502 (35); or

          (d) Provide the basis for opposing the discovery of documents in litigation pursuant to the applicable rules of civil procedure.

          (35) Records of the Department of Public Safety Standards and Training relating to investigations conducted under ORS 181.662 or 181.878 (6), until the department issues the report described in ORS 181.662 or 181.878.

          (36) A medical examiner’s report, autopsy report or laboratory test report ordered by a medical examiner under ORS 146.117.

 

          SECTION 69. ORS 192.501, as amended by section 3, chapter 455, Oregon Laws 2005, section 7, chapter 608, Oregon Laws 2007, section 2, chapter 687, Oregon Laws 2007, section 2, chapter 48, Oregon Laws 2008, section 3, chapter 57, Oregon Laws 2009, section 2, chapter 135, Oregon Laws 2009, section 4, chapter 222, Oregon Laws 2009, and section 2, chapter 769, Oregon Laws 2009, is amended to read:

          192.501. The following public records are exempt from disclosure under ORS 192.410 to 192.505 unless the public interest requires disclosure in the particular instance:

          (1) Records of a public body pertaining to litigation to which the public body is a party if the complaint has been filed, or if the complaint has not been filed, if the public body shows that such litigation is reasonably likely to occur. This exemption does not apply to litigation which has been concluded, and nothing in this subsection shall limit any right or opportunity granted by discovery or deposition statutes to a party to litigation or potential litigation.

          (2) Trade secrets. “Trade secrets,” as used in this section, may include, but are not limited to, any formula, plan, pattern, process, tool, mechanism, compound, procedure, production data, or compilation of information which is not patented, which is known only to certain individuals within an organization and which is used in a business it conducts, having actual or potential commercial value, and which gives its user an opportunity to obtain a business advantage over competitors who do not know or use it.

          (3) Investigatory information compiled for criminal law purposes. The record of an arrest or the report of a crime shall be disclosed unless and only for so long as there is a clear need to delay disclosure in the course of a specific investigation, including the need to protect the complaining party or the victim. Nothing in this subsection shall limit any right constitutionally guaranteed, or granted by statute, to disclosure or discovery in criminal cases. For purposes of this subsection, the record of an arrest or the report of a crime includes, but is not limited to:

          (a) The arrested person’s name, age, residence, employment, marital status and similar biographical information;

          (b) The offense with which the arrested person is charged;

          (c) The conditions of release pursuant to ORS 135.230 to 135.290;

          (d) The identity of and biographical information concerning both complaining party and victim;

          (e) The identity of the investigating and arresting agency and the length of the investigation;

          (f) The circumstances of arrest, including time, place, resistance, pursuit and weapons used; and

          (g) Such information as may be necessary to enlist public assistance in apprehending fugitives from justice.

          (4) Test questions, scoring keys, and other data used to administer a licensing examination, employment, academic or other examination or testing procedure before the examination is given and if the examination is to be used again. Records establishing procedures for and instructing persons administering, grading or evaluating an examination or testing procedure are included in this exemption, to the extent that disclosure would create a risk that the result might be affected.

          (5) Information consisting of production records, sale or purchase records or catch records, or similar business records of a private concern or enterprise, required by law to be submitted to or inspected by a governmental body to allow it to determine fees or assessments payable or to establish production quotas, and the amounts of such fees or assessments payable or paid, to the extent that such information is in a form which would permit identification of the individual concern or enterprise. This exemption does not include records submitted by long term care facilities as defined in ORS 442.015 to the state for purposes of reimbursement of expenses or determining fees for patient care. Nothing in this subsection shall limit the use which can be made of such information for regulatory purposes or its admissibility in any enforcement proceeding.

          (6) Information relating to the appraisal of real estate prior to its acquisition.

          (7) The names and signatures of employees who sign authorization cards or petitions for the purpose of requesting representation or decertification elections.

          (8) Investigatory information relating to any complaint filed under ORS 659A.820 or 659A.825, until such time as the complaint is resolved under ORS 659A.835, or a final order is issued under ORS 659A.850.

          (9) Investigatory information relating to any complaint or charge filed under ORS 243.676 and 663.180.

          (10) Records, reports and other information received or compiled by the Director of the Department of Consumer and Business Services under ORS 697.732.

          (11) Information concerning the location of archaeological sites or objects as those terms are defined in ORS 358.905, except if the governing body of an Indian tribe requests the information and the need for the information is related to that Indian tribe’s cultural or religious activities. This exemption does not include information relating to a site that is all or part of an existing, commonly known and publicized tourist facility or attraction.

          (12) A personnel discipline action, or materials or documents supporting that action.

          (13) Information developed pursuant to ORS 496.004, 496.172 and 498.026 or ORS 496.192 and 564.100, regarding the habitat, location or population of any threatened species or endangered species.

          (14) Writings prepared by or under the direction of faculty of public educational institutions, in connection with research, until publicly released, copyrighted or patented.

          (15) Computer programs developed or purchased by or for any public body for its own use. As used in this subsection, “computer program” means a series of instructions or statements which permit the functioning of a computer system in a manner designed to provide storage, retrieval and manipulation of data from such computer system, and any associated documentation and source material that explain how to operate the computer program. “Computer program” does not include:

          (a) The original data, including but not limited to numbers, text, voice, graphics and images;

          (b) Analyses, compilations and other manipulated forms of the original data produced by use of the program; or

          (c) The mathematical and statistical formulas which would be used if the manipulated forms of the original data were to be produced manually.

          (16) Data and information provided by participants to mediation under ORS 36.256.

          (17) Investigatory information relating to any complaint or charge filed under ORS chapter 654, until a final administrative determination is made or, if a citation is issued, until an employer receives notice of any citation.

          (18) Specific operational plans in connection with an anticipated threat to individual or public safety for deployment and use of personnel and equipment, prepared or used by a public body, if public disclosure of the plans would endanger an individual’s life or physical safety or jeopardize a law enforcement activity.

          (19)(a) Audits or audit reports required of a telecommunications carrier. As used in this paragraph, “audit or audit report” means any external or internal audit or audit report pertaining to a telecommunications carrier, as defined in ORS 133.721, or pertaining to a corporation having an affiliated interest, as defined in ORS 759.390, with a telecommunications carrier that is intended to make the operations of the entity more efficient, accurate or compliant with applicable rules, procedures or standards, that may include self-criticism and that has been filed by the telecommunications carrier or affiliate under compulsion of state law. “Audit or audit report” does not mean an audit of a cost study that would be discoverable in a contested case proceeding and that is not subject to a protective order; and

          (b) Financial statements. As used in this paragraph, “financial statement” means a financial statement of a nonregulated corporation having an affiliated interest, as defined in ORS 759.390, with a telecommunications carrier, as defined in ORS 133.721.

          (20) The residence address of an elector if authorized under ORS 247.965 and subject to ORS 247.967.

          (21) The following records, communications and information submitted to a housing authority as defined in ORS 456.005, or to an urban renewal agency as defined in ORS 457.010, by applicants for and recipients of loans, grants and tax credits:

          (a) Personal and corporate financial statements and information, including tax returns;

          (b) Credit reports;

          (c) Project appraisals;

          (d) Market studies and analyses;

          (e) Articles of incorporation, partnership agreements and operating agreements;

          (f) Commitment letters;

          (g) Project pro forma statements;

          (h) Project cost certifications and cost data;

          (i) Audits;

          (j) Project tenant correspondence requested to be confidential;

          (k) Tenant files relating to certification; and

          (L) Housing assistance payment requests.

          (22) Records or information that, if disclosed, would allow a person to:

          (a) Gain unauthorized access to buildings or other property;

          (b) Identify those areas of structural or operational vulnerability that would permit unlawful disruption to, or interference with, services; or

          (c) Disrupt, interfere with or gain unauthorized access to public funds or to information processing, communication or telecommunication systems, including the information contained in the systems, that are used or operated by a public body.

          (23) Records or information that would reveal or otherwise identify security measures, or weaknesses or potential weaknesses in security measures, taken or recommended to be taken to protect:

          (a) An individual;

          (b) Buildings or other property;

          (c) Information processing, communication or telecommunication systems, including the information contained in the systems; or

          (d) Those operations of the Oregon State Lottery the security of which are subject to study and evaluation under ORS 461.180 (6).

          (24) Personal information held by or under the direction of officials of the Oregon Health and Science University or the Oregon University System about a person who has or who is interested in donating money or property to the university, the system or a [state institution of higher education] public university listed in ORS 352.002, if the information is related to the family of the person, personal assets of the person or is incidental information not related to the donation.

          (25) The home address, professional address and telephone number of a person who has or who is interested in donating money or property to the Oregon University System.

          (26) Records of the name and address of a person who files a report with or pays an assessment to a commodity commission established under ORS 576.051 to 576.455, the Oregon Beef Council created under ORS 577.210 or the Oregon Wheat Commission created under ORS 578.030.

          (27) Information provided to, obtained by or used by a public body to authorize, originate, receive or authenticate a transfer of funds, including but not limited to a credit card number, payment card expiration date, password, financial institution account number and financial institution routing number.

          (28) Social Security numbers as provided in ORS 107.840.

          (29) The electronic mail address of a student who attends a [state institution of higher education] public university listed in ORS 352.002 or Oregon Health and Science University.

          (30) If requested by a public safety officer, as defined in ORS 181.610:

          (a) The home address and home telephone number of the public safety officer contained in the voter registration records for the public safety officer.

          (b) The home address and home telephone number of the public safety officer contained in records of the Department of Public Safety Standards and Training.

          (c) The name of the public safety officer contained in county real property assessment or taxation records. This exemption:

          (A) Applies only to the name of the public safety officer and any other owner of the property in connection with a specific property identified by the officer in a request for exemption from disclosure;

          (B) Applies only to records that may be made immediately available to the public upon request in person, by telephone or using the Internet;

          (C) Applies until the public safety officer requests termination of the exemption;

          (D) Does not apply to disclosure of records among public bodies as defined in ORS 174.109 for governmental purposes; and

          (E) May not result in liability for the county if the name of the public safety officer is disclosed after a request for exemption from disclosure is made under this subsection.

          (31) Unless the public records request is made by a financial institution, as defined in ORS 706.008, consumer finance company licensed under ORS chapter 725, mortgage banker or mortgage broker licensed under ORS 86A.095 to 86A.198, 86A.990 and 86A.992 and ORS chapter 59, or title company for business purposes, records described in paragraph (a) of this subsection, if the exemption from disclosure of the records is sought by an individual described in paragraph (b) of this subsection using the procedure described in paragraph (c) of this subsection:

          (a) The home address, home or cellular telephone number or personal electronic mail address contained in the records of any public body that has received the request that is set forth in:

          (A) A warranty deed, deed of trust, mortgage, lien, deed of reconveyance, release, satisfaction, substitution of trustee, easement, dog license, marriage license or military discharge record that is in the possession of the county clerk; or

          (B) Any public record of a public body other than the county clerk.

          (b) The individual claiming the exemption from disclosure must be a district attorney, a deputy district attorney, the Attorney General or an assistant attorney general, the United States Attorney for the District of Oregon or an assistant United States attorney for the District of Oregon, a city attorney who engages in the prosecution of criminal matters or a deputy city attorney who engages in the prosecution of criminal matters.

          (c) The individual claiming the exemption from disclosure must do so by filing the claim in writing with the public body for which the exemption from disclosure is being claimed on a form prescribed by the public body. Unless the claim is filed with the county clerk, the claim form shall list the public records in the possession of the public body to which the exemption applies. The exemption applies until the individual claiming the exemption requests termination of the exemption or ceases to qualify for the exemption.

          (32) Land management plans required for voluntary stewardship agreements entered into under ORS 541.423.

          (33) Sensitive business records or financial or commercial information of the State Accident Insurance Fund Corporation that is not customarily provided to business competitors. This exemption does not:

          (a) Apply to the formulas for determining dividends to be paid to employers insured by the State Accident Insurance Fund Corporation;

          (b) Apply to contracts for advertising, public relations or lobbying services or to documents related to the formation of such contracts;

          (c) Apply to group insurance contracts or to documents relating to the formation of such contracts, except that employer account records shall remain exempt from disclosure as provided in ORS 192.502 (35); or

          (d) Provide the basis for opposing the discovery of documents in litigation pursuant to the applicable rules of civil procedure.

          (34) Records of the Department of Public Safety Standards and Training relating to investigations conducted under ORS 181.662 or 181.878 (6), until the department issues the report described in ORS 181.662 or 181.878.

          (35) A medical examiner’s report, autopsy report or laboratory test report ordered by a medical examiner under ORS 146.117.

 

          SECTION 70. ORS 205.450 is amended to read:

          205.450. As used in ORS 205.450 to 205.470:

          (1) “Encumbrance” means a claim, lien, charge or liability attached to and binding property.

          (2) “Encumbrance claimant” means a person who purportedly benefits from the filing of an encumbrance.

          (3) “Federal official or employee” has the meaning given the term “employee of the government” in the Federal Tort Claims Act (28 U.S.C. 2671).

          (4) “Filing” includes filing or recording.

          (5) “Invalid claim of encumbrance” means a claim of encumbrance that is not a valid claim of encumbrance.

          (6) “Property” includes, but is not limited to, real and personal property.

          (7) “State or local official or employee” means an appointed or elected official, employee or agent of:

          (a) A branch of government of this state or a state agency, board, commission or department of a branch of government of this state;

          (b) A [state institution of higher education] public university listed in ORS 352.002;

          (c) A community college or local school district in this state;

          (d) A city, county or other political subdivision in this state; or

          (e) A public corporation in this state.

          (8) “Valid claim of encumbrance” is an encumbrance that:

          (a) Is an encumbrance authorized by statute;

          (b) Is a consensual encumbrance recognized under the laws of this state; or

          (c) Is an equitable, constructive or other encumbrance imposed by a court of competent jurisdiction.

 

          SECTION 71. ORS 205.455 is amended to read:

          205.455. (1) No person or county shall accept for filing an invalid claim of encumbrance.

          (2) No person or county shall accept for filing a claim of encumbrance against the property of a federal official or employee or a state or local official or employee based on the performance or nonperformance of the official duties of the official or employee unless accompanied by an order from a court of competent jurisdiction authorizing the filing of the encumbrance.

          (3) A claim of encumbrance against the property of a federal official or employee or a state or local official or employee based on the performance or nonperformance of the official duties of the official or employee that is not accompanied by an order from a court of competent jurisdiction is an invalid claim of encumbrance and has no legal effect.

          (4) If an invalid claim of encumbrance against the property of a federal official or employee or against the property of a state or local official or employee is accepted for filing, the filing officer shall accept for filing a notice of invalid encumbrance signed and submitted by:

          (a) The assistant United States attorney representing the federal agency of which the individual is an official or employee;

          (b) The assistant attorney general representing the state official, employee or agent, or the state agency, board, commission, department or [state institution of higher education] public university listed in ORS 352.002 of which the individual is an official, employee or agent; or

          (c) The attorney representing the community college or local school district, political subdivision or public corporation of which the individual is an official, employee or agent.

          (5) A notice of invalid encumbrance shall be in substantially the following form:

______________________________________________________________________________

 

NOTICE OF INVALID ENCUMBRANCE

FILED AGAINST

_________(Insert name)

(ORS 205.455)

 

_________              IS A        _________

(Name)                                    (Title)

 

          NOTICE is hereby given that the document entitled_________, purporting to create an obligation against or an interest in the real or personal property of the person named above, filed and/or signed by _________ (insert name), and filed or recorded in book/reel/volume No. ____on page ____ or document/fee/file/ instrument/microfilm No. ____in the _________ (insert name of office where document was filed or recorded), is an invalid claim of encumbrance under ORS 205.450 and 205.455.

          No order from a court of competent jurisdiction authorizing the filing of such encumbrance accompanied the filing and, pursuant to ORS 205.455, the encumbrance has no legal effect and is invalid.

          A copy of this Notice of Invalid Encumbrance has been mailed this day by depositing a true copy of the notice in the United States mail, addressed to _________ (name and address of encumbrance claimant), the last-known address of _________ (insert name of encumbrance claimant).

          DATED this ___ day of ______, ___.

 

___________________

Attorney for _________

 

SUBSCRIBED AND SWORN to before me this ___ day of _________, ___.

 

___________________.

NOTARY PUBLIC FOR OREGON

My commission expires: ______

______________________________________________________________________________

 

          (6) A copy of the notice of invalid encumbrance filed under this section shall be posted at the county courthouse and mailed by the attorney to the encumbrance claimant at the encumbrance claimant’s last-known address, if available.

          (7) No person or county shall be liable under this section for accepting for filing an invalid claim of encumbrance or for accepting for filing a notice of invalid encumbrance.

          (8) Filing a notice of invalid encumbrance under this section shall clear title to all property that is affected by the claim of encumbrance that is the subject of the notice of invalid encumbrance from all claims, liens, charges or liabilities attached to the property under the claim of encumbrance.

 

          SECTION 72. ORS 238.005, as amended by section 8, chapter 1, Oregon Laws 2010, 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.

          (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) “Institution of higher education” means a public university listed in ORS 352.002, the Oregon Health and Science University and a community college, as defined in ORS 341.005.

          [(12)(a)] (13)(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 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)] (14)(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)] (15) “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)] (16) “Pension” means annual payments for life derived from contributions by one or more public employers.

          [(16)] (17) “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 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)] (18) “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)] (19) “Prior service credit” means credit provided under ORS 238.442 or under ORS 238.225 (2) to (6) (1999 Edition).

          [(19)] (20) “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 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)] (21) “Retirement credit” means a period of time that is treated as creditable service for the purposes of this chapter.

          [(21)(a)] (22)(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 described in section 7, chapter 1, Oregon Laws 2010; 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] public universities of the 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)] (23) “School year” means the period beginning July 1 and ending June 30 next following.

          [(23)] (24) “System” means the Public Employees Retirement System.

          [(24)] (25) “Vested” means being an active member of the system in each of five calendar years.

          [(25)] (26) “Volunteer firefighter” means a firefighter whose position normally requires less than 600 hours of service per year.

 

          SECTION 72a. ORS 238.148 is amended to read:

          238.148. (1) A member of the Public Employees Retirement System who is a police officer is entitled to receive retirement credit as provided in subsection (2) of this section if:

          (a) The member was employed as a public safety officer by another state, or political subdivision of another state, before being employed in a position that entitled the member to credit in the system; and

          (b) The member makes the payment required by subsection (2) of this section within the time specified by that subsection.

          (2) Except as provided in subsection (3) of this section, a member of the system employed as a police officer who meets the requirements of subsection (1) of this section is entitled to receive retirement credit for the period of the member’s service with another state, or political subdivision of another state, not to exceed a maximum of four years, if the member within 90 days of the member’s effective date of retirement:

          (a) Applies in writing to the Public Employees Retirement Board for such retirement credit;

          (b) Provides written verification to the board from the other state, or political subdivision of the other state, that employed the member, verifying the period of time that the member served as a public safety officer in the other state; and

          (c) Pays to the board, in a lump sum, for each year of retirement credit applied for under this section, an amount determined by the board to represent the full cost to the system of providing the retirement credit to the member, including all administrative costs incurred by the system in processing the application for acquisition of the retirement credit.

          (3) A member may not receive retirement credit under the provisions of this section for any period of service with another state, or political subdivision of another state, if the member is entitled to a pension or retirement allowance by reason of that service under a public plan or system offered by the other state or by a political subdivision of the other state.

          (4) For the purposes of this section, “public safety officer” means a person who serves in a position with another state, or political subdivision of another state, that is the other state’s equivalent of a position described in ORS 238.005 [(16)] (17).

 

          SECTION 73. ORS 238.300 is amended to read:

          238.300. Upon retiring from service at normal retirement age or thereafter, a member of the system shall receive a service retirement allowance which shall consist of the following annuity and pensions:

          (1) A refund annuity which shall be the actuarial equivalent of accumulated contributions, if any, by the member and interest thereon credited at the time of retirement, which annuity shall provide an allowance payable during the life of the member and at death a lump sum equal in amount to the difference between accumulated contributions at the time of retirement and the sum of the annuity payments actually made to the member during life shall be paid to such person, if any, as the member nominates by written designation duly acknowledged and filed with the board or shall otherwise be paid according to the provisions of this chapter for disposal of an amount credited to the member account of a member at the time of death in the event the member designates no beneficiary to receive the amount or no such beneficiary is able to receive the amount. If death of the member occurs before the first payment is due, the member account of the member shall be treated as though death had occurred before retirement.

          (2)(a) A life pension (nonrefund) for current service provided by the contributions of employers, which pension, subject to paragraph (b) of this subsection, shall be an amount which, when added to the sum of the annuity, if any, under subsection (1) of this section and the annuity, if any, provided on the same basis and payable from the Variable Annuity Account, both annuities considered on a refund basis, results in a total of:

          (A) For service as a police officer or firefighter, two percent of final average salary multiplied by the number of years of membership in the system as a police officer or firefighter before the effective date of retirement.

          (B) For service as other than a police officer or firefighter, including service as a member of the Legislative Assembly, 1.67 percent of final average salary multiplied by the number of years of membership in the system as other than a police officer or firefighter before the effective date of retirement.

          (b) A pension under this subsection shall be at least:

          (A) For a member who first establishes membership in the system before July 1, 2003, the actuarial equivalent of the annuity provided by the accumulated contributions of the member. A person establishes membership in the system before July 1, 2003, for the purposes of this subparagraph if:

          (i) The person is a member of the system, or a judge member of the system, on the day immediately before July 1, 2003; or

          (ii) The person performed any period of service for a participating public employer before July 1, 2003, that is credited to the six-month period of employment required of an employee under ORS 238.015 before an employee may become a member of the system.

          (B) For a member who made contributions before August 21, 1981, the equivalent of a pension computed pursuant to this subsection as it existed immediately before that date.

          (c) As used in this subsection, “number of years of membership” means the number of full years of creditable service plus any remaining fraction of a year of creditable service. Except as otherwise provided in this paragraph, in determining a remaining fraction a full month shall be considered as one-twelfth of a year and a major fraction of a month shall be considered as a full month. Membership of a school district employee, an employee of [the State Board of Higher Education] an institution of higher education engaged in teaching or other school activity [at an institution of higher education] or an employee of the Department of Human Services, the Oregon Youth Authority, the Department of Corrections or the State Board of Education engaged in teaching or other school activity at an institution supervised by the authority, board or department, for all portions of a school year in a calendar year in which the district school, institution of higher education or school activity at an institution so supervised in which the member is employed is normally in session shall be considered as a full one-half year of membership. The number of years of membership of a member who received a refund of contributions as provided in ORS 237.976 (2) is limited to the number of years after the day before the date on which the refund was received. The number of years of membership of a member who is separated, for any reason other than death or disability, from all service entitling the member to membership in the system, who withdraws the amount credited to the member account of the member in the fund during absence from such service and who thereafter reenters the service of an employer participating in the system but does not repay the amount so withdrawn as provided in this chapter, is limited to the number of years after the day before the date of so reentering.

          (3) An additional life pension (nonrefund) for prior service credit, including military service, credited to the member at the time of first becoming a member of the system, as elsewhere provided in this chapter, which pension shall be provided by the contributions of the employer.

 

          SECTION 74. ORS 238.350 is amended to read:

          238.350. (1)(a) Upon the request by a public employer that its employees be compensated for accumulated unused sick leave with pay in the form of increased retirement benefits upon service or disability retirement, the board shall establish a procedure for adding to the gross amount of salary used in determining final average salary the monetary value of one-half of the accumulated unused sick leave with pay of each retiring employee of the requesting public employer and shall establish benefits of the retiring employee on the basis of a final average salary reflecting that addition.

          (b) For employees of a common school district, a union high school district, an education service district or [a community college, or employees of the State Board of Higher Education] an institution of higher education engaged in teaching or other school activity [at an institution of higher education], or employees of the school operated under ORS 346.010 engaged in teaching or other school activity, who are employed under contract for a period of less than 12 consecutive months and who are entitled to sick leave with pay of less than 96 hours for a year, each hour of accumulated unused sick leave with pay shall be valued on the basis of the actual number of contract hours of employment during the last year of contributing membership of an employee before retiring and the salary of the employee during the same period. This paragraph does not apply to any employee who is employed under contract for 12 consecutive months in any of the three or less years used in determining the final average salary of the employee.

          (c) For the purpose of this subsection, accumulated unused sick leave with pay includes unused sick leave with pay accumulated by an active member of the system while in the service of any public employer participating in the system that has the request described in paragraph (a) of this subsection in effect at the time of the member’s separation from the service of the employer, whether that employer is or is not the employer of the member at the time of the member’s retirement.

          (d) The board shall establish rules requiring all public employers participating in the system to transmit to the board reports of unused sick leave with pay accumulated by their employees who are members of the system and to provide timely notification to each of those employees of unused sick leave with pay accumulated by the employee and reported to the board.

          (2) Accumulated unused sick leave with pay may be considered for the purpose of subsection (1) of this section only in accordance with the following requirements:

          (a) Sick leave not credited at the rate actually provided by the public employer may not be considered. The amount of sick leave exceeding an amount credited at the lowest rate in effect for any employee of the public employer who is normally entitled to sick leave, and in any event exceeding an amount credited at a rate of eight hours for each full month worked, may not be considered.

          (b) Sick leave credited for periods when an employee was absent from employment on sabbatical leave, educational leave or any leave without pay may not be considered.

          (c) Any period during which an employee was absent from employment for illness or injury that was charged against sick leave not qualified for consideration shall be deducted from sick leave qualified for consideration.

          (d) Sick leave for any period for which the public employer provides no sick leave with pay for its employees may not be considered.

          (e) Sick leave accumulated on and after July 1, 1973, may be considered only to the extent it is supported by records of accumulation and use pursuant to a plan adopted formally by the public employer.

          (f) Accumulated unused sick leave for periods before July 1, 1973, may be considered as follows:

          (A) If any department, bureau or other organizational unit of a public employer maintained formal records of accumulation and use even though the public employer did not require that those records be maintained, the accumulated unused sick leave shall be considered according to those records.

          (B) Where the public employer provided sick leave before July 1, 1973, but formal records of accumulation and use were not required or if required, are unavailable or incomplete, or the sick leave was subject to administrative limitations on total accumulation or transfer between public employers, accumulated unused sick leave for periods before July 1, 1973, may be considered as equal to 2.675 hours for each full month worked or an amount per month equal to the average monthly accumulation by an employee during the period beginning July 1, 1973, and ending at the time of retirement, whichever amount is greater, but reduced by the amount of any accumulated unused sick leave credited to the employee on July 1, 1973.

          (g) The written certification of a member or former member of the Legislative Assembly shall constitute a formal record of accumulation and use in determining the amount of accumulated unused sick leave of an employee of the Legislative Assembly, either of its houses or any of its committees or officers for periods of employment before July 1, 1981. Sick leave accumulated on and after July 1, 1981, by employees of the Legislative Assembly, either of its houses or any of its committees or officers may be considered only to the extent it is supported by records of accumulation and use maintained by the Legislative Administration Committee, or any statutory, standing, special or interim committee of the Legislative Assembly or either house thereof, or any constitutional or statutory office of the Legislative Assembly or either house thereof, pursuant to a plan adopted formally by the committee or officer.

          (3)(a) As used in this subsection, “legislative employee” means any person employed by the Legislative Assembly, either of its houses or any of its committees or officers, but does not include a regular employee of a statutory committee or statutory office of the Legislative Assembly described in ORS 173.005 (1).

          (b) Upon the request of a retiring legislative employee who is a member of the system, and the request of the public employer of the legislative employee, that the legislative employee be compensated for accumulated unused vacation with pay for periods of legislative employment in the form of increased retirement benefits upon service or disability retirement, the board shall add to the gross amount of salary used in determining final average salary of the legislative employee the monetary value of one-half of the accumulated unused vacation with pay of the legislative employee and shall establish the benefits of the legislative employee on the basis of a final average salary reflecting that addition.

          (c) Accumulated unused vacation with pay may be considered for the purposes of paragraph (b) of this subsection only in accordance with the following requirements:

          (A) Vacation not credited at the rate actually provided by the public employer may not be considered.

          (B) Amounts of vacation exceeding amounts creditable to employees in the classified service of the state service pursuant to ORS 240.515 (1), and rules adopted pursuant thereto, in effect on June 30, 1981, shall not be considered.

          (C) Vacation accumulated before, on and after July 1, 1981, may be considered only to the extent it is supported by records of accumulation and use pursuant to a plan adopted formally by the public employer. However, the written certification of a member or former member of the Legislative Assembly shall constitute a formal record of accumulation and use in determining the amount of accumulated unused vacation of a legislative employee for periods of legislative employment before July 1, 1981.

          (4) Employers with plans providing payments on account of sickness in lieu of sick leave with pay may request the board to consider the monetary value of accumulated unused payments on account of sickness as if such payments were an equivalent amount of accumulated unused sick leave with pay under the same terms and conditions specified in subsections (1) and (2) of this section.

 

          SECTION 74a. ORS 238.580 is amended to read:

          238.580. (1) ORS 238.005 (3) and [(21)] (22), 238.025, 238.078, 238.082, 238.092, 238.115 (1), 238.250, 238.255, 238.260, 238.350, 238.380, 238.410, 238.415, 238.420, 238.445, 238.458, 238.460, 238.465, 238.475, 238.600, 238.605, 238.610, 238.618, 238.630, 238.635, 238.645, 238.650, 238.655, 238.660, 238.665, 238.670 and 238.705 and the increases provided by ORS 238.385 for members of the system who are serving as other than police officers or firefighters apply in respect to service as a judge member.

          (2) This chapter applies in respect to persons described in ORS 238.505 (1) and in respect to service as a judge member only as specifically provided in ORS 238.500 to 238.585.

 

          SECTION 74b. ORS 238.608 is amended to read:

          238.608. (1) The Public Employees Retirement Board shall conduct a study of the life expectancy of members of the Public Employees Retirement System in the categories described in subsection (2) of this section. If the board determines that members in the categories described in subsection (2) of this section have a life expectancy that is substantially shorter than the life expectancy of members of the system generally, the board shall adopt and use separate actuarial equivalency factor tables under ORS 238.607 for the purpose of computing the payments to be made to members in the categories described in subsection (2) of this section and to the beneficiaries and alternate payees of those members. Any actuarial equivalency factor tables adopted under this section shall first become effective January 1, 2005.

          (2) The provisions of this section apply to members of the system who are defined as firefighters under ORS 238.005 (9) or as police officers under ORS 238.005 [(16)(a)] (17)(a), (b), (d), (e), (f), (k), (L), (n), (o) or (p).

 

          SECTION 75. ORS 238A.005, as amended by section 9, chapter 1, Oregon Laws 2010, and section 1, chapter 82, Oregon Laws 2010, is amended to read:

          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 Oregon Business 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 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) “Institution of higher education” means a public university listed in ORS 352.002, the Oregon Health and Science University or a community college, as defined in ORS 341.005.

          [(10)] (11) “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)] (12) “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)] (13) “Pension program” means the defined benefit pension program of the Oregon Public Service Retirement Plan established under ORS 238A.025.

          [(13)] (14) “Police officer” means a police officer as described in ORS 238.005.

          [(14)] (15) “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)] (16) “Retired member” means a pension program member who is receiving a pension as provided in ORS 238A.180 to 238A.195.

          [(16)(a)] (17)(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 December 31, 2009.

          (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 December 31, 2009.

          (E) Retroactive payments described in section 7, chapter 1, Oregon Laws 2010.

          (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] public universities of the 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)] (18) “System” means the Public Employees Retirement System.

 

          SECTION 75a. ORS 238A.140 is amended to read:

          238A.140. (1) An active member of the pension program accrues one year of retirement credit for each complete year of service and one-twelfth of a year of retirement credit for each full month and each major fraction of a month of service.

          (2) An active member who is a school employee shall be credited with at least six months of retirement credit if the member performs service for a major fraction of each month of a school year that falls between January 1 and June 30, and at least six months of retirement credit if the member performs service for a major fraction of each month of a school year that falls between July 1 and December 31.

          (3) When an eligible employee becomes a member under ORS 238A.100, the board shall credit the eligible employee with retirement credit for the period of employment required of the employee under ORS 238A.100.

          (4) A member may not accrue more than one full year of retirement credit in any calendar year.

          (5) For purposes of this section, “school employee” means:

          (a) A person who is employed by a common school district, a union high school district or an education service district;

          (b) An employee of [the State Board of Higher Education or the Oregon Health and Science University] an institution of higher education who is engaged in teaching or other school activity [at an institution of higher education]; and

          (c) An employee of the Department of Human Services, the Oregon Youth Authority, the Department of Corrections or the State Board of Education who is engaged in teaching or other school activity at an institution supervised by the authority, board or department[; and]

          [(d) An employee of a community college district other than an academic employee].

 

          SECTION 76. ORS 243.105 is amended to read:

          243.105. As used in ORS 243.105 to 243.285, unless the context requires otherwise:

          (1) “Benefit plan” includes, but is not limited to:

          (a) Contracts for insurance or other benefits, including medical, dental, vision, life, disability and other health care recognized by state law, and related services and supplies;

          (b) Comparable benefits for employees who rely on spiritual means of healing; and

          (c) Self-insurance programs managed by the Public Employees’ Benefit Board.

          (2) “Board” means the Public Employees’ Benefit Board.

          (3) “Carrier” means an insurance company or health care service contractor holding a valid certificate of authority from the Director of the Department of Consumer and Business Services, or two or more companies or contractors acting together pursuant to a joint venture, partnership or other joint means of operation, or a board-approved guarantor of benefit plan coverage and compensation.

          (4)(a) “Eligible employee” means an officer or employee of a state agency who elects to participate in one of the group benefit plans described in ORS 243.135. The term includes state officers and employees in the exempt, unclassified and classified service, and state officers and employees, whether or not retired, who:

          (A) Are receiving a service retirement allowance, a disability retirement allowance or a pension under the Public Employees Retirement System or are receiving a service retirement allowance, a disability retirement allowance or a pension under any other retirement or disability benefit plan or system offered by the State of Oregon for its officers and employees;

          (B) Are eligible to receive a service retirement allowance under the Public Employees Retirement System and have reached earliest retirement age under ORS chapter 238;

          (C) Are eligible to receive a pension under ORS 238A.100 to 238A.245, and have reached earliest retirement age as described in ORS 238A.165; or

          (D) Are eligible to receive a service retirement allowance or pension under another retirement benefit plan or system offered by the State of Oregon and have attained earliest retirement age under the plan or system.

          (b) “Eligible employee” does not include individuals:

          (A) Engaged as independent contractors;

          (B) Whose periods of employment in emergency work are on an intermittent or irregular basis;

          (C) Who are employed on less than half-time basis unless the individuals are employed in positions classified as job-sharing positions, unless the individuals are defined as eligible under rules of the board;

          (D) Appointed under ORS 240.309;

          (E) Provided sheltered employment or make-work by the state in an employment or industries program maintained for the benefit of such individuals; or

          (F) Provided student health care services in conjunction with their enrollment as students at [the state institutions of higher education] a public university listed in ORS 352.002.

          (5) “Family member” means an eligible employee’s spouse and any unmarried child or stepchild within age limits and other conditions imposed by the board with regard to unmarried children or stepchildren.

          (6) “Payroll disbursing officer” means the officer or official authorized to disburse moneys in payment of salaries and wages of employees of a state agency.

          (7) “Premium” means the monthly or other periodic charge for a benefit plan.

          (8) “State agency” means every state officer, board, commission, department or other activity of state government.

 

          SECTION 77. ORS 243.107 is amended to read:

          243.107. A person employed by a [state institution of higher education] public university listed in ORS 352.002 or the Oregon Health and Science University may be considered an eligible employee for participation in one of the group benefit plans described in ORS 243.135 if the State Board of Higher Education, or the Oregon Health and Science University Board of Directors for Oregon Health and Science University employees, determines that funds are available therefor and if:

          (1) Notwithstanding ORS 243.105 (4)(b)(F), the person is a student enrolled in an institution of higher education and is employed as a graduate teaching assistant, graduate research assistant or a fellow at the institution and elects to participate; or

          (2) Notwithstanding ORS 243.105 (4)(b)(B) or (C), the person is employed on a less than half-time basis in an unclassified instructional or research support capacity and elects to participate.

 

          SECTION 78. ORS 243.778 is amended to read:

          243.778. (1) When an appropriate bargaining unit includes members of the faculty of [an institution of higher education] a public university listed in ORS 352.002, the duly organized and recognized entity of student government at that [institution] university may designate three representatives to meet and confer with the public employer of those members of the faculty and the exclusive representative of that appropriate bargaining unit prior to collective bargaining.

          (2) During the course of collective bargaining between the public employer and the exclusive representative described in subsection (1) of this section, the representatives of student government designated under subsection (1) of this section shall:

          (a) Be allowed to attend and observe all meetings between the public employer and the exclusive representative at which collective bargaining occurs;

          (b) Have access to all written documents pertaining to the collective bargaining negotiations exchanged by the public employer and the exclusive representative, including copies of any prepared written transcripts of the bargaining session;

          (c) Be allowed to comment in good faith during the bargaining sessions upon matters under consideration; and

          (d) Be allowed to meet and confer with the exclusive representative and the public employer regarding the terms of an agreement between them prior to the execution of a written contract incorporating that agreement.

          (3) Rules regarding confidentiality and release of information shall apply to student representatives in the same manner as employer and employee bargaining unit representatives.

          (4) As used in this section,[:]

          [(a) “Institution of higher education” means an institution under the control of the State Board of Higher Education.]

          [(b)] “meet and confer” means the performance of the mutual obligation of the representatives of student government designated under subsection (1) of this section, the exclusive representative and the public employer, or any two of them, to meet at the request of one of them at reasonable times at a place convenient to all to conduct in good faith an interchange of views concerning the duties of each under this section, employment relations of the faculty, the negotiation of an agreement and the execution of a written agreement.

 

          SECTION 79. ORS 243.910 is amended to read:

          243.910. As used in ORS 243.910 to 243.945:

          (1) “Board” means the State Board of Higher Education for all [institutions under the jurisdiction of that board as set forth] public universities listed in ORS 352.002, and for the Oregon Health and Science University means the Oregon Health and Science University Board of Directors.

          (2) “Employees” means the persons appointed or employed by or under the authority of the board who hold academic rank as determined by the board.

          (3) “System” means the Public Employees Retirement System established by ORS 238.600.

 

          SECTION 80. ORS 243.956 is amended to read:

          243.956. (1) A person is eligible for an award of benefits from the Public Safety Memorial Fund if the person:

          (a)(A) Is a family member, parent or designee of a public safety officer who has suffered a qualifying death or disability; or

          (B) Is a public safety officer who has suffered a qualifying disability; and

          (b) Has submitted an initial application for an award of benefits under ORS 243.958.

          (2) Notwithstanding subsection (1) of this section, a person is not eligible for an award of benefits if:

          (a) The person’s actions were a substantial contributing factor to the qualifying death or disability of the public safety officer;

          (b) The public safety officer’s intentional misconduct caused the qualifying death or disability;

          (c) The public safety officer intended to bring about the officer’s qualifying death or disability;

          (d) The public safety officer was voluntarily intoxicated at the time of the injury that caused the qualifying death or disability; or

          (e) The public safety officer was performing the officer’s duties in a grossly negligent manner at the time of the injury that caused the qualifying death or disability.

          (3) If a person who is eligible for an award of benefits under subsection (1) of this section is younger than 18 years of age or is incompetent, another person may file the application for an award of benefits on behalf of the eligible person.

          (4) Within 14 days after receipt of a notice under ORS 243.974 or entry of an order under ORS 243.964 awarding benefits based on an initial application, whichever occurs later, the Public Safety Memorial Fund Board shall pay a lump sum amount of $25,000:

          (a) If a designation of beneficiary form has been completed under ORS 243.974 (1), to the designee of a public safety officer who suffered a qualifying death;

          (b) If a designation of beneficiary form has not been completed, in the manner described under ORS 243.969, to a family member or parent of a public safety officer who suffered a qualifying death; or

          (c) To the public safety officer who suffered a qualifying disability.

          (5) If alternative coverage is not provided, the board may award benefits to the family members of a public safety officer or, if a designation of beneficiary form has been completed under ORS 243.974 (1), to the designee, children and dependents of a public safety officer who has suffered a qualifying death or disability in an amount sufficient to allow the recipients to purchase health and dental insurance comparable to that provided by the public safety officer:

          (a) For five years or until the spouse remarries, whichever occurs first;

          (b) Until a child or a dependent attains 18 years of age or, if the child or the dependent is attending school, 23 years of age; and

          (c) For five years for a designee who is not a person described in paragraph (a) or (b) of this subsection, or until the designee marries, whichever occurs first.

          (6) If alternative coverage is not provided, the board may award benefits for five years to a public safety officer who has suffered a qualifying disability in an amount sufficient to allow the public safety officer to purchase health and dental insurance comparable to the health and dental insurance coverage that the public safety officer had immediately prior to the qualifying disability.

          (7) The board may award benefits to an eligible spouse or designee of a public safety officer who has suffered a qualifying death or to a public safety officer who has suffered a qualifying disability in an amount up to the equivalent of 12 monthly mortgage payments on the residence of the public safety officer or the spouse or designee of the public safety officer if there is no mortgage insurance to cover the cost.

          (8)(a) The board may award scholarships for a graduate program of higher education to:

          (A) A family member of a public safety officer who has suffered a qualifying death or disability;

          (B) If a designation of beneficiary form has been completed under ORS 243.974 (1), to the designee, children and dependents of a public safety officer who suffered a qualifying death or disability; or

          (C) To a public safety officer who has suffered a qualifying disability.

          (b) In determining the amount of a scholarship, the board shall consider the person’s financial need, the funds available in the Public Safety Memorial Fund and the anticipated demands on the fund. The board may not grant a scholarship in an amount exceeding the highest tuition charged by a [state institution of higher education] public university listed in ORS 352.002 for a graduate program.

          (9) A family member, a designee or a public safety officer is eligible to apply for a scholarship under subsection (8) of this section only if the family member, designee or public safety officer:

          (a) Has exhausted the education benefits available under 28 C.F.R., Part 32, subpart B;

          (b) Applies for the scholarship within one year from the date of exhaustion of the education benefits under paragraph (a) of this subsection; and

          (c) Has applied for other available public education benefits.

          (10) If a person described in subsection (8) of this section is ineligible to receive education benefits under 28 C.F.R., Part 32, subpart B, if funds for education benefits are unavailable under those provisions or if the education benefit program under those provisions no longer exists, the person may apply to the board for a scholarship for an undergraduate program. Scholarships for only undergraduate degrees may be awarded to a person under this subsection. The board may not grant a scholarship under this subsection in an amount exceeding the highest tuition charged by a [state institution of higher education] public university listed in ORS 352.002 for an undergraduate program.

          (11)(a) A person may apply for a scholarship under subsection (10) of this section at any time up to:

          (A) Five years after the date on which the applicant graduated from high school if:

          (i) The applicant was a minor at the time the public safety officer suffered a qualifying death or disability; and

          (ii) An application for an award of some type of benefits was filed by a person described in subsection (8) of this section;

          (B) The date the applicant remarries, if the applicant is the surviving spouse of a public safety officer who suffered a qualifying death, or the date the applicant divorces the public safety officer, if the applicant is the spouse of a public safety officer who suffered a qualifying disability; or

          (C) Five years after the date of the injury that caused the disability, if the applicant is a public safety officer who suffered a qualifying disability or is a designee who is not a family member.

          (b) The board may extend the time period for applying for a scholarship under subsection (10) of this section.

          (12) If the family member, designee or public safety officer who is awarded a scholarship under this section is receiving other public education benefits, the amount of the scholarship awarded to the family member, designee or public safety officer shall be reduced by the amount of the other public education benefits.

 

          SECTION 81. ORS 244.050 is amended to read:

          244.050. (1) On or before April 15 of each year the following persons shall file with the Oregon Government Ethics Commission a verified statement of economic interest as required under this chapter:

          (a) The Governor, Secretary of State, State Treasurer, Attorney General, Commissioner of the Bureau of Labor and Industries, Superintendent of Public Instruction, district attorneys and members of the Legislative Assembly.

          (b) Any judicial officer, including justices of the peace and municipal judges, except any pro tem judicial officer who does not otherwise serve as a judicial officer.

          (c) Any candidate for a public office designated in paragraph (a) or (b) of this subsection.

          (d) The Deputy Attorney General.

          (e) The Legislative Administrator, the Legislative Counsel, the Legislative Fiscal Officer, the Secretary of the Senate and the Chief Clerk of the House of Representatives.

          (f) The Chancellor and Vice Chancellors of the Oregon University System and the president and vice presidents, or their administrative equivalents, in each [institution under the jurisdiction of the State Board of Higher Education] public university listed in ORS 352.002.

          (g) The following state officers:

          (A) Adjutant General.

          (B) Director of Agriculture.

          (C) Manager of State Accident Insurance Fund Corporation.

          (D) Water Resources Director.

          (E) Director of Department of Environmental Quality.

          (F) Director of Oregon Department of Administrative Services.

          (G) State Fish and Wildlife Director.

          (H) State Forester.

          (I) State Geologist.

          (J) Director of Human Services.

          (K) Director of the Department of Consumer and Business Services.

          (L) Director of the Department of State Lands.

          (M) State Librarian.

          (N) Administrator of Oregon Liquor Control Commission.

          (O) Superintendent of State Police.

          (P) Director of the Public Employees Retirement System.

          (Q) Director of Department of Revenue.

          (R) Director of Transportation.

          (S) Public Utility Commissioner.

          (T) Director of Veterans’ Affairs.

          (U) Executive director of Oregon Government Ethics Commission.

          (V) Director of the State Department of Energy.

          (W) Director and each assistant director of the Oregon State Lottery.

          (X) Director of the Department of Corrections.

          (Y) Director of the Oregon Department of Aviation.

          (Z) Executive director of the Oregon Criminal Justice Commission.

          (AA) Director of the Oregon Business Development Department.

          (BB) Director of the Office of Emergency Management.

          (CC) Director of the Employment Department.

          (DD) Chief of staff for the Governor.

          (EE) Administrator of the Office for Oregon Health Policy and Research.

          (FF) Director of the Housing and Community Services Department.

          (GG) State Court Administrator.

          (HH) Director of the Department of Land Conservation and Development.

          (II) Board chairperson of the Land Use Board of Appeals.

          (JJ) State Marine Director.

          (KK) Executive director of the Oregon Racing Commission.

          (LL) State Parks and Recreation Director.

          (MM) Public defense services executive director.

          (NN) Chairperson of the Public Employees’ Benefit Board.

          (OO) Director of the Department of Public Safety Standards and Training.

          [(PP) Chairperson of the Oregon Student Assistance Commission.]

          (PP) Chairperson of the Oregon Student Access Commission.

          (QQ) Executive director of the Oregon Watershed Enhancement Board.

          (RR) Director of the Oregon Youth Authority.

          (SS) Director of the Oregon Health Authority.

          (h) Any assistant in the Governor’s office other than personal secretaries and clerical personnel.

          (i) Every elected city or county official.

          (j) Every member of a city or county planning, zoning or development commission.

          (k) The chief executive officer of a city or county who performs the duties of manager or principal administrator of the city or county.

          (L) Members of local government boundary commissions formed under ORS 199.410 to 199.519.

          (m) Every member of a governing body of a metropolitan service district and the executive officer thereof.

          (n) Each member of the board of directors of the State Accident Insurance Fund Corporation.

          (o) The chief administrative officer and the financial officer of each common and union high school district, education service district and community college district.

          (p) Every member of the following state boards and commissions:

          (A) Board of Geologic and Mineral Industries.

          (B) Oregon Business Development Commission.

          (C) State Board of Education.

          (D) Environmental Quality Commission.

          (E) Fish and Wildlife Commission of the State of Oregon.

          (F) State Board of Forestry.

          (G) Oregon Government Ethics Commission.

          (H) Oregon Health Policy Board.

          (I) State Board of Higher Education.

          (J) Oregon Investment Council.

          (K) Land Conservation and Development Commission.

          (L) Oregon Liquor Control Commission.

          (M) Oregon Short Term Fund Board.

          (N) State Marine Board.

          (O) Mass transit district boards.

          (P) Energy Facility Siting Council.

          (Q) Board of Commissioners of the Port of Portland.

          (R) Employment Relations Board.

          (S) Public Employees Retirement Board.

          (T) Oregon Racing Commission.

          (U) Oregon Transportation Commission.

          (V) Wage and Hour Commission.

          (W) Water Resources Commission.

          (X) Workers’ Compensation Board.

          (Y) Oregon Facilities Authority.

          (Z) Oregon State Lottery Commission.

          (AA) Pacific Northwest Electric Power and Conservation Planning Council.

          (BB) Columbia River Gorge Commission.

          (CC) Oregon Health and Science University Board of Directors.

          (DD) Capitol Planning Commission.

          (q) The following officers of the State Treasurer:

          (A) Chief Deputy State Treasurer.

          (B) Chief of staff for the office of the State Treasurer.

          (C) Director of the Investment Division.

          (r) Every member of the board of commissioners of a port governed by ORS 777.005 to 777.725 or 777.915 to 777.953.

          (s) Every member of the board of directors of an authority created under ORS 441.525 to 441.595.

          (2) By April 15 next after the date an appointment takes effect, every appointed public official on a board or commission listed in subsection (1) of this section shall file with the Oregon Government Ethics Commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (3) By April 15 next after the filing deadline for the primary election, each candidate described in subsection (1) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (4) Within 30 days after the filing deadline for the general election, each candidate described in subsection (1) of this section who was not a candidate in the preceding primary election, or who was nominated for public office described in subsection (1) of this section at the preceding primary election by write-in votes, shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (5) Subsections (1) to (4) of this section apply only to persons who are incumbent, elected or appointed public officials as of April 15 and to persons who are candidates on April 15. Subsections (1) to (4) of this section also apply to persons who do not become candidates until 30 days after the filing deadline for the statewide general election.

          (6) If a statement required to be filed under this section has not been received by the commission within five days after the date the statement is due, the commission shall notify the public official or candidate and give the public official or candidate not less than 15 days to comply with the requirements of this section. If the public official or candidate fails to comply by the date set by the commission, the commission may impose a civil penalty as provided in ORS 244.350.

 

          SECTION 81a. ORS 244.050, as amended by section 81 of this 2011 Act, is amended to read:

          244.050. (1) On or before April 15 of each year the following persons shall file with the Oregon Government Ethics Commission a verified statement of economic interest as required under this chapter:

          (a) The Governor, Secretary of State, State Treasurer, Attorney General, Commissioner of the Bureau of Labor and Industries, Superintendent of Public Instruction, district attorneys and members of the Legislative Assembly.

          (b) Any judicial officer, including justices of the peace and municipal judges, except any pro tem judicial officer who does not otherwise serve as a judicial officer.

          (c) Any candidate for a public office designated in paragraph (a) or (b) of this subsection.

          (d) The Deputy Attorney General.

          (e) The Legislative Administrator, the Legislative Counsel, the Legislative Fiscal Officer, the Secretary of the Senate and the Chief Clerk of the House of Representatives.

          (f) The Chancellor and Vice Chancellors of the Oregon University System and the president and vice presidents, or their administrative equivalents, in each public university listed in ORS 352.002.

          (g) The following state officers:

          (A) Adjutant General.

          (B) Director of Agriculture.

          (C) Manager of State Accident Insurance Fund Corporation.

          (D) Water Resources Director.

          (E) Director of Department of Environmental Quality.

          (F) Director of Oregon Department of Administrative Services.

          (G) State Fish and Wildlife Director.

          (H) State Forester.

          (I) State Geologist.

          (J) Director of Human Services.

          (K) Director of the Department of Consumer and Business Services.

          (L) Director of the Department of State Lands.

          (M) State Librarian.

          (N) Administrator of Oregon Liquor Control Commission.

          (O) Superintendent of State Police.

          (P) Director of the Public Employees Retirement System.

          (Q) Director of Department of Revenue.

          (R) Director of Transportation.

          (S) Public Utility Commissioner.

          (T) Director of Veterans’ Affairs.

          (U) Executive director of Oregon Government Ethics Commission.

          (V) Director of the State Department of Energy.

          (W) Director and each assistant director of the Oregon State Lottery.

          (X) Director of the Department of Corrections.

          (Y) Director of the Oregon Department of Aviation.

          (Z) Executive director of the Oregon Criminal Justice Commission.

          (AA) Director of the Oregon Business Development Department.

          (BB) Director of the Office of Emergency Management.

          (CC) Director of the Employment Department.

          (DD) Chief of staff for the Governor.

          (EE) Administrator of the Office for Oregon Health Policy and Research.

          (FF) Director of the Housing and Community Services Department.

          (GG) State Court Administrator.

          (HH) Director of the Department of Land Conservation and Development.

          (II) Board chairperson of the Land Use Board of Appeals.

          (JJ) State Marine Director.

          (KK) Executive director of the Oregon Racing Commission.

          (LL) State Parks and Recreation Director.

          (MM) Public defense services executive director.

          (NN) Chairperson of the Public Employees’ Benefit Board.

          (OO) Director of the Department of Public Safety Standards and Training.

          (PP) Chairperson of the Oregon Student Access Commission.

          (QQ) Executive director of the Oregon Watershed Enhancement Board.

          (RR) Director of the Oregon Youth Authority.

          (SS) Director of the Oregon Health Authority.

          (h) Any assistant in the Governor’s office other than personal secretaries and clerical personnel.

          (i) Every elected city or county official.

          (j) Every member of a city or county planning, zoning or development commission.

          (k) The chief executive officer of a city or county who performs the duties of manager or principal administrator of the city or county.

          (L) Members of local government boundary commissions formed under ORS 199.410 to 199.519.

          (m) Every member of a governing body of a metropolitan service district and the executive officer thereof.

          (n) Each member of the board of directors of the State Accident Insurance Fund Corporation.

          (o) The chief administrative officer and the financial officer of each common and union high school district, education service district and community college district.

          (p) Every member of the following state boards and commissions:

          (A) Board of Geologic and Mineral Industries.

          (B) Oregon Business Development Commission.

          (C) State Board of Education.

          (D) Environmental Quality Commission.

          (E) Fish and Wildlife Commission of the State of Oregon.

          (F) State Board of Forestry.

          (G) Oregon Government Ethics Commission.

          (H) Oregon Health Policy Board.

          (I) State Board of Higher Education.

          (J) Oregon Investment Council.

          (K) Land Conservation and Development Commission.

          (L) Oregon Liquor Control Commission.

          (M) Oregon Short Term Fund Board.

          (N) State Marine Board.

          (O) Mass transit district boards.

          (P) Energy Facility Siting Council.

          (Q) Board of Commissioners of the Port of Portland.

          (R) Employment Relations Board.

          (S) Public Employees Retirement Board.

          (T) Oregon Racing Commission.

          (U) Oregon Transportation Commission.

          (V) Wage and Hour Commission.

          (W) Water Resources Commission.

          (X) Workers’ Compensation Board.

          (Y) Oregon Facilities Authority.

          (Z) Oregon State Lottery Commission.

          (AA) Pacific Northwest Electric Power and Conservation Planning Council.

          (BB) Columbia River Gorge Commission.

          (CC) Oregon Health and Science University Board of Directors.

          (DD) Capitol Planning Commission.

          (EE) Higher Education Coordinating Commission.

          (q) The following officers of the State Treasurer:

          (A) Chief Deputy State Treasurer.

          (B) Chief of staff for the office of the State Treasurer.

          (C) Director of the Investment Division.

          (r) Every member of the board of commissioners of a port governed by ORS 777.005 to 777.725 or 777.915 to 777.953.

          (s) Every member of the board of directors of an authority created under ORS 441.525 to 441.595.

          (2) By April 15 next after the date an appointment takes effect, every appointed public official on a board or commission listed in subsection (1) of this section shall file with the Oregon Government Ethics Commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (3) By April 15 next after the filing deadline for the primary election, each candidate described in subsection (1) of this section shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (4) Within 30 days after the filing deadline for the general election, each candidate described in subsection (1) of this section who was not a candidate in the preceding primary election, or who was nominated for public office described in subsection (1) of this section at the preceding primary election by write-in votes, shall file with the commission a statement of economic interest as required under ORS 244.060, 244.070 and 244.090.

          (5) Subsections (1) to (4) of this section apply only to persons who are incumbent, elected or appointed public officials as of April 15 and to persons who are candidates on April 15. Subsections (1) to (4) of this section also apply to persons who do not become candidates until 30 days after the filing deadline for the statewide general election.

          (6) If a statement required to be filed under this section has not been received by the commission within five days after the date the statement is due, the commission shall notify the public official or candidate and give the public official or candidate not less than 15 days to comply with the requirements of this section. If the public official or candidate fails to comply by the date set by the commission, the commission may impose a civil penalty as provided in ORS 244.350.

 

          SECTION 82. 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] public universities of the Oregon University System, the state agency shall report its intent of 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 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 83. ORS 273.155 is amended to read:

          273.155. The Department of State Lands, in carrying out its duties, may call upon all related state and county agencies, including [Oregon State University] the Oregon University System and any state or county officers or Oregon University System employees through whom necessary information and aid may be received. Such agencies, [institution and] officers and employees shall cooperate with the department without additional compensation.

 

          SECTION 84. ORS 273.785 is amended to read:

          273.785. ORS 273.551 and 273.775 to 273.790 do not apply to:

          (1) Soil, clay, stone, sand and gravel acquired or used by state agencies for the purpose of constructing or repairing roads or other state facilities, or the proceeds from those materials.

          (2) Mineral or geothermal resource rights or proceeds from those rights acquired by the State Fish and Wildlife Commission pursuant to an agreement with the federal government under 16 U.S.C. 669 to 669i (P.L. 75-415).

          (3) Mineral or geothermal resource rights or proceeds from those rights if other disposition is required by federal rules or regulations or any agreement entered into at the time of acquisition of the mineral or geothermal resource rights by the state.

          (4) Proceeds of mineral and geothermal resource rights acquired by the state pursuant to ORS 530.010 and 530.030, other than those distributed under ORS 530.110 (1)(c).

          (5) Mineral or geothermal resource rights or proceeds from those rights acquired after January 1, 1974, for the state by the Department of Veterans’ Affairs pursuant to ORS 88.720, 406.050 (2), 407.135 or 407.145. After consultation, the Department of State Lands and the Department of Veterans’ Affairs shall enter into an interagency agreement governing consultation between them concerning mineral and geothermal resource values on properties acquired for the state by the Department of Veterans’ Affairs. The Department of Veterans’ Affairs shall adopt rules relating to the release of mineral and geothermal rights on such properties.

          (6) Mineral or geothermal resource rights or proceeds from those rights given by a donor to any [institution,] public university or office, department or activity under the control of the State Board of Higher Education that are acquired or held for the state by the State Board of Higher Education pursuant to ORS chapters 351 and 567. In managing mineral or geothermal resource leases, the State Board of Higher Education shall consult with the Department of State Lands in accordance with an interagency agreement established by the department and the State Board of Higher Education governing consultation between the department and the State Board of Higher Education and governing management of the mineral or geothermal resources.

          (7) Mineral or geothermal resource rights or proceeds from those rights acquired and held by the Department of Transportation. In managing mineral or geothermal resource leases, the Department of Transportation shall enter into an intergovernmental agreement with the Department of State Lands governing consultation between the departments and governing management of the mineral or geothermal resources.

 

          SECTION 85. ORS 276.227 is amended to read:

          276.227. (1) The State of Oregon recognizes that providing and operating state government facilities is a significant capital investment in public infrastructure. Accordingly, it is the policy of the State of Oregon to plan, finance, acquire, construct, manage and maintain state government facilities in a manner that maximizes and protects this investment.

          (2) The Oregon Department of Administrative Services shall establish a statewide planning process that evaluates the needs of the state’s facilities, provides comparative information on the condition of the state’s facilities, establishes guidelines and standards for acquiring, managing and maintaining state facilities and provides financing and budgeting strategies to allocate resources to facilities’ needs.

          (3)(a) The Director of the Oregon Department of Administrative Services shall establish a public review process for the proposed capital projects of all state agencies. To assist in this review, the director shall establish a Capital Projects Advisory Board consisting of seven members. Five members shall be public members knowledgeable about construction, facilities management and maintenance issues. Two members may be state employees. The director shall appoint the chairperson of the board.

          (b) The director, in consultation with the board, may request that agencies submit updated long-range facility plans and funding strategies that reflect changes in technology and priorities. The director may ask the board to report on and make recommendations related to long-range plans, the condition of facilities, maintenance schedules, funding strategies and options for new facilities. The director may seek recommendations from the board regarding the needs of existing facilities, funding strategies and long-term facility goals.

          (c) The review process may be applicable to capital projects meeting the definition of major construction/acquisition in the Governor’s budget and to significant leases.

          (d) For each state agency proposing a capital project, the review process may include an examination of the following:

          (A) The effectiveness of asset protection, including maintenance, repair and other activities;

          (B) The effectiveness of space utilization, including an inventory of existing occupied and unoccupied building space;

          (C) The advisability of lease, purchase or other funding strategies;

          (D) The condition of existing occupied and unoccupied building space;

          (E) Appropriate technology;

          (F) The agency’s mission and long-range facilities plans; and

          (G) For new facilities, expansions and additions, the ability of the agency to maintain and operate all of the agency’s facilities in a cost-effective manner.

          (e) The review process shall ensure that capital project decisions are approached in a cost-effective manner after considering all reasonable alternatives.

          (f) With assistance from the board, the department shall provide recommendations and information to the Governor and the Legislative Assembly on the construction, leasing and facilities management issues of state government.

          (4) The department shall establish and maintain a central database of information on state-owned property of all state agencies, including land, buildings, infrastructure, improvements and leases. This database shall include an inventory of state-owned facilities as well as descriptive and technical information.

          (5) State agencies shall establish and implement long-range maintenance and management plans for facilities for which this state is responsible to ensure that facilities are maintained in good repair and that the useful lives of facilities are maximized. For each new facility, a maintenance and management plan appropriate to the use and useful life of the facility shall be developed and implemented.

          (6) The department may engage in cooperative projects with local government.

          (7) The provisions of this section [shall] do not apply to [institutions of higher education as described] public universities listed in ORS 352.002, the Oregon Health and Science University or a community college as defined in ORS 341.005.

 

          SECTION 86. ORS 276.229 is amended to read:

          276.229. (1) State agencies shall develop four-year major construction budgets. Projects included in these budgets may be accelerated or deferred upon approval of the Emergency Board.

          (2) State agencies shall include the biennial costs associated with maintenance, major repairs or building alterations in their regular budget presentation to the Legislative Assembly. Agencies shall include in their budget presentations short-term and long-term plans to reduce or eliminate any existing backlog of deferred maintenance.

          (3) The provisions of this section [shall] do not apply to [an institution of higher education as described] public universities listed in ORS 352.002, the Oregon Health and Science University, or a community college as defined in ORS 341.005.

 

          SECTION 87. ORS 276.612 is amended to read:

          276.612. The Department of Corrections, the Department of Human Services, the Oregon Health Authority and the State Board of Education each shall determine the buildings to be constructed, altered, repaired, furnished and equipped for the use of institutions and activities under their respective jurisdictions. The State Board of Higher Education shall determine the buildings to be constructed, altered, repaired, furnished and equipped for the use of [institutions] public universities or offices, departments or activities under its jurisdiction.

 

          SECTION 88. ORS 279A.025 is amended to read:

          279A.025. (1) Except as provided in subsections (2) to (4) of this section, the Public Contracting Code applies to all public contracting.

          (2) The Public Contracting Code does not apply to:

          (a) Contracts between a contracting agency and:

          (A) Another contracting agency;

          (B) The Oregon Health and Science University;

          (C) The Oregon State Bar;

          (D) A governmental body of another state;

          (E) The federal government;

          (F) An American Indian tribe or an agency of an American Indian tribe;

          (G) A nation, or a governmental body in a nation, other than the United States; or

          (H) An intergovernmental entity formed between or among:

          (i) Governmental bodies of this or another state;

          (ii) The federal government;

          (iii) An American Indian tribe or an agency of an American Indian tribe;

          (iv) A nation other than the United States; or

          (v) A governmental body in a nation other than the United States;

          (b) Agreements authorized by ORS chapter 190 or by a statute, charter provision, ordinance or other authority for establishing agreements between or among governmental bodies or agencies or tribal governing bodies or agencies;

          (c) Insurance and service contracts as provided for under ORS 414.115, 414.125, 414.135 and 414.145 for purposes of source selection;

          (d) Grants;

          (e) Contracts for professional or expert witnesses or consultants to provide services or testimony relating to existing or potential litigation or legal matters in which a public body is or may become interested;

          (f) Acquisitions or disposals of real property or interest in real property;

          (g) Sole-source expenditures when rates are set by law or ordinance for purposes of source selection;

          (h) Contracts for the procurement or distribution of textbooks;

          (i) Procurements by a contracting agency from an Oregon Corrections Enterprises program;

          (j) The procurement, transportation or distribution of distilled liquor, as defined in ORS 471.001, or the appointment of agents under ORS 471.750 by the Oregon Liquor Control Commission;

          (k) Contracts entered into under ORS chapter 180 between the Attorney General and private counsel or special legal assistants;

          (L) Contracts for the sale of timber from lands owned or managed by the State Board of Forestry and the State Forestry Department;

          (m) Contracts for forest protection or forest related activities, as described in ORS 477.406, by the State Forester or the State Board of Forestry;

          (n) Sponsorship agreements entered into by the State Parks and Recreation Director in accordance with ORS 565.080 (4);

          (o) Contracts entered into by the Housing and Community Services Department in exercising the department’s duties prescribed in ORS chapters 456 and 458, except that the department’s public contracting for goods and services is subject to ORS chapter 279B;

          (p) Contracts entered into by the State Treasurer in exercising the powers of that office prescribed in ORS chapters 178, 286A, 287A, 289, 293, 294 and 295, including but not limited to investment contracts and agreements, banking services, clearing house services and collateralization agreements, bond documents, certificates of participation and other debt repayment agreements, and any associated contracts, agreements and documents, regardless of whether the obligations that the contracts, agreements or documents establish are general, special or limited, except that the State Treasurer’s public contracting for goods and services is subject to ORS chapter 279B;

          (q) Contracts, agreements or other documents entered into, issued or established in connection with:

          (A) The issuance of obligations, as defined in ORS 286A.100 and 287A.310, of a public body;

          (B) The making of program loans and similar extensions or advances of funds, aid or assistance by a public body to a public or private body for the purpose of carrying out, promoting or sustaining activities or programs authorized by law; or

          (C) The investment of funds by a public body as authorized by law, and other financial transactions of a public body that by their character cannot practically be established under the competitive contractor selection procedures of ORS 279B.050 to 279B.085;

          (r) Contracts for employee benefit plans as provided in ORS 243.105 (1), 243.125 (4), 243.221, 243.275, 243.291, 243.303 and 243.565;

          (s) Contracts for employee benefit plans as provided in ORS 243.860 to 243.886; or

          (t) Any other public contracting of a public body specifically exempted from the code by another provision of law.

          (3) The Public Contracting Code does not apply to the contracting activities of:

          (a) The Oregon State Lottery Commission;

          (b) The Oregon University System and member [institutions] public universities, except as provided in ORS 351.086;

          (c) The legislative department;

          (d) The judicial department;

          (e) Semi-independent state agencies listed in ORS 182.454, except as provided in ORS 279.835 to 279.855 and 279A.250 to 279A.290;

          (f) Oregon Corrections Enterprises;

          (g) The Oregon Film and Video Office, except as provided in ORS 279A.100 and 279A.250 to 279A.290;

          (h) The Travel Information Council, except as provided in ORS 279A.250 to 279A.290;

          (i) The Oregon 529 College Savings Network and the Oregon 529 College Savings Board;

          (j) The Oregon Innovation Council;

          (k) The Oregon Utility Notification Center; or

          (L) Any other public body specifically exempted from the code by another provision of law.

          (4) ORS 279A.200 to 279A.225 and 279B.050 to 279B.085 do not apply to contracts made with qualified nonprofit agencies providing employment opportunities for individuals with disabilities under ORS 279.835 to 279.855.

 

          SECTION 89. ORS 283.305 is amended to read:

          283.305. As used in ORS 283.305 to 283.350:

          (1) “Alternative fuel” means natural gas, liquefied petroleum gas, methanol, ethanol, any fuel mixture containing at least 85 percent methanol or ethanol and electricity.

          (2) “Authorized driver” means any of the following who has a valid driver license and an acceptable driving record:

          (a) A salaried state employee, including an agent of the state;

          (b) A volunteer, appointed in writing, whose written description of duties includes driving motor vehicles;

          (c) An agency client required to drive motor vehicles as part of a rehabilitation or treatment program authorized by law;

          (d) Any personnel of any unit of government whose use of motor vehicles is permitted by an authorized intergovernmental agreement; and

          [(e) Any student enrolled at any state institution of higher education and whose use of motor vehicles meets the requirements of ORS 283.310; and]

          [(f)] (e) An inmate of a correctional institution with specific Department of Corrections approval who is accompanied by a supervising correctional institution employee or who is performing a specific work assignment driving a special purpose vehicle required for that assignment and within the visual range of a supervising correctional institution employee who is at the work assignment site or who is part of the transport caravan.

          (3) “Motor vehicles” includes state-owned, leased or otherwise controlled motor vehicles and the supplies, parts and equipment for the operation, maintenance or repair of such motor vehicles.

          (4) “Official state business” means activity conducted by a state agency that advances the lawful policies of the agency as specified by the Oregon Department of Administrative Services by rule.

          (5) “Standard passenger vehicle” means a motor vehicle that is commonly known as a sedan or a station wagon and that is not equipped with special or unusual equipment.

          (6) “State agency” or “agency” includes the Legislative Assembly, at its option, or any of its statutory, standing, special or interim committees, at the option of such committee.

 

          SECTION 90. ORS 283.310 is amended to read:

          283.310. (1) The Oregon Department of Administrative Services shall control and regulate the acquisition, operation, use, maintenance and disposal of and access to motor vehicles used for:

          (a) State business by state agencies of this state; or

          (b) Official public business by a unit of local government or a state agency of another state, by an agency created by an interstate compact between this state and another state or states, by a United States governmental agency, or by an American Indian tribe or an agency of an American Indian tribe, pursuant to an intergovernmental agreement between the agency or agencies and the department, entered into in accordance with ORS chapter 190, for the provision of motor pool vehicles, supplies and services, or any of them.