Chapter 1070 Oregon Laws 1999

Session Law

 

AN ACT

 

HB 2993

 

Relating to student financial aid; creating new provisions; and amending ORS 329.780, 348.205, 348.260, 348.696, 411.894 and 461.543.

 

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

 

      SECTION 1. Sections 2 to 5 of this 1999 Act are added to and made a part of ORS 348.040 to 348.280.

      SECTION 2. (1) The Legislative Assembly recognizes:

      (a) That an investment in educational opportunities for all Oregonians is an investment in a strong and stable economy and greater personal opportunities;

      (b) That the single largest barrier to attending an institution of higher education is lack of finances;

      (c) The broad and diverse range of quality post-secondary educational services provided by Oregon's institutions of higher education, including Oregon's community colleges, state institutions and independent not-for-profit institutions of higher education; and

      (d) The positive effects on Oregon's citizens, families and economy of encouraging talented and hardworking students to stay in Oregon to pursue a post-secondary education.

      (2) It is the intent of the Legislative Assembly to:

      (a) Empower students who have achieved a Certificate of Initial Mastery with the ability to attend an Oregon institution of higher education; and

      (b) Reward all Oregon students who have achieved a Certificate of Initial Mastery or a comparable level of academic merit in Oregon schools with the opportunity and the necessary funding to attend an Oregon institution of higher education.

      SECTION 3. As used in sections 2 to 5 of this 1999 Act:

      (1) "Eligible post-secondary institution" means:

      (a) A state institution under the direction of the State Board of Higher Education;

      (b) A community college operated under ORS chapter 341; or

      (c) An Oregon-based, accredited, not-for-profit institution of higher education.

      (2) "Financial need" means that the financial capacity of both the student and the student's family to contribute to the costs of the student's education are not adequate to meet the total cost of education for any term, according to a system of need analysis approved by the State Scholarship Commission.

      (3) "Qualified student" means any resident student who plans to attend an eligible post-secondary institution.

      SECTION 4. (1) In addition to any other form of student financial aid authorized by law, the State Scholarship Commission shall award, to the extent funds are made available, an Oregon Achievement Grant to any qualified student who:

      (a) Is accepted to an eligible post-secondary institution;

      (b) Commences at least half-time study toward a degree at the eligible post-secondary institution within three years of high school graduation; and

      (c) Has received a Certificate of Initial Mastery or, while a resident of Oregon, has scored at or above a level on a nationally recognized college admissions test as determined by the State Scholarship Commission.

      (2) Any qualified student receiving an Oregon Achievement Grant under subsection (1) of this section must use the grant for the purpose of transcripted study in a nonsectarian program at an eligible post-secondary institution.

      (3) Each Oregon Achievement Grant shall be renewed yearly provided that the recipient has maintained satisfactory progress toward a first associate or baccalaureate degree as determined by the State Scholarship Commission.

      (4) Notwithstanding subsection (3) of this section, no Oregon Achievement Grant shall be renewed after a qualified student has reached the number of credit hours required to graduate with a baccalaureate degree at the institution the student is attending.

      SECTION 5. Oregon Achievement Grants shall first be available to qualified students for use during the 2001-2002 school year.

      SECTION 6. (1) There is created a commission to study financial support for post-secondary students consisting of 22 members.

      (2) The Chancellor of the State Board of Higher Education, or the chancellor's designee, and the Commissioner for Community College Services, or the commissioner's designee, shall serve as ex officio members of the commission.

      (3) The Governor shall appoint:

      (a) One member who shall serve as chairperson of the commission.

      (b) One member who shall serve as the Governor's designee.

      (c) Two members who are presidents of Oregon-based, accredited, not-for-profit independent institutions of higher education or the presidents' designees.

      (d) Two members who are presidents of state institutions of higher education within the State System of Higher Education or the presidents' designees.

      (e) Two members who are presidents of community colleges or the presidents' designees.

      (f) One member who represents the Oregon Health Sciences University.

      (g) One member who is a member of the State Scholarship Commission.

      (h) One member who is a student at an Oregon-based, accredited, not-for-profit independent institution of higher education.

      (i) One member who is a student at a state institution of higher education within the State System of Higher Education or at the Oregon Health Sciences University.

      (j) One member who is a student at a community college.

      (k) One member who is a member of the governing board of an Oregon-based, accredited, not-for-profit independent institution of higher education.

      (L) One member who is a member of the State Board of Higher Education.

      (m) One member who is a member of a board of education of a community college district or who is a member of the State Board of Education.

      (4) The Speaker of the House of Representatives shall appoint one member of the House of Representatives who is a member of the Republican party and one member of the House of Representatives who is a member of the Democratic party.

      (5) The President of the Senate shall appoint one member of the Senate who is a member of the Republican party and one member of the Senate who is a member of the Democratic party.

      (6) The commission shall study and make recommendations on the following issues:

      (a) The balance between institutional and student financial support;

      (b) The balance between need-based and merit-based student financial support; and

      (c) Proposals to assist community college students to achieve four-year degrees.

      (7) Prior to October 1, 2000, the commission shall report to the Governor, the Emergency Board and the appropriate interim committees on education. The report shall include recommendations on the issues listed in subsection (6) of this section and may include recommendations for legislation.

      (8) A nonlegislative member of the commission is entitled to compensation and expenses as provided in ORS 292.495. A legislative member of the commission is entitled to compensation and expenses as provided in ORS 171.072 from funds appropriated to the Legislative Assembly for such purposes.

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

      (10) The Governor's office shall provide staff to the commission. Upon request from the commission, the State Scholarship Commission shall provide technical assistance to the commission.

      SECTION 7. Section 6 of this 1999 Act is repealed January 1, 2001.

      SECTION 8. ORS 348.205 is amended to read:

      348.205. It is the intention of the Legislative Assembly to establish [two types of student aid programs for those enrolled in community colleges and institutions of higher education. The need grant] the Oregon Opportunity Grant program. Oregon Opportunity Grants awarded under this program shall be [based on] a uniform percentage of the student's financial [situation] need as determined in ORS 348.260 (2)(b). [The scholastic grant program will be based on the student's financial need and academic aptitude and achievement. Existing programs will be discontinued as the new programs are funded.]

      SECTION 9. (1) The amendments to ORS 348.205 by section 8 of this 1999 Act are intended to change the name of the need grant to the Oregon Opportunity Grant.

      (2) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the need grant, wherever they occur in Oregon Revised Statutes, other words designating the Oregon Opportunity Grant.

      SECTION 10. ORS 329.780 is amended to read:

      329.780. (1) There is established in the State Treasury separate from the General Fund an account to be known as the Oregon Teacher Corps Account into which shall be deposited all repayments of loans with interest to the State Scholarship Commission pursuant to ORS 329.775. Any interest accruing to the account shall be credited thereto.

      (2) Amounts in the account established under subsection (1) of this section are continuously appropriated to the State Scholarship Commission for the purposes of ORS 329.757 to 329.780 and the [need grant] Oregon Opportunity Grant program under ORS 348.260.

      SECTION 11. ORS 348.260 is amended to read:

      348.260. [(1) In addition to any other form of student financial aid authorized by law, the State Scholarship Commission may award grants to qualified residents of this state in any two-year or four-year, nonprofit, generally accredited institution of higher education located in this state, in any community college located in this state, and any student enrolled in any medical, nursing or dental program offered by the Oregon Health Sciences University. Grant funds necessary to meet matching requirements for federal funds under the State Student Incentive Grant program may also be used to award grants to qualified residents of this state in any post-secondary institution approved by the commission.]

      [(2) A qualified applicant for a grant is one who meets the academic requirements for admission to the institution or college the applicant plans to attend but whose financial capacity and that of the applicant's family to contribute to the costs of the applicant's education are not adequate to meet such costs, including tuition, fees and living expenses, at the institution or college the applicant plans to attend, as determined by the State Scholarship Commission.]

      (1) As used in this section:

      (a) "Costs" includes, but is not limited to, tuition, fees and living expenses.

      (b) "Qualified student" means a resident of this state, as defined by the State Scholarship Commission:

      (A) Who is enrolled or accepted for enrollment at an eligible post-secondary institution as defined in section 3 of this 1999 Act;

      (B) Who has not yet obtained a baccalaureate degree from any post-secondary institution; and

      (C) Whose financial capacity, and that of the student's family, to contribute to the cost of the student's education is not adequate to meet such costs, as determined by the State Scholarship Commission.

      (2)(a) In addition to any other form of student financial aid authorized by law, the State Scholarship Commission may award Oregon Opportunity Grants, to the extent funds are made available, to qualified students.

      (b) Eligibility, financial need and the amount of an Oregon Opportunity Grant shall be determined annually by the State Scholarship Commission in consultation with representatives from the educational sectors. In determining these factors, the State Scholarship Commission shall take into consideration available state funds, available federal funds, the cost of education at the participating post-secondary institutions and the family's ability to contribute.

      (c) Grant funds necessary to meet matching requirements for federal funds under the State Student Incentive Grant program may also be used to award grants to qualified students in any post-secondary institution approved by the State Scholarship Commission.

      (3) Oregon Opportunity Grants may be awarded under this section to qualified students enrolled for any term, including summer term.

      [(3)] (4) If [the] a qualified student [who receives a] receiving an Oregon Opportunity Grant under this section meets the standards for renewal of the grant, the grant may be renewed upon application until the qualified student has received the total of four undergraduate years of transcripted instruction in the institution or has completed the course of study at the school of nursing.

      [(4)] (5) A qualified student who receives [a] an Oregon Opportunity Grant under this section must attend the institution, college or school upon which the grant application is based unless the State Scholarship Commission authorizes the grant to be used at a different institution, college or school. A qualified student who receives a grant under this section may attend more than one institution, college or school if the grant application was based on the qualified student attending more than one institution, college or school.

      [(5)] (6) No Oregon Opportunity Grant shall be made to any qualified student enrolled in a course of study required for and leading to a degree in theology, divinity or religious education.

      [(6)] (7) No Oregon Opportunity Grant awarded under this section shall exceed 50 percent of the qualified student's financial need, as determined by the State Scholarship Commission.

      SECTION 12. Notwithstanding ORS 348.260 (2)(a) and (b), for the 2001-2003 biennium, the amount of an Oregon Opportunity Grant award for each qualified student at a participating post-secondary institutions shall be no less than what a qualified student would have received at the participating post-secondary institution during the 2000-2001 school year, adjusted for inflation.

      SECTION 13. ORS 348.696 is amended to read:

      348.696. The Education Endowment Fund is established separate and distinct from the General Fund. Moneys in the fund shall be invested as provided in ORS 293.701 to 293.790. All earnings on moneys in the fund shall be transferred and appropriated continuously in the following amounts:

      (1) 75 percent of the earnings to the State School Fund; and

      (2) 25 percent of the earnings to the State Scholarship Commission for [need grants awarded] the Oregon Opportunity Grant program under ORS 348.260.

      SECTION 14. ORS 348.696, as amended by section 11, chapter 612, Oregon Laws 1997, is amended to read:

      348.696. The Education Endowment Fund is established separate and distinct from the General Fund. Moneys in the fund shall be invested as provided in ORS 293.701 to 293.790. All earnings on moneys in the fund shall be transferred and appropriated continuously in the following amounts:

      (1) 75 percent of the earnings to the School Capital Construction, Maintenance and Technology Fund; and

      (2) 25 percent of the earnings to the State Scholarship Commission for [need grants awarded] the Oregon Opportunity Grant program under ORS 348.260.

      SECTION 15. Nothing in section 19 of this 1999 Act or the amendments to ORS 348.696 by section 13 or 14 of this 1999 Act affects the operative date provisions of section 12, chapter 612, Oregon Laws 1997.

      SECTION 16. ORS 461.543 is amended to read:

      461.543. (1) Except as otherwise specified in subsection (5) of this section, the Sports Lottery Account is continuously appropriated to and shall be used by the State Board of Higher Education to fund sports programs at state institutions of higher education. Seventy percent of the revenues in the fund shall be used to fund nonrevenue producing sports and 30 percent shall be used for revenue producing sports. Of the total amount available in the fund, at least 50 percent shall be made available for women's athletics.

      (2) The State Board of Higher Education shall allocate moneys in the Sports Lottery Account among the institutions of higher education under its jurisdiction giving due consideration to:

      (a) The athletic conference to which the institution belongs and the relative costs of competing in that conference.

      (b) The level of effort being made by the institution to generate funds and support from private sources.

      (3) As used in subsections (1) to (3) of this section, "revenue producing sport" is a sport that produces net revenue over expenditures during a calendar year or if its season extends into two calendar years, produces net revenue over expenditures during the season.

      (4) An amount equal to the net proceeds of games provided for in ORS 461.213 (1) shall be allocated from the Administrative Services Economic Development Fund to the Sports Lottery Account.

      (5) The amounts received by the Sports Lottery Account shall be allocated as follows:

      (a) Eighty-eight percent for the purposes specified in subsections (1) to (3) of this section, but not to exceed $8 million annually, adjusted annually pursuant to the Consumer Price Index, as defined in ORS 327.006.

      (b) Twelve percent for the purpose of scholarships, to be distributed equally between scholarships based on academic merit and scholarships based on need, as determined by rule of the State Board of Higher Education, but not to exceed $1,090,909 annually.

      [(c) After the maximum allowable allocations under paragraphs (a) and (b) of this subsection are made, the next $3 million annually to the State Scholarship Commission for scholarships, as defined and administered in ORS 344.355.]

      [(d)] (c) All additional money to the State Scholarship Commission for the [need grant] Oregon Opportunity Grant program under ORS 348.260.

      SECTION 17. ORS 411.894 is amended to read:

      411.894. (1) The Oregon JOBS Individual Education Account is established in order to improve the position of JOBS Plus participants in the workforce by increasing their access to continuing education. Employer contributions to the account under this section shall be used to pay for education expenses for the individual as provided in subsection (2) of this section.

      (2)(a) After the participant has participated in the JOBS Plus Program for 30 days, the employer shall pay, in addition to the participant wage, one dollar for each participant hour worked into the participant's individual education account. Contributions to such an account shall be tax deferred or tax-exempt to the extent permitted by federal and state law.

      (b) Any participant for whom an Oregon JOBS Individual Education Account contribution is made shall be eligible for access to education benefits from that participant's individual education account for up to five years after the participant has left the JOBS Plus Program and has held a full-time, unsubsidized job for at least 30 days.

      (c) When any participant has qualified for use of that participant's individual education account, an amount equal to that participant's individual education account balance shall be transferred to the State Scholarship Commission for that participant's use. Only one individual education account shall be created for any participant. Each account shall be administered by the State Scholarship Commission and shall be used for continuing education and training for the participant and the participant's immediate family.

      (3) The State Scholarship Commission may use any interest earned by the account for payment of expenses incurred by the commission in carrying out its duties under this section.

      (4) Any unexpended or unobligated moneys remaining in an individual education account five years after the participant has left the JOBS Plus Program are appropriated and transferred to the Oregon [State Need] Opportunity Grant Fund on that date.

      SECTION 18. (1) The amendments to ORS 411.894 by section 17 of this 1999 Act are intended to change the name of the Oregon State Need Grant Fund to the Oregon Opportunity Grant Fund.

      (2) For the purpose of harmonizing and clarifying statute sections published in Oregon Revised Statutes, the Legislative Counsel may substitute for words designating the Oregon State Need Grant Fund, wherever they occur in Oregon Revised Statutes, other words designating the Oregon Opportunity Grant Fund.

      SECTION 19. Sections 1 to 5, 9, 12, 15 and 18 of this 1999 Act and the amendments to ORS 329.780, 348.205, 348.260, 348.696, 411.894 and 461.543 by sections 8, 10, 11, 13, 14, 16 and 17 of this 1999 Act shall become operative July 1, 2001.

 

Approved by the Governor September 1, 1999

 

Filed in the office of the Secretary of State September 2, 1999

 

Effective date October 23, 1999

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