HIGHER EDUCATION COORDINATION

Section By Section Summary Department of Post-Secondary Education February 12, 2013 HIGHER EDUCATION COORDINATION Relating to post-secondary education; creating new provisions; amending ORS and sections, and, chapter 519, Oregon Laws 2011; repealing ; and declaring an emergency. ESTABLISHMENT OF DEPARTMENT OF POST-SECONDARY EDUCATION SECTION 1. Establishes the Department of Post-Secondary Education and Workforce Development under the direction of and control of the Higher Education Coordinating Council (HECC). The department is directed to (1) Administer and enforce the post-secondary education laws of this state. (2) Provide administrative and technical support to community colleges, the Higher Education Coordinating Council, the Oregon University System, the State Board of Higher Education, and public universities with boards of directors established in legislation authorizing institutional governing boards for Portland State University, the University of Oregon, and Oregon State University (LC 97). (3) Assume the duties, functions and powers of the Department of Community College and Workforce Development and Commissioner for Community College Services (4) Assume the duties, functions and powers of the Oregon Student Access Commission. (5) Assume the duties, functions and powers of the Higher Education Coordinating Council. SECTION 2. Establishes that the Department of Post-Secondary Education and Workforce Development will be under the supervision and control of a director appointed by the Governor. Section 2, gives the Director, subject to the approval of the Governor the authority to organize and reorganize the department as the director considers necessary to properly conduct the work of the department. SECTION 3. Establishes that the Governor s appointment of the Director is subject to confirmation by the Oregon Senate as prescribed in ORS 171.562 and 171.565. SECTION 4. Specifies that the Director of the Department of Post-Secondary Education and Workforce Development shall establish the administrative policies of the department in accordance with the rules and policies of the Oregon Education Investment Board (OEIB) and HECC. SECTION 5. Gives the Director of the Department of Post-Secondary Education and Workforce Development the authority to participate in any proceeding before any public officer, commission or body of the United States or any state for the purpose of representing the interests of Oregon residents in proceedings that concern the Department. Additionally the Director may retain, manage, sell, lease, exchange or otherwise convey property or a right to or interest in real property under the jurisdiction of the department. 1

SECTION 6. In accordance with ORS 183 (Administrative Procedures Acts) Section 6 gives the Director of the Department of Post-Secondary Education and Workforce Development the authority to adopt rules necessary to administer the laws that the department is charged with administering. SECTION 7. Gives the Director of the Department of Post-Secondary Education and Workforce Development the authority to appoint, prescribe the duties of and set the compensation for any officers and employees whom the director considers necessary to carry out the duties of the department. SECTION 8. Gives the Director of the Department of Post-Secondary Education and Workforce Development, a deputy director or any authorized representatives to administer oaths, take depositions, and issue subpoenas. SECTION 9. Establishes the Post-Secondary Education Fund within the State Treasury. Section 9 specifies that interest on the fund shall be credited to the fund. Moneys in the fund are continuously appropriated to the Oregon Department of Post-Secondary Education Fund SECTION 10. Permits the appointment of the Director of the Department of Post-Secondary Education and Workforce Development before operative dates of this act. TRANSFER OF AUTHORITY OF OREGON STUDENT ACCESS COMMISSION SECTION 11. Abolishes the existing Oregon Student Access Commission and transfers all duties, functions and powers of the commission the Department of Post-Secondary Education and Workforce Development. SECTION 12. Specifies that unexpended balances of the Oregon Student Access Commission are transferred to the Department of Post-Secondary Education and Workforce Development. SECTION 13. Specifies that the transfer of duties of the Oregon Student Access Commission does not affect any action, proceeding or prosecution already in process at the time of transfer. SECTION 14. Specifies that nothing in the transfer of duties of the Oregon Student Access Commission relieves a person of a liability, duty or obligation that previously existed with the Commission. SECTION 15. Clarifies that administrative rules of the Oregon Student Access Commission continue in effect until superseded or repealed by rules of the Department of Post-Secondary Education and Workforce Development. Section 15 specifies that references in rules of the commission to any officer or employees shall be considered to be references to the Department of Post-Secondary Education and Workforce Development. SECTION 16. Permits the Director of the Department of Post-Secondary Education and Workforce Development to take any action necessary to enable the Department to assume the responsibilities of the Oregon Student Access Commission prior to the operative date of the transfer. 2

SECTION 17. Clarifies that previous references to the Oregon Student Access Commission or any employee of the Commission in any uncodified law, resolution of the Legislative Assembly, rule, document, record or proceeding authorized by the Legislative Assembly, the reference is considered to be a reference to the Department of Post-Secondary Education and Workforce Development or an officer or employee of the department. SECTION 18. Gives Legislative Counsel the explicit authority to change any references to the Oregon Students Assistance Commission to the Department of Post-Secondary Education and Workforce Development. TRANSFER OF AUTHORITY OF DEPARTMENT OF COMMUNITY COLLEGES AND WORKFORCE DEVELOPMENT AND POSITION OF COMMISSIONER FOR COMMUNITY COLLEGE SERVICES SECTION 19. Abolishes the existing Department of Community Colleges and Workforce Development and the position of Commissioner for Community College Services. Section 19 also transfers all duties, functions and powers of the Department of Community Colleges and Workforce Development to the Department of Post-Secondary Education and Workforce Development. SECTION 20. Specifies that unexpended balances of the Department of Community Colleges and Workforce Development or Commissioner for Community College Services are transferred to the Department of Post-Secondary Education. Expenditure classifications, established by previous laws authorizing or limiting expenditures by the Department of Community Colleges and Workforce Development or Commissioner for Community College Services remain applicable to expenditures by the Department of Post-Secondary Education and Workforce Development under this section. SECTION 21. Specifies that the transfer of duties of the Department of Community Colleges and Workforce Development or Commissioner for Community College Services does not affect any action, proceeding or prosecution already in process at the time of transfer. SECTION 22. Specifies that nothing in this legislation relieves a person of a liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred to the Department of Post-Secondary Education and Workforce Development. The Department of Post-Secondary Education and Workforce Development may undertake the collection or enforcement of any such liability, duty or obligation. Section 22 also explicitly specifies that any contracts, leases and business transactions executed, entered into or incurred by the Department of Community College and Workforce Development Department before the operative date this legislation are transferred to the Department of Post-Secondary Education and Workforce Development. SECTION 23. Section 23 provides the Director of the Department of Post-Secondary Education and Workforce Development with the ability to take any action before the abolishment of the Department 3

of Community Colleges and Workforce Development in order to exercise the duties, functions and powers of the department that will be transferred to the Department of Post-Secondary Education and Workforce Development. SECTION 24. Clarifies that administrative rules of Department of Community Colleges and Workforce Development continue in effect until they are superseded or repealed by rules of the Department of Post-Secondary Education and Workforce Development. Section 24 specifies that references in rules of the Department of Community Colleges and Workforce Development to any officer or employees shall be considered to be references to the Department of Post-Secondary Education and Workforce Development. SECTION 25. Specifies that whenever, in any uncodified law or resolution of the Legislative Assembly or in any rule, document, record or proceeding authorized by the Legislative Assembly, reference is made to the Department of Community Colleges and Workforce Development or Commissioner for Community College Services the reference is considered to be a reference to the Department of Post- Secondary Education and Workforce Development. SECTION 26. Gives Legislative Counsel the explicit authority to change any references to the Department of Community Colleges and Workforce Development or the Commissioner for Community College Services to the to the Department of Post-Secondary Education and Workforce Development. ABOLISHMENT OF EXECUTIVE DIRECTOR OF HIGHER EDUCATION COORDINATING COMMISSION SECTION 27. Abolishes the position of Executive Director of the Higher Education Coordinating Commission and specifies that on the operative date of this section, all duties, functions and powers of the executive director are transferred to the Director of the Department of Post-Secondary Education and Workforce Development. SECTION 28. Specifies that the transfer of duties of the Executive Director of the Higher Education Coordinating Commission to the Director of the Department of Post-Secondary Education and Workforce Development does not affect any action, proceeding or prosecution already in process at the time of transfer. SECTION 29. Specifies that nothing in this legislation relieves a person of a liability, duty or obligation accruing under or with respect to the duties, functions and powers transferred to the Director of the Department of Post-Secondary Education and Workforce Development. The Department of Post- Secondary Education and Workforce Development may undertake the collection or enforcement of any such liability, duty or obligation. Section 26C also explicitly specifies that any contracts, leases and business transactions executed, entered into or incurred by the Executive Director of the Higher Education Coordinating Commission before the operative date this legislation are transferred to the Director of the Department of Post-Secondary Education and Workforce Development. 4

SECTION 30. Section 30 provides the Director of the Department of Post-Secondary Education and Workforce Development the ability to take any action before the abolishment of the position of Executive Director of the Higher Education Coordinating Commission in order to exercise the duties, functions and powers of the Executive Director that will be transferred to the Director of the Department of Post-Secondary Education and Workforce Development. SECTION 31. Clarifies that administrative rules of the Executive Director of the Higher Education Coordinating Commission continue in effect until they are superseded or repealed by rules of the Department of Post-Secondary Education. Section 24 specifies that references in rules to the executive director are considered to be references to the Department of Post-Secondary Education and Workforce Development. SECTION 32. Specifies that whenever, in any uncodified law or resolution of the Legislative Assembly or in any rule, document, record or proceeding authorized by the Legislative Assembly, reference is made to the Executive Director of the Higher Education Coordinating Commission the reference is considered to be a reference to the Director of the Department of Post-Secondary Education and Workforce Developement. SECTION 33. Gives Legislative Counsel the explicit authority to change any references to the Executive Director of the Higher Education Coordinating Commission to the Director of the Department of Post- Secondary Education and Workforce Development. SECTION 34. Repeals ORS 326.375, 351.054, 351.725 and 351.738. AUTHORITIES OF OREGON EDUCATION INVESTMENT BOARD AND HIGHER EDUCATION COORDINATING COUNCIL SECTION 35. Amends ORS Section 1, chapter 519, Oregon Laws 2011, is amended to change the name of the Higher Education Coordination Commission to the Higher Education Coordinating Council, and adds the departments and boards under the control of the council to the list of entities that are overseen by the Oregon Education Investment Board. Provisions in law that give the OEIB the authority to adopt rules overseeing the Higher Education Coordinating Commission are changed to reflect the name Higher Education Coordinating Council. References to the departments and boards under the control of the council are also added to this section. SECTION 36. Current law includes the Commissioner for Community College Services in the list of positions that the Chief Education Officer has direction and control over. Section 29 changes this reference from the Commissioner for Community College Services to the Director of the Department of Post-Secondary Education and Workforce Development. SECTION 37. ORS Chapter 519 Section 6 required the OEIB to submit reports to the legislature on legislation that required the Commissioner for Community College Services and the Chancellor of the 5

Oregon University System to function under the direction and control of the Chief Education Officer of the Oregon Education Investment Board [by June 30, 2012]. Section 30 Changes references to the Commissioner for Community College Services to the Director of the Department of Post-Secondary Education and Workforce Development. SECTION 38. Amends Section 14, chapter 36, Oregon Laws. References to the Oregon University System as listed in ORS 352.002 are replaced with Public Universities SECTION 39. ORS 351.735 requires the Higher Education Coordination Commission to advise the Oregon Education Investment Board on state goals and associated achievement compacts for the state postsecondary education system. Section 39 replaces references to the Oregon Students Access Commission with the Department of Post-Secondary Education and Workforce Development, and renames the commission the Higher Education Coordinating Council. SECTION 40. Defines a person employed by the State Board of Higher Education as a person who was employed by the board on the date before the effective date of this legislation and who, as a result of this 2013 Act, is employed by another agency or public corporation of this state in a capacity that was within the authority of the board on the date before the effective date of this 2013 Act. SECTION 41. Changes current references to the State Board of Higher Education in ORS 62.720 (relating to unclaimed property) to the Higher Education Coordinating Council. SECTION 42. Specifies that the director or director s designee of Oregon State University, Sea Grant College sits on the Ocean Policy Advisory Council on behalf of the State Board of Higher Education. Section 35, changes this reference from the State Board of Higher Education to the Higher Education Coordinating Council. SECTION 43. Current law directs the Office for Minority, Women and Emerging Small Business to Maintain an Oregon Opportunity Register and Clearinghouse for information on public agency and other contract solicitations for professional services, supplies and services and other bid opportunities, in consultation with the State Board of Higher Education, the Department of Transportation and other entities. Section 36 replaces the reference to the State Board of Higher Education with the Higher Education Coordinating Council. SECTION 44. ORS 200.055 requires the Oregon Business Development Department to consult with the State Board of Higher Education when adopting a uniform standard form and procedure designed to provide complete documentation that a business enterprise is certified as a disadvantaged, minority, women or emerging small business enterprise. Section 37 replaces the State Board of Higher Education with the Higher Education Coordinating Council for the purposes of this requirement. SECTION 45. Adds the Director of the Department of Post-Secondary Education and Workforce Development, and members of the Higher Education Coordinating Council, local governing boards of public universities, and the Early Learning Council to the list of individuals required to file a verified 6

statement of economic interest with the Oregon Government Ethics Commission On or before April 15 of each year. SECTION 46. Defines buildings owned by the State Board of Higher Education for the purposes Of section 1, Article XI-M of the Oregon Constitution as any building owned by The State Board of Higher Education prior to the effective date of this legislation that as a result of this legislation is owned by another agency or public corporation of this state and used for purposes within the authority of the board. SECTION 47. Specifies that nothing in this legislation 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 July 1, 2014, by the State of Oregon on behalf of the State Board of Higher Education. SECTION 48. Specifies that nothing in this legislation shall be construed in any way to impair the obligations or agreements of the State of Oregon or the State Board of Education with respect to bonds, certificates of participation, financing agreements or other agreements for the borrowing of money issued prior to July 1, 2014, by the State of Oregon on behalf of community colleges. SECTION 49. Changes current law that requires the Department of Community Colleges and Workforce Development to appoint a member to the Grow Oregon Council. Shifts requirement to the Department of Post-Secondary Education and Workforce Development. SECTION 50. ORS 284.540 requires the president of the State Board of Higher Education to serve on the Governor s Council on Oregon s Economy. Section 50 shifts this requirement to the chair of the Higher Education Coordinating Council. SECTION 51. Under current law ORS 284.706 specifies that the Commissioner for Community College Services and the president of the State Board of Higher Education both serve as members of the Oregon Innovation Council. Section 51 replaces this requirement and designates the Director of the Department of Post-Secondary Education and Workforce Development, and the chair of the Higher Education Coordinating Council for seats on the Innovation Council. SECTION 52. Current law requires certain employers to provide written notice of a plant closing or mass layoff to the Department of Community Colleges and Workforce Development. Section 52 amends this section of law to require that notice be given to the Department of Post-Secondary Education and Workforce Development. SECTION 53. Current law requires the Department of Community Colleges and Workforce Development to notify employers subject to the Worker Adjustment and Retraining Notification Act (P.L. 100-379) of their responsibility to give notice of a plant closing or mass layoff under. Section 53 shifts the responsibility of this requirement to the Department of Post-Secondary Education and Workforce Development 7

SECTION 54. Current Law (ORS 285A.522) requires the Department of Community Colleges and Workforce Development to prepare an annual report concerning plant closings and mass layoffs in this state. The law specifies that this report be presented to the Governor, the President of the Senate, the Speaker of the House of Representatives and appropriate legislative committees. Section 54 imposes this requirement on the Department of Post-Secondary Education and Workforce Development. SECTION 55. Amends ORS 285B.168 and replaces references to the Chancellor of the Oregon University System and the Commissioner for Community College Services with references to the Higher Education Coordinating Council or all public universities for the purposes of determining eligibility for grants administered by the Oregon Business Development Department to assist in the formation, improvement and operation of small business development centers. SECTION 56. ORS 293.790 specifies conditions under which the state may in accordance with section 6, Article XI of the Oregon Constitution, hold and dispose of the stock of any company, association or corporation, including stock already received, that is donated or bequeathed and the state, acting by and through the State Board of Higher Education. Section 56 amends ORS 293.790 and changes references to the State Board of Higher Education to the Higher Education Coordinating Council. SECTION 57. Amends state laws related to the divesting of public funds from companies doing business with the Republic of the Sudan and any territory under the administration, legal or illegal, of Sudan, including but not limited to the Darfur region. Current law specifies that Investment funds of the State Board of Higher Education available for investment or reinvestment by the Oregon Investment Council are subject to these requirements. Section 57 changes references to the State Board of Higher Education to the Higher Education Coordinating Council. SECTION 58. ORS 294.393 requires each community college district to prepare the estimates of expenditures required under ORS 294.388 in accordance with the classification of revenue and expenditure accounts prescribed by the Department of Community Colleges and Workforce Development. Section 58 amends this statute and replaces references to the Department of Community Colleges and Workforce Development with the Department of Post-Secondary Education and Workforce Development. SECTION 59. Amends references to qualified scholarship in ORS 315.237 for the purposes of certain tax credits. Deletes current references to the Oregon Students Access Commission and replaces them with the Department of Post-Secondary Education and Workforce Development. SECTION 60. Currently ORS 320.100 specifies how amusement device excise tax revenues are distributed. These provisions include references to population determinations that are made by the State Board of Higher Education. Section 60 amends these statutes and replaces references to the State Board of Higher Education with the Higher Education Coordinating Council. SECTION 61. Current law specifies that the Forest Research and Experiment Account in the State Treasury is continuously appropriated to the State Board of Higher Education. Section 61 amends these 8

statues and replaces references to the State Board of Higher Education with the Higher Education Coordinating Council. SECTION 62. ORS 326.075 directs the State Board of Education to cooperate with the Education and Workforce Policy Advisor in the development of a state comprehensive education plan including elementary, secondary and community college education and in review of the programs and budget of the board and department. Section 62 amends this statute to also add this requirement for the Department of Post-Secondary Education and Workforce Development. SECTION 63. ORS 326.370 specifies that The Department of Community Colleges and Workforce Development shall function under the direction and control of the State Board of Education with the Commissioner for Community College Services serving as an administrative officer for community college matters. Section 56 deletes this language and specifies that the Department of Post-Secondary Education and Workforce Development may adopt any rules necessary for the administration of laws related to the federal Workforce Investment Act that the department is charged with administering. SECTION 64. Renames the Department of Community Colleges and Workforce Development Account in the State Treasury as the Department of Post-Secondary Education and Workforce Development Account. SECTION 65. Currently, ORS 326.380 stipulates that moneys from the Advanced Technology Education and Training Fund are continuously appropriated to the Department of Community Colleges and Workforce Development. Section 58 amends ORS 326.380 and replaces references to the Department of Community Colleges and Workforce Development with the Department of Post-Secondary Education and Workforce Development SECTION 66. Currently, ORS 326.382 requires The Department of Community Colleges and Workforce Development to establish by rule a process for making grants or loans to public-private partnerships to provide advanced technology education and training opportunities. Section 66 amends ORS 326.382 and imposes this requirement on the Department of Post-Secondary Education and Workforce Development. SECTION 67. ORS 326.550 permits the Commissioner for Community College Services issue General Educational Development (GED) certificates to persons who demonstrate satisfactory performance in tests prescribed by law. ORS 326.550 also permits The State Board of Education to prescribe tests and other appropriate evaluation procedures for the purposes determining eligibility for an individual to obtain a GED. Section 67 shifts the authority to issue GED certificates to the Department of Post- Secondary Education and Workforce Development and transfers the authority to determine qualifying tests from the State Board of Education to the Higher Education Coordinating Council. SECTION 68. ORS 329.757 creates the Oregon Teacher Corps program within the Oregon Student Access Commission to encourage the entry of certain qualified persons into the teaching profession. Section 68 amends ORS 329.757 and transfers this program to the Department of Post-Secondary Education and Workforce Development. 9

SECTION 69. ORS 329.765 requires the Oregon Student Access Commission to administer the Oregon Teacher Corps program. Section 69 transfers this requirement to the Department of Post-Secondary Education and Workforce Development. SECTION 70. ORS 329.775 provides the Oregon Student Access Commission with the authority to issue loans from the Oregon Teacher Corps Account to eligible applicants. Section 70 amends ORS 329.775 and grants this authority to the Department of Post-Secondary Education and Workforce Development. SECTION 71. ORS 329.780 stipulates that repayments of loans from the Oregon Teacher Corps Account are deposited back into that account within the Oregon Student Access Commission. Section 71 deletes the statutory reference to the Oregon Student Access Commission and replaces it with the Department of Post-Secondary Education and Workforce Development. SECTION 72. ORS 329.850 requires the Education and Workforce Policy Advisor to consult with the Department of Education, the Department of Community Colleges and Workforce Development, the Bureau of Labor and Industries, the Oregon Business Development Department and the Department of Human Services when proposing certain policies as prescribed by law. Section 72 deletes the reference to the Department of Community Colleges and Workforce Development and replaces this reference with the Department of Post-Secondary Education and Workforce Development. SECTION 73. Currently ORS 337.521 permits the State Board of Higher Education to consult with publishers, recognized national organizations of publishers, representatives of post-secondary education institutions, the system described in ORS 192.517 and other interested parties to comply with and administer certain laws pertaining to textbooks and other instructional materials. Section 73 deletes the reference to the State Board of Higher Education in current law, and replaces it with the Higher Education Coordinating Commission. SECTION 74. ORS 341.531 provides certain rights to students of community colleges who are ordered to federal or state active duty for more than 30 consecutive days. One of these rights is the right to continuation of scholarships and grants awarded to the student that were funded by the community college or the Oregon Student Access Commission before the student was ordered to active duty. Section 74 deletes the reference to the Oregon Student Access Commission and replaces it with the Department of Post-Secondary Education and Workforce Development. SECTION 75. Deletes references to the Commissioner for Community College Services in ORS 341.005. Section 75 also deletes references to the State Board of Education for rules determining full-time equivalent student in post-secondary education, replaces authority for rulemaking with the Higher Education Coordinating Council. SECTION 76. Amends legislative findings regarding community colleges in ORS 341.009. Replaces language specifying that community college is a post-high-school institution under the general supervision of the State Board of Education. Replaces references to the State Board of Education with the Higher Education Coordinating Council. 10

SECTION 77. ORS 341.015 specifies that the State Board of Education shall adopt guidelines for the orderly development and management of community college districts, including guidelines for personnel policy formulation, accounting procedures and student record keeping and privacy procedures. Section 77 places the responsibility for adopting these guidelines with the Higher Education Coordinating Council. SECTION 78. ORS 341.019 specifies how all areas within this state shall be served by a community college district. Section 71 deletes references to the Department of Community Colleges and Workforce Development and inserts the Department of Post-Secondary Education and Workforce Development as the responsible agency. Current law requires the State Board of Education to establish procedures by rule for determining when there is sufficient interest among the residents of a nondistrict area to warrant appointment of a local advisory committee. Section 78 shifts this requirement from the Board of Education to the Higher Education Coordinating Council. SECTION 79. ORS 341.021 requires the Department of Community Colleges and Workforce Development to invite existing community college districts to submit proposals for the provision of service to an area that has officially indicated its interest in receiving service. Section 79 deletes references to the Department of Community Colleges and Workforce Development and shifts this requirement to the Department of Post-Secondary Education and Workforce Development. SECTION 80. ORS 341.024 requires the State Board of Education to adopt rules to implement ORS 341.019-341.024. Section 80 shifts this requirement from the Board of Education to the Higher Education Coordinating Council. SECTION 81. ORS 341.025 permits the electors registered in contiguous territory who desire the formation of a community college district to sign a petition requesting the formation of such a district and present it to the State Board of Education. Section 81 specifies that these petitions must be presented to the Higher Education Coordinating Council after the effective date of this legislation. SECTION 82. Amends ORS 341.039 and replaces current references to the Commissioner of Community College Services and State Board of Education with the Department of Post-Secondary Education and Higher Education Coordinating Council. This statute outlines the process by which electors may petition for the formation of a community college service district. SECTION 83. ORS 341.045 requires the State Board of Education to examine petitions calling for the formation of a community college service district, and under certain circumstances initiate a feasibility study in the geographical area proposed by the petition. Section 83 deletes references to the State Board of Education and shifts this responsibility to the Higher Education Coordinating Council. SECTION 84. ORS 341.055 requires the State Board of Education or its authorized representative to conduct a public hearing on the feasibility study of the formation of a community college district. Section 84 deletes references to the State Board of Education and shifts this requirement to the Higher Education Coordinating Council. 11

SECTION 85. ORS 341.065 specifies that if, in the opinion of the State Board of Education the study and the testimony presented at the hearing or hearings held under ORS 341.055 indicate that the formation of a community college district as petitioned is not warranted under the policies set forth by ORS 341.009, the State Board of Education shall order dismissal of the petition. An appeal from this order may be taken within 60 days in the manner provided in ORS 183.480. Section 85 amends ORS 341.065 and replaces references to the State Board of Education with the Higher Education Coordinating Council. SECTION 86. ORS 341.076 specifies how the State Board of Education shall make a recommendation to the Legislative Assembly if upon final hearing of the study under ORS 341.055 the Board determines that a new community college district should be formed. Section 86 amends ORS 341.076 and requires the Higher Education Coordinating Council to make these findings and make recommendations to the Legislative Assembly. SECTION 87. ORS 341.085 outlines the procedures for holding an election presenting the question of formation of a district and establishing a permanent rate limit for operating taxes and the boundaries of a new community college district. Section 87 amends ORS 341.085 deleting references to the State Board of Education and transferring responsibilities to the Higher Education Coordinating Council. SECTION 88. ORS 341.095 requires the State Board of Education to include as a part of the election called for formation of a district the question of a permanent rate limit for operating taxes to finance the district s share of operating and capital expenses. Section 88 deletes references to the State Board of Education and transfers this requirement to the Higher Education Coordinating Council. SECTION 89. ORS 341.102 specifies that if the Legislative Assembly approves the recommendation to create a new community college district prompting a special election, the legislature shall then appropriate or allocate moneys necessary to pay the expenses of the election. Current law specifies that these funds are appropriated to the Department of Community Colleges and Workforce Development. Section 89 deletes the reference to the Department of Community Colleges and Workforce Development and ads the Department of Post-Secondary Education and Workforce Development as the recipient of these funds. SECTION 90. ORS 341.105 states that when, at the request of the State Board of Education the county clerk of the principal county, in consultation with county clerks of the affected counties, prepares a list or lists of names and addresses of the electors registered in the proposed district, the Department of Community Colleges and Workforce Development is authorized to pay the charge as determined by law. Section 90 deletes current references to the State Board of Education and Department of Community Colleges and Workforce Development and transfers these responsibilities to the Higher Education Coordinating Council and Department of Post-Secondary Education and Workforce Development. SECTION 91. ORS 341.125 outlines procedures by which the first board of education of a new community college district shall be elected. Section 91 deletes references to the State Board of Education and places these responsibilities with the Higher Education Coordinating Council. 12

SECTION 92. ORS 341.290 states that the board of education of a community college district shall be responsible for the general supervision and control of any and all community colleges operated by the district. ORS 341.290 requires that the board operate and govern the college consistent with any applicable rules of the State Board of Education. Section 92 deletes references to the State Board of Education and requires the board of education of a community colleges to operate the district consistent with applicable rules of the Higher Education Coordinating Council. SECTION 93. ORS 341.315 permits any school district, education service district, institution of higher education, county, municipality or private organization may contract with a community college district to provide services of an educational nature that are subject to the approval of the State Board of Education. Section 93 removes the reference to the State Board of Education and permits this contracting subject to the approval of the Higher Education Coordinating Council. SECTION 94. ORS 341.317 states that subject to rules of the State Board of Education a community college may be reimbursed from the Community College Support Fund for educational services provided to inmates confined to the state-operated correctional facilities and to locally operated correctional facilities. Section 94 deletes the reference to the State Board of Education and permits this reimbursement subject to rules of the Higher Education Coordination Council. SECTION 95. ORS 341.405 states that upon approval of the State Board of Education, a community college may be established by a community college district in which all the requirements for formation of the district are met and for which adequate building space, library and suitable laboratory or shop space for the courses to be offered are available or will be available before classes begin. Section 95 deletes references to the State Board of Education and requires this approval be granted by the Higher Education Coordinating Commission. SECTION 96. ORS 341.425 stipulates that community colleges must apply for program approval with the State Board of Education before an educational program is commenced. Section 96 transfers this program approval authority to the Higher Education Coordinating Council. SECTION 97. ORS 341.430 requires the Higher Education Coordinating Commission to develop a set of standards related to the ability of students to apply credits earned through courses of study at community colleges to baccalaureate degrees awarded by state institutions of higher education. These standards shall be known as the Transfer Student Bill of Rights and Responsibilities. Section 97 amends the definitions in this section to specify that credits may be earned at public universities including those with local governing boards. SECTION 98. ORS 341.440 allows a community college district to contract with another community college district, common or union high school district, education service district, the Oregon University System, the Oregon Health and Science University, a private educational institution accredited by the Northwest Association of Schools and Colleges or its successor or a career school as defined in ORS 13

345.010 to obtain educational services for students enrolled in the community college of the district. Section 98 adds public universities public universities including those with local governing boards. SECTION 99. ORS 341.455 permits a community college to give credit for courses or programs taken in a career school provided these programs meet the standards adopted by the Higher Education Coordinating Commission. Section 99 deletes the reference to the Higher Education Coordinating Commission and permits this credit subject to approval by the Department of Post-Secondary Education and Workforce Development. SECTION 100. ORS 341.465 allows a community college, upon approval of the State Board of Education to award certificates and associate degrees indicating satisfactory completion of a course of study offered by the community college. Section 93 transfers the authority for this approval from the State Board of Education to the Higher Education Coordinating Council. SECTION 101. ORS 341.527 outlines provisions under which community colleges may admit students from other states at the same tuition rates assessed against Oregon residents. ORS 341.527 directs the Department of Community Colleges and Workforce Development to enter into agreements with such other states as are willing to agree to the provisions of this section to establish reimbursement procedures or one-for-one exchange procedures. Section 101 shifts this requirement to the Department of Post-Secondary Education and Workforce Development. SECTION 102. Under ORS 341.547 the State Board of Education shall require each community college board to give an individual, written notice of reasonable assurance of continued employment to all employees who are to perform services in the same or a similar capacity during a subsequent academic year or term or in the period immediately following a recess period. Section 102 deletes the reference to the State Board of Education and gives the Higher Education Coordinating Council the authority to enforce this provision. SECTION 103. ORS 341.551 allows the Department of Community Colleges and Workforce Development, under certain circumstances, to establish and administer an optional retirement plan for administrative employees of community college districts who are eligible for membership in the Public Employees Retirement System. Section 103 deletes the reference to the Department of Community Colleges and Workforce Development and replaces it with the Department of Post-Secondary Education and Workforce Development. SECTION 104. Under current law the State Board of Education serves as the boundary board for making any changes in the boundaries of community college districts. Section 98 amends ORS 341.565 and shifts that responsibility to the Higher Education Coordinating Council. SECTION 105. ORS 341.569 directs the State Board of Education, acting as the boundary board to submit the question of a proposed boundary change to a vote under certain circumstances outlined by law. Section 105 deletes references to the State Board of Education, and shifts this responsibility to the Higher Education Coordinating Council. 14

SECTION 106. ORS 341.573 outlines procedures by which the boards of adjacent community college districts shall make an equitable division of the then existing assets and liabilities if changes in district boundaries are made by the detachment of territory or an annexation of territory and another community college. Under certain circumstances the State Board of Education is required to appoint an arbitrator to oversee this division. Section 106 deletes references to the State Board of Education and places this responsibility with the Higher Education Coordinating Council. SECTION 107. ORS 341.577 directs the State Board of Education to establish a new territory following a boundary change election. Section 107 deletes references to the State Board of Education and places this responsibility with the Higher Education Coordinating Council. SECTION 108. ORS 341.579 requires the State Board of Education to submit the question of any boundary change pertaining to a community college district subject to ORS 341.577 to a vote of the electors held the same day in both the original territory and the new territory. Section 108 deletes the reference to the State Board of Education and imposes this requirement on the Higher Education Coordinating Council. SECTION 109. ORS 341.626 requires the Commissioner of Community College Services to distribute state aid to each community college district and community college service district subject to rules adopted by the State Board of Education. Section 109 deletes references in ORS 341.626 to the Commissioner of Community College Services and State Board of Education and replaces them with the Department of Post-Secondary Education and Workforce Development and the Higher Education Coordinating Commission respectively. SECTION 110. ORS 341.655 stipulates that federal moneys received for purposes of reimbursing community college districts for career and technical education programs may be used by the districts to pay operating expenses of community college districts for career and technical education programs that have been approved by the Commissioner for Community College Services. Section 110 deletes the reference to the Commissioner for Community College Services and subjects these expenses to the approval of the Department of Post-Secondary Education and Workforce Development. SECTION 111. ORS 341.665 allows a community college to be awarded funds appropriated to the Department of Community Colleges and Workforce Development from a contracted out-of-district funds if the college operates the program under a contract with an apprenticeship training committee and the contract is approved by the Department of Community Colleges and Workforce Development. Section 111 Deletes references to the Department of Community Colleges and Workforce Development and permits the awarding of such funds as approved by the Department of Post-Secondary Education and Workforce Development. SECTION 112. Allows the State Treasurer to issue bonds at the request of the State Board of Education to provide funds to community college districts for the purposes specified in Article XI-G of the Oregon Constitution. Section 112 deletes the reference to the State Board of Education, but permits the Higher Education Coordinating Council to request the issuance of bonds for this purpose from the State Treasurer. 15

SECTION 113. Section 25, chapter 904, Oregon Laws 2009 states that pursuant to Article XI-G of the Oregon Constitution and ORS 341.721 and ORS chapter 286A, the State Treasurer may sell, at the request of the State Board of Education, general obligation bonds of the State of Oregon of the kind and character and within the limits prescribed by Article XI-G of the Oregon Constitution, as the treasurer determines. Section 113 deletes the reference to the State Board of Education, but permits the treasurer to sell these bonds at the request of the Higher Education Coordinating Council. SECTION 114. Section 26, chapter 904, Oregon Laws 2009 states that notwithstanding section 7 of this 2009 Act, at the request of the State Board of Education the State Treasurer may issue bonds for a project listed in section 7 of this 2009 Act. Section 114 deletes the reference to the state board of Education but permits the Higher Education Coordinating Council to make this request of the state Treasury SECTION 115. Section 14, chapter 2, Oregon Laws 2009 permits the State Treasurer to issue lottery bonds for community college capital construction, deferred maintenance, capital renewal, code compliance and safety projects. This section requires the State Treasurer to consult with the Department of Administrative Services who is required to consult with the Department of Community Colleges and Workforce Development. Section 115 replaces references to the Department of Community Colleges and Workforce Development with the Department of Post-Secondary Education and Workforce Development. SECTION 116. Under Section 15, chapter 2, Oregon Laws 2009 The Department of Community Colleges and Workforce Development Capital Construction, Deferred Maintenance and Capital Repair Project Fund is established separate and distinct from the General Fund. Section 116 renames this fund the Department of Post-Secondary Education Capital Construction, Deferred Maintenance and Capital Repair Project Fund. SECTION 117. Section 11, chapter 2, Oregon Laws 2009 outlines the establishment of a Chemeketa Community College Deferred Maintenance Account in the General Fund. Current law states that the account may consist of the following moneys that have been deposited in the account by the Department of Community Colleges and Workforce Development. Section 117 amends this statute to state that the account may consist of the following moneys that have been deposited in the account by the Department of Post-Secondary Education and Workforce Development. SECTION 118. Section 12, chapter 2, Oregon Laws 2009 outlines the establishment of a Clackamas Community College Deferred Maintenance Account in the General Fund. Current law states that the account may consist of the following moneys that have been deposited in the account by the Department of Community Colleges and Workforce Development. Section 118 amends this statute to state that the account may consist of the following moneys that have been deposited in the account by the Department of Post-Secondary Education and Workforce Development. 16

SECTION 119. Section 13, chapter 2, Oregon Laws 2009 outlines the establishment of a Portland Community College Deferred Maintenance Account in the General Fund. Current law states that the account may consist of the following moneys that have been deposited in the account by the Department of Community Colleges and Workforce Development. Section 119 amends this statute to state that the account may consist of the following moneys that have been deposited in the account by the Department of Post-Secondary Education and Workforce Development. SECTION 120. ORS 341.725 establishes the Community College Capital Construction Fund separate and distinct from the General Fund. Currently ORS 341.725 states that Moneys in the Community College Capital Construction Fund are appropriated continuously to the Department of Community Colleges and Workforce Development. Section 120 deletes the reference to the Department of Community Colleges and Workforce Development and states that funds from the Community College Capital Construction Fund are appropriated continuously to the Department of Post-Secondary Education and Workforce Development. SECTION 121. ORS 341.728 establishes the Community College Bond Building Fund separate and distinct from the General Fund. Under current law moneys in the Community College Bond Building Fund are continuously appropriated to the Department of Community Colleges and Workforce Development. Section 121 deletes references to the Department of Community Colleges and Workforce Development and designates the Department of Post-Secondary Education and Workforce Development as the recipient of these funds. SECTION 122. ORS 341.731 establishes The Community College Bond Sinking Fund separate and distinct from the General Fund. Under current law moneys in this fund are continuously appropriated to the Department of Community Colleges and Workforce Development. Section 116 deletes references to the Department of Community Colleges and Workforce Development and designates the Department of Post-Secondary Education and Workforce Development as the recipient of these funds. SECTION 123. ORS 341.735 requires the Department of Community Colleges and Workforce Development to enter into grant agreements with each community college district for whose projects moneys have been appropriated from the General Fund into the Community College Capital Construction Fund and the Community College Bond Building Fund and are held pending disbursement of the moneys. Section 123 deletes references to the Department of Community Colleges and Workforce Development and requires the Department of Post-Secondary Education and Workforce Development to enter into these agreements. SECTION 124. ORS 341.739 allows the Department of Community Colleges and Workforce Development to receive bond counsel services and financial advisory services through the Oregon University System. Section 118 amends this statute to state that the Department of Post-Secondary Education may receive bond counsel services and financial advisory services through the Oregon University System. Additionally, Section 118 adds language that permits the Department of Post-Secondary Education and Workforce Development to obtain these services from a public university with local governing board. 17