76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
 
NOTE:  Matter within  { +  braces and plus signs + } in an
amended section is new. Matter within  { -  braces and minus
signs - } is existing law to be omitted. New sections are within
 { +  braces and plus signs + } .
 
LC 617
 
                         House Bill 2118
 
Ordered printed by the Speaker pursuant to House Rule 12.00A (5).
  Presession filed (at the request of Governor John A. Kitzhaber
  for Oregon University System)
 
 
                             SUMMARY
 
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
 
  Redefines Oregon University System as public university system,
consisting of office of Chancellor of Oregon University System
and seven public universities with more authority and
independence to manage affairs, operations and obligations.
Creates new process for State Board of Higher Education to enter
into performance compact with state in conjunction with biennial
funding request. Eliminates requirement to seek expenditure
limitation to spend other available moneys, including enrollment
fees collected from students. Revises current process for setting
enrollment fees by requiring student and student government
participation. Exempts Oregon University System from certain laws
relating to state agencies. Grants State Board of Higher
Education power of eminent domain. Grants board authority to
purchase insurance. Authorizes board to offer fee remissions to
students.  Increases membership of board to 15 members.
Authorizes board to purchase property and construct facilities
without seeking legislative approval if purchase or construction
is to be completed without appropriating General Fund moneys or
using general obligation bonds. Credits all interest earned in
Oregon University System Fund to Oregon University System.
Authorizes board to create institutional boards that may exercise
powers over one or more public universities.
  Becomes operative January 1, 2012.
  Declares emergency, effective on passage.
 
                        A BILL FOR AN ACT
Relating to higher 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, 238.300,
  238.350, 238A.005, 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, 326.543, 326.587, 329.822, 329.840, 332.114,
  332.155, 336.057, 337.500, 337.511, 338.115, 339.885, 340.005,
  342.144, 342.147, 342.360, 342.390, 342.443, 344.259, 344.557,
  348.005, 348.180, 348.183, 348.205, 348.210, 348.270, 348.282,
  348.394, 348.429, 348.597, 348.890, 348.900, 348.910, 351.001,
  351.005, 351.007, 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, 351.160, 351.205, 351.210, 351.230,
  351.240, 351.300, 351.310, 351.317, 351.320, 351.340, 351.450,
  351.455, 351.460, 351.506, 351.590, 351.628, 351.638, 351.642,
  351.643, 351.644, 351.646, 351.649, 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, 353.260,
  353.440, 353.600, 353.603, 357.004, 408.095, 431.690, 433.090,
  461.543, 541.375, 634.660, 659.855, 660.315, 660.358, 679.020,
  696.182, 743.550 and 759.445; repealing ORS 351.003, 351.009,
  351.090, 351.200 and 351.315; appropriating money; and
  declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + 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 2.  { + Sections 3, 4, 6 and 9 of this 2011 Act are
added to and made a part of ORS 351.010 to 351.070. + }
  SECTION 3.  { + 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 a governmental entity performing governmental functions and
exercising governmental powers. The Oregon University System is
not considered a unit of local or municipal government or, except
as otherwise provided by law, a state agency for purposes of
state statutes and constitutional provisions. + }
  SECTION 4.  { + (1)(a) The State Board of Higher Education is
authorized, upon an affirmative vote of the board, to establish
institutional boards to discharge specified duties and
obligations on behalf of the State Board of Higher Education for
one or more of the public universities listed in ORS 352.002.
  (b) When creating an institutional board for one or more public
universities, the State Board of Higher Education shall make a
finding that the establishment of the institutional board
enhances the fulfillment of the public university's mission and
the achievement of the Oregon University System's goals of public
higher education.
  (2) If the State Board of Higher Education establishes an
institutional board for one or more of the public universities,
the State Board of Higher Education shall, by rule:
  (a) Specifically identify the duties and obligations delegated
to the institutional board; and
  (b) Establish a mechanism, including but not limited to a
performance compact, to make the institutional board accountable
for specified performance objectives.
  (3) If the State Board of Higher Education establishes an
institutional board for one or more of the public universities,
the institutional board shall, at all times, include at least one
current member of the State Board of Higher Education as a voting
member of the institutional board, who shall be appointed by the
president of the State Board of Higher Education. + }
  SECTION 5.  { + The State Board of Higher Education shall
undertake a study of the potential benefits and contributions, if
any, that an institutional board for any of the public
universities listed in ORS 352.002 may provide to the Oregon
University System and the affected public universities for the
achievement of the Oregon University System's goals of public
higher education. The State Board of Higher Education shall
report its findings, together with any recommendations regarding
the creation, structure and authority of institutional boards, to
the Legislative Assembly no later than February 1, 2013. + }
  SECTION 6.  { + (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 board to be necessary
to carry out the educational program of the Oregon University
System.
  (2) The board 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 7.  { + (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
appropriation sought in a funding request submitted by the State
Board of Higher Education to the Oregon Department of
Administrative Services.
  (2) On or before September 1 of each even-numbered year, the
board shall submit a funding request to the department for the
Oregon University System, applicable to the biennium beginning on
July 1 of the following year. The funding request must include a
performance compact.
  (3) The department shall include the funding request as part of
the Governor's biennial budget submitted to the Legislative
Assembly. Any funding request approved by the Legislative
Assembly must direct the moneys appropriated to the department
for allocation to the Oregon University System.
  (4) The funding request must, in addition to the proposed
performance compact, include a report on performance from the
previous biennium's performance compact. The board shall submit
the performance report on or before December 1 of each
even-numbered year.
  (5) The board shall, by rule, establish a framework for the
development of a performance compact that must accompany the
funding request to the department.
  (6) The board is authorized to:
  (a) Request, as part of the funding request, state
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 its state appropriations 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.
  (7) The board 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 6 of this 2011 Act. + }
  SECTION 8.  { + Section 7 of this 2011 Act applies to biennia
beginning on or after July 1, 2013. + }
  SECTION 9.  { + The State Board of Higher Education shall:
  (1) Approve 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 10.  { + As used in sections 10 to 14 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 11 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 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 11.  { + (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) After reserving sufficient funds each biennium to
satisfy state general obligation debt resulting from obligations
under Article XI-F(1) and Article XI-G of the Oregon Constitution
and under an energy loan program pursuant to ORS chapter 470, the
chancellor may pledge all or a portion of the remaining amount of
higher education revenues, pursuant to ORS 286A.102, to secure
higher education revenue bonds, credit enhancement devices or
agreements for the exchange of interest rates.
  (b) 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 debt or a general
obligation of the State of Oregon or the Oregon University
System, 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 10 to 14 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 12 to 14 of this 2011 Act are
pledged and assigned. + }
  SECTION 12.  { + An account in the Oregon University System
Fund established by ORS 351.506 is designated for the purposes
described in section 11 (1) of this 2011 Act. The account
consists of net proceeds of higher education revenue bonds issued
under section 11 of this 2011 Act and other moneys made available
for the purposes described in section 11 (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 11 (1) of this 2011 Act. + }
  SECTION 13.  { + (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.
  (3) At the request of the Oregon University System, the State
Treasurer may create separate subaccounts in the account for
reserves and debt service for each series of higher education
revenue bonds as provided in ORS 286A.025 (2)(g). + }
  SECTION 14.  { + (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 10 to 14 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 10 to 14 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.
  (3) At the request of the Oregon University System, the State
Treasurer may create separate subaccounts in the account as
provided in ORS 286A.025 (2)(g). + }
  SECTION 15. 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 16. ORS 351.005 is amended to read:
  351.005. Giving due consideration to the historical and
continuing interest of the people of the State of Oregon in
encouraging deserving and qualified citizens to realize their
aspirations for higher education, the Legislative Assembly
declares that  { + public + } higher education for residents of
Oregon who desire it and are qualified to benefit from it is
 { - critical - }  { +  indispensable + } to the   { - welfare
and security - }  { +  success and survival + } of this state and
this nation and consequently is an important public purpose.
  SECTION 17. ORS 351.007 is amended to read:
  351.007. The Legislative Assembly declares its intent to
promote and enhance  { + public + } higher education in a manner
that:
   { +  (1) Values an affordable, accessible public education for
every Oregon resident who is qualified and interested in pursuing
higher education.
  (2) Emphasizes and prioritizes a statewide approach to creating
opportunities for and access to public higher education.
  (3) Insists on accountability and transparency within the
Oregon University System. + }
    { - (1) - }  { +  (4) + } Enables citizens of all ages,
backgrounds and levels of income to participate in the search for
knowledge and individual development.
    { - (2) - }  { +  (5) + } Stresses undergraduate teaching as
a high priority.
    { - (3) - }  { +  (6) + } Provides for selected graduate and
professional programs that address state, national and global
needs.
    { - (4) - }  { +  (7) + } Encourages high quality research
and scholarship, both basic and applied, by its faculty and
students.
   { +  (8) Highlights the connection between the Oregon
University System and economic and civic development across this
state. + }
    { - (5) - }  { +  (9) + } Fosters diversity of educational
opportunity.
    { - (6) - }  { +  (10) + } Promotes service to the public.
    { - (7) - }  { +  (11) + } Makes effective and efficient use
of human, physical and financial resources.
    { - (8) Encourages cooperation with other educational
institutions. - }
   { +  (12) Encourages and fosters cooperation and collaboration
with other universities, both public and private, community
colleges, schools, governmental entities and business and
community partners. + }
  SECTION 18. 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 19.  { + (1) The three directors added to the State
Board of Higher Education by the amendments to ORS 351.010 in
section 18 of this 2011 Act shall be appointed for terms
beginning January 1, 2012.
  (2) Notwithstanding the term of office specified in ORS
351.040, of the three directors added to the board by the
amendments to ORS 351.010 in section 18 of this 2011 Act:
  (a) One shall serve for a term ending June 30, 2013;
  (b) One shall serve for a term ending June 30, 2014; and
  (c) One shall serve for a term ending June 30, 2015. + }
  SECTION 20. 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 21. 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 22. 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, enter into
financing agreements in accordance with ORS 283.085 to 283.092.
  (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) Purchase any insurance, operate a self-insurance program
or otherwise arrange for the equivalent of insurance coverage of
any nature.
  (12) 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. + }
  SECTION 23. ORS 351.062 is amended to read:
  351.062.  { + (1) + } Except for the power to prescribe
enrollment fees under   { - ORS 351.070 (3)(c) - }  { +  section
6 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 { + , an
institutional board established under section 4 of this 2011 Act,
the Chancellor of the Oregon University System or a president of
a public university listed in ORS 352.002 + }.
   { +  (2) The board may delegate any of its powers, duties or
functions as provided by law. + }
  SECTION 24. ORS 351.065 is amended to read:
  351.065. (1) The State Board of Higher Education may, for each
 { - institution, division and department - }   { + public
university or office, department or activity + } under its
control { + , + } adopt rules and specific orders by or through
the   { - institutional executive of each institution - }  { +
president of each public university + } governing access to
personnel records of the   { - institution, division or
department, which - }   { + public university or office,
department or activity that + } are less than 25 years old.
  (2) Rules adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless upon a finding by the   { - institutional
executive - }  { +  president of the public university + } that
the public interest in maintaining individual rights to privacy
in an adequate educational environment would not suffer by
disclosure of such records. Access to such records may be limited
to designated classes of information or persons, or to stated
times and conditions, or to both, but cannot be limited for
records more than 25 years old.
  (3) No rule or order promulgated pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the board or its   { - institutions,
schools or departments - }  { +  public universities or offices,
departments or activities + }, except as provided in
 { - paragraphs (d) and (e) of this subsection - }  { +
subsections (7) and (8) of this section + }.
    { - (a) - }  { +  (4) + } The number of files relating to the
evaluation of a faculty member shall be limited to three, to be
kept in designated, available locations.
    { - (b) - }  { +  (5) + } Any evaluation received by
telephone shall be documented in each of the faculty member's
files by means of a written summary of the conversation with the
names of the conversants identified.
    { - (c) - }  { +  (6) + } A faculty member shall be entitled
to submit, for placement in the three files, evidence rebutting,
correcting, amplifying or explaining any document contained
therein and other material   { - which - }   { + that + } the
member believes might be of assistance in the evaluation process.
    { - (d) - }  { +  (7) + } Letters and other information
submitted in confidence to the board or its   { - institutions,
schools or departments - }   { + public universities, offices,
departments or activities + } prior to July 1, 1975, shall be
maintained in the files designated. However, if a faculty member
requests access to those files, the anonymity of the contributor
of letters and other information obtained prior to July 1, 1975,
shall be protected.  The full text shall be made available except
that portions of the text   { - which - }   { + that + } would
serve to identify the contributor shall be excised by a faculty
committee. Only the names of the contributors and the excised
portions of the documents may be kept in a file other than the
three prescribed by   { - paragraph (a) of this subsection - }
 { +  subsection (4) of this section + }.
    { - (e) - }  { +  (8) + } Confidential letters and other
information submitted to or solicited after July 1, 1975, by the
board or its
  { - institutions, schools or departments - }   { + public
universities, offices, departments or activities + } prior to the
employment of a prospective faculty member are exempt from the
provisions of this section. However, if the member is employed by
the board or its
  { - institutions, schools or departments - }  { +  public
universities, offices, departments or activities + }, the
confidential preemployment materials shall be placed in the three
authorized files. If a faculty member requests access to the
member's files, the anonymity of the contributor of confidential
preemployment letters and other preemployment information shall
be protected. The full text shall be made available, except that
portions of the text
  { - which - }   { + that + } would serve to identify the
contributor shall be excised and retained in a file other than
the three designated in
  { - paragraph (a) of this subsection - }  { +  subsection (4)
of this section + }.
    { - (f) - }  { +  (9) + } Classroom survey evaluation by
students of a faculty member's classroom or laboratory
performance shall be anonymous. The record of tabulated reports
shall be placed in at least one of the files designated in
 { - paragraph (a) of this subsection - }  { +  subsection (4) of
this section + }. All survey instruments used to obtain
evaluation data shall be returned to the faculty member.
    { - (g) - }  { +  (10) + } After July 1, 1975, the board
 { - , - }  { +  and + } its
  { - institutions, schools or departments - }   { + public
universities, offices, departments or activities, + } when
evaluating its employed faculty members { + , + }   { - shall - }
 { + may + } not solicit   { - nor - }   { + or + } accept
letters, documents or other materials, given orally or in written
form, from individuals or groups who wish their identity kept
anonymous or the information they provide kept confidential.
    { - (4) - }  { +  (11) + } No rule or order promulgated
pursuant to this section limits the authority of the
 { - institution, division or department - }   { + public
universities, offices, departments or activities under the
control of the board + } to prepare, without identification of
 
individual persons who have not consented thereto, statistical or
demographic reports from personnel records.
    { - (5) - }  { +  (12) + } Any category of personnel records
specifically designated as confidential pursuant to valid rules
or orders pursuant to this section   { - shall not be deemed - }
 { + is not + } a public record for the purposes of ORS 192.420.
    { - (6) - }  { +  (13) + } As used in this section,
'personnel records ' means records containing information kept by
the   { - institution, division or department - }   { + public
university, office, department or activity + } concerning a
faculty member and furnished by the faculty member or by others
about the faculty member at the   { - member's or at the
institution, division or department's - }  request { +  of the
faculty member or the public university, office, department or
activity + }, including, but not limited to, information
concerning discipline, membership activity, employment
performance or other personal records of individual persons.
  SECTION 25. ORS 351.067 is amended to read:
  351.067. (1) In carrying out its authority under ORS 351.070,
the State Board of Higher Education may authorize receipt of
compensation for any officer or employee of the Oregon University
System from private or public resources, including, but not
limited to, income from:
  (a) Consulting;
  (b) Appearances and speeches;
  (c) Intellectual property conceived, reduced to practice or
originated and therefore owned within the Oregon University
System;
  (d) Providing services or other valuable consideration for a
private corporation, individual, or entity, whether paid in cash
or in-kind, stock or other equity interest, or anything of value
regardless of whether there is a licensing agreement between the
Oregon University System and the private entity; and
  (e) Performing public duties paid by private organizations,
including institution corporate affiliates,   { - which
augment - }   { + that augments + } an officer's or employee's
publicly funded salary. Such income shall be authorized and
received in accordance with policies and rules established by the
board.
  (2) The board may not authorize compensation, as
 { - defined - }  { +  described + } in subsection (1) of this
section, that, in the board's judgment, does not comport with the
mission of   { - the institution - }  { +  a public university
listed in ORS 352.002 + } and the Oregon University System or
substantially interferes with an officer's or employee's duties
to the Oregon University System.
  (3) Any compensation described and authorized under subsection
(1) of this section is considered official compensation or
reimbursement of expenses for purposes of ORS 244.040 and is not
considered an honorarium prohibited by ORS 244.042. If
authorization or receipt of the compensation creates a potential
conflict of interest, the officer or employee shall report the
potential conflict in writing in accordance with rules of the
  { - state - }  board. The disclosure is a public record subject
to public inspection.
  (4) The   { - state - }  board shall adopt by rule standards
governing employee outside employment and activities, including
potential conflict of interest, as defined by   { - state - }
board rule and consistent with ORS 244.020, and the public
disclosure thereof, and procedures for reporting and hearing
potential or actual conflict of interest complaints.
  SECTION 26. 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 6 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 27. ORS 351.072 is amended to read:
  351.072. (1) Notwithstanding ORS chapter 183, the following
actions may be taken by the State Board of Higher Education or
the
  { - educational institutions - }  { +  public universities + }
under its control without compliance with the rulemaking
provisions of ORS chapter 183:
  (a) Adoption of standards, regulations, policies or practices
relating primarily to admissions, academic advancement, classroom
grading policy, the granting of academic credits, granting of
degrees, scholarships and similar academic matters.
  (b) Adoption of fees or fee schedules relating to charges for
symposiums, conferences, short courses, food, books or other
retail goods, prices of admission to athletic, entertainment or
cultural events or advertising rates in student or
 { - institutional - }  { + university + } publications. However,
student loan service charges, charges levied as penalties for
prohibited conduct, general tuition, building fees, incidental
fees, health service fees and residence hall and housing charges
shall be adopted in accordance with the provisions of ORS chapter
183.
  (2) Any standards, regulations, policies, practices or fees
adopted under this section by the State Board of Higher Education
or by any of the   { - educational institutions - }  { +  public
universities + } under its control shall be reduced to writing
and made available to interested persons upon request.
  SECTION 28. 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 29. ORS 351.077 is amended to read:
  351.077. (1) Pursuant to ORS 342.447, the   { - office of
the - } Chancellor of the Oregon University System shall ensure
the implementation of the plans developed for recruitment of
minority teachers.
  (2) The chancellor shall report biennially to the State Board
of Higher Education and the Legislative Assembly on the
implementation and results of the plans. The report may include
recommendations on ways in which the Legislative Assembly can
assist in increasing the number of minority teachers.
  SECTION 30. 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 7 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 31. 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, 180.230 and 279.835 to 279.855 + } do not apply
to the Oregon University System.
  (2) Notwithstanding subsection (1) of this section, ORS
  { - 240.167, 240.185 - }  { +  182.100, 182.109 + }, 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 { + ,
291.200, 291.201 to 291.222, 291.223, 291.224 (2) and (6),
291.226, 291.322 to 291.334, 291.405, 291.407, 291.445, + }
 { - and - }  292.043 { +  and 292.044 + } apply 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 (5) of this section, 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.
  (5) 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) - }  { +  (6) + } 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 32. ORS 351.088 is amended to read:
  351.088. Notwithstanding ORS chapter 183, the State Board of
Higher Education or any   { - state institution of higher
education under the jurisdiction of the board - }  { +  public
university listed in ORS 352.002 + } may, by rule, establish
adjudicative procedures that are consistent with federal and
state constitutional requirements and other provisions of law.
The adjudicative procedures shall be consistent with ORS 183.413
to 183.497 and 183.502 whenever the type of hearing or procedure
required is substantially of the character that would necessitate
the procedures required by ORS 183.413 to 183.470.
  SECTION 33. ORS 351.094 is amended to read:
  351.094. (1)   { - Notwithstanding any other provision of
law, - } The  { + State Board of Higher Education or the + }
Oregon University System   { - shall - }  { +  may + } provide
group insurance to its employees 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 the same
level of benefits be 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) - }   { + (2) + } The  { + board or the + } Oregon
University System   { - shall - }  { +  may + } offer   { - a - }
 { +  one or more + } deferred compensation   { - plan for - }
 { +  plans to + } its employees. 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 34. ORS 351.097 is amended to read:
  351.097. (1) The payment of salary or compensation of the
officers, teachers, instructors and other employees of the Oregon
University System, where such salary or compensation is payable
out of the State Treasury and is fixed by law or the State Board
of Higher Education at a definite rate per hour, day, week, month
or year, shall be made weekly, biweekly, semimonthly or monthly
with any necessary adjustments, as provided in this section.
  (2) With the approval of the board, the Chancellor of the
Oregon University System shall make out, certify and transmit to
the board at the end of each pay period a payroll, duly verified
by the chancellor or other designated officer and approved by the
proper auditing committee or officer, showing the names of the
several officers, teachers, instructors and other employees
during the preceding payroll period, the rate of compensation of
each by the hour, day, week, month or year, the time employed,
the amount due and any other facts the board requires. The board,
if it approves the payroll, shall draw a warrant on the State
Treasurer for the aggregate amount allowed in favor of the
chancellor, who shall immediately pay over the moneys received to
 
the several parties entitled thereto and take receipts therefor,
which shall be transmitted to the board.
  (3) Notwithstanding subsection (2) of this section   { - or any
other law - }  and pursuant to ORS 293.330, the State Board of
Higher Education may authorize the chancellor to designate a
person employed by and located at each   { - institution of
higher education - }  { +  public university  + }under the
jurisdiction of the board to implement and administer the payroll
system selected by the board to pay employees designated by the
board. The person shall be under bond to the State of Oregon.
  (4) When an employee receives payment of salary or compensation
in an amount greater than the employee's entitlement, the amount
of the overpayment may be deducted from salary or compensation
earned by the employee. The deduction may be in such form and
manner as the State Board of Higher Education may prescribe.
  SECTION 35. 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 36. ORS 351.117 is amended to read:
  351.117. (1) If the State Board of Higher Education determines
that enrollment is sufficient to make an American Sign Language
class economically viable and if qualified instructors are
available, the board may offer to students courses for credit in
American Sign Language at   { - any institution of higher
education within the Oregon University System - }  { +  a public
university + }. Such courses shall satisfy any second language
elective requirement.
  (2) The State Board of Higher Education is encouraged to
continue to:
  (a) Coordinate with the State Board of Education   { - and the
Oregon School for the Deaf - }  to develop curricula for American
Sign Language courses;
  (b) Implement programs to locate and prepare qualified teachers
and interpreters of American Sign Language; and
  (c) Assist   { - institutions of higher education - }  { +
public universities + } in identifying local and regional needs
and resources available for American Sign Language courses.
  SECTION 37. 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 38. 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 39. 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.
  SECTION 40. 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 41. ORS 351.160 is amended to read:
  351.160. (1) The State Board of Higher Education may undertake
the construction of any building or structure for higher
education when, in the judgment of the board, it appears that the
building or structure will be wholly self-liquidating and
self-supporting from revenues to accrue from the operation
thereof and from gifts, grants or building fees, and from
unobligated revenues of buildings or projects of like character.
The board may enter into contracts for the erection, improvement,
repair, equipping and furnishing of buildings and structures for
dormitories, housing, boarding, off-street motor vehicle parking
facilities and other purposes for higher education pursuant to
Article XI-F(1) of the Oregon Constitution, ORS 351.160 to
351.190, 351.350 to 351.460 and 351.505.
  (2) The board may also undertake the construction of those
buildings and structures that are designated by the Legislative
Assembly for   { - higher education institutions - }   { + public
universities + } and activities, and may enter into contracts
with persons, firms or corporations for the erection,
improvement, repair, equipping and furnishing of such buildings
and structures pursuant to Article XI-G of the Oregon
Constitution and ORS 351.345.
  SECTION 42. ORS 351.205 is amended to read:
  351.205. The State Board of Higher Education may allow
interchange of members of the faculties of   { - institutions of
higher learning - }  { +  public universities listed in ORS
352.002 + } with faculty members of comparable institutions of
other states or countries for a period of one year. Such exchange
service shall, for all purposes, be deemed continued service with
the Oregon
  { - institution - }  { +  public university + } covered, with
salary paid to the absent faculty member accordingly. Salary for
the visiting faculty member shall not be paid by the Oregon
 { - institution - }  { +  public university + } covered.
  SECTION 43. 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 44. ORS 351.230 is amended to read:
  351.230. The State Board of Higher Education may manage,
develop or dispose of { + , + } by assignment, sale, lease,
license or other action deemed advisable by the board, property
acquired under ORS 351.220, and may contract with any person or
agency, board, commission or department of this or any other
state or with the federal government regarding the management,
development or disposition thereof. The board may make gratuitous
assignments of such property to any trust or fund, the sole
beneficiary of which is the   { - State - }  board   { - of
Higher Education - }  or any of the
  { - institutions - }  { +  public universities or offices,
departments + } or activities under its control, subject to the
share, if any, agreed to be paid to the assignor. The board may
reassign such property to the inventor, author or discoverer.
  SECTION 45. 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 46. ORS 351.300 is amended to read:
  351.300. The Legislative Assembly finds that in order to avoid
unnecessary disruption at public   { - institutions of higher
education - }  { +  universities listed in ORS 352.002 + } and in
order to provide assurance that the   { - institutions - }  { +
public universities + } share in the benefits of any major reform
in the Oregon tax system, it is necessary to stabilize funding
for   { - such institutions - }  { +  the Oregon University
System + } over a longer period than is customary with biennial
budgeting.
  SECTION 47. ORS 351.310 is amended to read:
  351.310. (1) The State Board of Higher Education shall control
the use, distribution and disbursement of all funds,
appropriations and taxes now or hereafter in possession, levied
and collected, received or appropriated for the use, benefit,
support and maintenance of   { - institutions, departments or
activities of higher education - }  { +  the public universities
listed in ORS 352.002 and offices, departments and activities
under the control of the board + }, including the authorization
of individuals to sign vouchers for the disbursement of funds for
the various
  { - institutions, - }   { + public universities, offices, + }
departments and activities.
  (2) All moneys, except moneys appropriated from the State
Treasury for expenditure within a specified period of time,
heretofore or hereafter received by or on behalf of the
 { - State - } board   { - of Higher Education - } , or any
 { - institution, department or activity under its control,
which - }   { + public university or office, department or
activity under the control of the board, that + } are not
otherwise appropriated by law, hereby are appropriated
continuously to the State Board of Higher Education for the
purposes for which such moneys were donated, granted or received,
in accordance with any applicable law governing the use of such
moneys.
  SECTION 48. 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 49. ORS 351.320 is amended to read:
  351.320. The State Board of Higher Education may prorate all
expenses not otherwise provided for, incurred under authority of
ORS 351.040, 351.050,   { - 351.090 to - }   { + 351.100, + }
351.110, 351.130 and 351.310 to the   { - institutions - }
 { + public universities + } under its control, and pay the same
from the funds available for the general expenses of those
 { - institutions - }  { +  universities + }.
  SECTION 50. ORS 351.340 is amended to read:
  351.340. All sums of money provided by law for the support and
maintenance of   { - institutions and activities of higher
learning - }  { +  the public universities listed in ORS 352.002
and offices, departments and activities under the control of the
State Board of Higher Education + } may be used for the payment
of salaries of instructors and employees, current expenses,
construction of additional buildings, purchase of lands, purchase
of equipment, purchase of library books and periodicals, purchase
of laboratory supplies and apparatus  { - , - }   { + and + }
making necessary repairs and, in general, for the payment of all
such expenses connected with the management of   { - such
institutions and activities of higher learning - }  { +  the
public universities and offices, departments and activities + },
as the board may from time to time determine. However, such
 { - money - }   { + moneys + } in the instruction budget of the
board shall not be used to support hobby or recreation courses.
  SECTION 51. ORS 351.450 is amended to read:
  351.450. (1) The   { - moneys - }  { +  net proceeds + }
realized from sales of bonds issued to construct, improve,
repair, equip and furnish buildings and other structures for
higher education, and to purchase and improve sites
 { - therefor - }  { +  for buildings and other structures + },
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  { + general
obligation + } 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  { + general
obligation + } 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 - }  { +  net proceeds + } received from
the issuance of temporary bonds under ORS 351.470 for the purpose
of interim financing pending the sale of the bonds shall also be
credited to the appropriate subaccount of the account designated
by this section.
  (4) The moneys in the account designated by this section shall
be used for the purpose of defraying the costs of the projects to
be financed through sale of the bonds and for the purpose of
retiring temporary bonds issued under ORS 351.470 and may not be
used for any other purpose unless designated for investment by
the Chancellor of the Oregon University System. If a surplus
remains after application to the purposes described in this
subsection, the surplus and earnings from temporary investments
shall be credited to the account maintained in the Oregon
University System Fund under ORS 351.460.
  SECTION 52. ORS 351.455 is amended to read:
  351.455.   { - Notwithstanding any other provisions of law, - }
The Oregon University System may expend moneys from the
appropriate subaccount of the account in the Oregon University
System Fund designated by ORS 351.450, including   { - moneys - }
 { +  net proceeds + } realized from the sale of bonds issued
pursuant to Article XI-F(1) of the Oregon Constitution and ORS
351.350,   { - and from the sale of revenue bonds authorized by
ORS 351.315, - }  for the planning, constructing, altering,
repairing, furnishing and equipping of buildings and facilities
of the kind and character prescribed by Article XI-F(1) of the
Oregon Constitution and for the acquisition of land.
  SECTION 53. ORS 351.460 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  { + general obligation + } bonds issued under
authority of Article XI-F(1) of the Oregon Constitution and ORS
351.350;
  (b) The  { + general obligation + } 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) All of the net revenues received from the projects or
undertakings for the financing of which the bonds were issued,
including gifts, grants and building fees;
  (d) Unpledged revenues of buildings and projects of like
character that are allocated by the board;
  (e) All moneys received as accrued interest upon bonds sold;
  (f) All earnings from investments of the account;
  (g) All proceeds of the sale of refunding bonds; and
  (h) All moneys that the State of Oregon has agreed to hold in
the 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 land, buildings and facilities. When the land,
buildings or facilities are sold or the use of the land,
buildings or facilities 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) The board shall apply student building fees, revenues,
gifts and grants for the payment of the principal of and the
interest upon the bonds issued under authority of Article XI-F(1)
of the Oregon Constitution   { - and upon revenue bonds
authorized by ORS 351.315 - }  until   { - such time as - }  the
proper subaccount and investments of the subaccount, as
supplemented by expected future income will, in the judgment of
the board, be sufficient to meet in full the principal of and the
interest upon all such outstanding bonds. Except for student
building fees, income not 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 board. Student building fees for buildings
constructed from the proceeds of  { +  general obligation + }
bonds issued under Article XI-F(1) of the Oregon Constitution
 { - or ORS 351.315 - }  shall be applied only to
  { - those - }   { + general obligation + } bonds authorized
under Article XI-F(1) of the Oregon Constitution   { - or ORS
351.315 - } .
  (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, the board
may transfer any surplus in the account to other accounts in the
Oregon University System Fund if a balance remains in the account
from sources other than student building fees for buildings
constructed from the proceeds of bonds issued under Article
XI-F(1) of the Oregon Constitution and:
  (A) The purposes for which the account was created have been
fulfilled; or
  (B) A reserve sufficient to meet all existing and future
obligations and liabilities of the account has been set aside.
  SECTION 54. 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 55. ORS 351.590 is amended to read:
  351.590. (1) An account in the Oregon University System Fund
established by ORS 351.506 is designated for the purpose of
receiving all revenue from incidental fees, optional fees, health
 
services fees and all operating revenue from intercollegiate
athletics, student unions and educational activities.
  (2) Disbursements from the account designated by this section,
including any interest credited to the account, may be made for
necessary expenses for supplies, services and equipment
associated with student activities including but not limited to
recruiting, training and grant-in-aid to intercollegiate
athletes.
  (3) Income and interest derived from moneys in the account
designated by this section are credited to the account. The State
Board of Higher Education shall distribute annually the total
interest earnings proportionately to each   { - institution - }
 { + public university listed in ORS 352.002 + } based on each
 { - institution's - }  { +  university's + } average cash
balance in the account.
  SECTION 56. ORS 351.628 is amended to read:
  351.628. (1) There is established in the General Fund an
account to be known as the Higher Education Academic
Modernization Account. Funds in the account shall be used at
 { - state institutions of higher education within the Oregon
University System - }  { +  public universities listed in ORS
352.002 + } for academic modernization, capital repair, deferred
maintenance and making facilities compliant with building and
safety codes.
  (2) The account shall consist of funds donated to the Oregon
University System for the purposes described in subsection (1) of
this section. The account may also consist of other funds
available to the Oregon University System for the purposes
described in subsection (1) of this section. The Oregon
University System may not deposit any moneys into the account
that were appropriated to the Department of Higher Education
under chapter 725, Oregon Laws 2003. Interest earned on moneys in
the account shall be credited to the account.
  (3) Moneys in the account shall be considered to be General
Fund moneys for purposes of section 1 (3), Article XI-G of the
Oregon Constitution, and are continuously appropriated to the
Oregon University System for the purposes described in subsection
(1) of this section. The account may not be credited with more
than $1,000,000 in interest, donations and other funds.
  SECTION 57. 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 58. ORS 351.642 is amended to read:
  351.642. (1) As used in this section:
  (a) 'Active member of the Armed Forces of the United States'
includes officers and enlisted personnel of the Armed Forces of
the United States who:
  (A) Reside in this state while assigned to duty at any base,
station, shore establishment or other facility in this state;
 
  (B) Reside in this state while serving as members of the crew
of a ship that has an Oregon port or shore establishment as its
home port or permanent station; or
  (C) Reside in another state or a foreign country and establish
Oregon residency by filing Oregon state income taxes no later
than 12 months before leaving active duty.
  (b) 'Armed Forces of the United States' includes:
  (A) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (B) Reserve components of the Army, Navy, Air Force, Marine
Corps and Coast Guard of the United States; and
  (C) The National Guard of the United States and the Oregon
National Guard.
  (c) 'Dependent children' includes any children of an active
member of the Armed Forces of the United States who:
  (A) Are under 18 years of age and not married, otherwise
emancipated or self-supporting; or
  (B) Are under 23 years of age, unmarried, enrolled in a
full-time course of study in an institution of higher learning
and dependent on the member for over one-half of their support.
  (2) Active members of the Armed Forces of the United States and
their spouses and dependent children shall be considered
residents of this state for the purpose of admission and for the
purpose of determining fees and tuition to be paid by such
individuals while attending any   { - educational institution in
this state - }  { +  public university  + }that is under the
control of the State Board of Higher Education.
  (3) The State Board of Higher Education may contract with the
Armed Forces of the United States to furnish educational service
in   { - Oregon institutions - }  { +  the public
universities + } to active members of the Armed Forces of the
United States.
  (4) The State Board of Higher Education shall determine the
number of such students that should be accepted and shall make
final decisions on admission of individual applicants.
  (5) Students attending   { - Oregon institutions - }  { +  the
public universities  + }under contracts with the Armed Forces of
the United States under this section shall pay fees and tuition
customarily charged Oregon students.
  (6) Payments made by the Armed Forces of the United States
under such contracts shall be deposited in a designated account
in the Oregon University System Fund established by ORS 351.506
in the same manner that fees and tuition payments for resident
students are deposited and credited.
  SECTION 59. ORS 351.643 is amended to read:
  351.643. (1) A student   { - at a state institution of higher
education - }   { + at a public university listed in ORS
352.002 + } who is a member of the military and who is ordered to
federal or state active duty for more than 30 consecutive days
has the following rights:
  (a) With regard to a course in which the student is enrolled
and for which the student has paid tuition and fees, the right
to:
  (A) Withdraw from the course, subject to the provisions of
subsection (2) of this section;
  (B) Receive a grade of incomplete and, upon release from active
duty, complete the course in accordance with the practice of the
 { - state institution of higher education - }  { +  public
university + } for completion of incomplete courses; or
  (C) Continue and complete the course for full credit, subject
to the provisions of subsection (3) of this section;
  (b) The right to a credit described in ORS 351.644 for all
amounts paid for room, board, tuition and fees;
  (c) If the student elects to withdraw from the   { - state
institution of higher education - }  { +  public university + },
the right to be readmitted and reenrolled at the   { - state
institution of higher education - }  { +  public university + }
within one year after release from active duty without a
requirement of redetermination of admission eligibility; and
  (d) The right to continuation of scholarships and grants
awarded to the student that were funded by the   { - state
institution of higher education - }  { +  public university
 + }or the Oregon Student Assistance Commission before the
student was ordered to active duty.
  (2) If the student elects to withdraw from a course under
subsection (1)(a)(A) of this section, the   { - state institution
of higher education - }  { +  public university + } may not:
  (a) Give the student academic credit for the course from which
the student withdraws;
  (b) Give the student a failing grade or a grade of incomplete
or make any other negative annotation on the student's record; or
  (c) Alter the student's grade point average due to the
student's withdrawal from the course.
  (3) A student who elects to continue and complete a course for
full credit under subsection (1)(a)(C) of this section is subject
to the following conditions:
  (a) Course sessions the student misses due to active duty shall
be counted as excused absences and may not adversely impact the
student's grade for the course or rank in the student's class.
  (b) The student may not be automatically excused from
completing course assignments due during the period the student
serves on active duty.
  (c) A letter grade or a grade of pass may be awarded only if,
in the opinion of the teacher of the course, the student
completes sufficient work and demonstrates sufficient progress
toward meeting course requirements to justify the grade.
  (4) The State Board of Higher Education shall adopt rules for
the administration of this section.
  (5) As used in this section, 'member of the military' means a
person who is a member of:
  (a) The Oregon National Guard or the National Guard of any
other state or territory; or
  (b) The reserves of the Army, Navy, Air Force, Marine Corps or
Coast Guard of the United States.
  SECTION 60. ORS 351.644 is amended to read:
  351.644. (1)(a) The amount of the credit specified in ORS
351.643 (1)(b) shall be based on:
  (A) The amount of room and board paid by the student for a term
that the student does not complete because the student is ordered
to active duty; and
  (B) The amount of tuition and fees paid by the student for a
course from which the student withdraws.
  (b) The amount of the credit shall be prorated based on the
number of weeks remaining in the term or course when the student
withdraws.
  (c) At the time a student withdraws from a course at a
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } or from the   { - state
institution of higher education - }  { +  public university + },
the student must elect to claim the credit:
  (A) As a credit toward tuition and fees or room and board if
the student reenrolls at the   { - state institution of higher
education - }  { +  public university + } under ORS 351.643
(1)(c); or
  (B) As a monetary payment.
  (2) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section may change the
method of claiming the credit to the method described in
subsection (1)(c)(B) of this section by giving notice to the
  { - state institution of higher education - }  { +  public
university + } from which the student withdraws.
 
  (3) A student who elects to claim the credit by the method
described in subsection (1)(c)(A) of this section must use the
credit or change the method of claiming the credit under
subsection (2) of this section within one year after release from
active duty.
  (4) A personal representative of a student who elected to claim
the credit by the method described in subsection (1)(c)(A) of
this section may claim a monetary payment upon presenting
evidence to the   { - state institution of higher education - }
 { +  public university + } that the student died while serving
on active duty.
  (5) The State Board of Higher Education shall adopt rules for
the administration of this section, including rules that
determine the amount of credit and the method by which the credit
is prorated.
  SECTION 61. ORS 351.646 is amended to read:
  351.646. A   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 shall give
credit for education and training obtained by a person while
serving in the Armed Forces of the United States, as defined in
ORS 351.642. The education and training for which credit may be
given must meet the standards adopted by the State Board of
Higher Education by rule.
  SECTION 62. ORS 351.649 is amended to read:
  351.649. (1) For the purposes of this section:
  (a) 'Public institution of higher education' means:
  (A) A community college;
  (B) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (C) The Oregon Health and Science University.
  (b) 'School-sponsored media' means materials that are prepared,
substantially written, published or broadcast by student
journalists, that are distributed or generally made available,
either free of charge or for a fee, to members of the student
body and that are prepared under the direction of a student media
adviser. 'School-sponsored media' does not include media intended
for distribution or transmission solely in the classrooms in
which they are produced.
  (c) 'Student journalist' means a student who gathers, compiles,
writes, edits, photographs, records or prepares information for
dissemination in school-sponsored media.
  (d) 'Student media adviser' means a person who is employed,
appointed or designated by a public institution of higher
education to supervise, or provide instruction relating to,
school-sponsored media.
  (2) Student journalists are responsible for determining the
news, opinion, feature and advertising content of
school-sponsored media. This subsection does not prevent a
student media adviser from teaching professional standards of
English and journalism to the student journalists.
  (3) Nothing in this section may be interpreted to authorize
expression by students that:
  (a) Is libelous or slanderous;
  (b) Constitutes an unwarranted invasion of privacy;
  (c) Violates federal or state statutes, rules or regulations or
state common law; or
  (d) So incites students as to create a clear and present danger
of:
  (A) The commission of unlawful acts on or off school premises;
  (B) The violation of school policies; or
  (C) The material and substantial disruption of the orderly
operation of the school. A school official must base a forecast
of material and substantial disruption on specific facts,
including past experience in the school and current events
influencing student behavior, and not on undifferentiated fear or
apprehension.
  (4) Any student enrolled in a public institution of higher
education may commence a civil action to obtain damages under
this subsection and appropriate injunctive or declaratory relief
as determined by a court for a violation of subsection (2) of
this section, the First Amendment to the United States
Constitution or section 8, Article I of the Oregon Constitution.
Upon a motion, a court may award $100 in damages and injunctive
and declaratory relief to a prevailing plaintiff in a civil
action brought under this subsection.
  SECTION 63. ORS 351.656 is amended to read:
  351.656. (1) As used in this section:
  (a) 'Child' means a child, adopted child or stepchild of a
service member.
  (b) 'Eligible post-secondary institution' means:
  (A) A   { - state institution of higher education - }
 { + public university + } listed in ORS 352.002; and
  (B) The Oregon Health and Science University.
  (c) 'Qualified student' means a child, a spouse or an
unremarried surviving spouse of a service member.
  (d) 'Service member' means a person who:
  (A) As a member of the Armed Forces of the United States, died
on active duty;
  (B) As a member of the Armed Forces of the United States, died
as a result of a military service connected disability; or
  (C) Is 100 percent disabled as the result of a military service
connected disability, as certified by the United States
Department of Veterans Affairs or any branch of the Armed Forces
of the United States.
  (2) Subject to subsections (3) to (6) of this section, an
eligible post-secondary institution shall waive tuition for a
qualified student for courses that may lead to a baccalaureate
degree or a master's degree. A qualified student who received a
tuition waiver for a baccalaureate degree may also qualify for a
tuition waiver for a master's degree.
  (3)(a) The maximum waiver granted under this section shall be
as follows:
  (A) For a baccalaureate degree, the total number of credit
hours that equals four years of full-time attendance at an
eligible post-secondary institution.
  (B) For a master's degree, the total number of credit hours
that equals two years of full-time attendance at an eligible
post-secondary institution.
  (b) Notwithstanding paragraph (a) of this subsection, a waiver
may not exceed the total number of credit hours the qualified
student needs to graduate with a baccalaureate degree or a
master's degree.
  (4) A waiver may be granted under this section only for credit
hours for courses that are offered by an eligible post-secondary
institution and are available for enrollment regardless of
whether the qualified student attends the course and pays
tuition.
  (5) A qualified student may receive a waiver under this section
if the student:
  (a) At the time of application for a waiver, is considered a
resident of this state for the purpose of determining tuition to
be paid at an eligible post-secondary institution; and
  (b) Has been admitted to an eligible post-secondary institution
for a baccalaureate degree program or has been admitted to a
master's degree program at an eligible post-secondary
institution.
  (6)(a) A child who applies for a waiver under this section must
be 23 years of age or younger at the time the child applies for a
waiver.
  (b) Notwithstanding paragraph (a) of this subsection, a child
who is older than 23 years of age is eligible for a waiver for a
master's degree if the child:
  (A) Applied for and received a waiver for a baccalaureate
degree when the child was 23 years of age or younger; and
  (B) Applied for a waiver for a master's degree within 12 months
of receiving a baccalaureate degree.
  SECTION 64. ORS 351.658 is amended to read:
  351.658. (1) The State Board of Higher Education shall direct
each   { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } to waive tuition for any
course audited by an Oregon resident 65 years of age or older if:
  (a) Space is available in the course for additional students to
register after degree-seeking students have registered;
  (b) The department in which the course is being taught
approves; and
  (c) The auditing student is registered for eight credits or
fewer per term.
  (2)   { - A state institution of higher education - }  { +  The
public university  + }may charge the student attending under
subsection (1) of this section fees associated with the course
being audited.
  (3) A   { - state institution of higher education - }  { +
public university + } may develop rules for implementation of
this section, including rules relating to registration, admission
and fees.
  SECTION 65. ORS 351.700 is amended to read:
  351.700. As used in ORS 351.704 and 351.708, 'public
institution of higher education' means:
  (1) A community college; or
  (2) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002.
  SECTION 66. 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 67. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education and the Oregon
Health and Science University Board of Directors may contract
with the Western Interstate Commission for Higher Education to
furnish educational service in their respective Oregon
 { - institutions - }   { + public universities + } to
out-of-state students.
  (2) The State Board of Higher Education and the Oregon Health
and Science University Board of Directors shall determine the
number of out-of-state students that should be accepted into
their respective   { - institutions - }  { +  universities + },
and shall make final decisions on admission of individual
applicants.
  (3) Payments made by the commission under such contracts shall
be deposited in and credited to a designated account in the
Oregon University System Fund established by ORS 351.506 for
students enrolled in   { - institutions - }   { + public
universities + } under the jurisdiction of the State Board of
Higher Education in the same manner that fees and tuition
payments for resident students are deposited and credited. The
estimated amount of the payments must be considered by the board
in making its biennial budgetary requests. Payments made by the
commission under such contracts must be deposited with the Oregon
Health and Science University for students who enroll in that
university under the terms of such contracts.
  SECTION 68. ORS 351.870 is amended to read:
  351.870. (1) The Legislative Assembly finds and declares that
basic research is fundamental to the continuation and expansion
of applied research and is thus a necessary ingredient in
economic growth. The Legislative Assembly further finds that
basic research is itself an important activity which should be
promoted.
  (2) It is the policy of this state that basic research is an
appropriate and necessary activity of our public universities.
Further, the State of Oregon has an obligation with other states
and the federal government to encourage and finance basic
research if the state and nation are to be active participants in
a future which will require ever increasing levels of knowledge
and understanding.
  (3) The Legislative Assembly acknowledges that a characteristic
of basic research is that no defined result can be guaranteed and
asserts that only through scholarly investigation can knowledge
be advanced to be later developed and applied.
  (4) The Legislative Assembly believes that moneys for basic
research should be regularly appropriated and that such moneys
should be used for support of qualified investigators and funding
of research projects.
  (5) The Legislative Assembly intends that in implementing the
policy on basic research or any other research policy, the State
Board of Higher Education, in keeping with the principle of
academic freedom, shall   { - insure - }   { + ensure + } open
and free inquiry and publication in all   { - institutions - }
 { + public universities + } under its jurisdiction.
  SECTION 69. ORS 351.885 is amended to read:
  351.885. (1) With the advice and recommendations of the Council
for Research Policy Recommendations established by ORS 351.880,
the State Board of Higher Education shall adopt policies and
procedures for the administration of the account designated by
ORS 351.875.
  (2) The policies and procedures shall give consideration to:
  (a) The promotion of basic research of the highest caliber at
  { - institutions of higher education - }  { +  public
universities + } within the Oregon University System;
  (b) The identification of areas of inquiry that should be
supported so as to recognize both the intrinsic value and
extrinsic economic value of basic research;
  (c) The capacity of each   { - institution of higher
education - }  { +  public university + } to decide where basic
research moneys could best be spent within that
 { - institution - }  { +  public university + };
  (d) Administrative and accounting requirements that place upon
the   { - institution of higher education - }  { +  public
university + } receiving moneys from the account designated by
ORS 351.875 a minimum burden sufficient to guarantee an
appropriate degree of public accountability; and
  (e) Methods of   { - assuring - }   { + ensuring + }
nondiscriminatory access to the account designated by ORS
351.875.
  SECTION 70. ORS 352.002 is amended to read:
  352.002. The Oregon University System  { + established in
section 3 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 71. ORS 352.004 is amended to read:
  352.004. The president of each   { - state institution of
higher education - }  { +  public university + } within the
Oregon University System is also president of the faculty. The
president is also the executive and governing officer of the
 { - institution - }  { +  public university + }, except as
otherwise provided by statute { +  or action of the State Board
of Higher Education + }. Subject to the supervision of the
 { - State - }  board   { - of Higher Education - } , the
president of the
  { - institution - }  { +  public university + } has authority
to control and give general directions to the practical affairs
of the   { - institution - }  { +  public university + }.
  SECTION 72. ORS 352.008 is amended to read:
  352.008. In consultation with the Oregon Health Authority, each
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } shall adopt a comprehensive
alcohol and drug abuse policy and implementation plan.
  SECTION 73. 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.
  SECTION 74. ORS 352.015 is amended to read:
  352.015. (1)   { - Every institution under the jurisdiction of
the State Board of Higher Education - }  { +  Each public
university listed in ORS 352.002 + } shall convene a physical
access committee to identify barriers to access by persons with
disabilities on the campus of each   { - institution - }  { +
public university + }. The committee shall include, but not be
limited to:
  (a) One or more students with disabilities or, if there are no
students with disabilities willing to participate, a person with
a disability who uses the   { - institution's - }  { +  public
university's + } facilities;
  (b) One or more members of the faculty or staff who have
disabilities;
  (c) The coordinator of services for students with disabilities
for the   { - institution - }  { +  public university + };
  (d) One or more administrators of the   { - institution - }
 { +  public university + }; and
  (e) One or more members of the physical plant staff of the
  { - institution - }  { +  public university + }.
  (2) The physical access committee shall present its findings
and recommendations to the administration of the
 { - institution - }  { +  public university + } listing access
needs and priorities for meeting those needs. These findings and
recommendations shall identify the barriers to access that
prevent persons with disabilities from meaningfully utilizing
campus facilities related to instruction, academic support,
assembly and residence life.
 
  (3) In preparing   { - budget - }   { + funding + } requests
for each biennium, each   { - institution under the jurisdiction
of the State Board of Higher Education - }  { +  public
university + } shall include amounts for capital improvement that
will be applied to the substantial reduction and eventual
elimination of barriers to access by persons with disabilities as
identified by the physical access committee.
  (4) Nothing in this section and ORS 185.155 and 341.937
requires   { - an institution - }   { + a public university + }
to undertake projects for accessibility that are not otherwise
required unless such projects are funded specifically by the
Legislative Assembly.
  SECTION 75. ORS 352.017 is amended to read:
  352.017. (1) As used in this section, 'personally identifiable
information' means a student's Social Security number and gender
or a student's Social Security number and date of birth.
  (2) A   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + } may enter into a
contract with a private contractor to provide the service of
facilitating the disbursement of funds to students. If a
student's personally identifiable information is necessary to
administer the disbursement of funds under the contract, the
 { - institution must - }  { +  public university + }:
  (a)  { + Shall + } obtain from a student a written election to
receive the contracted services;
  (b)  { + Shall + } provide any alternative method of
disbursement of funds at no additional cost to a student who does
not elect to receive those services from a private contractor;
  (c)  { + May + } not release to a private contractor personally
identifiable information about a student who elects to receive
disbursement services from the private contractor without first
obtaining from the student a written consent to release the
personally identifiable information; and
  (d)  { + Shall + } provide to a student a written description
of the purposes for which a private contractor may use the
student's personally identifiable information.
  SECTION 76. ORS 352.021 is amended to read:
  352.021. (1) As used in this section, 'internment camp ' means
a relocation center to which persons were ordered evacuated by
Presidential Executive Order 9066, signed on February 19, 1942.
  (2) A person who meets the requirements of subsection (4) of
this section may request a   { - state institution of higher
education - }  { +  public university + } listed in ORS 352.002
to award the person an honorary post-secondary degree.
  (3) A representative of a deceased person who meets the
requirements of subsection (4) of this section may request a
  { - state institution of higher education listed in ORS
352.002 - }  { +  public university + } to award an honorary
post-secondary degree on behalf of the deceased person.
  (4) Notwithstanding the requirements for a post-secondary
degree established by a   { - state institution of higher
education - }  { +  public university + } or by the State Board
of Higher Education, a
  { - state institution of higher education - }  { +  public
university + } that receives a request under subsection (2) or
(3) of this section may award an honorary post-secondary degree
to a person, or on behalf of a deceased person, who:
  (a) Was a student at the   { - state institution of higher
education - }  { +  public university + } in 1942; and
  (b) Did not graduate from the   { - institution - }  { +
public university + } because the person was ordered to an
internment camp.
  SECTION 77. ORS 352.223 is amended to read:
  352.223. (1) As used in this section:
  (a) 'Allied health education programs' includes, but is not
limited to:
  (A) Radiologic science;
  (B) Nuclear medicine;
  (C) Sonography;
  (D) Vascular technology;
  (E) Dental hygiene;
  (F) Respiratory care;
  (G) Clinical laboratory sciences; and
  (H) Emergency medical technician education.
  (b) 'Allied health education programs' does not include any
undergraduate or graduate nursing program administered by Oregon
Health and Science University.
  (2) There is created within the Oregon University System the
Oregon Center for Health Professions. The Oregon Center for
Health Professions shall be administered by the Oregon Institute
of Technology.
  (3) The purposes of the Oregon Center for Health Professions
are to:
  (a) Provide continued development of bachelor's degree level
education programs in areas of allied health;
  (b) Facilitate the creation of new partnerships between the
health care industry and community colleges, private institutions
of higher education and   { - state institutions of higher
education - }  { + public universities listed in ORS 352.002 + }
in order to increase the number of students and graduates in
allied health education programs;
  (c) Provide continuing education, professional development and
certificate programs for allied health care professionals; and
  (d) Align with and complement educational partnerships between
the Oregon Institute of Technology and Oregon Health and Science
University focusing on allied health education programs.
  (4) The Oregon University System may receive moneys from any
public or private source to support the Oregon Center for Health
Professions. Gifts and grants received to support the Oregon
Center for Health Professions shall be credited to the
appropriate fund at the Oregon Institute of Technology by the
Oregon University System.
  SECTION 78. ORS 352.360 is amended to read:
  352.360. (1) The State Board of Higher Education may enact such
regulations as the board deems convenient or necessary to provide
for the policing, control and regulation of traffic and parking
of vehicles on the property of any   { - institution of higher
education under the jurisdiction of the board - }  { +  public
university listed in ORS 352.002 + }. The regulations may provide
for the registration of vehicles, the designation of parking
areas  { - , - }  and the assessment and collection of reasonable
fees and charges for parking  { - , and shall be filed in
accordance with the provisions of ORS chapter 183 - } . The board
may require that before a quarterly or yearly parking privilege
for any vehicle is granted to any full-time or part-time student
to use board property, the student must show that the vehicle is
operated by a student holding a valid   { - driver's - }
 { + driver + } license, that the vehicle is currently registered
and that the student driving the vehicle is insured under a motor
vehicle liability insurance policy that meets the requirements
described under ORS 806.080 or that the student or owner of the
vehicle has provided the Department of Transportation with other
satisfactory proof of compliance with the financial
responsibility requirements of this state.
  (2) The regulations enacted pursuant to subsection (1) of this
section shall be enforced administratively under procedures
adopted by the board for each   { - institution of higher
education under the jurisdiction of the board - }  { +  public
university + }.  Administrative and disciplinary sanctions may be
imposed upon students, faculty and staff for violation of the
regulations, including but not limited to, a reasonable monetary
penalty which may be deducted from student deposits, and faculty
or staff salaries or other funds in the possession of the
 { - institution - }  { +  public university + }. The board shall
provide opportunity for hearing for the determination of
controversies in connection with imposition of fines or
penalties. The board may prescribe procedures for such hearings
despite the provisions of ORS 183.413 to 183.470. Persons other
than students, faculty or staff may voluntarily submit to the
hearing procedures prescribed by the board, and shall be bound by
the results of the hearing. The powers granted to the board by
this section are supplemental to the existing powers of the board
with respect to the government of activities of students, faculty
and staff and the control and management of property under its
jurisdiction.
  (3) The regulations enacted pursuant to subsection (1) of this
section may also be enforced by the impoundment of vehicles, and
a reasonable fee may be enacted for the cost of impoundment and
storage, if any, prior to the release of the vehicles to their
owners.
  (4) All fees and charges for parking privileges and violations
are deposited in a designated account in the Oregon University
System Fund established by ORS 351.506 for the purpose of
defraying the costs of constructing bicycle racks and bicycle
lanes and of traffic control, enforcement of traffic and parking
regulations  { - , - }  and maintenance and operation of parking
facilities and for the purpose of acquiring and constructing
additional parking facilities for vehicles at the various
 { - institutions, departments or - }   { + public universities
and offices, departments and + } activities under the control of
the board. Fees and charges may also be credited to the account
in the Oregon University System Fund designated by ORS 351.460.
Parking fees shall be established at levels no greater than those
required to finance the construction, operation and maintenance
of parking facilities on the same campus of the   { - state
institution of higher education on - }  { + public university
for + } which the parking is provided.  Notwithstanding ORS
351.072, parking fees or changes in fees shall be adopted by rule
of the   { - state - }  board subject to the procedure for rules
adopted in ORS chapter 183.
  (5) Every peace officer may enforce the regulations made by the
board under subsection (1) of this section. The board, for the
purpose of enforcing its rules and regulations governing traffic
control, may appoint peace officers who have the same authority
as other peace officers as defined in ORS 133.005.
  (6) The board and any municipal corporation or any department,
agency or political subdivision of this state may enter into
agreements or contracts with each other for the purpose of
providing a uniform system of enforcement of the rules and
regulations of the board enacted pursuant to subsection (1) of
this section.
  (7) In proceedings brought to enforce regulations enacted
pursuant to subsection (1) of this section, it shall be
sufficient to charge the defendant by an unsworn written notice
in accordance with the provisions of ORS 221.333. In any case in
which the defendant is not subject to and does not voluntarily
submit to the hearing procedures prescribed under subsection (2)
of this section, proceedings to enforce regulations enacted
pursuant to subsection (1) of this section shall be brought in
the name of the board in a circuit court, a justice court or a
city court for offenses committed within the territorial
jurisdiction of such court. Such courts shall have concurrent
jurisdiction over offenses committed within their respective
jurisdictions. All fines, penalties and court costs recovered
shall be paid to the clerk of the court involved and shall be
disposed of as provided in ORS 153.630.
  SECTION 79. ORS 352.370 is amended to read:
 
  352.370. (1) As used in this section, 'school of higher
education' means:
  (a) Any   { - school, institution or department under the
jurisdiction of the State Board of Higher Education - }  { +
public university listed in ORS 352.002 + }.
  (b) Any community college as defined in ORS 341.005.
  (2) No student shall be refused admission to a school of higher
education or be expelled from such a school for the sole reason
that, because of religious beliefs, the student is unable to
attend classes on a particular day.
  (3) Any student in a school of higher education who, because of
religious beliefs, is unable to attend classes on a particular
day shall be excused on that day from any examination, study
requirement or work requirement. However, at the student's own
expense the student shall make up the examination, study
requirement or work requirement missed because of the absence.
  SECTION 80. ORS 352.375 is amended to read:
  352.375. (1) A   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 or a community
college shall charge an enrolled student who is not a resident of
this state and who is attending classes as an undergraduate on a
public university or community college campus in this state
tuition and fees no greater than the resident rate plus 50
percent of the difference between the resident rate and the
nonresident rate if the student served in the Armed Forces of the
United States and was relieved or discharged from that service
under honorable conditions.
  (2) Every   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002 and community college
in this state shall participate to the fullest extent allowed in
the federal educational assistance programs under the
Supplemental Appropriations Act of 2008 (P.L. 110-252) so as to
reduce the overall tuition rate for students eligible for tuition
rate reduction under subsection (1) of this section to the
resident tuition rate.
  (3) A person who served in the Armed Forces of the United
States and who receives federal tuition benefits in excess of the
tuition and fees the person is charged under subsection (1) of
this section at a   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002 or a community
college where the person is enrolled shall pay tuition and fees
equal to the federal tuition benefits received.
  (4) Distance education and self-support courses as identified
by each   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002 and community college
are exempt from the tuition reduction provisions of this section.
  (5) If a nonresident student otherwise eligible for tuition
benefits under this section is receiving federal vocational
rehabilitation education benefits, that student shall pay full
nonresident tuition and fees charged by a   { - state institution
of higher education - }  { +  public university + } listed in ORS
352.002 or a community college.
  SECTION 81. ORS 352.380 is amended to read:
  352.380. (1) As used in this section, 'minority' means:
  (a) A person having origins in any of the black racial groups
of Africa but who is not Hispanic;
  (b) A person of Hispanic culture or origin;
  (c) A person having origins in any of the original peoples of
the Far East, Southeast Asia, the Indian subcontinent or the
Pacific Islands; or
  (d) An American Indian or Alaskan Native having origins in any
of the original peoples of North America.
  (2) Each   { - institution under the jurisdiction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + } shall:
 
  (a) Consider and maintain affirmative action plans and goals
when reductions in faculty and staff are required as a result of:
  (A) Reductions in revenue that necessitate discontinuance of
its educational program at its anticipated level;
  (B) Elimination of classes due to decreased student enrollment;
or
  (C) Reduction in courses due to administrative decisions.
  (b) Interview one or more qualified minority applicants when
hiring a head coach or athletic director, unless the
 { - institution - }  { +  public university + } was unable to
identify a qualified minority applicant who was willing to
interview for the position. It is an affirmative defense to a
claim of a violation of this paragraph that the
 { - institution - }  { +  public university + }, in good faith,
was unable to identify a qualified minority applicant who was
willing to interview for the position.
  SECTION 82. ORS 352.380, as amended by section 3, chapter 780,
Oregon Laws 2009, is amended to read:
  352.380. Each   { - institution under the jurisdiction of the
State Board of Higher Education - }  { +  public university
listed in ORS 352.002 + } shall consider and maintain affirmative
action plans and goals when reductions in faculty and staff are
required as a result of:
  (1) Reductions in revenue that necessitate discontinuance of
its educational program at its anticipated level;
  (2) Elimination of classes due to decreased student enrollment;
or
  (3) Reduction in courses due to administrative decisions.
  SECTION 83. ORS 352.385 is amended to read:
  352.385. (1) The State Board of Higher Education may, at the
request of   { - any institution - }   { + a public
university + } under its control, authorize   { - that
institution - }   { + the university + } to commission one or
more of its employees as special campus security officers.
  { - However, - }  The total number of special campus security
officers commissioned at the   { - institutions - }   { + public
universities + } in the Oregon University System   { - shall - }
 { +  may + } not exceed 50. Special campus security officers
shall have stop and frisk authority as set forth in ORS 131.605
to 131.625 and probable cause arrest authority and the
accompanying immunities as set forth in ORS 133.310 and 133.315
when acting in the scope of their employment as defined by the
State Board of Higher Education. Special campus security officers
shall not be authorized to carry firearms as police officers and,
except as provided in subsection (3) of this section, shall not
be considered police officers for purposes of ORS 181.610,
238.005, 243.005 or 243.736.
  (2) The Department of Public Safety Standards and Training
shall train special campus security officers at the expense of
the State Board of Higher Education.
  (3) The State Board of Higher Education, acting by and through
its special campus security officers, is a criminal justice
agency for purposes of rules adopted pursuant to ORS 181.730 (3).
  SECTION 84. ORS 352.390 is amended to read:
  352.390. (1) The State Board of Higher Education shall cause to
have prepared and submitted to the Legislative Assembly a program
and time schedule for the establishment of regional services
institutes at appropriate   { - state institutions of higher
education - }  { +  public universities + }. The program shall
include academic curriculum and practical training appropriate to
train students in various aspects of economic and community
services planning, with particular emphasis on economic services
planning for areas of the state that have common geographic,
economic and social characteristics but that do not have
sufficient population to qualify as metropolitan statistical
areas.
  (2) In carrying out its duties under subsection (1) of this
section, the board shall consult with the Oregon Business
Development Department and shall rely on the department for
technical advice and, as necessary, technical services. The board
shall also consult with community colleges, the Oregon State
University Extension Service, economic development districts and
special districts providing community and economic development
services in the region in order to prepare curriculum and
programs with particular emphasis on streamlining existing
programs, avoiding duplication and overlap of programs, better
utilizing students and resources and identifying needs in the
region that are currently unaddressed.
  (3) In preparing programs for establishing regional services
institutes, the board shall give priority to establishing
institutes at Eastern Oregon University and Southern Oregon
University. The board may also direct the hiring of an institute
director and other staff as may be from time to time required.
  SECTION 85. ORS 352.510 is amended to read:
  352.510. The interest that may accrue on an account arising
from the sale of lands for   { - institutions of higher
education - }  { +  public universities + } that were donated to
the state by Act of Congress of February 14, 1859, may be
deposited in and credited to an account in the Oregon University
System Fund established by ORS 351.506 for the purpose of the
maintenance, use and support of the University of Oregon. No part
of the interest may be expended otherwise than in the payment of
the salaries of the president, professors and teachers of the
University of Oregon and other current expenses of the University
of Oregon. If at the close of any fiscal year an amount equal to
or greater than $500 of the interest remains unexpended after the
full payment of the salaries and expenses for the fiscal year,
the amount shall be added to and become a part of the principal
of the account. The State Board of Higher Education or the
faculty or other officers of the University of Oregon may not
pledge the faith or credit of the University of Oregon in excess
of the interest annually accruing on the account, together with
the receipts from tuitions and other sources during the current
year.
  SECTION 86. ORS 352.669 is amended to read:
  352.669. The Legislative Assembly declares that all state
agencies  { - , in particular state institutions of higher
education, - }  { +  and the Oregon University System + } should
pursue policies and engage in practices that enhance the vitality
of independent higher education in Oregon and should cooperate
with the state's independent institutions.
  SECTION 87. 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 88. 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 89. 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 90. 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 91. 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 92. 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 93. 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 94. 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 95. 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 96. 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 97. 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 98. 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)
 
____NOTE_TO_WEB_CUSTOMERS:__________________________________
THE FOLLOWING TABULAR TEXT MAY BE IRREGULAR.
FOR COMPLETE INFORMATION PLEASE SEE THE PRINTED MEASURE.
_______________________________________________________________
 
______
             IS A   ______
(Name)              (Title)
____________________________________________________________
END OF POSSIBLE IRREGULAR TABULAR TEXT
____________________________________________________________
  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 99. 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)(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) 'Member account' means the regular account and the
variable account.
  (b) 'Regular account' means the account established for each
active and inactive member under ORS 238.250.
  (c) 'Variable account' means the account established for a
member who participates in the Variable Annuity Account under ORS
238.260.
  (14) 'Normal retirement age' means:
  (a) For a person who establishes membership in the system
before January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 58 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (b) For a person who establishes membership in the system on or
after January 1, 1996, as described in ORS 238.430, 55 years of
age if the employee retires at that age as a police officer or
firefighter or 60 years of age if the employee retires at that
age as other than a police officer or firefighter.
  (15) 'Pension' means annual payments for life derived from
contributions by one or more public employers.
  (16) 'Police officer' includes:
  (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions whose duties, as assigned
by the Director of the Department of Corrections, include the
custody of persons committed to the custody of or transferred to
the Department of Corrections and employees of the Department of
Corrections who were classified as police officers on or before
July 27, 1989, whether or not such classification was authorized
by law.
  (b) Employees of the Department of State Police who are
classified as police officers by the Superintendent of State
Police.
  (c) Employees of the Oregon Liquor Control Commission who are
classified as enforcement officers by the administrator of the
commission.
  (d) Sheriffs and those deputy sheriffs or other employees of a
sheriff whose duties, as classified by the sheriff, are the
regular duties of police officers or corrections officers.
  (e) Police chiefs and police personnel of a city who are
classified as police officers by the council or other governing
body of the city.
  (f) Parole and probation officers employed by the Department of
Corrections, parole and probation officers who are transferred to
county employment under ORS 423.549 and adult parole and
probation officers, as defined in ORS 181.610, who are classified
as police officers for the purposes of this chapter by the county
governing body. If a county classifies adult parole and probation
officers as police officers for the purposes of this chapter, and
the employees so classified are represented by a labor
organization, any proposal by the county to change that
classification or to cease to classify adult parole and probation
officers as police officers for the purposes of this chapter is a
mandatory subject of bargaining.
  (g) Police officers appointed under ORS 276.021 or 276.023.
  (h) Employees of the Port of Portland who are classified as
airport police by the Board of Commissioners of the Port of
Portland.
  (i) Employees of the State Department of Agriculture who are
classified as livestock police officers by the Director of
Agriculture.
  (j) Employees of the Department of Public Safety Standards and
Training who are classified by the department as other than
secretarial or clerical personnel.
  (k) Investigators of the Criminal Justice Division of the
Department of Justice.
  (L) Corrections officers as defined in ORS 181.610.
  (m) Employees of the Oregon State Lottery Commission who are
classified by the Director of the Oregon State Lottery as
enforcement agents pursuant to ORS 461.110.
  (n) The Director of the Department of Corrections.
  (o) An employee who for seven consecutive years has been
classified as a police officer as defined by this section, and
who is employed or transferred by the Department of Corrections
to fill a position designated by the Director of the Department
of Corrections as being eligible for police officer status.
  (p) An employee of the Department of Corrections classified as
a police officer on or prior to July 27, 1989, whether or not
that classification was authorized by law, as long as the
employee remains in the position held on July 27, 1989. The
initial classification of an employee under a system implemented
pursuant to ORS 240.190 does not affect police officer status.
  (q) Employees of a school district who are appointed and duly
sworn members of a law enforcement agency of the district as
provided in ORS 332.531 or otherwise employed full-time as police
officers commissioned by the district.
  (r) Employees at youth correction facilities and juvenile
detention facilities under ORS 419A.050, 419A.052 and 420.005 to
420.915 who are required to hold valid Oregon teaching licenses
and who have supervisory, control or teaching responsibilities
over juveniles committed to the custody of the Department of
Corrections or the Oregon Youth Authority.
  (s) Employees at youth correction facilities as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such facilities.
  (t) Employees of the Oregon Youth Authority who are classified
as juvenile parole and probation officers.
  (17) 'Public employer' means the state, one of its agencies,
any city, county, or municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by one or more such governmental
organizations to provide governmental services. For purposes of
this chapter, such agency created by one or more governmental
organizations is a governmental instrumentality and a legal
entity with power to enter into contracts, hold property and sue
and be sued.
  (18) 'Prior service credit' means credit provided under ORS
238.442 or under ORS 238.225 (2) to (6) (1999 Edition).
  (19) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an employee performs
600 or more hours of service in a calendar year, excluding any
service in a job for which a participating public employer does
not provide benefits under this chapter pursuant to an
application made under ORS 238.035.
  (20) 'Retirement credit' means a period of time that is treated
as creditable service for the purposes of this chapter.
  (21)(a) 'Salary' means the remuneration paid an employee in
cash out of the funds of a public employer in return for services
to the employer, plus the monetary value, as determined by the
Public Employees Retirement Board, of whatever living quarters,
board, lodging, fuel, laundry and other advantages the employer
furnishes the employee in return for services.
  (b) 'Salary' includes but is not limited to:
  (A) Payments of employee and employer money into a deferred
compensation plan, which are deemed salary paid in each month of
deferral;
  (B) The amount of participation in a tax-sheltered or deferred
annuity, which is deemed salary paid in each month of
participation;
  (C) Retroactive payments 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) 'School year' means the period beginning July 1 and ending
June 30 next following.
  (23) 'System' means the Public Employees Retirement System.
  (24) 'Vested' means being an active member of the system in
each of five calendar years.
  (25) 'Volunteer firefighter' means a firefighter whose position
normally requires less than 600 hours of service per year.
  SECTION 100. 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 engaged in teaching or
other school activity at   { - an institution of higher
education - }  { +  a public university listed in ORS 352.002 + }
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 101. 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
engaged in teaching or other school activity at   { - an
institution of higher education - }  { +  a public university
listed in ORS 352.002 + }, 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 102. 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) 'Member' means an eligible employee who has established
membership in the pension program or the individual account
program of the Oregon Public Service Retirement Plan and whose
membership has not been terminated under ORS 238A.110 or
238A.310.
  (11) 'Participating public employer' means a public employer as
defined in ORS 238.005 that provides retirement benefits for
employees of the public employer under the system.
 
  (12) 'Pension program' means the defined benefit pension
program of the Oregon Public Service Retirement Plan established
under ORS 238A.025.
  (13) 'Police officer' means a police officer as described in
ORS 238.005.
  (14) 'Qualifying position' means one or more jobs with one or
more participating public employers in which an eligible employee
performs 600 or more hours of service in a calendar year,
excluding any service in a job for which benefits are not
provided under the Oregon Public Service Retirement Plan pursuant
to ORS 238A.070 (2).
  (15) 'Retired member' means a pension program member who is
receiving a pension as provided in ORS 238A.180 to 238A.195.
  (16)(a) 'Salary' means the remuneration paid to an active
member in return for services to the participating public
employer, including remuneration in the form of living quarters,
board or other items of value, to the extent the remuneration is
includable in the employee's taxable income under Oregon law.
Salary includes the additional amounts specified in paragraph (b)
of this subsection, but does not include the amounts specified in
paragraph (c) of this subsection, regardless of whether those
amounts are includable in taxable income.
  (b) 'Salary' includes the following amounts:
  (A) Payments of employee and employer money into a deferred
compensation plan that are made at the election of the employee.
  (B) Contributions to a tax-sheltered or deferred annuity that
are made at the election of the employee.
  (C) Any amount that is contributed to a cafeteria plan or
qualified transportation fringe benefit plan by the employer at
the election of the employee and that is not includable in the
taxable income of the employee by reason of 26 U.S.C. 125 or
132(f)(4), as in effect on 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) 'System' means the Public Employees Retirement System.
  SECTION 103. 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 104. 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 105. 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 106. 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 107. 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 108. 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.
  (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 109. 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 110. 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 111. 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 112. 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 113. 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 114. 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 115. 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 116. 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 117. 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.
  (2) The state agency on whose behalf a motor vehicle is used
must state in writing in advance of such use that the particular
activity for which the vehicle is to be used advances the lawful
policies of the agency.
  (3) The State Board of Higher Education   { - shall - }
 { + may + } not authorize or allow the use of any motor vehicle
to transport students to an event or activity not directly
related to an officially sanctioned program { + , + } as
established under ORS 351.277
  { - of an institution in the Oregon University System - }
 { + , of a public university listed in ORS 352.002 + }.
  (4) The State Board of Higher Education, in conjunction with
the Oregon Department of Administrative Services, shall establish
by rule vehicle operation standards and training to promote safe
vehicular travel practices in the conduct of all travel by
employees, students and official volunteers at all
 { - institutions - }  { + public universities + } in the Oregon
University System.
  SECTION 118. ORS 284.633 is amended to read:
  284.633. (1) The Oregon Progress Board may enter into an
agreement with:
  (a) Any state agency for the provision of clerical, technical
and management personnel to the board to serve as the board's
staff and for the provision of other administrative, operational
or overhead expenses necessary to accomplish the public purposes
of the board.
  (b) A nongovernmental entity for the provision of
administrative, operational or overhead expenses necessary to
accomplish the public purposes of the board.
  (2) As used in this section:
  (a) 'Public institution of higher education' means a community
college or a   { - state institution of higher education - }
 { +  public university + } listed in ORS 352.002.
  (b) 'State agency' means any officer, board, commission,
department, division or institution in the executive or
administrative branch of state government or a public institution
of higher education.
  SECTION 119. ORS 284.701 is amended to read:
  284.701. As used in ORS 284.701 to 284.740:
  (1) 'Oregon emerging business' means an emerging growth
business as defined in ORS 348.701 that has:
  (a) Fewer than 100 employees; and
  (b) At least 51 percent of its employees employed in Oregon.
  (2) 'Research institution' means:
  (a) A community college as defined in ORS 341.005;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (c) The Oregon Health and Science University public corporation
created under ORS 353.020;
  (d) An Oregon-based, generally accredited, not-for-profit
private institution of higher education;
  (e) A federal research laboratory conducting research in
Oregon; or
  (f) A private not-for-profit research institution located in
Oregon.
  (3) 'Traded sector' has the meaning given that term in ORS
285A.010.
  SECTION 120. ORS 285B.168 is amended to read:
 
  285B.168. (1) The Oregon Business Development Department may
make grants available to a community college district, a
community college service district or, with the concurrence of
the Commissioner for Community College Services and the
Chancellor of the Oregon University System, a   { - state
university - }  { +  public university listed in ORS 352.002 + }
to assist in the formation, improvement and operation of small
business development centers.  If a community college district, a
community college service district or a   { - state
university - }  { +  public university + } is unable to
adequately provide services in a specific geographic area, the
department may make grants available to other service providers
as determined by the department. The grant application shall
include:
  (a) Plans for providing small business owners and managers
individual counseling, to the greatest extent practicable, in
subject areas critical to small business success;
  (b) A budget for the year for which a grant is requested,
including cost apportionment among the department, small business
clients, the community college,   { - state university - }  { +
the public university + } or other service providers and other
sources;
  (c) A plan for evaluating the effect of the program on small
business clients served; and
  (d) A plan for providing collaboration with other state
agencies, state-supported organizations and private sector
entities that provide services to small businesses.
  (2) The grants made under subsection (1) of this section are to
be used by the grant recipient to provide:
  (a) Small business development center staff and support staff;
  (b) Expert resource persons from the business community;
  (c) Other training and business resources as approved by the
department in skill areas for which, or areas of the state where,
the grant recipient can demonstrate it does not otherwise have
the capacity or expertise to provide the resources; and
  (d) Other costs related to providing training, counseling and
business resources to small business clients.
  (3) To be eligible for a grant under subsection (1) of this
section, the recipient shall be required to provide funds,
in-kind contributions or some combination of funds and
contributions, in accordance with rules adopted by the
department.
  (4) Subject to the approval of the department, a grant
recipient may subcontract funds received under this section to
any other entity that is eligible to receive funding under this
section.
  (5) The grant recipient shall submit a final report to the
department after the distribution of grant funds and the delivery
of services to the proposed business clients. The report shall
state whether the plan and related budget have met the applicable
criteria as described in the recipient's application for the
grant period.
    { - (6) As used in this section, 'state university' means a
state institution of higher education listed in ORS 352.002. - }
  SECTION 121. ORS 285B.174 is amended to read:
  285B.174. In cooperation with other state agencies and private
organizations,   { - state universities as defined in ORS
285B.168 - }   { + public universities listed in ORS 352.002 + }
and community colleges may develop programs to assist Oregon
businesses with the procurement of government contracts and
grants. Small business development centers established under ORS
285B.165 to 285B.171 may assist with these programs.
  SECTION 122. ORS 286A.615 is amended to read:
  286A.615. (1) The Private Activity Bond Committee is
established. It shall consist of the State Treasurer or the
designee of the State Treasurer, one representative from the
Oregon Department of Administrative Services and one public
representative appointed to serve at the pleasure of the
Governor.
  (2) The State Treasurer, or the State Treasurer's designee,
shall serve as chair of the committee.
  (3) The purpose of private activity bonding in this state is to
maximize the economic benefits of private activity bonding to the
citizens of this state. The committee shall adopt by rule
standards for amounts allocated to the committee for further
allocation for economic development, housing, education,
redevelopment, public works, energy, waste management, waste and
recycling collection, transportation and other activities that
the committee determines will benefit the citizens of this state.
In developing standards, the committee shall:
  (a) Survey the expected need for private activity bond
allocations at least once each year;
  (b) Develop strategies for reserving and allocating the limit
that are designed to maximize the availability of tax exempt
financing among competing sectors of the Oregon economy; and
  (c) Ensure that the standards include but are not limited to
standards that:
  (A) Support projects that increase the number of family wage
jobs in this state.
  (B) Promote economic recovery in small cities heavily dependent
on a single industry.
  (C) Emphasize development in underdeveloped rural areas of this
state.
  (D) Utilize educational resources available at
 { - institutions of higher education - }  { +  public
universities listed in ORS 352.002 + }.
  (E) Support development of the state's small businesses,
especially businesses owned by women and members of minority
groups.
  (F) Encourage use of Oregon's human and natural resources in
endeavors that harness Oregon's economic comparative advantages.
  (4) The state private activity bond volume cap allocated to the
Private Activity Bond Committee as provided in ORS 286A.620 shall
be allocated and reallocated among issuers by the Private
Activity Bond Committee as follows:
  (a) Any amounts not reserved to an issuer or a class of issuers
under the authorization adopted by the Legislative Assembly under
ORS 286A.035 shall be allocated or reallocated by the committee
under rules adopted under subsection (3) of this section.
  (b) Any amounts provided for in the authorization adopted by
the Legislative Assembly under ORS 286A.035 that are unused shall
be carried forward for use as provided by rules adopted under
subsection (3) of this section.
  (c) The rules adopted by the committee shall limit the period
of time for which an allocation of private activity bonding
authority is effective. The rules shall ensure that allocations
made during a calendar year are used during that calendar year or
that the unused amount of the allocation is reallocated or
carried forward.
  (5) Unused allocations are not transferable among issuers but
are available for reallocation.
  SECTION 123. ORS 286A.700 is amended to read:
  286A.700. (1) As used in this section:
  (a) 'Oregon Baccalaureate Bonds' means bonds of the State of
Oregon issued by the State Treasurer at the request of the Oregon
University System that are designated as baccalaureate bonds.
  (b) 'Post-secondary education' means training and instruction
provided by fully accredited public  { + universities + } or
private institutions of higher learning, community colleges and
post-high-school career schools.
 
 
  (2) The Legislative Assembly encourages citizens of the State
of Oregon to avail themselves of post-secondary education
opportunities.
  (3) The Legislative Assembly finds:
  (a) For the benefit of its citizens, the state supports a
system of common schools,   { - institutions of higher
education - }  { +  public universities + } and community
colleges.
  (b) A post-secondary education advances a citizen's ability to
pursue life, liberty and happiness through a wide range of
employment opportunities.
  (c) A well-educated citizenry contributes to the economic
well-being of the state and nation.
  (d) A well-trained and skilled citizenry enhances economic
development of the state.
  (e) While students have just begun their education upon
completion of a formal education, a lifetime pursuit of learning
contributes to a well-informed citizenry and to Oregon's
cherished quality of life.
  (f) Citizens educated in Oregon are more likely to pursue
careers in Oregon.
  (g) It is in the interest of this state to encourage its
citizens to plan and save for a post-secondary education.
  (h) An Oregon Baccalaureate Bond program that provides citizens
an opportunity to save for a post-secondary education for their
children, themselves or any citizen is in the social and economic
interest of the State of Oregon.
  (i) A systematic way to save for post-secondary education can
assist all of Oregon's higher education, community college and
career schools to better project enrollments, thereby permitting
the prudent allocation of scarce resources.
  (4) At the request of the Oregon University System, the State
Treasurer may:
  (a) Issue bonds as Oregon Baccalaureate Bonds, to encourage
investors to save for post-secondary education opportunities.
  (b) Investigate and implement the means and procedures to
facilitate the participation by the broadest practical range of
investors in the Oregon Baccalaureate Bond program. The means and
procedures may include, but are not limited to, adjustments in
the denominations in which the bonds are issued and the frequency
with which the bonds are issued.
  (5) The purchase of an Oregon Baccalaureate Bond does not
guarantee the purchaser, owner or beneficiary of the bond
admittance to a public  { + university + } or private
post-secondary institution.
  SECTION 124. ORS 291.038 is amended to read:
  291.038. (1) The planning, acquisition, installation and use of
all information and telecommunications technology by state
government and agencies of state government shall be coordinated
so that statewide plans and activities, as well as those of
individual agencies, are addressed in the most integrated,
economic and efficient manner. To provide policy direction for
and coordination of information technology for state government,
the Director of the Oregon Department of Administrative Services
shall chair and appoint not fewer than five agency executives to
an Information Resources Management Council. The council
membership shall include at least two members who represent the
private sector and political subdivisions of the state.
  (2) To facilitate accomplishment of the purpose set forth in
subsection (1) of this section, the Oregon Department of
Administrative Services shall adopt rules, policies and standards
to plan for, acquire, implement and manage the state's
information resources. In developing rules, policies and
standards, the department shall consult with state agencies that
have needs that information resources may satisfy. State agencies
shall cooperate with the department in preparing and complying
with rules, policies and standards. The rules, policies and
standards must be formulated to promote electronic communication
and information sharing among state agencies and programs,
between state and local governments and with the public where
appropriate.
  (3) Rules, policies, plans, standards and specifications must
be formulated to ensure that information resources fit together
in a statewide system capable of providing ready access to
information, computing or telecommunication resources. Plans and
specifications the department adopts must be based on industry
standards for open systems to the greatest extent possible.
Before adopting rules described in subsection (2) of this
section, the department shall present the proposed rules to the
appropriate legislative committee. The department has the
responsibility to review, oversee and ensure that state agencies'
planning, acquisition and implementation activities align with
and support the statewide information resources management plan.
The department is responsible for procuring information
technology fairly, competitively and in a manner that is
consistent with the department's rules.
  (4)(a) The policy of the State of Oregon is that state
government telecommunications networks should be designed to
provide state-of-the-art services where economically and
technically feasible, using shared, rather than dedicated, lines
and facilities.
  (b) The department shall, when procuring telecommunications
network services, consider achieving the economic development and
quality of life outcomes set forth in the Oregon benchmarks.
  (5)(a) The department, upon request, may furnish and deliver
statewide integrated videoconferencing and statewide online
access service to a public or private entity that primarily
conducts activities for the direct good or benefit of the public
or community at large in providing educational, economic
development, health care, human services, public safety, library
or other public services. The department shall adopt rules with
respect to furnishing the service.
  (b) The department shall establish the statewide integrated
videoconferencing and statewide online access user fees,
services, delivery, rates and long range plans in consultation
with the Stakeholders Advisory Committee created pursuant to this
section.  The rates shall reflect the department's cost in
providing the service.
  (c) The department by rule shall restrict the department's
furnishing or delivery of Internet access service to private
entities when the service would directly compete with two or more
local established providers of Internet access services within
the local exchange telecommunications service area.
  (d) The rates and services established and provided under this
section are not subject to the Public Utility Commission's
regulation or authority.
  (6)(a) There is created the Stakeholders Advisory Committee,
consisting of a minimum of nine members appointed by the Director
of the Oregon Department of Administrative Services. In making
appointments, the director shall give consideration to geographic
balance and adequate representation of the department's users and
providers and the general public.
  (b) The committee must consist of members who represent
elementary or secondary education, higher education, community
colleges, economic development, health care, human services and
public safety. At least four members must reside in areas east of
the Cascade Mountains.
  (c) The term of office of each member is three years, but a
member serves at the sole discretion of the director. The
director shall appoint a successor to a member before the
member's term expires. A member is eligible for reappointment. If
a position on the committee is vacant for any cause, the director
shall make an appointment to the position that is immediately
effective for the unexpired term.
  (d) A member of the committee is entitled to travel expenses
pursuant to ORS 292.495. Members of the committee are not
entitled to compensation.
  (e) The director may establish additional advisory and
technical committees as the director considers necessary to aid
and advise the Stakeholders Advisory Committee in the performance
of the committee's functions.
  (f) The director may delegate to the State Chief Information
Officer a duty, function or power that this subsection imposes
upon the director.
  (7) An organization or organizations recognized as tax exempt
under section 501(c)(3) of the Internal Revenue Code that
primarily conduct activities for the direct good or benefit of
the public or community at large in providing educational,
economic development, health care, human services, public safety,
library or other public services and have formed an affiliation
with one or more federal, state or local governmental units
within this state may apply to the department for designation as
a community of interest. The application must be in the form
prescribed by the department and contain information regarding
the governmental affiliation relationship, the tax exempt status
of each organization and the public benefit services to be
provided. The department shall establish an application review
and appeal process to ensure that designating the organizations
as a community of interest for the purposes of including the
organization in telecommunications contracts under ORS 283.520
will result in providing educational, medical, library or other
services for public benefit.
  (8) This section does not apply to 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 + }.
  (9) As used in this section:
  (a) 'Information resources' means media, instruments and
methods for planning, collecting, processing, transmitting and
storing data and information, including telecommunications.
  (b) 'Information technology' includes, but is not limited to,
present and future forms of hardware, software and services for
data processing, office automation and telecommunications.
  (c) 'Internet access service' means electronic connectivity to
the Internet and the services of the Internet.
  (d) 'Open systems' means systems that allow state agencies
freedom of choice by providing a vendor-neutral operating
environment where different computers, applications, system
software and networks operate together easily and reliably.
  (e) 'State-of-the-art services' includes equipment, facilities
and the capability to distribute digital communication signals
that transmit voice, data, video and images over a distance.
  (f) 'Telecommunications' means hardware, software and services
for transmitting voice, data, video and images over a distance.
  (g) 'Statewide integrated videoconferencing' means a statewide
electronic system capable of transmitting video, voice and data
communications.
  (h) 'Statewide online access' means electronic connectivity to
information resources such as computer conferencing, electronic
mail, databases and Internet access.
  SECTION 125. ORS 291.055 is amended to read:
  291.055. (1) Notwithstanding any other law that grants to a
state agency the authority to establish fees, all new state
agency fees or fee increases adopted after July 1 of any
odd-numbered year:
  (a) Are not effective for agencies in the executive department
of government unless approved in writing by the Director of the
Oregon Department of Administrative Services;
  (b) Are not effective for agencies in the judicial department
of government unless approved in writing by the Chief Justice of
the Supreme Court;
  (c) Are not effective for agencies in the legislative
department of government unless approved in writing by the
President of the Senate and the Speaker of the House of
Representatives;
  (d) Shall be reported by the state agency to the Oregon
Department of Administrative Services within 10 days of their
adoption; and
  (e) Are rescinded on July 1 of the next following odd-numbered
year, or on adjournment sine die of the regular session of the
Legislative Assembly meeting in that year, whichever is later,
unless otherwise authorized by enabling legislation setting forth
the approved fees.
  (2) This section does not apply to:
  (a) Any tuition or fees charged by the State Board of Higher
Education and   { - state institutions of higher education - }
 { +  the public universities listed in ORS 352.002 + }.
  (b) Taxes or other payments made or collected from employers
for unemployment insurance required by ORS chapter 657 or premium
assessments required by ORS 656.612 and 656.614 or contributions
and assessments calculated by cents per hour for workers'
compensation coverage required by ORS 656.506.
  (c) Fees or payments required for:
  (A) Health care services provided by the Oregon Health and
Science University, by the Oregon Veterans' Homes and by other
state agencies and institutions pursuant to ORS 179.610 to
179.770.
  (B) Assessments and premiums paid to the Oregon Medical
Insurance Pool established by ORS 735.614 and 735.625.
  (C) Copayments and premiums paid to the Oregon medical
assistance program.
  (D) Assessments paid to the Department of Consumer and Business
Services under ORS 743.951 and 743.961.
  (d) Fees created or authorized by statute that have no
established rate or amount but are calculated for each separate
instance for each fee payer and are based on actual cost of
services provided.
  (e) State agency charges on employees for benefits and
services.
  (f) Any intergovernmental charges.
  (g) Forest protection district assessment rates established by
ORS 477.210 to 477.265 and the Oregon Forest Land Protection Fund
fees established by ORS 477.760.
  (h) State Department of Energy assessments required by ORS
469.421 (8) and 469.681.
  (i) Any charges established by the State Parks and Recreation
Director in accordance with ORS 565.080 (3).
  (j) Assessments on premiums charged by the Insurance Division
of the Department of Consumer and Business Services pursuant to
ORS 731.804 or fees charged by the Division of Finance and
Corporate Securities of the Department of Consumer and Business
Services to banks, trusts and credit unions pursuant to ORS
706.530 and 723.114.
  (k) Public Utility Commission operating assessments required by
ORS 756.310 or charges paid to the Residential Service Protection
Fund required by chapter 290, Oregon Laws 1987.
  (L) Fees charged by the Housing and Community Services
Department for intellectual property pursuant to ORS 456.562.
  (m) New or increased fees that are anticipated in the
legislative budgeting process for an agency, revenues from which
are included, explicitly or implicitly, in the legislatively
adopted budget for the agency.
  (n) Tolls approved by the Oregon Transportation Commission
pursuant to ORS 383.004.
  (o) Convenience fees as defined in ORS 182.126 and established
by the Oregon Department of Administrative Services under ORS
182.132 (3) and recommended by the Electronic Government Portal
Advisory Board.
  (3)(a) Fees temporarily decreased for competitive or
promotional reasons or because of unexpected and temporary
revenue surpluses may be increased to not more than their prior
level without compliance with subsection (1) of this section if,
at the time the fee is decreased, the state agency specifies the
following:
  (A) The reason for the fee decrease; and
  (B) The conditions under which the fee will be increased to not
more than its prior level.
  (b) Fees that are decreased for reasons other than those
described in paragraph (a) of this subsection may not be
subsequently increased except as allowed by ORS 291.050 to
291.060 and 294.160.
  SECTION 126. ORS 292.043 is amended to read:
  292.043. (1) As used in this section:
  (a) 'Foundation' means:
  (A) A tax exempt organization designated by a rule adopted by a
state agency; or
  (B) A tax exempt organization designated by the State Board of
Higher Education to solicit contributions for the support of
  { - an institution of higher education under the jurisdiction
of the board - }  { +  a public university listed in ORS
352.002 + }.
  (b) 'Salary and wages' has the meaning given that term in ORS
292.014.
  (2) Any state official authorized to disburse funds in payment
of salaries or wages of the officers and employees of a state
agency, or of the officers, teachers, instructors and other
employees of the Oregon University System, is authorized, upon
written request of the individual, to deduct each month from the
salary or wages of the individual the amount of money designated
by the individual for payment to a foundation.
  (3) The individual may withdraw the authorization at any time
if the individual so notifies such officer in writing.
  (4) The moneys so deducted shall be paid over promptly to the
foundation designated by the individual. Subject to any rules
prescribed by a state agency or the State Board of Higher
Education, the state official authorized to disburse the funds in
payment of salaries and wages may prescribe any procedures
necessary to carry out this section.
  SECTION 127. ORS 292.044 is amended to read:
  292.044. (1) As used in this section:
  (a) 'Employee' means officers, faculty, teachers, instructors
and other employees of the Oregon University System as described
in ORS 352.002.
  (b) 'Nonprofit organization' means an organization described in
section 501(c)(3) of the Internal Revenue Code that is exempt
from income tax under section 501(a) of the Internal Revenue
Code.
  (2) The Chancellor of the Oregon University System or a
designee of the chancellor may approve a written request made by
a
  { - state institution of higher education listed in ORS
352.002, or by another program - }   { + public university or
office, department + } or activity under the jurisdiction of the
State Board of Higher Education, in which an employee of the
 { - institution - }  { +  public university + } or   { - another
program - }   { + office, department + } or activity may
designate an amount from the salary or wages of the employee for
payment to a qualifying nonprofit organization. A request made to
the chancellor under this section must identify the nonprofit
organization to whom payments would be made.
  (3) Upon written approval of the chancellor or of a designee of
the chancellor and a written request of an employee of the
  { - institution, program - }  { +  public university or office,
department  + }or activity to which the approval applies, the
state official within the Oregon University System authorized to
disburse funds in payment of salaries or wages shall deduct from
the salary or wages of the employee the amount of money
designated by the employee for payment to the nonprofit
organization.
  (4) The moneys deducted from the salaries or wages under
subsection (3) of this section shall be paid over promptly to the
nonprofit organization.
  (5) The Chancellor of the Oregon University System or a
designee of the chancellor shall prescribe procedures for
determining whether an organization qualifies as a nonprofit
organization under this section.
  SECTION 128. ORS 310.155 is amended to read:
  310.155. (1) For purposes of ORS 310.150, taxes are levied or
imposed to fund the public school system if the taxes will be
used exclusively for educational services, including support
services, provided by any unit of government, at any level from
prekindergarten through post-graduate training.
  (2) Taxes on property levied or imposed by a unit of government
whose principal function is to provide educational services shall
be considered to be dedicated to fund the public school system
unless the sole purpose of a particular, voter approved levy is
for other than educational services or support services as
defined in this section.
  (3) Taxes on property levied or imposed by a unit of government
whose principal function is to perform government operations
other than educational services shall be considered to be
dedicated to fund the public school system only if the sole
purpose of a particular, voter approved levy is for educational
services or support services as defined in this section.
  (4) As used in this section, 'educational services ' includes:
  (a) Establishment and maintenance of preschools, kindergartens,
elementary schools, high schools, community colleges and
 { - institutions of higher education - }  { +  the public
universities listed in ORS 352.002 + }.
  (b) Establishment and maintenance of career schools, adult
education programs, evening school programs and schools or
facilities for persons with physical, mental or emotional
disabilities.
  (5) As used in this section, 'support services' includes
clerical, administrative, professional and managerial services,
property maintenance, transportation, counseling, training and
other services customarily performed in connection with the
delivery of educational services.
  (6) 'Educational services' does not include community
recreation programs, civic activities, public libraries, programs
for custody or care of children or community welfare activities
if those programs or activities are provided to the general
public and not for the benefit of students or other participants
in the programs and activities described in subsection (4) of
this section.
  SECTION 129. ORS 326.543 is amended to read:
  326.543. (1) As used in this section:
  (a) 'Education service district' has the meaning given that
term in ORS 334.003.
  (b) 'Facility' means the school operated under ORS 346.010.
  (c) 'Post-secondary institution' means:
  (A) A community college as defined in ORS 341.005;
  (B) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (C) The Oregon Health and Science University.
 
  (d) 'School district' has the meaning given that term in ORS
330.005.
  (2) The interest or estate of an education service district, a
facility, a post-secondary institution or a school district in
any real property may not be extinguished or diminished by
adverse possession.
  SECTION 130. ORS 326.587 is amended to read:
  326.587. (1) A   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + } may not
disclose the Social Security number of a student who is attending
the   { - institution - }  { +  public university + }.
  (2) Subsection (1) of this section does not apply if the
  { - institution - }  { +  public university + } discloses the
Social Security number:
  (a) At the request of a law enforcement agency or an agency
providing support enforcement services under ORS 25.080;
  (b) After obtaining written permission for the disclosure from
the student to whom the number refers;
  (c) In the payment of wages or benefits;
  (d) In the payment or collection of taxes or of a debt owed by
the student to whom the number refers; or
  (e) For purposes of statistical analysis.
  SECTION 131. ORS 329.822 is amended to read:
  329.822. (1) The Oregon Educator Professional Development
Commission is established within the Department of Education for
the purpose of providing statewide collaborative leadership for
prekindergarten through post-secondary education in the areas of
school improvement.
  (2) The commission consists of 16 members appointed as follows:
  (a) The President of the Senate shall appoint one member of the
Senate.
  (b) The Speaker of the House of Representatives shall appoint
one member of the House of Representatives.
  (c) The Governor shall appoint 14 members as follows:
  (A) Two members who represent education service districts.
  (B) One member who represents the Department of Education.
  (C) One member who represents a community college.
  (D) One member who represents a public   { - institution of
higher education - }  { +  university listed in ORS 352.002 + }.
  (E) One member who represents a not-for-profit private
institution of higher education.
  (F) One member who represents the Teacher Standards and
Practices Commission.
  (G) One member who represents the Governor's office.
  (H) Six members who represent public schools for kindergarten
through grade 12, including:
  (i) One superintendent of a school district.
  (ii) Two principals of schools.
  (iii) Two teachers licensed or certified by the Teacher
Standards and Practices Commission.
  (iv) One classified employee of a school.
  (3) Members of the Legislative Assembly appointed to the
commission are nonvoting members of the commission and may act in
an advisory capacity only.
  (4)(a) The term of office of each member of the commission is
three years, but a member serves at the pleasure of the
appointing authority.
  (b) Before the expiration of the term of a member, the
appointing authority shall appoint a successor.
  (c) A member is eligible for reappointment.
  (d) If there is a vacancy for any cause, the appointing
authority shall make an appointment to become immediately
effective for the unexpired term.
  (5) Members of the commission who are members of the
Legislative Assembly are entitled to mileage expenses and a per
diem as provided by ORS 171.072. Other members of the commission
are not entitled to compensation but a member may be reimbursed
for actual and necessary travel and other expenses incurred by
the member in the performance of the member's official duties in
the manner and amount provided in ORS 292.495.
  (6) The commission shall select from among its members a
chairperson, vice chairperson and secretary, for such terms and
with such duties and powers necessary for the performance of the
functions of the offices.
  (7) A majority of the voting members of the commission
constitutes a quorum for the transaction of business.
  (8) Official action by the commission requires the approval of
a majority of the voting members of the commission.
  (9) The commission shall meet at least once each calendar
quarter at a place, day and hour determined by the commission.
The commission may also meet at other times and places specified
by the call of the chairperson.
  (10) The Department of Education may accept, on behalf of the
commission, contributions of moneys and assistance from the
United States Government or its agencies or from any other
source, public or private, and agree to conditions placed on the
moneys not inconsistent with the duties of the commission.
  (11) All moneys received by the department under subsection
(10) of this section shall be paid into the Department of
Education Account established in ORS 326.115 to the credit of the
commission. The moneys are continuously appropriated to the
commission for the purposes of carrying out the duties of the
commission.
  (12) The Department of Education shall solicit and award a
public contract for services provided by the commission,
including the maintenance of the public website and the provision
of assistance to local school districts. A contract may be
procured only as provided by ORS 279B.060 and may not be procured
as a sole-source procurement under ORS 279B.075, an emergency
procurement under ORS 279B.080 or a special procurement under ORS
279B.085.
  SECTION 132. ORS 329.840 is amended to read:
  329.840. (1) There is created the Oregon Virtual School
District within the Department of Education. The purpose of the
Oregon Virtual School District is to provide online courses to
kindergarten through grade 12 public school students.
  (2) The Oregon Virtual School District shall provide online
courses that meet academic content standards as defined in ORS
329.007 and meet other criteria adopted by the State Board of
Education. Any person who teaches an online course must be
properly licensed or registered as required by ORS 338.135 and
342.173 for a person employed by a school district or public
charter school. All school districts and public charter schools
may allow students to access the online courses offered by the
Oregon Virtual School District.
  (3) The Superintendent of Public Instruction may contract with
education service districts, school districts, public charter
schools, community colleges,   { - state institutions of higher
education - }  { +  public universities listed in ORS 352.002 + }
or any other public entity to provide online courses through the
Oregon Virtual School District.
  (4) Statutes and rules that apply to other school districts do
not apply to the Oregon Virtual School District except as
provided under this section or by rule of the State Board of
Education. The Oregon Virtual School District is not considered a
school district for purposes of apportionment of the State School
Fund and the department may not receive a direct apportionment
under ORS 327.008 from the State School Fund for the Oregon
Virtual School District.
  (5) The board may adopt the rules necessary for the
administration of the Oregon Virtual School District and shall
adopt rules to establish:
  (a) The procedure and criteria to be used for the selection of
online courses to be offered through the Oregon Virtual School
District;
  (b) The qualifications of students who may access online
courses through the Oregon Virtual School District;
  (c) The number of credits for which students may access online
courses through the Oregon Virtual School District; and
  (d) The student-to-teacher ratio for online courses offered
through the Oregon Virtual School District.
  SECTION 133. ORS 332.114 is amended to read:
  332.114. (1) A person who meets the requirements under
subsection (3) of this section may request a school district to
issue the person a high school diploma if the person resides
within the boundaries of the school district or is a resident of
this state and attended a high school of the school district.
  (2) A representative of a deceased person who meets the
requirements under subsection (3) of this section may request a
school district to issue a high school diploma on behalf of the
deceased person if the deceased person resided within the
boundaries of the school district at the time of death or was a
resident of this state at the time of death and attended a high
school of the school district.
  (3) Notwithstanding the requirements for a high school diploma
established under ORS 329.451 and by the State Board of Education
and school districts, a school district that receives a request
under subsection (1) or (2) of this section shall issue a high
school diploma to a person if the person:
  (a) Attended a high school before serving in the Armed Forces
of the United States;
  (b) Did not graduate from a high school because the person was
serving in the Armed Forces of the United States;
  (c) Was discharged or released under honorable conditions from
the Armed Forces of the United States;
  (d) Served in the Armed Forces of the United States as
described in subsection (4) of this section; and
  (e)(A) Has received a General Educational Development (GED)
certificate;
  (B) Has received a post-secondary degree from a community
college,   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + } or other generally
accredited institution of higher education; or
  (C) Has received a minimum score on the Armed Services
Vocational Aptitude Battery (ASVAB), as established by the Oregon
Military Department.
  (4) The provisions of subsection (3) of this section apply to a
person who:
  (a) Served in the Armed Forces of the United States at any time
during:
  (A) World War I;
  (B) World War II;
  (C) The Korean Conflict; or
  (D) The Vietnam War;
  (b) Served in the Armed Forces of the United States and was
physically present in:
  (A) Operation Urgent Fury (Grenada);
  (B) Operation Just Cause (Panama);
  (C) Operation Desert Shield/Desert Storm (the Persian Gulf
War);
  (D) Operation Restore Hope (Somalia);
  (E) Operation Enduring Freedom (Afghanistan); or
  (F) Operation Iraqi Freedom (Iraq); or
  (c) Served in the Armed Forces of the United States in an area
designated as a combat zone by the President of the United
States.
  SECTION 134. ORS 332.155 is amended to read:
  332.155. A district school board:
  (1) May furnish, equip, repair, lease, purchase and build
schoolhouses, including high schools, junior high schools, career
and technical education schools, gymnasiums, houses for teachers
and other employees, and like buildings; and locate, buy and
lease lands for all school purposes. Leases authorized by this
section include lease-purchase agreements whereunder the district
may acquire ownership of the leased property at a nominal price.
Such leases and lease-purchase agreements may be for a term of up
to 30 years.
  (2) May contract for the removal or containment of asbestos
substances in school buildings and for repairs made necessary by
such removal or containment. Contracts authorized by this section
may be for a term exceeding one year.
  (3) May construct or cooperate in the construction of schools
for training of student teachers on state or district owned
lands, for any   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 that is + } in or
contiguous to the district, and to expend district funds in so
doing.
  (4) May acquire personal property by a lease-purchase agreement
or contract of purchase for a term exceeding one year. A
lease-purchase agreement is one in which the rent payable by the
district is expressly agreed to have been established to reflect
the savings resulting from the exemption from taxation, and the
district is entitled to ownership of the property at a nominal or
other price that is stated or determinable by the terms of the
agreement and was not intended to reflect the true value of the
property.
  (5) May lease, sell and convey all property of the district as
may not in the judgment of the district school board be required
for school purposes.
  (6) May sell property of the district in transactions whereby
the district has the right to lease, occupy or reacquire the
property following the sale or have facilities constructed
thereon or furnished to the specifications of the district. The
construction or furnishing of such facilities shall be subject
to:
  (a) ORS chapter 279A, except ORS 279A.125 and 279A.250 to
279A.290;
  (b) ORS chapter 279B, except ORS 279B.235, 279B.240, 279B.270,
279B.275 and 279B.280; and
  (c) ORS chapter 279C.005, 279C.100 to 279C.125 and 279C.300 to
279C.470.
  (7) Shall furnish the schools with supplies, equipment,
apparatus and services essential to meeting the requirements of a
standard school and may furnish such other supplies, equipment,
apparatus and services as the board considers advisable.
  (8) May construct, purchase or lease in cooperation with other
school districts or community college districts facilities for
secondary career and technical education programs for pupils of
more than one district and may furnish or cooperate in furnishing
supplies and equipment for such facilities, to be financed in the
same manner as other school buildings and supplies are financed.
  (9) May purchase real property upon a contractual basis when
the period of time allowed for payment under the contract does
not exceed 30 years.
  (10) May purchase relocatable classrooms and other relocatable
structures in installment transactions in which deferred
installments of the purchase price are payable over not more than
10 years from the date such property is delivered to the district
for occupancy and are secured by a security interest in such
property. Such transactions may take the form of, but are not
limited to, lease-purchase agreements.
  (11) May enter into rental or lease-purchase agreements
covering motor vehicles operated by the district.
  SECTION 135. ORS 336.057 is amended to read:
  336.057. In all public schools courses of instruction shall be
given in the Constitution of the United States and in the history
of the United States. These courses shall:
  (1) Begin not later than the opening of the eighth grade and
shall continue in grades 9 through 12.
  (2) Be required in all   { - state institutions of higher
education - }  { +  public universities listed in ORS
352.002 + }, except the Oregon Health and Science University, and
in all state and local institutions that provide education for
patients or inmates to an extent to be determined by the
Superintendent of Public Instruction.
  SECTION 136. ORS 337.500 is amended to read:
  337.500. As used in ORS 337.500 to 337.506:
  (1) 'Adopter' means any faculty member or academic department
or other adopting entity at a higher education institution
responsible for considering and choosing course materials to be
utilized in connection with accredited courses taught at the
institution.
  (2) 'Higher education institution' means:
  (a) A community college, as defined in ORS 341.005;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (c) The Oregon Health and Science University;
  (d) A private institution of higher education located in
Oregon; and
  (e) A bookstore that serves as the primary bookstore for an
entity listed in paragraphs (a) to (d) of this subsection.
  (3) 'Special edition' means a bound book that does not
constitute a traditional textbook and that may or may not be used
for instructional purposes.
  (4)(a) 'Textbook bundle' means a textbook packaged together
with other supplemental course materials, including but not
limited to workbooks, study guides, online technologies, online
course resources, CD-ROMs or other books, to be sold as course
material for one price.
  (b) 'Textbook bundle' does not include a textbook that is
unusable without the supplemental course materials, materials
that cannot be sold separately due to third-party contractual
agreements, custom editions or special editions.
  SECTION 137. ORS 337.511 is amended to read:
  337.511. As used in ORS 337.511 to 337.524:
  (1) 'Alternative format' means any medium or format for the
presentation of instructional materials other than standard print
that is needed by a post-secondary student with a print
disability for a reading accommodation, including but not limited
to Braille, large print texts, audio recordings, digital texts
and digital talking books.
  (2) 'Electronic format' means a medium or format containing
digital text.
  (3) 'Instructional material' means a textbook or other material
if:
  (a) The textbook or other material, including additional prints
or new editions of previously published instructional material,
is published on or after January 1, 2004, and is published
primarily for use by students in a course of study in which a
post-secondary student with a print disability is enrolled;
  (b) The textbook or other material is required for a student's
success in the course, as determined by the course instructor in
consultation with the representative making the request for an
electronic format under ORS 337.517 (2);
  (c) The textbook or other material is required for the course
as stated in the course syllabus or other curriculum documents,
or the use of the materials by the student is necessary for the
completion of course assignments that are used to evaluate the
student, such as to determine the student's proficiency level or
assign a grade; and
  (d) Software is commercially available to permit the conversion
of an electronic file of the textbook or other material into a
format that is compatible with assistive technologies such as
speech synthesis software or Braille translation software.
  (4) 'Post-secondary education institution' means:
  (a) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002;
  (b) A community college operated under ORS chapter 341;
  (c) The Oregon Health and Science University; or
  (d) An Oregon-based, generally accredited institution of higher
education.
  (5) 'Print disability' means a disability that prevents a
student from effectively utilizing print material and may include
blindness, other serious visual impairments, specific learning
disabilities or the inability to hold a book.
  (6) 'Printed instructional material' means instructional
material in book or other printed form.
  (7) 'Publisher' means any person that publishes or manufactures
instructional material used by students attending a
post-secondary education institution.
  (8) 'Structural integrity' means the inclusion of all of the
information provided in printed instructional material, including
but not limited to the text of the material sidebars, the tables
of contents, the chapter headings and subheadings, the footnotes,
the page numbers, the indexes and the glossaries.
  (9) 'Working day' means a day that is not a Saturday, Sunday or
legal holiday.
  SECTION 138. ORS 338.115, as amended by section 2, chapter 53,
Oregon Laws 2010, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 192.410 to 192.505 (public records law);
  (c) ORS 192.610 to 192.690 (public meetings law);
  (d) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (e) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (f) ORS 337.150 (textbooks);
  (g) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (h) ORS 659.850, 659.855 and 659.860 (discrimination);
  (i) ORS 30.260 to 30.300 (tort claims);
  (j) Health and safety statutes and rules;
  (k) Any statute or rule that is listed in the charter;
  (L) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (m) ORS 329.045 (academic content standards and instruction);
  (n) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (o) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (p) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
child abuse and training on prevention and identification of
child abuse);
  (q) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (r) ORS chapter 657 (Employment Department Law);
  (s) ORS 339.326;
  (t) Section 1, chapter 53, Oregon Laws 2010 (consideration for
educational services); and
  (u) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5) A public charter school shall maintain an active enrollment
of at least 25 students.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district,   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + }, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 139. ORS 338.115, as amended by section 7, chapter 839,
Oregon Laws 2007, section 12, chapter 50, Oregon Laws 2008,
section 4, chapter 618, Oregon Laws 2009, and section 3, chapter
53, Oregon Laws 2010, is amended to read:
  338.115. (1) Statutes and rules that apply to school district
boards, school districts or other public schools do not apply to
public charter schools. However, the following laws do apply to
public charter schools:
  (a) Federal law;
  (b) ORS 192.410 to 192.505 (public records law);
  (c) ORS 192.610 to 192.690 (public meetings law);
  (d) ORS 297.405 to 297.555 and 297.990 (Municipal Audit Law);
  (e) ORS 181.534, 326.603, 326.607, 342.223 and 342.232
(criminal records checks);
  (f) ORS 337.150 (textbooks);
  (g) ORS 339.141, 339.147 and 339.155 (tuition and fees);
  (h) ORS 659.850, 659.855 and 659.860 (discrimination);
  (i) ORS 30.260 to 30.300 (tort claims);
  (j) Health and safety statutes and rules;
  (k) Any statute or rule that is listed in the charter;
  (L) The statewide assessment system developed by the Department
of Education for mathematics, science and English under ORS
329.485 (2);
  (m) ORS 329.045 (academic content standards and instruction);
  (n) ORS 329.496 (physical education);
  (o) Any statute or rule that establishes requirements for
instructional time provided by a school during each day or during
a year;
  (p) ORS 339.250 (12) (prohibition on infliction of corporal
punishment);
  (q) ORS 339.370, 339.372, 339.388 and 339.400 (reporting of
child abuse and training on prevention and identification of
child abuse);
  (r) ORS 329.451 (high school diploma, modified diploma,
extended diploma and alternative certificate);
  (s) ORS chapter 657 (Employment Department Law);
  (t) ORS 339.326;
  (u) Section 1, chapter 53, Oregon Laws 2010 (consideration for
educational services); and
  (v) This chapter.
  (2) Notwithstanding subsection (1) of this section, a charter
may specify that statutes and rules that apply to school district
boards, school districts and other public schools may apply to a
public charter school.
  (3) If a statute or rule applies to a public charter school,
then the terms 'school district' and 'public school' include
public charter school as those terms are used in that statute or
rule.
  (4) A public charter school may not violate the Establishment
Clause of the First Amendment to the United States Constitution
or section 5, Article I of the Oregon Constitution, or be
religion based.
  (5) A public charter school shall maintain an active enrollment
of at least 25 students.
  (6) A public charter school may sue or be sued as a separate
legal entity.
  (7) The sponsor, members of the governing board of the sponsor
acting in their official capacities and employees of a sponsor
acting in their official capacities are immune from civil
liability with respect to all activities related to a public
charter school within the scope of their duties or employment.
  (8) A public charter school may enter into contracts and may
lease facilities and services from a school district, education
service district,   { - state institution of higher education - }
 { +  public university listed in ORS 352.002 + }, other
governmental unit or any person or legal entity.
  (9) A public charter school may not levy taxes or issue bonds
under which the public incurs liability.
  (10) A public charter school may receive and accept gifts,
grants and donations from any source for expenditure to carry out
the lawful functions of the school.
  (11) The school district in which the public charter school is
located shall offer a high school diploma, a modified diploma, an
extended diploma or an alternative certificate to any public
charter school student who meets the district's and state's
standards for a high school diploma, a modified diploma, an
extended diploma or an alternative certificate.
  (12) A high school diploma, a modified diploma, an extended
diploma or an alternative certificate issued by a public charter
school grants to the holder the same rights and privileges as a
high school diploma, a modified diploma, an extended diploma or
an alternative certificate issued by a nonchartered public
school.
 
  (13) Prior to beginning operation, the public charter school
shall show proof of insurance to the sponsor as specified in the
charter.
  (14) A public charter school may receive services from an
education service district in the same manner as a nonchartered
public school in the school district in which the public charter
school is located.
  SECTION 140. ORS 339.885 is amended to read:
  339.885. (1) No secret society of any kind, including a
fraternity or sorority, shall be permitted in any public school.
  (2) The district school board may order the suspension or
expulsion of any pupil who belongs to a secret society.
  (3) This section does not apply to any   { - institution of
higher education under the jurisdiction of the State Board of
Higher Education - }  { +  public university listed in ORS
352.002 + }.
  SECTION 141. ORS 340.005 is amended to read:
  340.005. For purposes of this chapter:
  (1) 'Accelerated college credit program' has the meaning given
that term by rules adopted by the State Board of Education.
  (2) 'At-risk student' means:
  (a) A student who qualifies for a free or reduced lunch
program; or
  (b) An at-risk student as defined by rules adopted by the board
if the board has adopted rules to define an at-risk student.
  (3) 'Duplicate course' means a course with a scope that is
identical to the scope of another course.
  (4)(a) 'Eligible post-secondary course' means any nonsectarian
course or program offered through an eligible post-secondary
institution if the course or program may lead to high school
completion, a certificate, professional certification, associate
degree or baccalaureate degree.
  (b) 'Eligible post-secondary course' does not include a
duplicate course offered at the student's resident school.
  (c) 'Eligible post-secondary course' includes:
  (A) Academic courses;
  (B) Career and technical education courses; and
  (C) Distance education courses.
  (5) 'Eligible post-secondary institution' means:
  (a) A community college;
  (b) A   { - state institution of higher education - }  { +
public university + } listed in ORS 352.002; and
  (c) The Oregon Health and Science University.
  (6)(a) 'Eligible student' means a student who is enrolled in an
Oregon public school and who:
  (A) Is 16 years of age or older at the time of enrollment in a
course under the Expanded Options Program;
  (B)(i) Is in grade 11 or 12 at the time of enrollment in a
course under the Expanded Options Program; or
  (ii) Is not in grade 11 or 12, because the student has not
completed the required number of credits, but who has been
allowed by the school district to participate in the program;
  (C) Has developed an educational learning plan as described in
ORS 340.025; and
  (D) Has not successfully completed the requirements for a high
school diploma as established by ORS 329.451, the State Board of
Education and the school district board.
  (b) 'Eligible student' does not include a foreign exchange
student enrolled in a school under a cultural exchange program.
  (7) 'Expanded Options Program' means the program created under
this chapter.
  (8) 'Scope' means depth and breadth of course content as
evidenced through a planned course statement including content
outline, applicable state content standards where appropriate,
course goals and student outcomes.
  SECTION 142. ORS 342.144 is amended to read:
  342.144. (1) As used in this section, 'American Indian tribe'
means an Indian tribe as that term is defined in ORS 97.740.
  (2) The Legislative Assembly declares that teaching American
Indian languages is essential to the proper education of American
Indian children.
  (3) The Teacher Standards and Practices Commission shall
establish an American Indian languages teaching license.
  (4) Each American Indian tribe may develop a written and oral
test that must be successfully completed by an applicant for an
American Indian languages teaching license in order to determine
whether the applicant is qualified to teach the tribe's native
language. When developing the test, the tribe shall determine:
  (a) Which dialects will be used on the test;
  (b) Whether the tribe will standardize the tribe's writing
system; and
  (c) How the teaching methods will be evaluated in the
classroom.
  (5) The test shall be administered at an appropriate location
that does not create hardship for the tribal members
administering the test.
  (6) The commission may not require an applicant to hold a
specific academic degree, to complete a specific amount of
education or to complete a teacher education program to receive
an American Indian languages teaching license.
  (7)(a) An American Indian languages teaching license qualifies
the holder to accept a teaching position in a school district,
public charter school, education service district, community
college or   { - state institution of higher education - }  { +
public university listed in ORS 352.002 + }.
  (b) A holder of an American Indian languages teaching license
who does not also have a teaching license issued under ORS
342.125 may not teach in a school district or education service
district any subject other than the American Indian language the
holder of the license is approved to teach by the tribe.
  (c) A holder of an American Indian languages teaching license
who does not also have a teaching license or registration issued
under ORS 342.125 may not teach in a public charter school any
subject other than the American Indian language the holder of the
license is approved to teach by the tribe.
  (8)(a) As used in this subsection, 'technical assistance
program' means a program provided to an American Indian languages
teacher by a licensed teacher with three or more years of
teaching experience. A technical assistance program may include
direct classroom observation and consultation, assistance in
instructional planning and preparation, support in implementation
and delivery of classroom instruction, and other assistance
intended to enhance the professional performance and development
of the American Indian languages teacher.
  (b) The holder of an American Indian languages teaching license
who does not also have an administrative license, teaching
license or registration issued under ORS 342.125 and who is
employed by a school district, public charter school or education
service district shall participate in a technical assistance
program with a person holding a teaching license issued by the
commission under ORS 342.125. The technical assistance program
shall meet the guidelines specified in ORS 329.815 (2) to (4).
  (9) An American Indian languages teaching license shall be
valid for three years and may be renewed upon application from
the holder of the license.
  SECTION 143. ORS 342.147 is amended to read:
  342.147. (1) After considering recommendations of the State
Board of Education, the Teacher Standards and Practices
Commission shall establish by rule standards for approval of
teacher education institutions and teacher education programs.
Public teacher education institutions shall be approved for
programs of more than four years' duration only if teacher
education programs which are reasonably attainable in a four-year
period are also available in the system of higher education and
are designed to culminate in a baccalaureate degree that
qualifies its graduates for entry-level teaching licenses.
  (2) The commission shall establish rules that allow teacher
education programs leading to graduate degrees to commence prior
to the student's completion of baccalaureate degree requirements
and that allow the combined use of undergraduate and graduate
level course work in achieving program completion.
  (3) Whenever any teacher education institution or program is
denied approved status or has such status withdrawn { + , + }
such denial or withdrawal must be treated as a contested case
within the meaning of ORS chapter 183.
  (4) Nothing in this section is intended to grant any authority
to the commission relating to granting   { - of - }  degrees or
establishing degree requirements that are within the authority of
the State Board of Higher Education or any   { - institutions
under its jurisdiction - }  { +  of the public universities
listed in ORS 352.002, + } or that are within the authority of
the governing board of any private institution of higher
education.
  SECTION 144. ORS 342.360 is amended to read:
  342.360. (1) The membership of the Teacher Standards and
Practices Commission shall consist of:
  (a) Four elementary teachers;
  (b) Four junior or senior high school teachers;
  (c) One elementary school administrator;
  (d) One junior or senior high school administrator;
  (e) One superintendent of city schools;
  (f) One county superintendent or a superintendent employed by
an education service district board;
  (g) One member from the faculty of an approved private teacher
education institution in Oregon;
  (h) One member from the faculty of a   { - state institution of
higher education - }  { +  public university listed in ORS
352.002 + };
  (i) One member who is also a member of a district school board;
and
  (j) Two members of the general public.
  (2) Except for those members appointed under subsection (1)(i)
and (j) of this section, members must have been actively engaged
in teaching, supervising or administering in the public schools
or in approved teacher education institutions in Oregon for the
period of five years immediately preceding appointment.  Acting
as an elected representative of teachers, supervisors or
administrators shall be considered teaching, supervising or
administering for the purposes of the five-year experience
requirement. In addition, members appointed under subsection
(1)(a) to (f) of this section must hold valid Oregon teaching or
administrative licenses other than restricted teaching or
administrative licenses.
  (3)(a) Throughout the term for which appointed, one of the
members appointed under subsection (1)(a) to (j) of this section
must hold a teaching license with an endorsement in some aspect
of special education or have demonstrated knowledge or experience
in special education.
  (b) As used in this subsection, 'special education' means
specially designed education to meet the goals of the individual
education program of a child with a disability including regular
classroom instruction, instruction in physical education, home
instruction, related services and instruction in hospitals,
institutions and special schools.
  SECTION 145. ORS 342.390 is amended to read:
  342.390. (1) The Teacher Standards and Practices Commission
shall meet at least once every six months at a place, day and
hour determined by the commission. The commission shall also meet
at such other times and places as are specified by the call of
the chairperson or of a majority of the members of the
commission.
  (2) A member of the commission who is employed at a public
school or by a private teacher education institution or by a
  { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } shall receive no
compensation for services as a member; but subject to any other
applicable law regulating travel and other expenses for state
officers, the member shall receive actual and necessary travel
and other expenses incurred in the performance of official duties
as provided by ORS 292.495 (2).
  (3) A member of the commission who serves on the commission in
the capacity of a district school board member or as a member of
the general public shall be entitled to compensation and expenses
as provided in ORS 292.495 (1) and (2).
  SECTION 146. ORS 342.443 is amended to read:
  342.443. (1) The Education and Workforce Policy Advisor shall
report biennially to the Legislative Assembly longitudinal data
on the number and percentage of:
  (a) Minority students enrolled in community colleges;
  (b) Minority students applying for admission to public
  { - four-year institutions of higher education - }  { +
universities listed in ORS 352.002 + };
  (c) Minority students accepted in public   { - four-year
institutions of higher education - }  { +  universities + };
  (d) Minority students graduated from public   { - four-year
institutions of higher education - }  { +  universities + };
  (e) Minority candidates seeking to enter public teacher
education programs in this state;
  (f) Minority candidates admitted to public teacher education
programs;
  (g) Minority candidates who have completed approved public
teacher education programs;
  (h) Minority candidates receiving Oregon teaching licenses
based on preparation in this state and preparation in other
states;
  (i) Minority teachers who are newly employed in the public
schools in this state; and
  (j) Minority teachers already employed in the public schools.
  (2) The advisor also shall report comparisons of minorities'
and nonminorities' scores on basic skills, pedagogy and subject
matter tests.
  (3) The Oregon University System, the Department of Education,
the Teacher Standards and Practices Commission, community
colleges and school districts shall cooperate with the advisor in
collecting data and preparing the report.
  SECTION 147. ORS 344.259 is amended to read:
  344.259. (1) The State Board of Education shall coordinate
continuing education in lower division, developmental, adult
self-improvement, professional and technical education for
agencies under its regulatory authority. The State Board of
Higher Education shall coordinate continuing education in upper
division and graduate education for   { - institutions - }
 { + public universities + } under its jurisdiction.
  (2) When significantly adverse impact is alleged by one or more
of the agencies listed in this subsection, the affected parties
jointly shall provide for written agreements. These agreements
shall allocate responsibility for planning and providing
continuing education or off-campus instruction in specific areas
or by specific types. The agencies are:
  (a) The State Board of Education.
  (b) The State Board of Higher Education.
  (c) Community college districts.
  (d) Independent colleges.
  (e) Proprietary schools.
  (3) In the event the affected parties fail to reach a written
agreement within 120 days following receipt of written notice of
the allegation, either party may request the Education and
Workforce Policy Advisor to review and to recommend resolution.
  (4) Nothing in this section prohibits the offering of upper
division or graduate programs within 30 miles of the campus of
the Oregon University System   { - institution - }
 { + university + } offering the program, or the offering of
lower division programs within 30 miles of the campus offering
the program in areas outside a community college district. Such
programs are entitled to the same college credit and financial
support as programs offered on the campus of the
 { - institution - }  { +  university + }.
  SECTION 148. ORS 344.557 is amended to read:
  344.557. (1) The Department of Human Services may refer a
person for vocational training only to the following schools or
programs:
  (a) A school that has accreditation recognized by the United
States Department of Education.
  (b) A school that has been approved by the Oregon Student
Assistance Commission through the Office of Degree Authorization
to offer and confer degrees in Oregon.
  (c) A community college.
  (d) A   { - state institution of higher education within the
Oregon University System - }  { +  public university listed in
ORS 352.002 + }.
  (e) The Oregon Health and Science University.
  (f) A career school licensed under ORS 345.010 to 345.450.
  (g) An apprenticeship program that is registered with the State
Apprenticeship and Training Council.
  (2) This section does not apply to vocational rehabilitation
training.
  SECTION 149. ORS 348.005 is amended to read:
  348.005. (1) The Legislative Assembly finds that:
  (a) The State of Oregon can achieve its full economic and
social potential only if all Oregonians have the opportunity to
contribute to the full extent of their capabilities and only when
financial barriers to their educational goals are removed;
  (b) All Oregonians who meet the appropriate admissions
requirements should be able to attend any community college,
  { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + } or independent
not-for-profit institution of post-secondary education regardless
of individual economic or social circumstances;
  (c) The interests of this state are best served when public
subsidies supporting college students are distributed fairly,
equitably and consciously to ensure maximum access and choice for
all Oregonians at the least cost to the taxpayers;
  (d) Need-based student financial aid is an effective, efficient
and essential means of assisting Oregonians who are unable to
afford the full cost of higher education;
  (e) Student financial aid allows Oregonians with limited
resources to select academic programs based on their interests,
aptitudes and career goals;
  (f) Student financial aid encourages and permits capable and
promising Oregonians to persist in their education and training
within this state; and
  (g) By assisting Oregonians in this manner, student financial
aid contributes to the quality of life of each Oregonian and to
the social, cultural and economic well-being of all Oregonians.
  (2) It is the intention of the Legislative Assembly to
establish financial assistance programs to enable qualified
Oregonians who need student aid to obtain post-secondary
education in Oregon's community colleges,   { - state
institutions of higher education - }  { +  public
 
universities + } or independent not-for-profit institutions of
post-secondary education.
  SECTION 150. ORS 348.180 is amended to read:
  348.180. As used in this section and ORS 348.183, 348.186,
348.205, 348.230, 348.250 and 348.260:
  (1) 'Cost of education' includes but is not limited to,
tuition, fees and living expenses.
  (2) 'Eligible post-secondary institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) The Oregon Health and Science University; or
  (d) An Oregon-based, generally accredited, not-for-profit
institution of higher education.
  (3) 'Qualified student' means any resident student who plans to
attend an eligible post-secondary institution and who:
  (a) Has not achieved a baccalaureate or higher degree from any
post-secondary institution;
  (b) Is enrolled in an eligible program as defined by rule of
the Oregon Student Assistance Commission; and
  (c) Is making satisfactory academic progress as defined by rule
of the commission.
  SECTION 151. ORS 348.183 is amended to read:
  348.183. The Legislative Assembly recognizes:
  (1) That an investment in educational opportunities for all
Oregonians is an investment in a strong and stable economy and
greater personal opportunities;
  (2) That the single largest barrier to attending an institution
of higher education is lack of finances;
  (3) That keeping higher education affordable requires a shared
effort and partnership by students, family, the federal
government, state government and private philanthropy;
  (4) The broad and diverse range of quality post-secondary
educational services provided by Oregon's institutions of higher
education, including Oregon's community colleges,   { - state
institutions - }  { +  public universities + } and independent
not-for-profit institutions of higher education; and
  (5) The positive effects on Oregon's citizens, families and
economy of encouraging talented and hardworking students to stay
in Oregon to pursue a post-secondary education.
  SECTION 152. ORS 348.205 is amended to read:
  348.205. (1) The Oregon Opportunity Grant program is
established within the Oregon Student Assistance Commission.
  (2) Under the program, the cost of education of a qualified
student shall be shared by the student, the family of the
student, the federal government and the state.
  (3) The commission shall determine the cost of education of a
qualified student based on the type of eligible post-secondary
institution the student is attending. The cost of education
equals:
  (a) For a student attending a community college, the average
cost of education of attending a community college in this state;
  (b) For a student attending   { - an institution - }  { +  a
public university + } under the direction of the State Board of
Higher Education, the average cost of education of attending
 { - an institution - }   { + a public university + } under the
direction of the board;
  (c) For a student attending a two-year Oregon-based, generally
accredited, not-for-profit institution of higher education, the
average cost of education of attending a community college in
this state; and
  (d) For a student attending the Oregon Health and Science
University or a four-year Oregon-based, generally accredited,
not-for-profit institution of higher education, the average cost
of education of attending   { - an institution - }   { + a public
university + } under the direction of the   { - board - }  { +
State Board of Higher Education + }.
  (4)(a) The commission shall determine the amount of the student
share. The student share shall be based on:
  (A) The type of eligible post-secondary institution the student
is attending;
  (B) The number of hours of work that the commission determines
may be reasonably expected from the student; and
  (C) The amount of loans that the commission determines would
constitute a manageable debt burden for the student.
  (b) The student shall determine how to cover the student share
through income from work, loans, savings and scholarships.
  (c) The student share for a student who attends a community
college may not exceed the amount that the commission determines
a student may earn based on the number of hours of work
reasonably expected from the student under paragraph (a) of this
subsection.
  (d) The student share for a student who attends an eligible
post-secondary institution that is not a community college may
not exceed the sum of the amount that the commission determines a
student may receive as loans plus the amount a student may earn
based on the number of hours of work reasonably expected from the
student under paragraph (a) of this subsection.
  (5) The commission shall determine the amount of the family
share. The family share shall be based on the resources of the
family.
  (6) The commission shall determine the amount of the federal
share based on how much the student or the student's family is
expected to receive from the federal government as grants, loans,
tax credits or other student assistance.
  (7)(a) The commission shall determine the amount of the state
share. The state share shall be equal to the cost of education
reduced by the student share, family share and amount received by
the student from the federal government.
  (b) The commission shall establish a minimum amount that a
student may receive as a state share. If the commission
determines that the amount of the state share of a student is
below the minimum amount, the student may not receive the state
share.
  (c) In determining the amount of the state share, the
commission shall consider the total amount available to award as
grants to all qualified students. If the commission must reduce
the amount of the state share under this paragraph, the
commission may not reduce the amount of the state share awarded
to students in the low income range in a greater proportion than
the amount that the state share for students in other income
ranges is reduced.
  SECTION 153. ORS 348.210 is amended to read:
  348.210. (1) In addition to any other scholarships provided by
law, the Oregon Student Assistance Commission may award
scholarships at Eastern Oregon University to resident
undergraduate students applying for enrollment in the university
or who are pursuing courses therein. The number of students who
receive scholarships under this subsection may not exceed two and
one-half percent of the number of students who are enrolled at
the university. The scholarships shall be awarded upon the basis
of a record of high intellectual standing and deportment in the
school or institution where the applicant has received or is
receiving preparatory training, the necessity for financial
assistance and other qualifications of such nature that the
awarding of scholarships will operate not only to the advantage
of the applicant but to the people of Oregon. A scholarship
awarded under this subsection may not exceed in value the amount
of the tuition and other fees, including the fees that are levied
against the recipient of the scholarship by the State Board of
Higher Education at the university.
  (2) The commission may award tuition and fee-exempting
scholarships to students from foreign nations who are enrolled in
  { - state institutions of higher education - }  { +  public
universities listed in ORS 352.002 + }. A student may not receive
a scholarship under this subsection that exceeds the amount of
tuition and fees owed by the student.
  (3) The value of scholarships awarded each year under
subsection (2) of this section may not exceed in aggregate an
amount equal to 10 percent of the amount of tuition and fees paid
in the preceding year to the Oregon University System by students
enrolled in   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + } who were not
Oregon residents.
  SECTION 154. ORS 348.270 is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the Oregon Student Assistance Commission shall award
scholarships in any   { - state institution under the State Board
of Higher Education - }  { +  public university listed in ORS
352.002 + }, in the Oregon Health and Science University, in any
community college operated under ORS chapter 341, or in any
Oregon-based regionally accredited independent institution, to
any student applying for enrollment or who is enrolled therein,
who is:
  (a) The natural child, adopted child or stepchild of any public
safety officer who, in the line of duty, was killed or so
disabled, as determined by the Oregon Student Assistance
Commission, that the income of the public safety officer is less
than that earned by public safety officers performing duties
comparable to those performed at the highest rank or grade
attained by the public safety officer; or
  (b) A former foster child who enrolls in an institution of
higher education as an undergraduate student not later than three
years from the date the student was removed from the care of the
Department of Human Services, the date the student graduated from
high school or the date the student received the equivalent of a
high school diploma, whichever date is earliest.
  (2) Scholarships awarded under this section to students who are
dependents of public safety officers or who are former foster
children shall equal the amount of tuition and all fees levied by
the institution against the recipient of the scholarship.
However, scholarships awarded to students who attend independent
institutions shall not exceed the amount of tuition and all fees
levied by the University of Oregon.
  (3) If the student who is the dependent of a deceased public
safety officer continues to remain enrolled in a   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + } or a community college or an
independent institution within the State of Oregon, the student
shall be entitled to renewal of the scholarship until the student
has received the equivalent of four years of undergraduate
education and four years of post-graduate education.
  (4) If the student who is a former foster child or who is the
dependent of a public safety officer with a disability continues
to remain enrolled in a   { - state institution of higher
education - }  { +  public university listed in ORS 352.002 + }
or a community college or an independent institution within the
State of Oregon, the student shall be entitled to renewal of the
scholarship until the student has received the equivalent of four
years of undergraduate education.
  (5) The Oregon Student Assistance Commission may require proof
of the student's relationship to a public safety officer
described in subsection (1) of this section or proof that the
student is a former foster child.
  (6) As used in this section:
  (a) 'Former foster child' means an individual who, for a total
of 12 or more months while between the ages of 16 and 21, was a
ward of the court pursuant to ORS 419B.100 (1)(b) to (e) and in
the legal custody of the Department of Human Services for
out-of-home placement.
  (b) 'Public safety officer' means:
  (A) A firefighter or police officer as those terms are defined
in ORS 237.610.
  (B) A member of the Oregon State Police.
  SECTION 155. ORS 348.282 is amended to read:
  348.282. As used in this section and ORS 348.283:
  (1) 'Armed Forces of the United States' means:
  (a) The Army, Navy, Air Force, Marine Corps and Coast Guard of
the United States;
  (b) The reserves of the Army, Navy, Air Force, Marine Corps and
Coast Guard of the United States; and
  (c) The Oregon National Guard and a National Guard of any other
state or territory.
  (2) 'Public post-secondary institution' means:
  (a) A   { - state institution - }   { + public university + }
under the direction of the State Board of Higher Education; and
  (b) A community college operated under ORS chapter 341.
  (3) 'Veteran' has the meaning given that term in ORS 408.225.
  SECTION 156. ORS 348.394 is amended to read:
  348.394. As used in ORS 348.394 to 348.406:
  (1) 'Eligible post-secondary institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university + } listed
in ORS 352.002;
  (b) A community college as defined in ORS 341.005; or
  (c) A generally accredited, not-for-profit institution of
higher education.
  (2) 'Participant' means a student who receives a grant under
ORS 348.401.
  SECTION 157. ORS 348.429 is amended to read:
  348.429. (1) In addition to any other student assistance
provided by the law, the Oregon Student Assistance Commission
shall award vouchers to eligible students participating in the
program.
  (2) The total of all vouchers earned by a student under this
section in one term shall not exceed an amount equal to the
average tuition and associated fees charged annually to full-time
resident undergraduate students by   { - institutions under the
jurisdiction of the State Board of Higher Education - }  { +
public universities listed in ORS 352.002 + }.
  (3) Vouchers shall be provided in $35 denominations for each
eight hours of eligible community service.
  (4) The commission shall:
  (a) Determine and approve which community service organizations
and services within the programs of such organizations are
eligible for participation in the program.
  (b) Accept the students that the institutions consider eligible
for vouchers under ORS 348.427 to 348.436.
  (c) Provide payment for vouchers presented by the program
students at eligible institutions.
  (d) Establish procedures necessary to carry out the provisions
of ORS 348.427 to 348.436, including adopting necessary rules.
  (5) Funds received in redemption of the vouchers granted
pursuant to ORS 348.427 to 348.436 shall not be considered
personal income for the purposes of ORS 316.037.
  (6) The vouchers authorized by ORS 348.427 to 348.436 shall
first become available when funds are available therefor from
sources other than the General Fund, as determined by the
commission.
  SECTION 158. ORS 348.597 is amended to read:
  348.597. (1) Except as provided in subsection (2) of this
section, ORS 348.594 to 348.615 apply to all schools that operate
in this state.
  (2) ORS 348.594 to 348.615 do not apply to:
  (a) An Oregon community college;
  (b) A   { - state institution of higher education within the
Oregon University System - }  { +  public university listed in
ORS 352.002 + };
  (c) The Oregon Health and Science University;
  (d) A school, or a separately accredited campus of a school, if
the school:
  (A) Is a nonprofit school that is exempt from federal income
tax under section 501(c)(3) of the Internal Revenue Code;
  (B) Conferred degrees in this state under the same control for
at least five consecutive years; and
  (C) Is accredited by a regional accrediting association or its
national successor;
  (e) A school that, on the date preceding July 15, 2005, was a
school described in ORS 348.594 (2)(d); or
  (f) A school that is exempt from ORS 348.594 to 348.615 under
ORS 348.604.
  SECTION 159. ORS 348.890 is amended to read:
  348.890. (1) The State Board of Higher Education and the State
Board of Education shall hold at least one meeting annually as
the Joint Boards of Education for the purpose of coordinating
their activities and reaching joint agreement on matters of
education policy and opportunities of mutual interest to the two
boards and to the populations served by the boards.
  (2) Bylaws to be adopted by the members shall determine
procedures for setting meeting dates, locations, chairperson
rotation, agendas and staff support.
  (3) The Joint Boards of Education shall provide policy
direction to implement regional partnership proposals and any
other joint program or activity approved by both boards.
  (4) Notwithstanding   { - ORS 351.070 (3)(c) - }  { +  section
6 (3) of this 2011 Act + }, the Department of Community Colleges
and Workforce Development and the Oregon University System may
use appropriations from the General Fund to implement agreements
approved by the Joint Boards of Education that provide direct aid
to a student, or other incentives that encourage shared use of
facilities, programs and other resources of   { - state
institutions of higher education - }  { +  public universities
listed in ORS 352.002 + } and community colleges.
  SECTION 160. ORS 348.900 is amended to read:
  348.900. (1) The Employment Department, in consultation with
health care industry employers, shall perform a statewide and
regional needs assessment for health care occupations to identify
emerging occupations and occupations for which there is high
demand or a shortage of workers. The assessment shall be
performed as necessary on a periodic basis, as determined by the
department, in consultation with industry employers. To perform
the needs assessment, the department may consider any reliable
data sources available to the department.
  (2) Based on the needs assessment, the Joint Boards of
Education shall inform  { + the + } community colleges,
 { - state institutions of higher education within the Oregon
University System - }   { + public universities listed in ORS
352.002 + }, Oregon Health and Science University and health care
industry employers of the identified statewide needs and invite
the development of health care education programs that are
responsive to those needs.
  (3) When approving health care education programs, the State
Board of Education, the State Board of Higher Education and the
Oregon Health and Science University Board of Directors shall use
the statewide needs assessment to evaluate whether a program
fulfills statewide needs. If a board determines there is a
statewide need, the board shall facilitate the:
  (a) Coordination of new health care education programs and
existing health care education programs that are similar to the
new health care education programs to address the statewide need;
and
  (b) Alignment of health care education programs relating to
statewide access, student transferability between programs,
course articulation and common student learning outcomes for
health care education programs.
  (4) In the development and approval of health care education
programs, community colleges,   { - state institutions of higher
education - }  { +  public universities + }, Oregon Health and
Science University, the State Board of Education, the State Board
of Higher Education and the Oregon Health and Science University
Board of Directors shall consider issues related to statewide
access, student transferability between programs, course
articulation and common student learning outcomes for health care
education programs. The colleges,   { - institutions - }  { +
public universities + }, university and boards shall continue to
provide and improve upon an effective articulation and transfer
framework for students in Oregon's post-secondary sectors.
  SECTION 161. ORS 348.910 is amended to read:
  348.910. (1) As used in this section, 'applied baccalaureate
degree' means a bachelor's degree designed to incorporate applied
associate courses and degrees with additional coursework
emphasizing higher-order thinking skills and advanced technical
knowledge and skills.
  (2) The Joint Boards of Education shall develop a plan for
offering applied baccalaureate degree programs at community
colleges and   { - state institutions of higher education - }
 { +  the public universities listed in ORS 352.002 + }. The
boards shall consider the following types of programs for the
purpose of offering some of these types and the possibility of
combinations of these types:
  (a) A career ladder program that requires a substantial number
of upper level courses in the same technical area of study as the
student's applied associate degree;
  (b) An inverse program that reverses the traditional curriculum
sequence by adding general education courses in the student's
third and fourth years to the associate degree courses taken in
the student's first and second years;
  (c) A management ladder program that combines associate degree
requirements with applied management skills coursework; and
  (d) A work experience program that combines general education
and technical coursework with direct, supervised work experience
in a relevant field.
  (3) The Joint Boards of Education plan must include the
following elements:
  (a) The method by which the applied baccalaureate degree
programs will be created, including any necessary accreditation
by the relevant accrediting agency;
  (b) The criteria for approving the degree and course options
offered by   { - state institutions of higher education - }  { +
the public universities listed in ORS 352.002 + } and community
colleges;
  (c) The articulation agreements between community colleges and
 { - state institutions of higher education - }  { +  the public
universities listed in ORS 352.002 + } necessary to ensure that
the applied baccalaureate degree programs are as widely available
as possible;
  (d) The resources required to implement the applied
baccalaureate degree program;
  (e) The timeline necessary to implement the applied
baccalaureate degree program; and
  (f) A recommendation as to whether community colleges should be
allowed to offer applied baccalaureate degrees.
  (4) The Joint Boards of Education shall submit a report, along
with proposed legislation, to the interim committee of the
Legislative Assembly related to higher education prior to
November 1, 2010. The boards shall provide progress reports on
the plan to the interim committee.
  (5) The Oregon University System, the Department of Education
and the Department of Community Colleges and Workforce
Development shall provide staff support to the Joint Boards of
Education in the preparation of the reports required by this
section.
  SECTION 162. ORS 353.260 is amended to read:
  353.260. (1) Oregon Health and Science University may adopt
policies governing access to university personnel records that
are less than 25 years old.
  (2) Policies adopted under subsection (1) of this section shall
require that personnel records be subjected to restrictions on
access unless the president of the university finds that the
public interest in maintaining individual rights to privacy in an
adequate educational environment would not suffer by disclosure
of such records. Access to such records may be limited to
designated classes of information or persons, or to stated times
and conditions, or to both, but cannot be limited for records
more than 25 years old.
  (3) No rule or order adopted pursuant to this section shall
deny to a faculty member full access to the member's personnel
file or records kept by the university, except as provided in
subsection (4)(d) and (e) of this section.
  (4)(a) The files relating to the evaluation of a faculty member
shall be kept in designated, available locations.
  (b) Any evaluation received by telephone shall be documented in
each of the faculty member's files by means of a written summary
of the conversation with the names of the conversants identified.
  (c) A faculty member shall be entitled to submit, for placement
in the files, evidence rebutting, correcting, amplifying or
explaining any document contained therein and other material that
the member believes might be of assistance in the evaluation
process.
  (d) Letters and other information for a faculty member of the
university submitted in confidence to the State Board of Higher
Education or its   { - institutions - }  { +  public universities
or offices + }, schools or departments prior to July 1, 1975,
shall be maintained in the files designated by paragraph (a) of
this subsection.  However, if a faculty member requests access to
those files, the anonymity of the contributor of letters and
other information obtained prior to July 1, 1975, shall be
protected. The full text shall be made available, except that
portions of the text that would serve to identify the contributor
shall be excised by a faculty committee. Only the names of the
contributors and the excised portions of the documents may be
kept in a file other than the files designated by paragraph (a)
of this subsection.
  (e) Confidential letters and other information submitted to or
solicited by the university after July 1, 1995, and prior to the
employment of a prospective faculty member are exempt from the
provisions of this paragraph. However, if the member is employed
by the university, the confidential preemployment materials shall
be placed in the files designated by paragraph (a) of this
subsection. If a faculty member requests access to the member's
files, the anonymity of the contributor of confidential
preemployment letters and other preemployment information shall
be protected. The full text shall be made available, except that
portions of the text that would serve to identify the contributor
shall be excised and retained in a file other than the files
designated by paragraph (a) of this subsection.
  (f) Classroom survey evaluations by students of a faculty
member's classroom or laboratory performance shall be anonymous.
The record of tabulated reports shall be placed in at least one
of the files designated by paragraph (a) of this subsection. All
 
survey instruments used to obtain evaluation data shall be
returned to the faculty member.
  (g) The university, when evaluating its employed faculty
members, shall not solicit or accept letters, documents or other
materials, given orally or in written form, from individuals or
groups who wish their identity kept anonymous or the information
they provide kept confidential.
  (5) No policy or order adopted pursuant to this section limits
the authority of the university to prepare, without
identification of individual persons who have not consented
thereto, statistical or demographic reports from personnel
records.
  (6) Any category of personnel records specifically designated
as confidential pursuant to valid policies or orders as provided
in this section shall not be deemed a public record for the
purposes of ORS 192.420.
  (7) As used in this section, 'personnel records' means records
containing information kept by the university concerning a
faculty member and furnished by the faculty member or by others
about the faculty member at the member's or at the university's
request, including but not limited to information concerning
discipline, membership activity, employment performance or other
personal records of individual persons.
  SECTION 163. ORS 353.440 is amended to read:
  353.440. The Legislative Assembly finds that:
  (1)   { - Institutions - }   { + Public universities + } in the
Oregon University System and other educational sectors have
academic programs that are related to or integrated with the
programs of Oregon Health and Science University.
  (2) It is in the best interest of the state that a coordinated
approach be taken to these related and integrated academic
programs.
  (3) In order to best ensure the continued harmony of such
academic programs, the  { + Oregon Health and Science + }
University and the Oregon University System shall coordinate such
programs and shall advise each other of the following proposed
changes to such academic programs:
  (a) Creation or significant revision, such as a merger or
closure, of degree programs;
  (b) Creation or significant revision, such as a merger or
closure, of schools; and
  (c) Creation or significant revision of major academic
policies.
  (4) In order to further the coordination described by this
section,  { + Oregon Health and Science + } University officers
shall maintain a role in the appropriate committees of the State
Board of Higher Education and the Oregon University System.
  SECTION 164. ORS 353.600 is amended to read:
  353.600. As used in ORS 353.600 to 353.612:
  (1) 'Committee' means the Oregon Nursing Shortage Coalition
Committee created in ORS 353.606.
  (2) 'Post-secondary education institution' means:
  (a) A   { - state institution under the direction of the State
Board of Higher Education - }  { +  public university listed in
ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University; or
  (d) An Oregon-based, generally accredited, not-for-profit
private institution of higher education.
  SECTION 165. ORS 353.603 is amended to read:
  353.603. (1) Oregon Health and Science University shall
distribute grants to post-secondary education institutions to
support nursing education programs based on the selections of the
Oregon Nursing Shortage Coalition Committee and in accordance
with appropriate university policies and procedures. If the
university is not able to distribute a grant to a post-secondary
education institution selected by the committee, the university
shall report to the committee the reason for not distributing the
grant.
  (2) Grants distributed under this section to a community
college or   { - state institution of higher education - }  { +
a public university listed in ORS 352.002 + } may be based on an
intergovernmental agreement entered into by Oregon Health and
Science University and the college or   { - institution - }  { +
public university + }.
  (3) Oregon Health and Science University may not use more than
five percent of the amount received from the Nursing Education
Grant Fund established in ORS 353.612 for the grant program in
any biennium for administrative expenses incurred in
administering ORS 353.600 to 353.612.
  (4) Oregon Health and Science University may accept
contributions of funds and assistance from the United States
Government or its agencies, or from any other source, public or
private, and agree to conditions placed on the funds not
inconsistent with the purposes of ORS 353.600 to 353.612. The
university shall use funds and assistance received under this
subsection for grants distributed under this section or for
administering ORS 353.600 to 353.612.
  (5) Oregon Health and Science University shall deposit moneys
received by the university for purposes of ORS 353.600 to 353.612
in the Nursing Education Grant Fund. The total amount of grants
distributed under this section may not exceed the amount of
moneys available for distribution in the fund.
  SECTION 166. ORS 357.004 is amended to read:
  357.004. As used in ORS 357.001 to 357.200, unless the context
requires otherwise:
  (1) 'Depository library' means a library that is designated as
such under ORS 357.095.
  (2)(a) 'Issuing agency' means state government, as that term is
defined in ORS 174.111.
  (b) 'Issuing agency' does not include the State Board of Higher
Education or any   { - institution, division or department - }
 { +  public university or office, department or activity + }
under the control of the board.
  (3)(a) 'Public document' means informational matter produced
for public distribution or access regardless of format, medium,
source or copyright, originating in or produced with the imprint
of, by the authority of or at the total or partial expense of any
state agency. 'Public document' includes informational matter
produced on computer diskettes, CD-ROMs, computer tapes, the
Internet or in other electronic formats.
  (b) 'Public document' does not include:
  (A) Correspondence, forms, interoffice or intraoffice
memoranda;
  (B) Legislative bills;
  (C) Oregon Revised Statutes or any edition thereof; or
  (D) Reports and publications of the Oregon Supreme Court, the
Oregon Court of Appeals and the Oregon Tax Court.
  SECTION 167. ORS 408.095 is amended to read:
  408.095. (1) As used in this section, 'community college ' has
the meaning given that term in ORS 341.005.
  (2) There is created in the Department of Veterans' Affairs the
Campus Veterans' Service Officers Program.
  (3) The purpose of the program is to provide educational
outreach to veterans to help ensure that they obtain maximum
state and federal benefits.
  (4) The department shall appoint a sufficient number of campus
veterans' service officers to ensure that each Oregon community
college and each   { - institution - }   { + public
university + } in the Oregon University System, as described in
ORS 352.002, is provided veterans' services.
  (5) Each community college and   { - institution - }
 { + public university + } in the Oregon University System shall
provide office space that may be used for the provision of
veterans' services.
  (6) The department may adopt rules to implement the Campus
Veterans' Service Officers Program.
  SECTION 168. ORS 431.690, as amended by section 1, chapter 27,
Oregon Laws 2010, and section 6, chapter 62, Oregon Laws 2010, is
amended to read:
  431.690. (1) As used in this section, 'place of public
assembly' means a single building that has 50,000 square feet or
more of indoor floor space and where:
  (a)(A) The public congregates for purposes such as
deliberation, shopping, entertainment, amusement or awaiting
transportation; or
  (B) Business activities are conducted; and
  (b) At least 50 individuals congregate on a normal business
day.
  (2) Notwithstanding ORS 431.680 (3), the owner of a place of
public assembly shall have on the premises at least one automated
external defibrillator.
  (3) Notwithstanding subsection (2) of this section:
  (a) A community college or a   { - state institution of higher
education - }   { + public university + } listed in ORS 352.002
shall have at least one automated external defibrillator on the
campus of the community college or   { - institution - }  { +
public university + }; and
  (b) If the campus of the community college or   { - institution
of higher education - }   { + public university + } contains more
than one place of public assembly, the community college or
 { - institution - }   { + public university + } shall ensure
that at least one automated external defibrillator is readily
available to each place of public assembly.
  (4) Subsection (2) of this section does not apply to a building
primarily used for worship or education associated with worship.
  SECTION 169. ORS 433.090 is amended to read:
  433.090. As used in ORS 433.090 to 433.102:
  (1) 'Authorized user' means a person or entity authorized to
provide information to or to receive information from an
immunization registry or immunization tracking and recall system
under ORS 433.090 to 433.102. 'Authorized user' includes, but is
not limited to, licensed health care providers, health care
institutions, insurance carriers, the Oregon medical assistance
program, parents or guardians of children under 18 years of age,
clients 18 years of age or older, post-secondary education
institutions, schools, children's facilities, local health
departments, the Oregon Health Authority and agents of the
authority.
  (2) 'Children's facility' has the meaning given that term in
ORS 433.235.
  (3) 'Client' means any person registered with any Oregon
immunization tracking and recall system.
  (4) 'Immunization record' includes but is not limited to the
following:
  (a) Any immunization received;
  (b) Date immunization was received;
  (c) Complication or side effect associated with immunization;
  (d) Date and place of birth of a client;
  (e) Hospital where a client was born;
  (f) Client's name; and
  (g) Mother's name.
  (5) 'Immunization registry' means any listing of clients and
information relating to their immunization status, without regard
to whether the registry is maintained in this state or elsewhere.
  (6) 'Immunization tracking and recall record' includes but is
not limited to the client's name, address of the parent or
guardian of the client, telephone number, insurance carrier,
health care provider and other information needed to send
reminder cards to, place telephone calls to or personally contact
the client or the parent or the guardian of a client for the
purposes of informing the client, parent or guardian that the
client is late in receiving the recommended immunizations.
  (7) 'Local health department' has the meaning given that term
in ORS 433.235.
  (8) 'Parent or guardian' has the meaning given the term '
parent' in ORS 433.235.
  (9) 'Post-secondary education institution' means:
  (a) A   { - state institution of higher education under the
jurisdiction of the State Board of Higher Education - }  { +
public university listed in ORS 352.002 + };
  (b) A community college operated under ORS chapter 341;
  (c) A school or division of Oregon Health and Science
University; or
  (d) An Oregon-based, generally accredited, private institution
of higher education.
  (10) 'Provider' means a physician or a health care professional
who is acting within the scope of his or her licensure and
responsible for providing immunization services or for
coordinating immunization services within a clinic, public health
site, school or other immunization site.
  (11) 'School' has the meaning given that term in ORS 433.235.
  (12) 'Tracking and recall system' means a system attached to an
immunization registry designed to contact clients listed in the
immunization registry for the purposes of assisting in the
completion of the immunization series in a timely manner.
  SECTION 170. ORS 461.543 is amended to read:
  461.543. (1) Except as otherwise specified in subsection (5) of
this section, the Sports Lottery Account is continuously
appropriated to and shall be used by the State Board of Higher
Education to fund sports programs at   { - state institutions of
higher education - }  { +  public universities listed in ORS
352.002 + }. Seventy percent of the revenues in the fund shall be
used to fund nonrevenue producing sports and 30 percent shall be
used for revenue producing sports. Of the total amount available
in the fund, at least 50 percent shall be made available for
women's athletics.
  (2) The   { - State - }  board   { - of Higher Education - }
shall allocate moneys in the Sports Lottery Account among the
 { - institutions of higher education under its jurisdiction - }
 { +  public universities, + } giving due consideration to:
  (a) The athletic conference to which the   { - institution - }
 { +  public university + } belongs and the relative costs of
competing in that conference.
  (b) The level of effort being made by the   { - institution - }
 { + public university + } to generate funds and support from
private sources.
  (3) As used in subsections (1) to (3) of this section, '
revenue producing sport' is a sport that produces net revenue
over expenditures during a calendar year or if its season extends
into two calendar years, produces net revenue over expenditures
during the season.
  (4) An amount equal to one percent of the moneys transferred to
the Administrative Services Economic Development Fund from the
State Lottery Fund shall be allocated from the Administrative
Services Economic Development Fund to the Sports Lottery Account.
  (5) The amounts received by the Sports Lottery Account shall be
allocated as follows:
  (a) Eighty-eight percent for the purposes specified in
subsections (1) to (3) of this section, but not to exceed $8
million annually, adjusted annually pursuant to the Consumer
Price Index, as defined in ORS 327.006.
 
  (b) Twelve percent for the purpose of scholarships, to be
distributed equally between scholarships based on academic merit
and scholarships based on need, as determined by rule of the
  { - State - }  board   { - of Higher Education - } , but not to
exceed $1,090,909 annually.
  (c) All additional money to the Oregon Student Assistance
Commission for the Oregon Opportunity Grant program under ORS
348.260.
  SECTION 171. ORS 541.375 is amended to read:
  541.375. (1) Any person, tribe, watershed council, soil and
water conservation district, community college,   { - state
institution of higher education - }  { +  public university
listed in ORS 352.002 + }, independent not-for-profit institution
of higher education or political subdivision of this state that
is not a state agency may submit a request for funding for or for
advice and assistance in developing a project under ORS 541.351
to 541.415. A state agency or federal agency may apply for
funding under this section only as a coapplicant with one of the
other eligible entities.
  (2) The request under subsection (1) of this section shall be
filed in the manner, be in the form and contain the information
required by the Oregon Watershed Enhancement Board.
  (3) The board may establish a grant program through soil and
water conservation districts organized under ORS 568.210 to
568.808 and 568.900 to 568.933 that provides funds for local
implementation of watershed enhancement, education and monitoring
efforts.
  (4) The board may fund implementation of action plans based on
a watershed assessment that addresses water quality and aquatic
resources of the watershed.
  (5) A project may use mechanical, vegetative or structural
methods including, but not limited to, management techniques,
erosion control, streambank stabilization, forest, range or crop
land treatment, site specific in-stream structures, acquisitions
or leases of land or water rights from a willing owner, watershed
assessments, landowner incentives and action plan development,
implementation and monitoring.
  (6) The actions of a soil and water conservation district
carried out pursuant to a grant program established by the board
under subsection (3) of this section shall not be subject to
review and approval by the Natural Resources Division under ORS
561.400.
  (7) The Oregon Watershed Enhancement Board shall approve for
funding only those projects that:
  (a) Are based on sound principles of watershed management;
  (b) Use methods most adapted to the project locale;
  (c) Meet the criteria established by the board under ORS
541.396; and
  (d) Contribute to either:
  (A) The improved health of a stream, lake or reservoir and
toward the achievement of standards that satisfy the requirements
of the Federal Water Pollution Control Act (P.L. 92-500), as
amended; or
  (B) The restoration of wildlife, habitat or native fish.
  (8) The Oregon Watershed Enhancement Board may fund a project
for the restoration of a riparian area or associated upland that
is carried out in conjunction with a storage structure. However,
the board shall not approve funding for any proposed project that
consists solely of construction of a storage structure for
out-of-stream use.
  (9) The Oregon Watershed Enhancement Board may fund projects
involving the acquisition of lands and waters, or interests
therein from willing sellers, for the purpose of maintaining or
restoring watersheds, habitat and native salmonids. Interests in
these lands and waters may be held by local, state and federal
agencies, tribes, not-for-profit land conservation organizations
and trusts,   { - state institutions of higher education - }
 { +  public universities listed in ORS 352.002 + }, independent
not-for-profit institutions of higher education or political
subdivisions of this state, as long as the entity continues to
use the land or water for the purposes specified under section
4b, Article XV of the Oregon Constitution.
  (10) If the Oregon Watershed Enhancement Board approves funding
for a project under this section that requires the applicant to
obtain a permit or license from a local, state or federal agency
or governing body, the board shall not disburse any funds to the
applicant until the applicant presents evidence that the agency
has granted the permit or license.
  SECTION 172. ORS 634.660 is amended to read:
  634.660. Each of the following state agencies   { - or
services - } shall implement integrated pest management practices
when carrying out the agency's duties related to pest control:
  (1) State Department of Agriculture, including the control of
noxious weeds.
  (2) State Department of Fish and Wildlife.
  (3) Department of Transportation.
  (4) State Parks and Recreation Department.
  (5) State Forestry Department.
  (6) Department of Corrections.
  (7) Oregon Department of Administrative Services.
  (8) The Department of State Lands.
  (9) Each   { - Oregon institution of higher education - }  { +
public university listed in ORS 352.002 + }, for the
 { - institution's - }   { + public university's + } own building
and grounds maintenance.
  SECTION 173. ORS 659.855 is amended to read:
  659.855. (1) Any public elementary or secondary school
determined by the Superintendent of Public Instruction or any
community college determined by the Commissioner for Community
College Services to be in noncompliance with provisions of ORS
659.850 and this section shall be subject to appropriate
sanctions, which may include withholding of all or part of state
funding, as established by rule of the State Board of Education.
  (2) Any public   { - institution of higher education - }  { +
university listed in ORS 352.002 + } determined by the Chancellor
of the Oregon University System to be in noncompliance with
provisions of ORS 659.850 and this section shall be subject to
appropriate sanctions, which may include withholding of all or
part of state funding, as established by rule of the
 { - State - }  board   { - of Higher Education - } .
  (3) Any public charter school determined by the sponsor of the
school or the superintendent   { - of Public Instruction - }  to
be in noncompliance with the provisions of ORS 659.850 and this
section shall be subject to appropriate sanctions, which may
include the withholding of all or part of state funding by the
sponsor or superintendent, as established by rule of the
 { - State - }  board   { - of Education - } .
  SECTION 174. ORS 660.315 is amended to read:
  660.315. (1) The Governor shall designate regional workforce
committees to advise the Governor, local workforce investment
boards that represent federally recognized workforce areas
containing multiple regions, and county elected officials on
regional and local needs for workforce development. The
committees shall also prepare plans for achieving regional goals
and coordinate the provision of services within regions. The
committees shall have private and public sector members. However,
a majority of the members of each committee shall represent the
private sector and include business and labor representatives.
The chairperson of each committee shall be a private sector
member and be elected by the committee.
  (2) The private sector committee members shall play a critical
role in workforce development, including but not limited to:
  (a) Identifying current and future workforce needs;
  (b) Providing feedback on public sector programs;
  (c) Assisting public agencies in changing programs to be more
effective in meeting private sector needs; and
  (d) Being a partner in addressing workforce needs.
  (3) Private sector members of a committee created under this
section shall be appointed by county commissioners and, in the
region that includes the City of Portland, the Mayor of Portland.
The members of the committee shall reflect the broadest feasible
representation from the groups described in ORS 660.312 (4)(a) to
(h).
  (4) The public sector representatives on the committee are
representatives who receive resources and deliver education and
workforce programs within the labor market area. Public sector
members shall include the broadest feasible representation from,
but not be limited to, the following:
  (a) The Department of Human Services;
  (b) School districts, education service districts, community
colleges,   { - state institutions of higher education - }  { +
public universities listed in ORS 352.002 + } and Oregon Health
and Science University;
  (c) The Oregon Business Development Department and local
economic development entities;
  (d) The Employment Department;
  (e) The federal Act programs; and
  (f) Other public sector partners.
  (5) A region may recommend to the Governor an alternate
structure for its regional committee, based on regional
determination and mutually agreed to by the current public and
private sector members of the regional workforce committee and
the chief elected officials. The alternate structure must retain
a private sector chairperson, appointments of the private sector
members as provided in subsection (3) of this section, and
substantive public and private sector and other stakeholder
participation through formalized methods, such as standing
committees.
  (6) A regional workforce committee shall develop and implement
a strategic regional workforce plan that responds to the current
and future workforce needs of the regional labor market.
  (7) The strategic regional workforce plan shall:
  (a) Consider the supply and demand outlook for the region;
  (b) Identify and prioritize initiatives and resources, both
public and private, to meet the regional workforce needs;
  (c) Articulate and include the coordination of both public and
private resources in addressing the workforce needs and goals;
and
  (d) Ensure the most appropriate use of resource investments.
  (8) The regional workforce committee shall create or enhance
the workforce program delivery system to meet the strategic
priorities of the region and any strategic priorities of a
federally recognized workforce area that includes that region.
  (9) Within each region, or within overlapping regions, regional
workforce committees, local workforce investment boards and
regional investment boards shall coordinate their planning
efforts to ensure that the strategic efforts and resource
allocation of economic and workforce development of an area are
consistent. Regional workforce committees and regional investment
boards will extend opportunities to other entities engaged in
economic and workforce development programs and services to
participate in their joint or integrated strategic planning.
  (10)(a) A local workforce investment board that represents a
multiregional workforce area shall hold regional workforce
committees in the area accountable for any policy and operational
responsibilities under 2832(d) of the federal Act that is
delegated to the committees in accordance with state policy and
local workforce investment board policy.
  (b) A regional workforce committee within a multiregional
workforce area is accountable to the local workforce investment
board for any policy and operational responsibilities carried out
under the federal Act on behalf of the board.
  (c) As it relates to regional responsibilities under this
section, a regional workforce committee may, through a vote of
the committee, determine the methodology for delegating the
responsibilities of the regional workforce committee to a local
workforce investment board representing the multiregional
workforce area.
  SECTION 175. ORS 660.358 is amended to read:
  660.358. (1) The State Workforce Investment Board, in
consultation with the Governor, the Education and Workforce
Policy Advisor and other parties deemed appropriate by the board
and after consideration of the clean energy and energy efficiency
policies of this state, shall develop a plan for a green jobs
growth initiative to promote the development of emerging
technologies and innovations that lead to, create or sustain
family wage green jobs.
  (2) The plan for the initiative developed by the board shall:
  (a) Identify industries that are high demand green industries
based on current and projected creation of family wage green jobs
and the potential for career pathways created for such jobs.
  (b) Use the needs of identified high demand green industries as
the basis for the planning of workforce development activities
that promote the development of emerging green technologies and
innovations. These activities include, but are not limited to,
such efforts undertaken by community colleges, the
 { - institutions - }  { +  public universities + } of the Oregon
University System, designated signature research centers,
registered apprenticeship programs and other private sector
training programs.
  (c) Leverage and align existing public workforce development
programs and other public and private resources to the goal of
recruiting, supporting, educating and training of targeted
populations of workers.
  (d) Require the board to work collaboratively with stakeholders
from business, labor and low income advocacy groups in the
regional economy to develop and implement the initiative.
  (e) Link adult basic and remedial education programs with job
training for skills necessary for green jobs.
  (f) Require the board to collaborate with employers and labor
organizations to identify skills and competencies necessary for
green job career pathways.
  (g) Ensure that support services are integrated with education
and training for green jobs and that such services are provided
by organizations with direct access to and experience with
targeted populations.
  SECTION 176. ORS 679.020 is amended to read:
  679.020. (1) A person may not practice dentistry without a
license.
  (2) Only a person licensed as a dentist by the Oregon Board of
Dentistry may own, operate, conduct or maintain a dental
practice, office or clinic in this state.
  (3) The restrictions of subsection (2) of this section, as they
relate to owning and operating a dental office or clinic, do not
apply to a dental office or clinic owned or operated by any of
the following:
  (a) A labor organization as defined in ORS 243.650 and 663.005
(6), or to any nonprofit organization formed by or on behalf of
such labor organization for the purpose of providing dental
services. Such labor organization must have had an active
existence for at least three years, have a constitution and
bylaws, and be maintained in good faith for purposes other than
providing dental services.
 
  (b) The School of Dentistry of the Oregon Health and Science
University.
  (c)   { - Institutions of higher education - }  { +  Public
universities + } listed in ORS 352.002.
  (d) Local governments.
  (e) Institutions or programs accredited by the Commission on
Dental Accreditation of the American Dental Association to
provide education and training.
  (f) Nonprofit corporations organized under Oregon law to
provide dental services to rural areas and medically underserved
populations of migrant, rural community or homeless individuals
under 42 U.S.C. 254b or 254c or health centers qualified under 42
U.S.C. 1396d(l)(2)(B) operating in compliance with other
applicable state and federal law.
  (g) Nonprofit charitable corporations as described in section
501(c)(3) of the Internal Revenue Code and determined by the
Oregon Board of Dentistry as providing dental services by
volunteer licensed dentists to populations with limited access to
dental care at no charge or a substantially reduced charge.
  (4) For the purpose of owning or operating a dental office or
clinic, an entity described in subsection (3) of this section
must:
  (a) Name an actively licensed dentist as its dental director,
who shall be subject to the provisions of ORS 679.140 in the
capacity as dental director. The dental director, or an actively
licensed dentist designated by the director, shall have
responsibility for the clinical practice of dentistry, which
includes, but is not limited to:
  (A) Diagnosis of conditions within the human oral cavity and
its adjacent tissues and structures.
  (B) Prescribing drugs that are administered to patients in the
practice of dentistry.
  (C) The treatment plan of any dental patient.
  (D) Overall quality of patient care that is rendered or
performed in the practice of dentistry.
  (E) Supervision of dental hygienists, dental assistants or
other personnel involved in direct patient care and the
authorization for procedures performed by them in accordance with
the standards of supervision established by statute or by the
rules of the board.
  (F) Other specific services within the scope of clinical dental
practice.
  (G) Retention of patient dental records as required by statute
or by rule of the board.
  (H) Ensuring that each patient receiving services from the
dental office or clinic has a dentist of record.
  (b) Maintain current records of the names of licensed dentists
who supervise the clinical activities of dental hygienists,
dental assistants or other personnel involved in direct patient
care utilized by the entity. The records must be available to the
board upon written request.
  (5) Subsections (1) and (2) of this section do not apply to a
limited access permit dental hygienist who renders services
authorized by a limited access permit issued by the board
pursuant to ORS 680.200.
  (6) Nothing in this chapter precludes a person or entity not
licensed by the board from:
  (a) Ownership or leasehold of any tangible or intangible assets
used in a dental office or clinic. These assets include real
property, furnishings, equipment and inventory but do not include
dental records of patients related to clinical care.
  (b) Employing or contracting for the services of personnel
other than licensed dentists.
  (c) Management of the business aspects of a dental office or
clinic that do not include the clinical practice of dentistry.
 
  (7) If all of the ownership interests of a dentist or dentists
in a dental office or clinic are held by an administrator,
executor, personal representative, guardian, conservator or
receiver of the estate of a former shareholder, member or
partner, the administrator, executor, personal representative,
guardian, conservator or receiver may retain the ownership
interest for a period of 12 months following the creation of the
ownership interest. The board shall extend the ownership period
for an additional 12 months upon 30 days' notice and may grant
additional extensions upon reasonable request.
  SECTION 177. ORS 696.182 is amended to read:
  696.182. (1) The Real Estate Agency, with advice from real
estate professionals and educators, shall prescribe rules for
certifying real estate continuing education providers.
  (2) The agency shall include in the rules that an applicant for
certification under this section must be:
  (a) A main or branch office of a real estate broker or
principal real estate broker registered with the agency under ORS
696.026;
  (b) A title or escrow company conducting business in this
state;
  (c) A real estate trade association or a trade association in a
related field;
  (d) A real estate multiple listing service;
  (e) A private career school approved by the agency to teach
continuing education courses;
  (f) An accredited community college or an accredited
 { - state institution of higher education - }  { +  public
university listed in ORS 352.002 + };
  (g) A distance learning provider approved by the agency; or
  (h) Another provider approved by the Real Estate Board.
  (3) The agency, in consultation with real estate professionals
and educators, shall provide by rule:
  (a) A broad list of course topics that are eligible for
continuing education credit required by ORS 696.174; and
  (b) Learning objectives for each course topic.
  (4) The list of course topics developed by the agency under
subsection (3) of this section must allow for changes in the real
estate profession.
  (5) The minimum length of each course is one hour. A continuing
education provider or course instructor may allow a break of no
more than 10 minutes for each hour of instruction.
  SECTION 178. ORS 743.550 is amended to read:
  743.550. (1) Student health insurance is subject to ORS
743.537, 743.540, 743.543, 743.546 and 743.549, except as
provided in this section.
  (2) Coverage under a student health insurance policy may be
mandatory for all students at the institution, voluntary for all
students at the institution, or mandatory for defined classes of
students and voluntary for other classes of students. As used in
this subsection, 'classes' refers to undergraduates, graduate
students, domestic students, international students or other like
classifications. Any differences based on a student's nationality
may be established only for the purpose of complying with federal
law in effect when the policy is issued.
  (3) When coverage under a student health insurance policy is
mandatory, the policyholder may allow any student subject to the
policy to decline coverage if the student provides evidence
acceptable to the policyholder that the student has similar
health coverage.
  (4) A student health insurance policy may provide for any
student to purchase optional supplemental coverage.
  (5) Student health insurance coverage for athletic injuries
may:
  (a) Exclude coverage for injuries of students who have not
obtained medical release for a similar injury; and
  (b) Be provided in excess of or in addition to any other
coverage under any other health insurance policy, including a
student health insurance policy.
  (6) A student health insurance policy may provide that coverage
under the policy is secondary to any other health insurance for
purposes of guidelines established under ORS 743.552.
  (7) A student health insurance policy may provide, on request
by the policyholder, that all or any portion of any indemnities
provided by such policy on account of hospital, nursing, medical
or surgical services may, at the insurer's option, be paid
directly to the hospital or person rendering such services.
However, the amount of any such payment shall not exceed the
amount of benefit provided by the policy with respect to the
service or billing of the provider of aid. The amount of such
payments pursuant to one or more assignments shall not exceed the
amount of expenses incurred on account of such hospitalization or
medical or surgical aid.
  (8) An insurer providing student health insurance as primary
coverage may negotiate and enter into contracts for alternative
rates of payment with providers and offer the benefit of such
alternative rates to insureds who select such providers. An
insurer may utilize such contracts by offering a choice of plans
at the time an insured enrolls, one of which provides benefits
only for services by members of a particular provider
organization with whom the insurer has an agreement. If an
insured chooses such a plan, benefits are payable only for
services rendered by a member of that provider organization,
unless such services were requested by a member of such
organization or are rendered as the result of an emergency.
  (9) Payments made under subsection (8) of this section shall
discharge the insurer's obligation with respect to the amount of
insurance paid.
  (10) An insurer shall provide each student health insurance
policyholder with a current roster of institutional and
professional providers under contract to provide services at
alternative rates under the group policy and shall also make such
lists available for public inspection during regular business
hours at the insurer's principal office within this state.
  (11) As used in this section, 'student health insurance ' means
that form of health insurance under a policy issued to a college,
school or other institution of learning, a school district or
districts, or school jurisdictional unit, or recognized student
government at   { - an institution of higher education within the
Oregon University System - }  { +  a public university listed in
ORS 352.002 + }, or to the head, principal or governing board of
any such educational unit, who or which shall be deemed the
policyholder, that is available exclusively to students at the
college, school or other institution.
  SECTION 179. ORS 759.445 is amended to read:
  759.445. (1) There is established in the State Treasury,
separate and distinct from the General Fund, the Connecting
Oregon Communities Fund. Moneys in the fund shall consist of
amounts deposited in the fund under ORS 759.405 and any other
moneys deposited by a telecommunications carrier that elects to
be subject to ORS 759.405 and 759.410, including amounts
deposited pursuant to a performance assurance plan implemented by
a telecommunications carrier in connection with an application
under 47 U.S.C. 271, as in effect on January 1, 2002. Interest
earned on moneys in the fund shall accrue to the fund. Moneys in
the fund may be invested as provided in ORS 293.701 to 293.820.
Moneys in the fund shall be used to provide access to advanced
telecommunications technology in elementary schools and high
schools, colleges and universities, community colleges, public
television corporations, rural health care providers, public
libraries and other eligible persons.
 
  (2) Two dedicated accounts shall be established within the
Connecting Oregon Communities Fund for purposes of supporting
education and public access to advanced telecommunications
services. The first $25 million of the moneys deposited in the
Connecting Oregon Communities Fund in both 2000 and 2001 shall be
appropriated to the School Technology Account established under
subsection (3) of this section. Except as provided in subsection
(8) of this section, any additional moneys available in the fund
shall be appropriated to the Public Access Account established
under subsection (4) of this section.
  (3) There is established the School Technology Account within
the Connecting Oregon Communities Fund. The purpose of the School
Technology Account is to improve access to advanced
telecommunications services for students attending public school
in kindergarten through grade 12. Moneys in the account shall be
expended as provided in section 34, chapter 1093, Oregon Laws
1999.
  (4)(a) There is established the Public Access Account within
the Connecting Oregon Communities Fund. The purpose of the Public
Access Account is to improve access to advanced
telecommunications services for community colleges, universities,
public libraries and rural health care providers.
  (b) If funding has not been provided from other sources, the
first $3 million available in the Public Access Account shall be
transferred to the Oregon University System for the purpose of
funding the Oregon Wide Area Network project to provide and
expand Internet access for the Oregon University System. The
Oregon University System shall complete an audit of bandwidth
utilization and report to the Joint Legislative Committee on
Information Management and Technology during the Seventy-first
Legislative Assembly in the manner provided in ORS 192.245.
  (c) Following the transfer of funds described in paragraph (b)
of this subsection, the next $1 million available in the Public
Access Account shall be transferred to the Oregon University
System for Oregon State University for the purpose of providing
virtual access to persons with disabilities.
  (d) Following the transfer of funds as described in paragraphs
(b) and (c) of this subsection, the next $2 million available in
the Public Access Account shall be transferred to the Department
of Community Colleges and Workforce Development for distribution
to community colleges for the purpose of developing connectivity
and distance education programs.
  (e) Following the transfer of funds described in paragraphs (b)
to (d) of this subsection, the next $4 million available in the
Public Access Account shall be transferred to the Oregon
University System for video transport and network management
services for the Oregon University System.
  (f) Following the transfer of funds described in paragraphs (b)
to (e) of this subsection, the next $5.5 million available in the
Public Access Account shall be transferred to the Oregon Public
Broadcasting Corporation for the purpose of digitizing the state
television network, using the Oregon Enterprise Network when
possible.
  (g) Following the transfer of funds described in paragraphs (b)
to (f) of this subsection, the next $500,000 available in the
Public Access Account shall be transferred to the Southern Oregon
Public Television Corporation for the purpose of digitizing the
state television network, using the Oregon Enterprise Network
when possible.
  (h) Following the transfer of funds described in paragraphs (b)
to (g) of this subsection, a   { - state institution of higher
education, including - }  { +  public university listed in ORS
352.002 or + } the Oregon Health and Science University
 { - , - }  may apply for one-time matching funds up to $1
million from the Public Access Account to endow a
telecommunications chair for the purpose of increasing research
and development of advanced telecommunications services
applications. Only one chair may be endowed under this paragraph.
  (5)(a) The Oregon Business Development Commission shall approve
expenditure of any remaining moneys in the Public Access Account
consistent with this section and ORS 759.430.
  (b) Community colleges,   { - state institutions of higher
education - }  { +  public universities listed in ORS
352.002 + }, public libraries, public television corporations and
rural health care providers may apply to the Oregon Business
Development Commission for funding from the Public Access Account
under this subsection.
  (c) Funds received from the account shall be used for the
purchase of advanced telecommunications services, equipment or
recurring costs of telecommunications connectivity. Priority
shall be given to collaborative projects that improve access to
advanced telecommunications services.
  (d) Funds available in the Public Access Account under this
subsection are continuously appropriated to the Oregon Business
Development Department for the purposes described in this
subsection.
  (6) Public libraries and rural health care providers must apply
for federal universal service support in order to be eligible for
a grant from the Public Access Account.
  (7) The video transport and network management services
purchased with funds made available under this section shall be
purchased through the Oregon Department of Administrative
Services.
  (8) Any moneys deposited in the Connecting Oregon Communities
Fund under subsection (1) of this section pursuant to a
performance assurance plan implemented by a telecommunications
carrier in connection with an application under 47 U.S.C. 271, as
in effect on January 1, 2002, shall be placed in the School
Technology Account to be expended as provided in section 34,
chapter 1093, Oregon Laws 1999.
  SECTION 180.  { + ORS 351.003, 351.009, 351.090, 351.200 and
351.315 are repealed. + }
  SECTION 181.  { + Sections 2 to 14 of this 2011 Act, the
amendments to statutes by sections 15 to 18 and 20 to 179 of this
2011 Act and the repeal of statutes by section 180 of this 2011
Act become operative on January 1, 2012. + }
  SECTION 182.  { + The State Board of Higher Education and the
Chancellor of the Oregon University System may take any action
before the operative date specified in section 181 of this 2011
Act that is necessary for the board and the chancellor to
exercise, on and after the operative date specified in section
181 of this 2011 Act, all of the duties, functions and powers
conferred on the board and the chancellor by sections 2 to 14 and
19 of this 2011 Act, the amendments to statutes by sections 15 to
18 and 20 to 179 of this 2011 Act and the repeal of statutes by
section 180 of this 2011 Act. + }
  SECTION 183.  { + This 2011 Act being necessary for the
immediate preservation of the public peace, health and safety, an
emergency is declared to exist, and this 2011 Act takes effect on
its passage. + }
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