68th OREGON LEGISLATIVE ASSEMBLY--1995 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 2141

                           A-Engrossed

                          Senate Bill 2
                  Ordered by the Senate March 8
            Including Senate Amendments dated March 8

Sponsored by Senator TIMMS; Senators ADAMS, BRADBURY, BUNN,
  DERFLER, HANNON, JOHNSON, KENNEMER, LIM, MILLER, SMITH, STULL,
  WALDEN, Representatives BAUM, BRIAN, CLARNO, JONES, JOSI,
  LOKAN, MONTGOMERY, NORRIS, OAKLEY, ROBERTS, SCHOON, SOWA, WELLS


                             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.

  Establishes Oregon Health Sciences University as public
corporation. Creates Oregon Health Sciences University Board of
Directors to oversee corporation. Designates Governor as
appointing authority for members of board. Exempts university
from certain state laws.
  Removes university from authority of State Board of Higher
Education, except for approval of certain changes to academic
programs.  { + Directs Oregon Health Sciences University Board of
Directors to further policy of state regarding assistance to
disabled individuals. + }
  Abolishes Advisory Committee on Occupational Disease.
  Appropriates moneys out of General Fund to university for
biennium beginning July 1, 1995.
  Declares emergency, effective July 1, 1995.

                        A BILL FOR AN ACT
Relating to Oregon Health Sciences University; creating new
  provisions; amending ORS 97.170, 192.502, 192.690, 237.003,
  237.011, 243.107, 243.810, 243.910, 307.095, 341.440, 343.261,
  348.270, 351.810, 351.820, 351.840, 352.002, 352.073, 352.083,
  354.520, 438.050, 444.010, 444.020, 444.040, 453.510 and
  656.630; repealing ORS 278.305, 292.190, 351.305, 352.055,
  352.077, 437.150, 437.160, 437.170, 437.180 and 437.210;
  appropriating money; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
  SECTION 1.  { + As used in sections 1 to 31 of this Act:
  (1) 'Board' means the Oregon Health Sciences University Board
of Directors established under section 4 of this Act.
  (2) 'Public corporation' means an entity that is created by the
state to carry out public missions and services. In order to
carry out these public missions and services, a public
corporation participates in activities or provides services that
are also provided by private enterprise. A public corporation is
granted increased operating flexibility in order to best ensure
its success, while retaining principles of public accountability
and fundamental public policy. The board of directors of a public
corporation is appointed by the Governor and confirmed by the
Senate but is otherwise delegated the authority to set policy and
manage the operations of the public corporation.
  (3) 'University' means the Oregon Health Sciences University
public corporation created under section 2 of this Act. + }
  SECTION 2.  { + The Oregon Health Sciences University is
established as a public corporation and shall exercise and carry
out all powers, rights and privileges that are expressly
conferred upon it, are implied by law or are incident to such
powers. The university shall be a governmental entity performing
governmental functions and exercising governmental powers. The
university shall be an independent public corporation with
statewide purposes and missions and without territorial
boundaries. The university shall be a governmental entity but
shall not be considered a unit of local or municipal government
or a state agency for purposes of state statutes or
constitutional provisions. + }
  SECTION 3.  { + (1) It shall be the public policy of the Oregon
Health Sciences University in carrying out its missions as a
public corporation:
  (a) To serve the people of the State of Oregon as the primary
center for education in the health professions for students of
the state and region.
  (b) To provide:
  (A) An environment that stimulates the spirit of inquiry,
initiative and cooperation between and among students, faculty
and staff;
  (B) Research into the prevention and cure of disease or
disability; and
  (C) The delivery of health care to contribute to the
development and dissemination of new knowledge.
  (2) The university will strive for excellence in education,
research, clinical practice, scholarship and community service
while maintaining compassion, personal and institutional
integrity and leadership in carrying out its missions.
  (3) The university is designated to carry out the following
public purposes and missions on behalf of the State of Oregon:
  (a) Provide high quality educational programs appropriate for a
health sciences university;
  (b) Conduct scientific and biomedical research;
  (c) Engage in the provision of inpatient and outpatient
clinical care and health care delivery systems throughout the
state;
  (d) Provide outreach programs in health care education,
research and patient care;
  (e) Serve as a local, regional and statewide resource for
health care providers; and
  (f) Continue a commitment to provide health care to the
underserved patient population of Oregon.
  (4) The university shall carry out the public purposes and
missions of this section in the manner that, in the determination
of the Oregon Health Sciences University Board of Directors, best
promotes the public welfare of the people of the State of
Oregon. + }
  SECTION 4.  { + (1) There is established an Oregon Health
Sciences University Board of Directors consisting of seven
members. The directors shall be appointed by the Governor and
shall be confirmed by the Senate in the manner prescribed in ORS
171.562 and 171.565.
  (2) The term of office of each nonstudent member is four years.
The term of office of the student member is two years.  Before
the expiration of the term of a member, the Governor shall
appoint a successor whose term begins on October 1 next
following.  A member is eligible for reappointment for one
additional term. If there is a vacancy for any cause, the
Governor shall make an appointment to become effective
immediately for the unexpired term. The board shall nominate a
slate of candidates whenever a vacancy occurs or is announced and
shall forward the recommended candidates to the Governor for
consideration. To assist the Governor in appointing the student
member, the duly organized and recognized entity of student
government shall submit a list of nominees to the Governor for
consideration.
  (3) The membership of the board shall be as follows:
  (a) One representative who is a nonstudent member of the State
Board of Higher Education, who shall serve as an ex officio
voting member.
  (b) Five representatives who, in the discretion of the
Governor, have experience in areas related to the university
missions or that are important to the success of the Oregon
Health Sciences University, including but not limited to higher
education, health care, scientific research and economic and
business development.
  (c) One representative who is a student enrolled at the
university.
  (4) Directors must be citizens of the United States. No voting
member may be an employee of the university.
  (5) The board shall select one of its members as chairperson
and another as vice chairperson for such terms and with such
duties and powers as the board considers necessary for
performance of the functions of those offices. The board shall
adopt bylaws concerning how a quorum shall be constituted and
when a quorum shall be necessary.
  (6) The board shall meet at least once every three months at
the Oregon Health Sciences University. The board shall meet at
such other times and places specified by the chairperson or by a
majority of the members of the board.
  (7) The Governor may remove any member of the board at any time
for cause, after notice and public hearing, but not more than
three members shall be removed within a period of four years,
unless it is for corrupt conduct in office. + }
  SECTION 5.  { + Notwithstanding the term of office specified by
section 4 of this Act, of the members first appointed to the
Oregon Health Sciences University Board of Directors by the
Governor and other than the ex officio member:
  (1) Two, including the student member, shall serve for terms
ending September 30, 1997.
  (2) Two shall serve for terms ending September 30, 1998.
  (3) Two shall serve for terms ending September 30, 1999. + }
  SECTION 6.  { + Notwithstanding the time of office specified by
section 4 of this Act, the Governor shall appoint the first
members to the Oregon Health Sciences University Board of
Directors no later than 60 days after the effective date of this
Act. + }
  SECTION 7.  { + The Oregon Health Sciences University Board of
Directors shall file with the Legislative Assembly and the
Governor, not later than April 15 of each year, a report of the
university activities and operations for the preceding year. + }
  SECTION 8.  { + Except as otherwise provided in sections 1 to
31 of this Act, the Oregon Health Sciences University Board of
Directors shall exercise all the powers of the Oregon Health
Sciences University and shall govern the university. In carrying
out its powers, rights and privileges, the university and the
board shall be a governmental entity performing governmental
functions and exercising governmental powers. The board may
either within or outside the state:
  (1) Determine policies for the organization, administration and
development of the university.
  (2) Appoint and employ any instructional, administrative,
professional, trade, occupational and other personnel as are
necessary or appropriate to carry out the missions of the
university, and prescribe their compensation and terms of office
or employment.
  (3) Make any and all contracts and agreements, enter into any
partnership, joint venture or other business arrangement, create
and participate fully in the operation of any business structure,
including but not limited to the development of business
structures for health care delivery systems and networks with any
public or private government, nonprofit or for-profit person or
entity that in the judgment of the university is necessary or
appropriate to carry out the university's missions and goals.
  (4) Acquire, purchase, receive, hold, control, convey, sell,
manage, operate, lease, license, lend, invest, improve, develop,
use, dispose of and hold title to real and personal property of
any nature, including intellectual property, in its own name.
  (5) Sue in its own name and be sued, plead and be impleaded in
all actions, suits or proceedings in any forum brought by or
against it by any and all private or state, local, federal or
other public entities, agencies or persons.
  (6) Encourage gifts and donations for the benefit of the
university, and subject to the terms of the gift, retain, invest
and use such gifts as deemed appropriate by the university.
  (7) Acquire, receive, hold, keep, control, convey, manage, use,
lend, expend and invest all funds, appropriations, gifts,
bequests, stock and revenue from any source to the university.
  (8) Borrow money for the needs of the university as deemed
requisite by the board, in such amounts and for such time and
upon such terms as may be determined by the board.
  (9) Erect, construct, improve, develop, repair, maintain,
equip, furnish, lease, lend, convey, sell, manage, operate, use,
dispose of and hold title to buildings, structures and lands for
the university.
  (10) Purchase any and all insurance, operate a self-insurance
program or otherwise arrange for the equivalent of insurance
coverage of any nature and the indemnity and defense of its
officers, agents and employees or other persons whom the board
designates as carrying out or furthering the missions of the
university.
  (11) Create, develop, supervise, control and adopt academic
programs, including standards, qualifications, policies or
practices relating to admissions, curriculum, academic
advancement, grading policy, student conduct, credits and
scholarships and the granting of academic degrees, certificates
and other forms of recognition.
  (12) Authorize, create, eliminate, establish, operate,
reorganize, reduce or expand any program, school, institute,
health care facility or other unit of operation.
  (13) Establish, charge, collect and use charges for enrollment
into the university, including charges such as tuition for
education and general services, incidental fees and such other
charges found by the board to be necessary to carry out its
educational programs. 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 of the university
upon the recommendation of the recognized student government of
the university.
  (14) Establish, charge, collect and use charges and fees for
university services and the use of university facilities.
  (15) Impose charges, fines or fees for parking privileges and
violations, including fees for impoundment and storage, and enter
into agreements with municipalities to provide a uniform system
of parking.
  (16) Commission as special campus security officers one or more
employees who will have 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, provided that such
employees are trained and certified by the Board on Public Safety
Standards and Training, and provided further that such officers
shall not be authorized to carry firearms as police officers and
shall not be considered police officers for purposes of ORS
181.610, 237.003, 243.005 or 243.736. The university shall be
considered a criminal justice agency for purposes of ORS 181.720.
  (17) Enforce and recover for payment to the university any
fines that are authorized by sections 1 to 51 of this Act.
  (18) Adopt, amend or repeal bylaws, administrative rules,
regulations and orders applicable to the matters that are the
subject of sections 1 to 31 of this Act.
  (19) Contract with any state agency for the performance of such
duties, functions and powers as the board considers appropriate.
A state agency shall not charge the board for such services an
amount that is greater than the actual cost of the services.
  (20) Purchase, receive, subscribe for or otherwise acquire,
own, hold, vote, use, sell, mortgage, lend, pledge, invest in or
otherwise dispose of and deal in or with the shares, stock or
other equity or interests in or obligations of any other entity.
The board may establish separate funds for such investments. The
State of Oregon shall have no proprietary or other interest in
such investments or such funds.
  (21) Make available, by lease or otherwise, or control access
to any health care facilities or services or other of its
properties and assets to such persons, firms, partnerships,
associations or corporations and on such terms as the board deems
to be appropriate, charge and collect rent or other fees or
charges therefor and terminate or deny any such access or any
such lease or other agreement for such reasons as the board deems
appropriate and as may be consistent with its obligations under
any such lease or other agreement.
  (22) Contract for the operation of any department, section,
equipment or holdings of the university and enter into any
agreements with any person, firm or corporation for the
management by said person, firm or corporation on behalf of the
university of any of its properties or for the more efficient or
economical performance of clerical, accounting, administrative
and other functions relating to its health care facilities.
  (23) Select and appoint faculty as medical and dental staff
members and others licensed to practice the healing arts,
delineate and define the privileges granted each such individual,
adopt and direct a plan for faculty clinical income and set the
terms and conditions of that plan (including such modifications
to any such existing plan as the board deems necessary or
appropriate upon expiration of the term of such plan), and
determine the extent to which and the terms upon which each such
individual may provide teaching, research, consulting or other
services at the university or any other health care facility.
  (24) Enter into affiliation, cooperation, territorial,
management or other similar agreements with other public or
private universities or health care providers for the sharing,
division, allocation or furnishing of services on an exclusive or
a nonexclusive basis, referral of patients, management of
facilities, formation of health care delivery systems and other
similar activities.
  (25) Perform any other acts that in the judgment of the board
are requisite, necessary or appropriate in accomplishing the
purposes described in or carrying out the powers granted by
sections 1 to 31 of this Act.
  (26) Exercise powers, notwithstanding that as a consequence of
the exercise of such powers, the university engages in activities
that might otherwise be deemed anticompetitive within the
contemplation of state or federal antitrust laws. + }
  SECTION 9.  { + (1) The provisions of ORS chapters 35, 190,
192, 244, 281 and 295 and ORS 30.260 to 30.460, 200.005 to
200.025, 200.045 to 200.090, 236.605 to 236.650, 243.650 to
243.782, 297.040, 307.090 and 307.112 shall apply to the Oregon
Health Sciences University under the same terms as they apply to
public bodies other than the state.
  (2) Except as otherwise provided by law, the provisions of ORS
chapters 182, 183, 240, 270, 273, 276, 279, 283, 291, 292, 293
and 297 and ORS 180.060, 180.210 to 180.235, 184.305 to 184.345,
190.480, 190.490, 200.035, 236.380, 243.105 to 243.585, 243.696,
278.011 to 278.120, 278.305 to 278.415, 281.210 to 281.260,
282.010 to 282.150, 357.805 to 357.895 and 656.017 (2) shall not
apply to the university.
  (3) As a distinct governmental entity, the university shall not
be subject to any provision of law enacted after January 1, 1995,
with respect to any governmental entity, unless the provision
specifically provides that it applies to the university. + }
  SECTION 10.  { + Notwithstanding section 9 of this Act, ORS
chapter 240 and ORS 243.105 to 243.585 shall apply to the Oregon
Health Sciences University until the Oregon Health Sciences
University Board of Directors, in accordance with the provisions
of any collective bargaining agreement, adopts a new personnel
system or alternative employee benefit plan. Until such time as
an alternative personnel system is adopted, the university shall
exercise exclusive administrative authority and control over the
system. + }
  SECTION 11.  { + The Oregon Health Sciences University Board of
Directors shall appoint a president of the university. The
president is the president of the faculty and is the executive
and governing officer of the university. Subject to the
supervision of the board, the president has authority to direct
the affairs of the university. + }
  SECTION 12.  { + T + }  { +  he Legislative Assembly finds
that:
  (1) Institutions in the State System of Higher Education and
other educational sectors have academic programs that are related
to or integrated with programs of the Oregon Health Sciences
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 university shall coordinate such programs
with the State Board of Higher Education. Notwithstanding the
exclusive powers granted to the university in sections 1 to 31 of
this Act, the university shall submit for approval to the State
Board of Higher Education any of the following proposed changes
to 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, colleges, centers and institutes; and
  (c) Creation or significant revision of major academic
policies.
  (4) In order to further the coordination described by this
section, university officers shall maintain a role in the
appropriate committees of the State Board of Higher
Education. + }
  SECTION 13.  { + (1) By September 1 of each even-numbered year
the Oregon Health Sciences University shall submit to the Oregon
Department of Administrative Services a funding request for each
biennium. The Oregon Department of Administrative Services shall
include and submit a university funding request to the
Legislative Assembly as part of the Governor's biennial budget.
Any such request approved by the Legislative Assembly shall be
appropriated to the Oregon Department of Administrative Services
for direct allocation to the university. The budget request to

the Legislative Assembly shall include a presentation on tuition
and student fee levels.
  (2) The university budget shall be prepared in accordance with
generally accepted accounting principles and adopted by the
Oregon Health Sciences University Board of Directors in
accordance with ORS 192.610 to 192.710. + }
  SECTION 14.  { + Nothing in sections 1 to 31 of this Act shall
affect the constitutional duties and authority of the Secretary
of State to audit public accounts. However, the Oregon Health
Sciences University shall conduct independent audits if such
audits are considered advisable by the university. Such audits
shall be subject to the exclusive discretion and control of the
university and shall be subject to disclosure pursuant to ORS
192.410 to 192.505. + }
  SECTION 15.  { + (1) Pursuant to the provisions of ORS 236.605
to 236.650 and except as otherwise expressly provided in sections
1 to 31 of this Act, all persons employed by the Oregon Health
Sciences University on the effective date of this Act shall
continue their employment with the university and shall retain
any seniority, contractual rights or tenure granted prior to the
effective date of this Act.
  (2) Nothing in sections 1 to 51 of this Act shall affect the
representation rights of collective bargaining organizations that
represent university employees. Nothing in sections 1 to 51 of
this Act shall affect any term or condition of any collective
bargaining agreement in effect on the effective date of this Act.
  (3) Notwithstanding the provisions of ORS chapter 237, the
university may offer to its employees, in addition to the Public
Employes' Retirement System, alternative retirement programs. + }
  SECTION 16.  { + The Oregon Health Sciences University
subscribes to the policy set forth under ORS 279.005 regarding
public contracting, and shall develop contract policies that
support openness, impartiality and competition in the awarding of
contracts in accordance with that provision. The university
subscribes to the intent of the social policies of ORS chapter
279 and shall develop contract policies that are appropriate to
the university and are designed to encourage affirmative action,
recycling, inclusion of art in public buildings, the purchase of
services and goods from disabled individuals, the protection of
workers through the payment of prevailing wages as determined by
the Bureau of Labor and Industries, the provision of workers'
compensation insurance to workers on contracts and the
participation of emerging small businesses and businesses owned
by women and minorities. + }
  SECTION 16a.  { + (1) As used in this section:
  (a) 'Direct labor' includes all work required for preparation,
processing and packing, but not supervision, administration,
inspection or shipping.
  (b) 'Disabled individual' means an individual who, because of
the nature of the individual's disabilities, is not able to
participate fully in competitive employment, and for whom
specialized employment opportunities must be provided.
  (c) 'Qualified nonprofit agency for disabled individuals '
means a nonprofit activity center or rehabilitation facility:
  (A) Organized under the laws of the United States or of this
state and operated in the interest of disabled individuals, and
the net income of which does not inure in whole or in part to the
benefit of any shareholder or other individual;
  (B) That complies with any applicable occupational health and
safety standards required by the laws of the United States or of
this state; and
  (C) That in the manufacture of products and in the provision of
services during the fiscal year employs disabled individuals for
not less than 75 percent of the work hours of direct labor
required for the manufacture or provision of the products or
services.
  (2) The Oregon Health Sciences University Board of Directors
shall further the policy of this state to encourage and assist
disabled individuals to achieve maximum personal independence
through useful and productive gainful employment by ensuring an
expanded and constant market for sheltered workshop and activity
center products and services, thereby enhancing the dignity and
capacity of disabled individuals for self-support and minimizing
their dependence on welfare and need for costly
institutionalization.
  (3) It shall be the duty of the board to:
  (a) Determine the price of all products manufactured and
services offered for sale to the university by any qualified
nonprofit agency for disabled individuals. The price shall
recover for the workshops the cost of raw materials, labor,
overhead, delivery costs and a margin held in reserve for
inventory and equipment replacement;
  (b) Revise such prices from time to time in accordance with
changing cost factors;
  (c) Make such rules regarding specifications, time of delivery
and other relevant matters of procedure as shall be necessary;
and
  (d) Utilize prices and specifications, in its discretion,
established by the Oregon Department of Administrative Services.
  (4) The board shall establish and publish a list of sources or
potential sources of products produced by any qualified nonprofit
agency for disabled individuals and the services provided by any
such agency that the board determines are suitable for
procurement by its higher education institutions. The board, in
its discretion, may utilize any list established and published by
the Oregon Department of Administrative Services.
  (5) If the university intends to procure any product or service
on the procurement list, the university shall, in accordance with
rules of the board, procure such product or service at the price
established by the board from a qualified nonprofit agency for
disabled individuals, provided the product or service is of the
appropriate specifications and is available at the location and
within the period required by the university.
  (6) It is the intent of the Legislative Assembly that there be
close cooperation between the board, the university and qualified
nonprofit agencies for disabled individuals. The board, on behalf
of the university, is authorized to enter into such contractual
agreements, cooperative working relationships or other
arrangements as may be necessary for effective coordination and
efficient realization of the objectives of this section. + }
  SECTION 17.  { + As used in sections 17 to 21 of this Act:
  (1) 'Credit enhancement agreement' means any agreement or
contractual relationship between the Oregon Health Sciences
University and any bank, trust company, insurance company, surety
bonding company, pension fund or other financial institution
providing additional credit on or security for a financing
agreement or certificates of participation authorized by sections
17 to 21 of this Act.
  (2) 'Financing agreement' means a lease-purchase agreement, an
installment sale agreement, a loan agreement, note agreement,
short-term promissory notes, commercial papers, lines of credit
or similar obligations or any other agreement to finance real or
personal property that is or will be owned and operated by the
university, or to refinance previously executed financing
agreements.
  (3) 'Personal property' means tangible personal property,
software and fixtures.
  (4) 'Property rights' means, with respect to personal property,
the rights of a secured party under ORS 79.1010 to 79.5070 and
79.8010, and, with respect to real property, the rights of a
trustee or lender under a lease authorized by section 20 (4) of
this Act.
  (5) 'Software' means software and training and maintenance
contracts related to the operation of computing equipment. + }
  SECTION 18.  { + With the approval of the Oregon Health
Sciences University Board of Directors, the Oregon Health
Sciences University may enter into financing agreements in
accordance with sections 17 to 21 of this Act, upon such terms as
the board finds to be advantageous to the university. Amounts
payable by the university under a financing agreement shall be
limited to funds specifically pledged, budgeted for or otherwise
made available by the university. If there are insufficient
available funds to pay amounts due under a financing agreement,
the lender may exercise any property rights that the university
has granted to it in the financing agreement against the property
that was purchased with the proceeds of the financing agreement,
and may apply the amounts so received toward payments scheduled
to be made by the university under the financing agreement. + }
  SECTION 19.  { + The Oregon Health Sciences University Board of
Directors may delegate to any board member, officer or employee
of the Oregon Health Services University the authority to
determine maturity dates, principal amounts, redemption
provisions, interest rates or methods for determining variable or
adjustable interest rates, denominations and other terms and
conditions of such obligations that are not appropriately
determined at the time of enactment or adoption of the
authorizing resolution. The board may also delegate entering into
financing agreements or any other instruments authorized by law.
This delegated authority shall be exercised subject to applicable
requirements of law and such limitations and criteria as may be
set forth in the authorizing resolution. + }
  SECTION 20.  { + The Oregon Health Sciences University Board of
Directors may:
  (1) Enter into agreements with third parties to hold financing
agreement proceeds, payments and reserves as security for
lenders, and to issue certificates of participation in the right
to receive payments due from the Oregon Health Sciences
University under a financing agreement. Amounts so held shall be
invested at the direction of the board. Interest earned on any
investments held as security for a financing agreement may, at
the option of the board, be credited to the accounts held by the
third party and applied in payment of sums due under a financing
agreement.
  (2) Enter into credit enhancement agreements for financing
agreements or certificates of participation, provided that such
credit enhancement agreements shall be payable solely from funds
specifically pledged, budgeted for or otherwise made available by
the university and amounts received from the exercise of property
rights granted under such financing agreements.
  (3) Use financing agreements to finance the costs of acquiring
or refinancing real or personal property, plus the costs of
reserves, credit enhancements and costs associated with obtaining
the financing.
  (4) Grant leases of real property with a trustee or lender.
Such leases may be for a term that ends on the date on which all
amounts due under a financing agreement have been paid or
provision for payment has been made, or 20 years after the last
scheduled payment under a financing agreement, whichever is
later.  Such leases may grant the trustee or lender the right to
evict the university and exclude it from possession of the real
property for the term of the lease if the university fails to pay
when due the amounts scheduled to be paid under a financing
agreement, or otherwise defaults under a financing agreement.
Upon default, the trustee or lender may sublease the land to
third parties and apply any rentals toward payments scheduled to
be made under a financing agreement.
  (5) Grant security interests in personal property to trustees
or lenders.
  (6) Make pledges for the benefit of trustees and lenders.
  (7) Purchase fire and extended coverage or other casualty
insurance for property that is acquired or refinanced with
proceeds of a financing agreement, assign the proceeds thereof to
a lender or trustee to the extent of their interest, and covenant
to maintain such insurance while the financing agreement is
unpaid, so long as available funds are sufficient to purchase
such insurance. + }
  SECTION 21.  { + A lease or financing agreement under sections
17 to 21 of this Act shall not cause property to be subject to
property taxation and shall be disregarded in determining whether
property is exempt from taxation under ORS chapter 307. + }
  SECTION 22.  { + The Oregon Health Sciences University may
acquire, by condemnation or otherwise, private property that is
necessary or convenient in carrying out any power granted to the
university. The right to acquire property by condemnation shall
be exercised as provided by ORS chapter 35 and ORS 281.010 to
281.105. + }
  SECTION 23.  { + (1) The Oregon Health Sciences University
Board of Directors 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 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 Oregon Health Sciences University,
except as provided in subsection (4)(d) and (e) of this section.
  (4)(a) 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) 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 three 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, schools or departments 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 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.
  (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 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 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.
  (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 in 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 24.  { + (1) The Oregon Health Sciences University
Board of Directors may authorize receipt of compensation for any
officer or employee of the Oregon Health Sciences University 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 university;
  (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
university and the private entity;
  (e) Performing public duties paid by private organizations,
including university corporate affiliates, that augment an
officer's or employee's publicly funded salary. Such income shall
be authorized and received in accordance with policies
established by the board; and
  (f) Providing medical and other health services.
  (2) The board shall not authorize compensation, as described in
subsection (1) of this section, that, in the board's judgment,
does not comport with the missions of the university or
substantially interferes with an officer's or employee's duties
to the university.
  (3) Any compensation described and authorized under subsection
(1) of this section shall be considered official salary,
honorarium or reimbursement of expenses for purposes of ORS
244.040. If authorization or receipt of such compensation creates
a potential conflict of interest, the potential conflict shall be
reported in writing in accordance with policies of the board. The
disclosure is a public record subject to public inspection.
  (4) The board shall adopt standards governing employee outside
employment and activities of employees, including potential
conflicts of interest, as defined by the board 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 25.  { + No political or sectarian test shall ever be
allowed or applied in the appointment of faculty and other
employees of the Oregon Health Sciences University. + }
  SECTION 26.  { + The Oregon Health Sciences University Board of
Directors may adopt policies relating to the creation, use,
custody and disclosure, including access, of student education
records of the Oregon Health Sciences University that are
consistent with the requirements of applicable state and federal
law. Whenever a student has attained 18 years of age or is
attending the university, the permission or consent required of
and the rights accorded to a parent of the student regarding
education records shall thereafter only be required of and
accorded to the student. + }
  SECTION 27.  { + The Oregon Health Sciences University shall
adopt a comprehensive alcohol and drug abuse policy and
implementation plan. + }
  SECTION 28.  { + The president and professors constitute the
faculty of the Oregon Health Sciences University and as such have
the immediate government and discipline of it and the students
therein. The faculty may, subject to the supervision of the
Oregon Health Sciences University Board of Directors, prescribe
the course of study to be pursued at the university and the
textbooks to be used. + }
  SECTION 29.  { + (1) The Oregon Health Sciences University
shall convene a physical access committee to identify barriers to
access by disabled persons at the university. The committee shall
include, but not be limited to:
  (a) One or more students who are disabled, or if there are no
disabled students willing to participate, a disabled person who
uses the university's facilities;
  (b) One or more members of the faculty or staff who are
disabled;
  (c) The coordinator of disabled student services for the
university;
  (d) One or more administrators of the university; and
  (e) One or more members of the physical plant staff of the
university.
  (2) The physical access committee shall present its findings
and recommendations to the administration of the university,
listing access needs and priorities for meeting those needs.
These findings and recommendations shall identify the barriers to
access that prevent disabled persons from meaningfully utilizing
campus facilities related to instruction, academic support,
assembly and residence life.
  (3) In preparing budget requests for each biennium the
university shall include amounts for capital improvement that
will be applied to the substantial reduction and eventual
elimination of barriers to access by disabled persons as
identified by the physical access committee.
  (4) Nothing in this section and ORS 185.155 and 341.937
requires the university to undertake projects for accessibility
that are not otherwise required unless such projects are funded
specifically by the Legislative Assembly. + }
  SECTION 30.  { + (1) No student shall be refused admission to
the Oregon Health Sciences University or be expelled for the sole
reason that, because of religious beliefs, the student is unable
to attend classes on a particular day.
  (2) Any student in the university 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 31.  { + The Oregon Health Sciences University 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 32.  { + As used in sections 32 to 51 of this Act:
  (1) 'Former university' means the Oregon Health Sciences
University in its former status as a university within the State
System of Higher Education under ORS 352.002 (1993 Edition).
  (2) 'University' means the Oregon Health Sciences University
public corporation created under section 2 of this Act.
  (3) 'University board' means the Oregon Health Sciences
University Board of Directors established in section 4 of this
Act. + }
  SECTION 33.  { + All of the duties, functions and powers of the
former university are transferred to the university. + }
  SECTION 34.  { + (1) The president of the former university
shall deliver to the president of the university all records and
property within the jurisdiction of the president that relate to
the duties, functions and powers so transferred. The president of
the university to whom such delivery and transfer is made shall
take possession of such property. Any dispute as to transfers of
property under this section shall be resolved by the Governor,
and the Governor's decision shall be final.
  (2) Title to real property shall remain with the State of
Oregon. The university shall have the exclusive care, custody and
control of such real property and facilities as the state now has
at the former university or the university or shall acquire on
behalf of the former university or the university and shall
manage and maintain all such properties utilized by the
university. Real property of the state that is so dedicated to
the care, custody and control of the former university shall only
be transferred or obligated in accordance with state law. + }
  SECTION 35.  { + All unexpended moneys, including but not
limited to General Fund appropriations, Executive Department
Economic Development Fund allocations, gifts, bequests, other
funds, assessments, liability and workers' compensation reserves
and premiums that are appropriated to, held, managed or invested
by or on behalf of or otherwise available to the former
university or its president, for the purposes of any of its
duties, functions or powers transferred by this Act to the
university, are appropriated and transferred to the
university. + }
  SECTION 36.  { + Any proceeding, action, prosecution or other
business or matter undertaken or commenced before the effective
date of this Act by the former university, with respect to the
duties, functions or powers transferred to the university by this
Act, and still pending on the effective date of this Act, may be
conducted and completed by the university in the same manner,
under the same terms and conditions and with the same effect as
though undertaken, conducted or completed by the former
university before the transfer. + }
  SECTION 37.  { + Nothing in this Act relieves any person of any
obligation with respect to a tax, fee, fine or other charge,
interest, penalty, forfeiture or other liability, duty or
obligation. + }
  SECTION 38.  { + The university is considered to be a
continuation of the former university with respect its duties,
functions and powers, and not a new authority, for the purpose of
succession to all rights and obligations of the former university
as constituted at the time of such assignment or transfer, except
as otherwise provided by this Act, with the same force and effect

as if such duties, functions and powers had not been assigned or
transferred. + }
  SECTION 39.  { + (1) Whenever, in any law or resolution of the
Legislative Assembly or in any rule, document, record or
proceeding authorized thereby, reference is made to the former
university, or an employee thereof, whose duties, functions or
powers are assigned or transferred by this Act, except as
otherwise provided in this Act, such reference is considered to
describe the university or employee that by this Act is charged
with carrying out such duties, functions and powers.
  (2) The lawful rules of the former university with respect to
duties, functions or powers assigned or transferred by this Act
continue in effect until superseded or rescinded by the
university. + }
  SECTION 40.  { + A transfer of duties, functions, powers,
rights, records, property, employees or moneys by this Act
becomes operative upon the effective date of this Act. The
university shall exercise and perform such duties, functions,
powers and rights, and shall take charge of such records,
property, employees and moneys. + }
  SECTION 41.  { + There are imposed upon, transferred to and
vested in the Oregon Health Sciences University Board of
Directors the duties, functions and powers of the State Board of
Higher Education that pertain to the former university. + }
  SECTION 42.  { + Notwithstanding the transfer of duties,
functions and powers by this Act, the lawfully adopted rules of
the State Board of Higher Education pertaining to the former
university in effect on the effective date of this Act continue
in effect until lawfully superseded or repealed by the Oregon
Health Sciences University Board of Directors. References in
rules of the State Board of Higher Education to the board or an
officer or employee thereof are considered to be references to
the Oregon Health Sciences University Board of Directors. + }
  SECTION 43.  { + The transfer of duties, functions and powers
to the Oregon Health Sciences University Board of Directors under
this Act does not affect any action, suit, proceeding or
prosecution involving or with respect to such duties, functions
and powers begun before and pending at the time of the transfer,
except that the university board shall be substituted for the
State Board of Higher Education in such action, suit, proceeding
or prosecution. + }
  SECTION 44.  { + The rights and obligations of the State Board
of Higher Education legally incurred under contracts, leases and
business transactions executed, entered into or begun before the
effective date of this Act pertaining to the former university
are transferred to the Oregon Health Sciences University Board of
Directors. For the purpose of succession to these rights and
obligations, the university board is considered to be a
continuation of the State Board of Higher Education and not a new
authority, and the university board shall exercise such rights
and fulfill such obligations as if they had not been
transferred. + }
  SECTION 45.  { + There are transferred to the Oregon Health
Sciences University Board of Directors all the supplies,
materials, equipment, records, books, papers and facilities of
the State Board of Higher Education pertaining to the former
university. + }
  SECTION 46.  { + For the purpose of administering and enforcing
the duties, functions and powers transferred by this Act and for
the payment of the expenses lawfully incurred by the State Board
of Higher Education with respect to the administration and
enforcement of such duties, functions and powers pertaining to
the former university, the Oregon Health Sciences University
Board of Directors may expend the moneys that are authorized to
be expended by the State Board of Higher Education for
administering and enforcing the duties, functions and powers
transferred by this Act and that are unexpended on the effective
date of this Act. The university board shall assume and pay all
outstanding obligations lawfully incurred by the State Board of
Higher Education pertaining to the former university before the
effective date of this Act, that properly are charged against
amounts authorized by this section to be expended by the
university board. + }
  SECTION 47.  { + The chief executive officer of each agency
whose duties, functions and powers are transferred by this Act to
the university shall deliver to the president of the university
all records and property within the jurisdiction of the executive
officer that relate to the duties, functions and powers so
transferred. The president of the university to which such
delivery and transfer is made shall take possession of such
property. Any dispute as to transfers of property under this
section shall be resolved by the Governor, and the Governor's
decision shall be final. + }
  SECTION 48.  { + All unexpended moneys, including but not
limited to General Fund appropriations, Executive Department
Economic Development Fund allocations, gifts, bequests, other
funds, assessments, liability and workers' compensation reserves
and premiums that are appropriated to, held, managed or invested
or otherwise available to any state officer or agency for the
purposes of any of its duties, functions or powers transferred by
this Act to the university, are appropriated and transferred to
the university. + }
  SECTION 49.  { + Any proceeding, action, prosecution or other
business or matter undertaken or commenced before the effective
date of this Act by a state officer or agency, with respect to
the duties, functions or powers transferred to the university and
still pending on the effective date of this Act, may be conducted
and completed by the university in the same manner, under the
same terms and conditions and with the same effect as though
undertaken, conducted or completed by the former president before
the transfer. + }
  SECTION 50.  { + The university is considered to be a  + }
 { +  continuation of the former state officer or agency with
respect to such duties, functions and powers, and not a new
authority, for the purpose of succession to all rights and
obligations of the former state officer or agency as constituted
at the time of such assignment or transfer, except as otherwise
provided by this Act, with the same force and effect as if such
duties, functions and powers had not been assigned or
transferred. + }
  SECTION 51.  { + (1) Whenever, in any law or resolution of the
Legislative Assembly or in any rule, document, record or
proceeding authorized thereby, reference is made to a state
officer or agency, or employee thereof, whose duties, functions
or powers are assigned or transferred by this Act, except as
otherwise provided in this Act, such reference is considered to
describe the university or employee that by this Act is charged
with carrying out such duties, functions and powers.
  (2) The lawful rules of state officers and agencies with
respect to duties, functions or powers assigned or transferred by
this Act continue in effect until superseded or rescinded by the
university. + }
   { +  NOTE: + } Sections 52 through 56 were deleted by
amendment.  Subsequent sections were not renumbered.
  SECTION 57.  { + Sections 58 to 61a of this Act are added to
and made a part of ORS 351.345 to 351.460. + }
  SECTION 58.  { + (1) Nothing in this 1995 Act shall be
construed in any way to impair the obligations or agreements of
the State of Oregon or the State Board of Higher Education with
respect to bonds, certificates of participation, financing
agreements or other agreements for the borrowing of money issued
prior to the effective date of this 1995 Act by the State of
Oregon on behalf of the State Board of Higher Education for
equipment or projects for the Oregon Health Sciences University.
The Oregon Health Sciences University and the State System of
Higher Education shall take all actions necessary to ensure full
compliance with all indentures, resolutions, declarations,
agreements and other documents issued with respect to the bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money issued prior to the
effective date of this 1995 Act by the State of Oregon on behalf
of the State Board of Higher Education for equipment or projects
for the Oregon Health Sciences University. The State System of
Higher Education and the Oregon Health Sciences University shall
establish, in a written agreement that shall be subject to the
approval of the State Treasurer, the responsibility of the Oregon
Health Sciences University for the payment to the State System of
Higher Education and to the Oregon Department of Administrative
Services, as applicable, of moneys sufficient to pay when due all
principal, interest and any other charges on bonds, certificates
of participation, financing agreements or other agreements for
the borrowing of money issued prior to the effective date of this
1995 Act by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for the Oregon Health
Sciences University.
  (2) No bonds, certificates of participation, financing
agreements or other agreements for the borrowing of money issued
by the Oregon Health Sciences University on or after the
effective date of this 1995 Act shall have a lien on funds
appropriated for the use of the Oregon Health Sciences University
by the Legislative Assembly or on net revenues, as defined in the
agreement to be established pursuant to subsection (1) of this
section, of the Oregon Health Sciences University that is greater
than the lien, if any, of any bonds, certificates of
participation, financing agreements or other agreements for the
borrowing of money issued prior to the effective date of this
1995 Act by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for the Oregon Health
Sciences University.
  (3) Any expenses, including legal expenses, judgments,
liabilities and federal arbitrage and rebate penalties arising
from the actions of the Oregon Health Sciences University, if
incurred with respect to bonds, certificates of participation,
financing agreements or other agreements for the borrowing of
money issued prior to the effective date of this 1995 Act by the
State of Oregon on behalf of the State Board of Higher Education
for equipment or projects for the Oregon Health Sciences
University, shall be paid when due by the Oregon Health Sciences
University, subject to the Oregon Health Sciences University's
right to reasonably contest such charges, judgments, liabilities
or penalties. The Oregon Health Sciences University shall assist
the Controller of the State System of Higher Education in making
any necessary calculations and filing any necessary reports
related to arbitrage and rebate on such indebtedness.
  (4) Any amounts deposited with the State Treasurer or the
Controller of the State System of Higher Education in reserve
accounts for the debt service associated with any bonds,
certificates of participation, financing agreements or other
agreements for the borrowing of money issued prior to the
effective date of this 1995 Act by the State of Oregon on behalf
of the State Board of Higher Education for equipment or projects
for the Oregon Health Sciences University shall remain with the
State Treasurer or the Controller of the State System of Higher
Education until such time as the bonds, certificates of
participation, financing agreements or other agreements for the
borrowing of money for which such reserve accounts have been
established have been retired or defeased. The Oregon Health

Sciences University shall be credited with the investment
earnings on such reserve accounts. + }
  SECTION 59.  { + The Oregon Health Sciences University may from
time to time issue and sell revenue bonds in accordance with the
provisions of the Uniform Revenue Bond Act contained in ORS
288.805 to 288.945. However, the provisions contained in ORS
288.815 shall not apply to revenue bonds issued by the Oregon
Health Sciences University. Such revenue bonds shall not in any
manner nor to any extent be a general obligation of the Oregon
Health Sciences University nor a charge upon any revenues or
property of the university not specifically pledged thereto. No
obligation of any kind incurred under ORS 288.805 to 288.945
shall be, or be considered, an indebtedness of the State of
Oregon. + }
  SECTION 60.  { + Revenue bonds issued by the Oregon Health
Sciences University pursuant to ORS 288.805 to 288.945 shall be
considered to be bonds or obligations of a political subdivision
of the State of Oregon for the purposes of all laws of the
state. + }
  SECTION 61.  { + Refunding bonds and advance refunding bonds of
the same character and tenor as those replaced thereby may be
issued by the Oregon Health Sciences University pursuant to ORS
288.592 to 288.695 as applicable and in accordance with the laws
of the state. + }
  SECTION 61a.  { + In addition to, and not in limitation of, the
means of satisfying state general obligation bond obligations
under ORS 291.445, the Oregon Health Sciences University Board of
Directors, promptly upon the discovery of any shortfall in moneys
available to the Oregon Health Sciences University for the
payment when due of amounts under any bonds, certificates of
participation, financing agreements or other agreements for the
borrowing of moneys issued prior to the effective date of this
1995 Act by the State of Oregon on behalf of the State Board of
Higher Education for equipment or projects for the Oregon Health
Sciences University, shall notify in writing the Legislative
Assembly, or if the Legislative Assembly is not in session, the
Emergency Board, of the existence and amount of the shortfall.
The Legislative Assembly or the Emergency Board, as the case may
be, may provide funds to satisfy the payment of any such amount.
By enacting this provision, the Legislative Assembly acknowledges
its current intention to provide, from funds other than those
appropriated or otherwise made available to the State System of
Higher Education, funds to pay such amount. However, except as
may be required by the Oregon Constitution or ORS 291.445,
neither the Legislative Assembly nor the Emergency Board shall
have any legal obligation to provide funds under this
section. + }
  SECTION 62. ORS 97.170 is amended to read:
  97.170. (1) Except as set forth in subsection (4) of this
section, any licensed funeral service practitioner having charge
of the body of a deceased person thought to be an unclaimed
indigent shall use all reasonable diligence promptly to notify
the relatives of the deceased person or any other person having
an interest in the deceased person and shall arrange with any
relative who claims the body or with any friend of the deceased
person who will pay the expenses to make disposition of the body.
If no one claims the body within five days after death, or if
those notified acquiesce, the funeral service practitioner shall
notify, by telephone, the Demonstrator of Anatomy of the
 { - State Department of Higher Education - }  { +  Oregon Health
Sciences University + }.  The Demonstrator of Anatomy, who shall
be appointed by the   { - State Board of Higher Education - }
 { + Oregon Health Sciences University Board of Directors + }
from the staff of the Oregon Health Sciences University, shall
immediately inform the funeral service practitioner whether the
body is deemed to be in fit condition and is desired for medical
instruction or the advancement of medical science. If the body is
desired for these purposes, the funeral service practitioner
shall arrange for a licensed embalmer to make such preparation as
is necessary and shall, within 72 hours, deliver it to the Oregon
Health Sciences University, or any other school or college within
the State of Oregon qualifying applicants for examination in the
fundamental sciences as required and specified in ORS 683.010 to
683.335 and ORS chapters 676 to 681 and 684 to 686, as the
Demonstrator of Anatomy directs. The expenses of embalming,
transportation of the body to such school or college, filing fees
and other related expenses shall be paid from the funds
appropriated specifically for the purposes of this section. Such
expenses shall not exceed the normal rates charged for such
services to the general public.
  (2) If the Demonstrator of Anatomy does not require any such
body for instruction or research, it may be assigned, on request,
to any other properly authorized institution within this state or
to any qualified physician for instruction or research.
  (3) When the body of a deceased person is deemed in unfit
condition by the Demonstrator of Anatomy and disposition does not
take place as set forth in subsections (1) and (2) of this
section, and no relatives, friends or interested persons claim
the body after notification is attempted, then the funeral
service practitioner may commence to cremate or bury the body
without the consent of persons listed in ORS 97.130 and is
furthermore indemnified from any liability arising from having
made such disposition. The method of disposition must be in the
least costly manner that complies with law, and that does not
conflict with known wishes of the deceased. Reimbursement for
costs of disposition shall be made as set forth in subsection (5)
of this section.
  (4) When the deceased person is a child over whom the
Children's Services Division held guardianship at the time of
death, and no relatives, friends or interested persons claim the
body after notification is attempted as set forth in subsection
(1) of this section, the division may at its discretion notify
the Demonstrator of Anatomy and proceed as set forth in
subsection (1) of this section, or may authorize burial or
cremation of the body.  Expenses related to burial or cremation
authorized by the division under this subsection shall be borne
by the division.
  (5) Upon receipt of an itemized statement of expenses, the
Health Division shall reimburse the funeral service practitioner
within 30 days the reasonable costs for disposition of any
unclaimed deceased person who has insufficient assets and for
whom no one takes responsibility. The method of disposition must
be in the least costly manner and shall not exceed $450 per
disposition.
  SECTION 62a. ORS 192.502 is amended to read:
  192.502. The following public records are exempt from
disclosure under ORS 192.410 to 192.505:
  (1) Communications within a public body or between public
bodies of an advisory nature to the extent that they cover other
than purely factual materials and are preliminary to any final
agency determination of policy or action. This exemption shall
not apply unless the public body shows that in the particular
instance the public interest in encouraging frank communication
between officials and employees of public bodies clearly
outweighs the public interest in disclosure { + . + }   { - ; - }

  (2) Information of a personal nature such as but not limited to
that kept in a personal, medical or similar file, if the public
disclosure thereof would constitute an unreasonable invasion of
privacy, unless the public interest by clear and convincing
evidence requires disclosure in the particular instance. The
party seeking disclosure shall have the burden of showing that
public disclosure would not constitute an unreasonable invasion
of privacy { + . + }   { - ; - }
  (3) Information submitted to a public body in confidence and
not otherwise required by law to be submitted, where such
information should reasonably be considered confidential, the
public body has obliged itself in good faith not to disclose the
information, and when the public interest would suffer by the
disclosure { + . + }   { - ; - }
  (4) Information or records of the Department of Corrections,
including the State Board of Parole and Post-Prison Supervision,
to the extent that disclosure thereof would interfere with the
rehabilitation of a person in custody of the department or
substantially prejudice or prevent the carrying out of the
functions of the department, if the public interest in
confidentiality clearly outweighs the public interest in
disclosure { + . + }   { - ; - }
  (5) Records, reports and other information received or compiled
by the Director of the Department of Consumer and Business
Services in the administration of ORS chapters 723 and 725 not
otherwise required by law to be made public, to the extent that
the interests of lending institutions, their officers, employees
and customers in preserving the confidentiality of such
information outweighs the public interest in disclosure { + . + }
 { - ; - }
  (6) Reports made to or filed with the court under ORS 137.077
or 137.530 { + . + }   { - ; - }
  (7) Any public records or information the disclosure of which
is prohibited by federal law or regulations { + . + }   { - ; - }

  (8) Public records or information the disclosure of which is
prohibited or restricted or otherwise made confidential or
privileged under Oregon law { + . + }   { - ; - }
  (9) Public records or information described in this section,
furnished by the public body originally compiling, preparing or
receiving them to any other public officer or public body in
connection with performance of the duties of the recipient, if
the considerations originally giving rise to the confidential or
exempt nature of the public records or information remain
applicable { + . + }   { - ; - }
  (10) Records of the Energy Facility Siting Council concerning
the review or approval of security programs pursuant to ORS
469.530 { + . + }   { - ; - }
  (11) Employee and retiree address, telephone number and other
nonfinancial membership records and employee financial records
maintained by the Public Employes' Retirement System pursuant to
ORS 237.001 to 237.320 { + . + }   { - ; - }
  (12) Records submitted by private persons or businesses to the
State Treasurer or the Oregon Investment Council relating to
proposed acquisition, exchange or liquidation of public
investments under ORS chapter 293 may be treated as exempt from
disclosure when and only to the extent that disclosure of such
records reasonably may be expected to substantially limit the
ability of the Oregon Investment Council to effectively compete
or negotiate for, solicit or conclude such transactions. Records
which relate to concluded transactions are not subject to this
exemption { + . + }   { - ; - }
  (13) The monthly reports prepared and submitted under ORS
293.761 and 293.766 concerning the Public Employes' Retirement
Fund and the Industrial Accident Fund may be uniformly treated as
exempt from disclosure for a period of up to 90 days after the
end of the calendar quarter { + . + }   { - ; - }
  (14) Reports of unclaimed property filed by the holders of such
property to the extent permitted by ORS 98.352 { + . + }
 { - ; - }
  (15) The following records, communications and information
submitted to the Economic Development Commission, the Economic
Development Department, the Oregon Resource and Technology
Development Corporation, the Port of Portland or other ports, as
defined in ORS 777.005, by applicants for loans or services
described in ORS 285.120:
  (a) Personal financial statements;
  (b) Financial statements of applicants;
  (c) Customer lists;
  (d) Information of an applicant pertaining to litigation to
which the applicant is a party if the complaint has been filed,
or if the complaint has not been filed, if the applicant shows
that such litigation is reasonably likely to occur; this
exemption does not apply to litigation which has been concluded,
and nothing in this paragraph shall limit any right or
opportunity granted by discovery or deposition statutes to a
party to litigation or potential litigation;
  (e) Production, sales and cost data; and
  (f) Marketing strategy information that relates to applicant's
plan to address specific markets and applicant's strategy
regarding specific competitors { + . + }   { - ; - }
  (16) Records, reports or returns submitted by private concerns
or enterprises required by law to be submitted to or inspected by
a governmental body to allow it to determine the amount of any
transient lodging tax payable and the amounts of such tax payable
or paid, to the extent that such information is in a form which
would permit identification of the individual concern or
enterprise. Nothing in this subsection shall limit the use which
can be made of such information for regulatory purposes or its
admissibility in any enforcement proceedings. The public body
shall notify the taxpayer of the delinquency immediately by
certified mail. However, in the event that the payment or
delivery of transient lodging taxes otherwise due to a public
body is delinquent by over 60 days, the public body shall
disclose, upon the request of any person, the following
information:
  (a) The identity of the individual concern or enterprise that
is delinquent over 60 days in the payment or delivery of the
taxes;
  (b) The period for which the taxes are delinquent; and
  (c) The actual, or estimated, amount of the
delinquency { + . + }   { - ; - }
  (17) All information supplied by a person under ORS 151.430 to
151.491 for the purpose of requesting court-appointed counsel,
and all information supplied to the State Court Administrator
from whatever source for the purpose of verifying indigency of a
person pursuant to ORS 151.430 to 151.491 { + . + }   { - ;
and - }
  (18) Workers' compensation claim records of the Department of
Consumer and Business Services, except in accordance with rules
adopted by the Director of the Department of Consumer and
Business Services, in any of the following circumstances:
  (a) When necessary for insurers, self-insured employers and
third party claim administrators to process workers' compensation
claims.
  (b) When necessary for the director, other governmental
agencies of this state or the United States to carry out their
duties, functions or powers.
  (c) When the disclosure is made in such a manner that the
disclosed information cannot be used to identify any worker who
is the subject of a claim.
  (d) When a worker or the worker's representative requests
review of the worker's claim record { + .
  (19) Sensitive business records or financial or commercial
information of the Oregon Health Sciences University that is not
customarily provided to business competitors.
  (20) Records of the Oregon Health Sciences University regarding
candidates for the position of university president + }.
  SECTION 62b. ORS 192.690 is amended to read:
  192.690. (1) ORS 192.610 to 192.690 shall not apply to the
deliberations of the State Board of Parole and Post-Prison
Supervision, the Psychiatric Security Review Board, of state
agencies conducting hearings on contested cases in accordance
with the provisions of ORS 183.310 to 183.550, the review by the
Workers' Compensation Board of similar hearings on contested
cases, meetings of the state lawyers assistance committees, the
local lawyers assistance committees in accordance with the
provisions of ORS 9.545, the multidisciplinary teams required to
review child abuse and neglect fatalities in accordance with the
provisions of ORS 418.747, the peer review committees in
accordance with the provisions of ORS 441.055   { - and - }
 { + , + } mediation conducted under sections 2 to 10, chapter
967, Oregon Laws 1989,
  { - or to - }  any judicial proceeding { +  or to meetings of
the Oregon Health Sciences University Board of Directors or its
designated committee regarding candidates for the position of
university president + }.
  (2) Because of the grave risk to public health and safety that
would be posed by misappropriation or misapplication of
information considered during such review and approval, ORS
192.610 to 192.690 shall not apply to review and approval of
security programs by the Energy Facility Siting Council pursuant
to ORS 469.530.
  SECTION 62c. ORS 192.690, as amended by section 14, chapter
967, Oregon Laws 1989, and section 33, chapter 18, and section 4,
chapter 318, Oregon Laws 1993, is amended to read:
  192.690. (1) ORS 192.610 to 192.690 shall not apply to the
deliberations of the State Board of Parole and Post-Prison
Supervision, the Psychiatric Security Review Board, of state
agencies conducting hearings on contested cases in accordance
with the provisions of ORS 183.310 to 183.550, the review by the
Workers' Compensation Board of similar hearings on contested
cases, meetings of the state lawyers assistance committees, the
local lawyers assistance committees in accordance with the
provisions of ORS 9.545, the multidisciplinary teams required to
review child abuse and neglect fatalities in accordance with the
provisions of ORS 418.747,   { - and - }  the peer review
committees in accordance with the provisions of ORS
441.055 { + , + }   { - or to - }  any judicial proceeding
 { + or to meetings of the Oregon Health Sciences University
Board of Directors or its designated committee regarding
candidates for the position of university president + }.
  (2) Because of the grave risk to public health and safety that
would be posed by misappropriation or misapplication of
information considered during such review and approval, ORS
192.610 to 192.690 shall not apply to review and approval of
security programs by the Energy Facility Siting Council pursuant
to ORS 469.530.
  SECTION 62d.  { + Nothing in the amendments to ORS 192.690 by
section 62c of this Act affects the provisions of section 17,
chapter 967, Oregon Laws 1989. + }
  SECTION 63. ORS 237.003 is amended to read:
  237.003. For purposes of ORS 237.001 to 237.315:
  (1) The term 'annuity' means payments for life derived from
contributions made by a member as provided in ORS 237.001 to
237.315.
  (2) The term 'calendar year' means 12 calendar months
commencing on January 1 and ending on December 31 following.
  (3) The term '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 Employes' 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 Employes' Retirement System.
  (4) The term 'creditable service' means any period of time
during which an active member is being paid a salary by a
participating public employer and contributions are being made to
the system either by or on behalf of the member. 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.
  (5) The term '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
760.005, 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.
  (6) The term 'fiscal year' means 12 calendar months commencing
on July 1 and ending on June 30 following.
  (7)(a) The term 'member' means a person who has established
membership in the system and whose membership has not been
terminated as described in ORS 237.109. 'Member' includes active,
inactive and retired members.
  (b) 'Active member' means a member who is presently employed by
a participating public employer in a position that meets the
requirements of ORS 237.011 (4), and who has completed the
six-month period of service required by ORS 237.011.
  (c) 'Inactive member' means a member who is absent from the
service of all employers participating in the system, whose
membership has not been terminated in the manner described by ORS
237.109, and who is not retired for service or disability.  '
Inactive member' includes a member who would be an active member
except that the person's only employment with a participating
public employer is in a position that does not meet the
requirements of ORS 237.011 (4).
  (d) 'Retired member' means a member who is retired for service
or disability.
  (8) The term 'pension' means annual payments for life derived
from contributions by one or more public employers.
  (9) The term 'public employer' means the state, one of its
agencies, any city, county, municipal or public corporation, any
political subdivision of the state or any instrumentality
thereof, or an agency created by two or more such political
subdivisions to provide themselves governmental services. For
purposes of ORS 237.001 to 237.315, such agency created by two or
more political subdivisions is a governmental instrumentality and
a legal entity with power to enter into contracts, hold property
and sue and be sued.
  (10) The term 'retirement credit' means a period of time that
is treated as creditable service for the purposes of ORS 237.001
to 237.315.
  (11)(a) The term '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 Employes' 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; and
  (C) Retroactive payments made to an employee to correct a
clerical error or pursuant to an award by a court or by order of
or a conciliation agreement with an administration agency charged
with enforcing federal or state law protecting the employee's
rights to employment or wages, which shall be allocated to and
deemed paid in the periods in which the work was done or in which
it would have been done.
  (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 237.011 (3) will be performed, except
for sick leave and vacation; or
  (H) Payments for instructional services rendered to
institutions of the Department of Higher Education  { + or the
Oregon Health Sciences University + } when such services are in
excess of full-time employment subject to ORS 237.001 to 237.315.
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.
  (12) The term 'volunteer fire fighter' means a fire fighter
whose position normally requires less than 600 hours of service
per year.
  (13) The term 'school year' means the period beginning July 1
and ending June 30 next following.
  (14) The term 'police officer' includes:
  (a) Employees of institutions defined in ORS 421.005 as
Department of Corrections institutions, whose duties, as assigned
by the director, include the custody of persons committed to the
custody of or transferred to the Department of Corrections and
any other employee of the Department of Corrections who was
classified as a police officer 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 and parole and probation officers who are transferred
to county employment under ORS 423.550.
  (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 Board on Public Safety Standards and
Training who are classified by the board 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 (3).
  (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 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, so 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 will 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 the MacLaren School for Boys, Hillcrest School
of Oregon and other juvenile training schools 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 Children's Services Division.
  (s) Employees at juvenile training schools as defined in ORS
420.005 whose primary job description involves the custody,
control, treatment, investigation or supervision of juveniles
placed in such schools.
  (t) Employees of the Children's Services Division of the
Department of Human Resources who are classified as juvenile
parole and probation officers.
  (15) The term 'final average salary' means whichever of the
following is greater:
  (a) The average salary per calendar year paid by a public
employer 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; or if the number of
calendar years of active membership before the effective date of
retirement of the employee is three or less, in all of those
years.
  (b) One-third of the total salary paid by a public employer to
an employee who is an active member of the system in the last 36
calendar months of membership before the effective date of
retirement of the employee.
  (16) The term 'fire fighter' does not include a volunteer fire
fighter as defined in subsection (12) of this section, but does
include the State Fire Marshal, the chief deputy fire marshal and
deputy state fire marshals.
  (17) '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 237.121.
  (18) The term 'normal retirement age' means 55 years of age for
an employee who retires at that age as a police officer or fire
fighter or 58 years of age for an employee who retires at that
age as other than a police officer or fire fighter.
  SECTION 64. ORS 237.011 is amended to read:
  237.011. No person may become a member of the system unless
that person is in the service of a public employer and has
completed six months' service uninterrupted by more than 30
consecutive working days during the six months' period. Every
employee of a participating employer shall become a member of the
system at the beginning of the first full pay period of the
employee following the six months' period. All public employers
participating in the Public Employes' Retirement System
established by chapter 401, Oregon Laws 1945, as amended, at the
time of repeal of that chapter, and all school districts of the
state, shall participate in, and their employees shall be members
of, the system, except as follows:
  (1)(a) An employee who is a member of, or eligible for
membership in, a retirement system established by a public
employer prior to April 8, 1953, or who is a member of, or
eligible to membership in, an association established pursuant to
ORS chapter 239, may not become a member of the system
established by this chapter until the previously established
system or the system of the association is integrated with the
system established by this chapter pursuant to the procedure
provided by ORS 237.051. As a member of the system established by
this chapter an employee shall receive no retirement credit
during such time as the employee heretofore excluded or hereafter
excludes the employee from the previously established system or
from the association, and shall receive only such retirement
credit during the time the employee is a member of the previously
established system or of the association as the contract of
integration provides, except that any teacher who has been
continuously employed by a school district of this state from
July 1, 1929, to July 1, 1951, in which an association has been
established pursuant to ORS chapter 239, and who has not been a
member of such association at any time from July 1, 1929, to
September 1, 1953, shall receive credit for prior service as
provided by ORS 237.081 upon payment prior to December 1, 1953,
to the board by such teacher of such contributions as would have
been deducted from the salary of the teacher from July 1, 1946,
to the date of becoming a member of this system if the teacher
had become a member of this system on July 1, 1946, and the
school district by which said teacher is employed shall transmit
to the board, at such time as the board designates, such sums as
the school district would have been required to transmit under
the provisions of ORS 237.081 if such teacher had become a member
of this system on July 1, 1946, and, upon such payments, such
teacher shall be deemed to have been a member of the system
established by this chapter for the purposes of ORS 237.001 to
237.315 continuously from July 1, 1946.
  (b) Notwithstanding paragraph (a) of this subsection, an
employee who is a member of, or eligible for membership in, an
association established pursuant to ORS chapter 239 shall become
a member of the system established by this chapter if the
employee has separated, for any reason other than death or
disability, from all service entitling the employee to membership
in the system of the association, and the employee shall receive
retirement credit under ORS 237.001 to 237.315 for the period of
time the employee was a member of an association established
pursuant to ORS chapter 239 upon payment to the Public Employes'
Retirement Board of all amounts in the individual account of the
employee established pursuant to ORS chapter 239. The payment by
the employee shall be deposited in the individual account of the
employee in the Public Employes' Retirement Fund. Upon such
payment by the employee, the school board which previously
employed the employee shall pay to the retirement board such sums
as may be determined by actuarial computation to fund the
retirement credit received by the employee. The school board may,
with the consent of the board, make payment in three equal annual
installments.
  (c) Notwithstanding paragraph (a) of this subsection, an
employee who is a member of a retirement system established by a
public employer prior to April 8, 1953, shall become a member of
the system established by this chapter if the employee has
separated from all service entitling the employee to membership
in the retirement system established prior to April 8, 1953; but
the employee shall receive no retirement credit under ORS 237.001
to 237.315 for the time the employee is a member of, or eligible
for membership in, the retirement system established prior to
April 8, 1953. Furthermore, if the employee has been separated
for disability from service entitling the employee to membership
in a retirement system established prior to April 8, 1953, and is
receiving a disability benefit under such retirement system at
the time the employee becomes a member of the system established
by this chapter, the employee shall not receive any benefit under
ORS 237.001 to 237.315 for such disability.
  (2) Any active member of the Public Employes' Retirement System
who, through the annexation of a political subdivision employing
the member or by change of employment, becomes the employee of
another political subdivision which is participating in the
Public Employes' Retirement System and has also a separate
retirement system for its employees, shall remain an active
member of the Public Employes' Retirement System unless, within
60 days after the effective date of the annexation or change of
employment or April 8, 1953, the member shall by written notice
to the Public Employes' Retirement Board and to the
administrative body of the new public employer elect to
relinquish membership in the Public Employes' Retirement System
and become a member of the separate retirement system of the
employer, if eligible for membership in that retirement system,
and the member shall be so carried by the new employer.
Immediately upon such annexation of any political subdivision or
such change of employment, the new public employer shall inform
such employee in writing of the right of the employee to exercise
an election as in this section provided.
  (3) A political subdivision (other than a school district) not
participating in the retirement system established by chapter
401, Oregon Laws 1945, as amended, which employs one or more
employees, each of whose position requires 600 hours of service
per year, or an agency created by two or more political
subdivisions to provide themselves governmental services, which
employs one or more employees, each of whose position requires
600 hours of service per year, may, through its governing body,
notify the board in writing, that it elects to include its
employees in the system hereby established. Such public employer
may request the board to make a study and estimate of the cost of
including it and its eligible employees, other than volunteer
fire fighters, in the system, which the board thereupon shall
cause to be made and the cost of which the employer shall bear.
Upon completion of the study and estimate the employer may apply
for admission to the system, whereupon it shall begin to
participate therein and its eligible employees other than
volunteer fire fighters shall become members of the system. If
the employer is an agency created by two or more political
subdivisions to provide themselves governmental services and
ceases thereafter to transmit to the board current service
contributions for any of its eligible employees, the benefits
based upon employer current service contributions to which such
employees would otherwise be entitled shall be reduced
accordingly.
  (4) Except as subsection (7) of this section provides otherwise
with reference to volunteer fire fighters, no employee whose
position with one public employer or concurrent positions with
two or more public employers normally require less than 600 hours
of service per year may become a member of the system.
  (5) No inmate of a state institution or an alien on a training
or educational visa working for any participating employer, even
though the inmate or alien received compensation from a
participating employer, shall be eligible to become a member of
the system. No person employed by a participating employer and
defined by such employer as a student employee is eligible to
become a member of the system for such student employment.
  (6) A person holding an elective office or an appointive office
with a fixed term or an office as head of a department to which
the person is appointed by the Governor may become a member of
the system by giving the board written notice of desire to do so
within 30 days after taking the office or, in the event that the
officer is not eligible to become a member of the system at the
time of taking the office, within 30 days after becoming so
eligible. Membership so established shall not be discontinued
during the appointive or elective term of the officer except upon
separation of the officer from service.
  (7) A public employer employing volunteer fire fighters may
apply to the board at any time for them to become members of the
system. Upon receiving the application the board shall fix a wage
at which, for purposes of ORS 237.001 to 237.315 only, they shall
be considered to be employed and which shall be the basis for
computing the amounts of the contributions which they pay into,
and of the benefits which they and their beneficiaries receive
from, the fund; and if the wage so fixed is satisfactory to the
employer, shall include the fire fighters in the system.
  (8)(a) In the event that an employee enters the service of a
public employer which is participating in or later begins to
participate in the system and in the event that at the time of
entering that service or at the time that the employer begins to
participate in the system the employee has commenced to purchase
and is continuing to purchase a retirement annuity, if the
employer deems the annuity adequate for the purposes of ORS
237.001 to 237.315 it may enter into an agreement with the
employee and the board pursuant to which the employee may be
exempted from contributing to the Public Employes' Retirement
Fund, and, if no public funds are being used to purchase the
annuity or a corresponding pension, the employer, in lieu of the
contributions which it otherwise would make to the fund on
account of the employee, may make contributions toward the cost
of purchasing the annuity. Such employee otherwise shall be
subject to the provisions of ORS 237.001 to 237.315, except that
neither the employee nor any person claiming under the employee
shall receive any payments from the retirement fund as service or
disability allowance.
  (b) An employee who enters into an agreement under paragraph
(a) of this subsection may elect at any time thereafter to start
to participate in the system by giving written notice of desire
to participate to the board and to the employer. The employee
shall receive no retirement credit for the period during which
the employee was exempted from contributing to the fund under the
agreement, but the employee shall be considered to have completed
the six months' service required for membership in the system.
When the employee starts to participate in the system the
employer shall start to contribute to the fund on the account of
the employee in the same manner as the employer contributes on
the account of other employees who are active members of the
system and the employer shall stop making contributions toward
the cost of purchasing the retirement annuity.
  (9)(a) All new appointees in the Federal Cooperative Extension
Service or in any other service in which participation in the
Federal Civil Service retirement program is mandatory, who
receive a federal appointment on or after July 1, 1955, may
participate in the Public Employes' Retirement System only by
giving written notice of their election to so participate to the
Public Employes' Retirement Board within six months after the
effective date of their appointment.
  (b) All persons employed by the Federal Cooperative Extension
Service or by any other service in which participation in the
Federal Civil Service retirement program is mandatory, who are
under federal appointment as of July 1, 1955, and who are members
of the state retirement system, shall continue such membership
unless, prior to February 1, 1956, they give written notice to
the Public Employes' Retirement Board of their desire to cancel
their membership.
  (c) Any person who is an active member of the Public Employes'
Retirement System, who, on or after July 1, 1955, is employed by
the Federal Cooperative Extension Service or by any other service
in which participation in the Federal Civil Service retirement
program is mandatory, and who is given a federal appointment,
shall continue such membership in the Public Employes' Retirement
System unless, within six months after the effective date of the
appointment, the person gives written notice to the Public
Employes' Retirement Board of the desire to cancel membership.
  (d) A cancellation of membership under paragraph (b) or (c) of
this subsection terminates membership in the Public Employes'
Retirement System and cancels the right to any benefits from, or
claims against, that system. Such cancellation prevents the
withdrawing member from claiming thereafter any retirement credit
for any period of employment before the cancellation. Upon
receipt of a notice of cancellation, the Public Employes'
Retirement Board shall refund to the withdrawing member,
regardless of age, the account balance of the employee in the
retirement fund.
  (10) Managers and other employees of foreign trade offices of
the Economic Development Department who live and perform services
in foreign countries under the provisions of ORS 285.050 (14)
shall not be members of the system. However, any person who is an
active member of the system immediately before becoming a manager
or employee of a foreign trade office shall continue to be a
member of the system during the period of time the person serves
as a manager or employee of the foreign trade office.
   { +  (11) An employee who is an employee of the Oregon Health
Sciences University may not be a member of the Public Employes'
Retirement System if that employee is participating in an
alternative retirement program established by the university
pursuant to section 15 (3) of this 1995 Act. + }
  SECTION 65. ORS 243.107 is amended to read:
  243.107. A person employed by a state institution of higher
education  { + or the Oregon Health Sciences 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 Sciences
University Board of Directors for Oregon Health Sciences

University employees, + } determines that funds are available
therefor and if:
  (1) Notwithstanding ORS 243.105 (2)(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 individually to be
considered an eligible employee; or
  (2) Notwithstanding ORS 243.105 (2)(b) or (c), the person is
employed on a less than half-time basis in an unclassified
instructional or research support capacity and elects
individually to be considered an eligible employee.
  SECTION 66. ORS 243.810 is amended to read:
  243.810. As used in ORS 243.810 to 243.830, unless the context
requires otherwise:
  (1) 'Educational institution' means an educational institution
that normally maintains a regular faculty and curriculum and
normally has a regularly organized body of students in attendance
at the place where its educational activities are carried on or
an education service district.
  (2) 'Employer' means the State Board of Higher Education, any
other state agency, a community college district, a school
district { + , the Oregon Health Sciences University + } or
 { + an + } education service district employing an individual
who performs services for an educational institution.
  SECTION 67. ORS 243.910 is amended to read:
  243.910. As used in ORS 243.910 to 243.940:
  (1) 'Board' means the State Board of Higher Education  { + for
all institutions under the jurisdiction of that board as set
forth in ORS 352.002, and for the Oregon Health Sciences
University means the Oregon Health Sciences 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 Employes' Retirement System
established by ORS 237.005.
  SECTION 67a. ORS 307.095 is amended to read:
  307.095. (1) Any portion of state property that is used during
the tax year for parking on a rental or fee basis to private
individuals is subject to ad valorem taxation.
  (2) The value of such portion shall be computed by determining
that percentage which the total of receipts from private use
bears to the total of receipts from all use of the property.
However, receipts from any use by a state officer or employee in
the performance of the official duties of the state officer or
employee shall not be considered as receipts from private use in
computing the portion subject to ad valorem taxation.
  (3) For tax years beginning on or after January 1, 1969, and
before July 1, 1996, this section and ORS 276.592 do not apply to
state property that is used by the State System of Higher
Education  { + or the Oregon Health Sciences University + }
solely to provide parking for employees or students.
  SECTION 68. ORS 341.440 is amended to read:
  341.440. (1) A community college district may contract with
another community college district, common or union high school
district, education service district, the Department of Higher
Education { + , the Oregon Health Sciences University + } or with
a private educational institution accredited by the Northwest
Association of Schools and Colleges or its successor to obtain
educational services for students enrolled in the community
college of the district. However, the educational services so
obtained must meet the standards for educational services
provided by the college and the contract price to the college for
such services must not exceed the costs which would otherwise be
incurred by the college to provide its students the same or
similar services.
  (2) For purposes of ORS 341.626, costs incurred under
subsection (1) of this section shall be considered operating
expenses of the district if the contract is approved by the
commissioner.
  SECTION 69. ORS 343.261 is amended to read:
  343.261. Under rules adopted by the State Board of Education:
  (1) The Superintendent of Public Instruction, in cooperation
with the hospital authorities, shall be responsible for payment
of the cost and oversight of the educational programs for
children through 21 years of age in the following institutions:
  (a) State-operated hospitals;   { - and - }
   { +  (b) The Oregon Health Sciences University hospitals and
clinics; and + }
    { - (b) - }   { + (c) + } Private hospitals not including
psychiatric facilities which:
  (A) Have the capacity to admit patients from throughout the
state;
  (B) Provide specialized intensive treatment for children with
severe, low-incidence types of disabling conditions; and
  (C) Admit children who can expect to be hospitalized for
extended periods of time or rehospitalized frequently.
  (2) The superintendent shall be responsible for the payment of
the cost of the education by contract with the school district in
which the state-operated hospital { + , the Oregon Health
Sciences University hospital or clinic + } or  { + the + }
private hospital is located.  The hospital shall be responsible
for the costs of transportation, care, treatment and medical
expenses. The payments may be made to the school district, or at
the discretion of the school district, to the district providing
the education, as set forth in subsection (3) of this section,
from the funds appropriated for the purpose.
  (3) The school district in which the state-operated
hospital { + , the Oregon Health Sciences University hospital or
clinic + } or   { - a - }  { + the + } private hospital is
located shall be responsible for providing the education directly
or through an adjacent school district or through the education
service district in which the program is located or one
contiguous thereto.
  (4) The superintendent shall make the final determinations
concerning the eligibility of hospitals to receive state funding
under this section.
  SECTION 70. ORS 348.270 is amended to read:
  348.270. (1) In addition to any other scholarships provided by
law, the State Scholarship Commission shall award scholarships in
any state institution under the State Board of Higher
Education { + , in the Oregon Health Sciences University + } or
in any community college operated under ORS chapter 341, to any
student applying for enrollment or who is enrolled therein, who
is the natural, adopted or stepchild of any peace officer in this
state, as defined in ORS 161.015 (4), who, in line of duty, was
killed or so disabled, as determined by the State Scholarship
Commission, that the income of the disabled peace officer is less
than that earned by peace officers performing duties comparable
to those performed at the highest rank or grade attained by the
disabled parent.
  (2) Scholarships awarded under this section shall equal the
amount of tuition and all fees levied by the institution against
the recipient of the scholarship. If the student continues to
remain enrolled in a state institution of higher education or a
community college 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.
  (3) The State Scholarship Commission may require proof of the
student's relationship to a deceased or disabled peace officer
described in subsection (1) of this section.
  SECTION 71. ORS 351.810 is amended to read:
  351.810. The State Board of Higher Education,  { + the Oregon
Health Sciences University + } and the Oregon members of the
Western Interstate Commission for Higher Education are authorized
to take any action necessary to achieving the ends of the Western
Regional Higher Education Compact.
  SECTION 72. ORS 351.820 is amended to read:
  351.820. (1) Prior to June 1 of each even-numbered year the
Oregon members of the Western Interstate Commission for Higher
Education shall determine the quotas of Oregon students for whom
various kinds of educational service should be purchased in
out-of-state institutions during the next biennium and shall
recommend to the State Board of Higher Education  { + and the
Oregon Health Sciences University Board of Directors + } the
amount to be included in its biennial budget to cover the cost of
such educational service  { + for students enrolled in their
respective institutions + }.
  (2) The State Board of Higher Education  { + and the Oregon
Health Sciences University Board of Directors + } shall negotiate
contracts with the Western Interstate Commission for Higher
Education for educational service of the kind and amount
indicated by the quotas determined under subsection (1) of this
section. The board shall make payments required by such contracts
out of the money appropriated to it for that purpose.
  (3) The State Board of Higher Education may also contract with
higher education institutions, or others, which are not members
of the Western Interstate Commission for Higher Education, to
furnish educational services to students who are residents of the
State of Oregon in those areas of higher education where the
educational institutions of the State of Oregon are unable to
provide the desired professional educational opportunities.
  SECTION 73. ORS 351.840 is amended to read:
  351.840. (1) The State Board of Higher Education  { + and the
Oregon Health Sciences University Board of Directors + } may
contract with the Western Interstate Commission for Higher
Education to furnish educational service in  { + their
respective + } Oregon institutions to out-of-state students.
  (2) The  { + State + } Board  { + of Higher Education and the
Oregon Health Sciences University Board of Directors + } shall
determine the number of out-of-state students that should be
accepted  { + into their respective institutions + }, and shall
make final decisions on admission of individual applicants.
  (3) Out-of-state students attending Oregon institutions under
contracts with the commission shall pay fees and tuition
customarily charged Oregon students.
  (4) Payments made by the commission under such contracts shall
be deposited in the State Treasury and credited to the accounts
of the State Board of Higher Education  { + for students enrolled
in institutions under the jurisdiction of that board + } in the
same manner that fees and tuition payments for resident students
are deposited and credited. The estimated amount of such payments
shall be considered by the board in making its biennial budgetary
requests.  { + Payments made by the commission under such
contracts shall be deposited with the Oregon Health Sciences
University for students who enroll in that university under the
terms of such contracts. + }
  SECTION 74. ORS 352.002 is amended to read:
  352.002. The State System of Higher Education consists of the
programs, activities and institutions of higher education under
the jurisdiction of the State Board of Higher Education including
the following:
  (1) The University of Oregon.
  (2) Oregon State University.
  (3) Portland State University.
    { - (4) Oregon Health Sciences University. - }
    { - (5) - }   { + (4) + } Oregon Institute of Technology.
    { - (6) - }   { + (5) + } Western Oregon State College.
    { - (7) - }   { + (6) + } Southern Oregon State College.
    { - (8) - }   { + (7) + } Eastern Oregon State College.
  SECTION 75.  { + ORS 352.073 is added to and made a part of
sections 1 to 31 of this Act. + }
  SECTION 76. ORS 352.073 is amended to read:
  352.073. (1) Subject to the provisions of sections 13
 { - , - }   { + and + } 16   { - and 17 - } , chapter 770,
Oregon Laws 1985,   { - and ORS 352.077, - } there is created a
Center for  { + Research on + } Occupational   { - Disease
Research - }   { + and Environmental Toxicology + }. The
 { - State Board of Higher Education, acting through the - }
Oregon Health Sciences University  { - , - }  shall administer
the center.
  (2) The purposes of the center may include, but are not limited
to, reducing the incidence of disease and reducing the costs and
dangers to employers and employees associated with occupational
disease. Specific functions of the center may include:
  (a) Basic and applied research into the incidence and causes of
occupational diseases.
  (b) Epidemiology and other data collection.
  (c) Design of programs for clinical management of occupational
diseases.
  (d) Education and training programs.
  (3) Although the output of the center's programs is intended to
be of statewide use for employers, employees, health
professionals and the public concerning occupational disease, it
is not intended that the center shall assume any of the
responsibilities or functions of the physical rehabilitation
facility operated by the Director of the Department of Consumer
and Business Services. The center may offer programs of diagnosis
and treatment of occupational disease, but it is expected that
such services shall be compensable under ORS chapter 656
 { - and such services shall not be expected from the center
under funding provided in section 17, chapter 770, Oregon Laws
1985 - } .
  SECTION 77.  { + (1) The amendment of ORS 352.073 by section 76
of this Act is intended to change the name of the Center for
Occupational Disease Research to the Center for Research on
Occupational and Environmental Toxicology.
  (2) For the purpose of harmonizing and clarifying statute
sections published in Oregon Revised Statutes, the Legislative
Counsel may substitute for words designating the Center for
Occupational Disease Research, wherever they occur in Oregon
Revised Statutes, other words designating the Center for Research
on Occupational and Environmental Toxicology. + }
  SECTION 78. ORS 352.083 is amended to read:
  352.083. It is expected that the Center for   { - Occupational
Disease - }  Research  { + on Occupational and Environmental
Toxicology + } will operate, on an ongoing basis, from funds
provided by the Department of Consumer and Business Services, in
addition to any gifts, grants or donations made to carry out the
activities of the center. The Oregon Health Sciences University
is not expected to provide funds for operation of the center from
any other sources of funds for operation of the Oregon Health
Sciences University.
  SECTION 79. ORS 354.520 is amended to read:
  354.520. (1) The Oregon Ed-Net Board shall have the authority
to carry out the provisions of ORS 354.505 to 354.550 by:
  (a) Contracting for technical operations and administrative
support;
  (b) Assuring that Ed-Net has access to properly licensed
communications facilities;
  (c) Establishing policies and procedures for managing and
financing Oregon Ed-Net services;
  (d) Encouraging the establishment of or cooperation with an
independent nonprofit corporation as defined in section 501(c)(3)
of the federal Internal Revenue Code in order to facilitate
receipt of grants and contracts from foundations and other
persons;
  (e) Purchasing, leasing, owning and selling property necessary
for the proper administration of Oregon Ed-Net;
  (f) Conducting business of the board through Oregon Ed-Net
systems; and
  (g) Cooperating with business and industry, the Department of
Education, the State System of Higher Education, the Office of
Community College Services, Oregon Public Broadcasting { + , the
Oregon Health Sciences University + } and the Oregon Department
of Administrative Services.
  (2) The board shall report to the Governor through the Director
of the Oregon Department of Administrative Services on the
activities under subsection (1) of this section.
  SECTION 80. ORS 438.050 is amended to read:
  438.050. (1) This chapter applies to all clinical laboratories
and laboratory personnel within the State of Oregon, except:
  (a) Clinical laboratories operated by the United States
Government.
  (b) Clinical laboratories operated and maintained purely for
research or teaching purposes, and that involve no patient or
public health services.
  (c) Clinical laboratories operated by less than five physicians
and used exclusively for the diagnosis and treatment of their own
patients.
  (d) County health departments performing emergency public
health laboratory procedures as approved by the division.
  (2) Laboratories operated by the State of Oregon { + , by the
Oregon Health Sciences University + } and by county health
departments are exempt from licensing fees, but all other
provisions of this chapter shall apply.
  (3) Nothing in this chapter is intended to confer on any
licensed practitioner of the healing arts any authority the
practitioner would not otherwise possess under the license.
  SECTION 81. ORS 444.010 is amended to read:
  444.010. (1) The   { - State Board of Higher Education, acting
through the - }  Oregon Health Sciences University  { - , - }  is
designated
  { - as the agency of the state - }  to administer a program the
purpose of which is to enable the state to extend and improve
services for locating disabled children and for providing
medical, surgical, corrective and other services and care, and
facilities for diagnosis, hospitalization and after care for such
children and for children having conditions which lead to
disability.
  (2) The   { - board - }   { + Oregon Health Sciences
University + } shall also supervise the administration of those
services included in the program which are not administered
directly by it.
  SECTION 82. ORS 444.020 is amended to read:
  444.020. The   { - State Board of Higher Education, acting
through the - }  Oregon Health Sciences University  { - , - }
may:
  (1) Make all necessary rules and regulations for administering
services to disabled children under ORS 444.010 to 444.050.
  (2) Accept, expend and disburse all federal funds made
available to this state for services for disabled children and
for the administration of services for children with special
health needs.
  (3) Make such reports in such form and containing such
information as are required by the Federal Government, and comply
with such provisions as are found necessary to insure correctness
and verification of such reports.
  (4) Cooperate with medical, health, nursing and welfare groups
and organizations and with any agencies in the state charged with
administering state laws providing for vocational rehabilitation
of physically disabled children.
  (5) Cooperate with the Federal Government through its
appropriate agency or instrumentality in administering services
for children with special health needs.
  (6) Accept and receive funds, money or other valuable things
from relatives, corporations or interested persons or
organizations for the care of disabled children and expend the
same for the purposes for which such funds, money or other
valuable things were received.
  (7) Accept and receive fees for services rendered under ORS
444.010 to 444.050.
  SECTION 83. ORS 444.040 is amended to read:
  444.040. (1) There is created in the General Fund of the State
Treasury an account to be known as the Services for Children with
Special Health Needs Account.
  (2) All moneys received under ORS 444.020 shall be deposited in
the Services for Children with Special Health Needs Account and
shall be disbursed in the same manner as the moneys appropriated
for carrying out ORS 444.010 to 444.050.
  (3)   { - The State Board of Higher Education, acting
through - }  The Oregon Health Sciences University  { - , - }
may expend from the Services for Children with Special Health
Needs Account, and there hereby are appropriated, any amounts
necessary to carry out the program.
  (4) The Oregon Department of Administrative Services shall draw
warrants to pay all claims duly approved by   { - the State Board
of Higher Education, acting through - }  the Oregon Health
Sciences University, which have been incurred in pursuance of law
and the appropriation in subsection (3) of this section.
  SECTION 84. ORS 453.510 is amended to read:
  453.510. (1) There is established the Interagency Hazard
Communication Council consisting of 21 members.
  (2) The council shall consist of the following:
  (a) The State Fire Marshal or designee.
  (b) The Assistant Director for Health or designee.
  (c) The Director of Agriculture or designee.
  (d) The State Forester or designee.
  (e) The State Fish and Wildlife Director or designee.
  (f) The Director of the Department of Consumer and Business
Services or designee.
  (g) The chairperson of the Public Utility Commission or
designee.
  (h) The Director of the Office of Emergency Management of the
Department of State Police or designee.
  (i) The chairperson of the Department of Agricultural Chemistry
of Oregon State University or designee.
  (j) The director of the Poison Control and Drug Information
Program of the Oregon Health Sciences University or designee.
  (k) The Director of the Department of Environmental Quality or
designee.
  (L) The Director of the Department of Energy or designee.
  (m) The Director of Transportation or designee.
  (n) The Superintendent of State Police or designee.
  (o) The Governor or designee from the office of the Governor.
  (p) The Governor may appoint the Director or designee of the
Center for  { + Research on + } Occupational   { - Disease
Research - }  { +  and Environmental Toxicology + } created under
ORS 352.073 and administered by the Oregon Health Sciences
University.
  (q) Two representatives of local government appointed by the
Governor and subject to confirmation by the Senate under ORS
171.562 and 171.565, at least one of whom is either a firefighter
or another emergency response person.
  (r) Three members, appointed by the Governor for four-year
terms and subject to confirmation by the Senate under ORS 171.562
and 171.565, shall represent the public at large at least one of
whom represents a public interest group.
  (3) The council shall:
  (a) Facilitate interagency cooperation in updating the
hazardous substance survey under ORS 453.317;
  (b) Facilitate interagency access to data collected that
relates to hazardous material or hazardous substances;
  (c) Coordinate state agencies' regulatory responsibilities over
hazardous material and hazardous substances;
  (d) Provide, in a timely manner, advice or recommendations to a
state agency required to consult with the council regarding
programs involving hazardous material or hazardous substances;
and
  (e) Undertake all duties of a state emergency response
commission required by the Emergency Planning and Community
Right-to-Know Act of 1986 (P.L. 99-499) including but not limited
to:
  (A) Designating emergency planning districts.
  (B) Appointing members of local emergency planning committees.
  (C) Providing oversight for the implementation of reporting
requirements in connection with the council's duties under
paragraph (a) of this subsection.
  (D) Commenting on local emergency plans.
  (4) Public members shall be entitled to compensation and
expenses as provided in ORS 292.495 which shall be paid by the
State Fire Marshal.
  (5) The council shall meet on a regular basis at a time and
place determined by the council.
  (6) The chairperson of the Interagency Hazard Communication
Council shall be the Governor or the Governor's designee.
  (7) As used in this section:
  (a) 'Hazardous material' means one of the following:
  (A) A material designated by the commission under ORS 466.630.
  (B) Hazardous waste as defined in ORS 466.005.
  (C) Radioactive waste as defined in ORS 469.300, radioactive
material identified by the Energy Facility Siting Council under
ORS 469.605 and radioactive substances as defined in ORS 453.005.
  (D) Communicable disease agents as regulated by the Health
Division under ORS 431.175, 433.010 to 433.045 and 433.106 to
433.990 and ORS chapter 431.
  (E) Hazardous substances designated by the United States
Environmental Protection Agency under section 311 of the Federal
Water Pollution Control Act, P.L. 92-500, as amended.
  (b) 'Hazardous substance' means:
  (A) Any substance designated as hazardous by the Director of
the Department of Consumer and Business Services or by the State
Fire Marshal;
  (B) Any substance for which a material safety data sheet is
required by the Director of the Department of Consumer and
Business Services under ORS 654.035 and which appears on the list
of Threshold Limit Values for Chemical Substances and Physical
Agents in the Work Environment by the American Conference of
Governmental Industrial Hygienists; or
  (C) Radioactive waste and material as defined in ORS 469.300
and radioactive substance as defined in ORS 453.005.
  SECTION 85. ORS 656.630 is amended to read:
  656.630. (1) There is transferred to and continuously
appropriated to the Center for  { + Research on + } Occupational
 { - Disease Research - }   { + and Environmental Toxicology + }
of the   { - Department of Higher Education - }   { + Oregon
Health Sciences University + }, the following amounts from the
following sources:
  (a) The amount of revenue produced by one-sixteenth of one cent
of the money deducted from workers' wages pursuant to ORS 656.506
(2).

  (b) An amount equal to the amount raised by paragraph (a) of
this subsection from those assessments made pursuant to ORS
656.612 (2).
  (2) The moneys referred to in subsection (1) of this section
may only be used for paying the expenses of the Center for  { +
Research on + } Occupational   { - Disease Research - }   { + and
Environmental Toxicology + }.
  (3) Annually, the Center for  { + Research on + } Occupational
  { - Disease Research - }   { + and Environmental Toxicology + }
shall file a report with the   { - State Board of Higher
Education - }   { + Oregon Health Sciences University + }, with a
copy to the Director { +  of the Department of Consumer and
Business Services + }, describing the activities in sufficient
detail for which moneys received under this section during the
year have been obligated or expended.
  SECTION 86.  { + The Advisory Committee on Occupational Disease
is abolished. On the effective date of this Act, the tenure of
office of the members of the committee shall cease. + }
  SECTION 87.  { + The rights and obligations of the Advisory
Committee on Occupational Disease legally incurred under
contracts, leases and business transactions executed, entered
into or begun before the effective date of this Act are
transferred to the Oregon Health Sciences University. For the
purpose of succession to these rights and obligations, the
university is considered to be a continuation of the Advisory
Committee on Occupational Disease and not a new entity, and the
university shall exercise such rights and fulfill such
obligations as if they had not been transferred. + }
  SECTION 88.  { + There are transferred to the Oregon Health
Sciences University:
  (1) All the supplies, materials, equipment, records, books,
papers and facilities of the Advisory Committee on Occupational
Disease.
  (2) All the employees of the Advisory Committee on Occupational
Disease, subject to the right of the university to abolish
positions and change duties to the extent that the university
finds it desirable for the sound, efficient and economical
administration and enforcement of the duties, functions and
powers transferred by sections 86 to 89 of this Act. + }
  SECTION 89.  { + (1) The unexpended balances of amounts
authorized to be expended for the biennium beginning July 1,
1995, from revenues dedicated, continuously appropriated,
appropriated or otherwise made available for the purpose of
administering and enforcing the duties, functions and powers
transferred by sections 86 to 89 of this Act, are appropriated
and transferred to and are available for expenditure by the
Oregon Health Sciences University, to the extent provided in
subsection (2) of this section, for the biennium beginning July
1, 1995.
  (2) For the purpose of administering and enforcing the duties,
functions and powers transferred by this Act and for the payment
of the expenses lawfully incurred by the Advisory Committee on
Occupational Disease with respect to the administration and
enforcement of such duties, functions and powers, and
notwithstanding any other provision of law, all moneys lawfully
available to the Advisory Committee on Occupational Disease are
continuously appropriated or otherwise made available for the
purpose of administering the functions of the Oregon Health
Sciences University. The university shall assume and pay all
outstanding obligations lawfully incurred before the effective
date of this Act by the Advisory Committee on Occupational
Disease that properly are charged against amounts authorized by
this section to be expended by the university. Moneys previously
appropriated for specific expenditure classifications, if any,
shall remain applicable to those expenditure classifications. + }

  SECTION 90.  { + This Act shall be liberally construed to
effect the purposes and intent thereof. If any provision of this
Act, or the application of that provision to any particular
circumstance or person, shall be held invalid, the remainder of
this Act and the application of that provision to circumstances
or persons other than those to which it is held invalid shall not
be affected thereby. + }
  SECTION 91.  { + There is appropriated to the Oregon Health
Sciences University, for the biennium beginning July 1, 1995, out
of the General Fund, the sum of $______ for the purpose of
carrying out this Act. + }
  SECTION 92.  { + ORS 278.305, 292.190, 351.305, 352.055,
352.077, 437.150, 437.160, 437.170, 437.180 and 437.210 are
repealed. + }
  SECTION 93.  { + This Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this Act takes effect July 1, 1995. + }
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