77th OREGON LEGISLATIVE ASSEMBLY--2013 Regular Session

HA to RC to B-Eng. SB 270

LC 977/SB 270-B24

            HOUSE AMENDMENTS TO RESOLVE CONFLICTS TO
                   B-ENGROSSED SENATE BILL 270

              By JOINT COMMITTEE ON WAYS AND MEANS

                             July 6

  On page 76 of the printed B-engrossed bill, delete lines 22
through 45.
  Delete page 77.
  On page 78, delete lines 1 through 39 and insert:
  '  { +  SECTION 114. + } ORS 243.800, as amended by section 1,
chapter 174, Oregon Laws 2013 (Enrolled Senate Bill 269), is
amended to read:
  ' 243.800. (1) Notwithstanding any provision of ORS chapter 238
or 238A or ORS 243.910 to 243.945, the State Board of Higher
Education  { + and the governing board of a public university
with a governing board listed in section 3 of this 2013 Act + }
shall establish and administer an Optional Retirement Plan for
administrative and academic employees of the Oregon University
System { +  or public university + }. The Optional Retirement
Plan must be a qualified plan under the Internal Revenue Code,
capable of accepting funds transferred under subsection (7) of
this section without the transfer being treated as a taxable
event under the Internal Revenue Code, and willing to accept
those funds.  Retirement and death benefits shall be provided
under the plan by the purchase of annuity contracts, fixed or
variable or a combination thereof, or by contracts for
investments in mutual funds.
  ' (2) An administrative or academic employee   { - of the
Oregon University System - }  may elect to participate in the
Optional Retirement Plan upon completion of:
  ' (a) Six hundred hours of employment, or the equivalent as
determined by the State Board of Higher Education { +  or the
governing board + }; and
  ' (b) Six months of employment that is not interrupted by more
than 30 consecutive working days.
  ' (3) An administrative or academic employee may make an
irrevocable election to participate in the Optional Retirement
Plan within six months after being employed. An election under
this subsection is effective on the first day of the month
following the completion of the requirements of subsection (2) of
this section.
  ' (4) An administrative or academic employee who does not elect
to participate in the Optional Retirement Plan:
  ' (a) Remains or becomes a member of the Public Employees
Retirement System in accordance with ORS chapters 238 and 238A;
or
  ' (b) Continues to be assisted by the State Board of Higher
Education  { + or governing board + } under ORS 243.920 if the
employee is being so assisted.
  ' (5) Except as provided in subsection (6) of this section,
employees who elect to participate in the Optional Retirement
Plan are ineligible for active membership in the Public Employees
Retirement System or for any assistance by the State Board of
Higher Education  { + or governing board + } under ORS 243.920 as

long as those employees are employed in the Oregon University
System  { + or public university + } and the plan is in effect.
  ' (6)(a) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is not vested shall be considered by the Public Employees
Retirement Board to be a terminated member under the provisions
of ORS 238.095 as of the effective date of the election, and the
amount credited to the member account of the member shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board in the manner provided by
subsection (7) of this section.
  ' (b) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, who has creditable
service under ORS chapter 238 as defined by ORS 238.005 and who
is vested shall be considered to be an inactive member by the
Public Employees Retirement Board and shall retain all the
rights, privileges and options under ORS chapter 238 unless the
employee makes a written request to the Public Employees
Retirement Board for a transfer of the amounts credited to the
member account of the member to the Optional Retirement Plan. A
request for a transfer must be made at the time the member elects
to participate in the Optional Retirement Plan. Upon receiving
the request, the Public Employees Retirement Board shall transfer
all amounts credited to the member account of the member directly
to the Optional Retirement Plan, and shall terminate all rights,
privileges and options of the employee under ORS chapter 238.
  ' (c) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is not a
vested member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered to be a
terminated member of the pension program by the Public Employees
Retirement Board as of the effective date of the election.
  ' (d) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the pension program of the Oregon Public Service
Retirement Plan as described in ORS 238A.115 on the date that the
election becomes effective, shall be considered an inactive
member of the pension program by the Public Employees Retirement
Board as of the effective date of the election. An employee who
is subject to the provisions of this paragraph retains all the
rights, privileges and options of an inactive member of the
pension program. If the actuarial equivalent of the employee's
benefit under the pension program at the time that the election
becomes effective is $5,000 or less, the employee may make a
written request to the Public Employees Retirement Board for a
transfer of the employee's interest under the pension program to
the Optional Retirement Plan. The request must be made at the
time the member elects to participate in the Optional Retirement
Plan. Upon receiving the request, the Public Employees Retirement
Board shall transfer the amount determined to be the actuarial
equivalent of the employee's benefit under the pension program
directly to the Optional Retirement Plan, and shall terminate the
membership of the employee in the pension program.
  ' (e) An administrative or academic employee who elects to
participate in the Optional Retirement Plan, and who is a vested
member of the individual account program of the Oregon Public
Service Retirement Plan as described in ORS 238A.320 on the date
that the election becomes effective, shall be considered an
inactive member of the individual account program by the Public
Employees Retirement Board as of the effective date of the
election. An employee who is subject to the provisions of this
paragraph retains all the rights, privileges and options of an
inactive member of the individual account program. An
administrative or academic employee who elects to participate in
the Optional Retirement Plan, and who is a member of the
individual account program of the Oregon Public Service
Retirement Plan, may make a written request to the Public
Employees Retirement Board that all amounts in the member's
employee account, rollover account and employer account, to the
extent the member is vested in those accounts under ORS 238A.320,
be transferred to the Optional Retirement Plan. The request must
be made at the time the member elects to participate in the
Optional Retirement Plan. Upon receiving the request, the Public
Employees Retirement Board shall transfer the amounts directly to
the Optional Retirement Plan, and shall terminate the membership
of the employee in the individual account program upon making the
transfer.
  ' (f) Notwithstanding paragraphs (b), (d) and (e) of this
subsection, the Public Employees Retirement Board may not treat
any employee as an inactive member under the provisions of this
subsection for the purpose of receiving any benefit under ORS
chapter 238 or 238A that requires that the employee be separated
from all service with participating public employers and with
employers who are treated as part of a participating public
employer's controlled group under the federal laws and rules
governing the status of the system and the Public Employees
Retirement Fund as a qualified governmental retirement plan and
trust.
  ' (7) Any amounts transferred from the Public Employees
Retirement Fund under subsection (6) of this section shall be
transferred directly to the Optional Retirement Plan by the
Public Employees Retirement Board and may not be made available
to the employee.
  ' (8) An employee participating in the Optional Retirement Plan
who was hired before July 1, 2014, shall contribute monthly an
amount equal to the percentage of the employee's salary that the
employee would otherwise have contributed as an employee
contribution to the Public Employees Retirement System if the
employee had not elected to participate in the Optional
Retirement Plan.
  ' (9) For an employee participating in the Optional Retirement
Plan who was hired before July 1, 2014, the State Board of Higher
Education  { + or governing board + } shall contribute monthly to
the Optional Retirement Plan the percentage of salary of the
employee equal to the percentage of salary that would otherwise
have been contributed as an employer contribution on behalf of
the employee to the Public Employees Retirement System, before
any offset under ORS 238.229 (2), if the employee had not elected
to participate in the Optional Retirement Plan.
  ' (10) For an employee participating in the Optional Retirement
Plan who was hired on or after July 1, 2014, the State Board of
Higher Education shall contribute monthly to the Optional
Retirement Plan:
  ' (a) Eight percent of the employee's salary; and
  ' (b) A percentage of the employee's salary equal to the
percentage of salary contributed by the employee to the Oregon
University System Tax-Deferred Investment 403(b) Plan under ORS
243.820, up to four percent of the employee's salary in each pay
period.
  ' (11) Both employee and employer contributions to an Optional
Retirement Plan shall be remitted directly to the companies that
have issued annuity contracts to the participating employees or
directly to the mutual funds.
  ' (12) Benefits under the Optional Retirement Plan are payable
to employees who elect to participate in the plan and their
beneficiaries by the selected annuity provider or mutual fund in
accordance with the terms of the annuity contracts or the terms
of the contract with the mutual fund. Employees electing to
participate in the Optional Retirement Plan agree that benefits

payable under the plan are not obligations of the State of Oregon
or of the Public Employees Retirement System.'.
  On page 103, line 32, delete '(1)'.
  Delete lines 39 through 44.
  On page 130, line 3, delete 'and 40 to 162' and insert ', 40 to
162 and 176 to 178'.
  After line 14, insert:

                                '
 { +  CONFLICT AMENDMENTS + }

  '  { +  SECTION 173. + }  { + If Senate Bill 225 becomes law,
section 101 of this 2013 Act (amending ORS 30.264) is
repealed. + }
  '  { +  SECTION 174. + }  { + If House Bill 3079 becomes law,
section 34 of this 2013 Act (amending ORS 348.603) is
repealed. + }
  '  { +  SECTION 175. + }  { + If House Bill 3120 becomes law,
sections 82, 83 and 84 of this 2013 Act (all amending ORS
351.735) are repealed. + }
  '  { +  SECTION 176. + }  { + If Senate Bill 267 becomes law,
section 123b of this 2013 Act (amending ORS 284.540) is repealed
and ORS 284.540, as amended by section 3, chapter 230, Oregon
Laws 2013 (Enrolled Senate Bill 267), is amended to read: + }
  ' 284.540. (1) There is established the Governor's Council on
Oregon's Economy.
  ' (2) The members of the council are:
  ' (a) The presiding officer of the Oregon Business Development
Commission;
  ' (b) The chairperson of the Oregon Transportation Commission;
  ' (c) The chairperson of the State Board of Agriculture;
  ' (d) The chairperson of the   { - State Board of Higher
Education - }  { +  Higher Education Coordinating Commission + };
and
  ' (e) Other persons designated by the Governor.
  ' (3) The council shall meet quarterly to:
  ' (a) Discuss and coordinate the activities of each entity
described in subsection (2) of this section that relate to
economic development and improving the economy in Oregon; and
  ' (b) Discuss and recommend to the Legislative Assembly methods
for creating certainty for the development process.
  '  { +  SECTION 177. + }  { + If Senate Bill 267 becomes law,
section 123c of this 2013 Act (amending ORS 284.706) is repealed
and ORS 284.706, as amended by sections 21 and 31, chapter 90,
Oregon Laws 2012, and sections 4 and 5, chapter 230, Oregon Laws
2013 (Enrolled Senate Bill 267), is amended to read: + }
  ' 284.706. (1) There is created the Oregon Innovation Council
consisting of the following voting members:
  ' (a) The Governor or the Governor's designated representative,
who shall be chairperson of the council.
  ' (b) Five members appointed by the Governor who are engaged in
the operations of Oregon traded sector industries or Oregon
growth businesses.
  ' (c) One member appointed by the Governor who is a
representative of an Oregon-based, generally accredited,
not-for-profit private institution of higher education.
  ' (d) A member of the Oregon Growth Account Board, appointed by
the board, who has experience in the field of venture capital.
  ' (e) A member of the Engineering and Technology Industry
Council, appointed by the Engineering and Technology Industry
Council.
  ' (f) The Director of the Oregon Business Development
Department.
  ' (g) The   { - Chancellor of the Oregon University System - }
 { +  executive director of the Higher Education Coordinating
Commission + }.
  '  { - (h) The Commissioner for Community College Services. - }

  '  { - (i) - }  { +  (h) + } The State Treasurer.
  ' (2)(a) The Speaker of the House of Representatives shall
appoint two members to the council who are members of the House
of Representatives.
  ' (b) The President of the Senate shall appoint two members to
the council who are members of the Senate.
  ' (c) Members of the Legislative Assembly appointed to the
council are nonvoting members and may act in an advisory capacity
only.
  ' (3) The following persons, or their representatives, shall
serve as ex officio, nonvoting members of the council:
  ' (a) The presiding officer of the Oregon Business Development
Commission.
  ' (b) The chairperson of the   { - State Board of Higher
Education - }  { +  Higher Education Coordinating Commission + }.
  ' (c) The chairperson of the State Board of Education.
  ' (d) An executive officer of an association representing
Oregon-based, generally accredited, not-for-profit private
institutions of higher education, appointed by the Governor.
  ' (4) The term of office of each appointed voting member of the
council is three years, but an appointed member serves at the
pleasure of the appointing authority. Before the expiration of
the term of an appointed voting member, the appointing authority
shall appoint a successor whose term begins on July 1 next
following. An appointed member is eligible for reappointment. If
there is a vacancy for any cause, the appointing authority shall
make an appointment to become immediately effective for the
remainder of the unexpired term.
  ' (5) A majority of the voting members of the council
constitutes a quorum for the transaction of business.
  ' (6) Official action by the council requires the approval of a
majority of the voting members of the council.
  ' (7) The council shall meet at least twice per fiscal year at
a place, day and time determined by the chairperson. The council
may also meet at other times and places specified by a call of
the chairperson or by written request of a majority of the voting
members of the council.
  ' (8) The council may adopt rules necessary for the operation
of the council.
  ' (9) The council may establish committees and delegate to the
committees duties as the council considers desirable.
  ' (10) The Oregon Business Development Department shall provide
staff support to the council.
  ' (11) Members of the council who are members of the
Legislative Assembly are entitled to compensation and expense
reimbursement as provided in ORS 171.072.
  ' (12) Members of the council who are not members of the
Legislative Assembly are entitled to compensation and expenses
incurred by them in the performance of their official duties in
the manner and amounts provided for in ORS 292.495. Claims for
compensation and expenses of members of the council who are
public officers shall be paid out of funds appropriated to the
public agency that employs the member. Claims for compensation
and expenses of members of the council who are not public
officers shall be paid out of funds appropriated to the Oregon
Business Development Department for that purpose.
  ' (13) All agencies of state government, as defined in ORS
174.111, are directed to assist the council in the performance of
its duties and, to the extent permitted by laws relating to
confidentiality, to furnish such information and advice as the
members of the council consider necessary to perform their
duties.
  '  { +  SECTION 178. + }  { + If House Bill 2148 becomes law,
section 135 of this 2013 Act (amending ORS 341.440) is repealed
and ORS 341.440, as amended by section 36, chapter 1, Oregon Laws
2013 (Enrolled House Bill 2148), is amended to read: + }
  ' 341.440. (1) A community college district may contract with
another community college district, a common or union high school
district, an education service district,   { - the Oregon
University System - }  { +  a public university listed in ORS
352.002 + }, the Oregon Health and Science University, a private
educational institution accredited by the Northwest Commission on
Colleges and Universities or its successor or a career school as
defined in ORS 345.010 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 that would otherwise be incurred by the college
to provide its students the same or similar services.
  ' (2) Educational services for which a district operating a
community college may contract include services offered by
correspondence and services offered electronically or through
telecommunications if such services are accredited by a
nationally recognized accrediting association.
  ' (3) 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 for Community College Services.
  '  { +  SECTION 179. + } If House Bill 3120 becomes law,
section 16 of this 2013 Act is amended to read:
  '  { +  Sec. 16. + } (1) The following entities are not subject
to any provision of law enacted after January 1, 2013, that is
unique to governmental entities unless the following entities are
expressly named:
  ' (a) A university with a governing board; and
  ' (b) Any not-for-profit organization or other entity if the
equity of the entity is owned or controlled exclusively by a
university with a governing board and if the organization or
entity is created by the university to advance any of the
university's statutory missions.
  ' (2) Notwithstanding subsection (1) of this section, the
provisions of ORS 30.260 to 30.460, 33.710, 33.720, 200.005 to
200.025, 200.045 to 200.090, 236.605 to 236.640, 276.080,
279.835, 279.840, 279.850 and 297.040 and ORS chapters 35, 190,
192 and 244 apply to a university with a governing board under
the same terms as they apply to public bodies other than the
state.
  ' (3) Except as otherwise provided by law, the provisions of
ORS 35.550 to 35.575, 180.060, 180.210 to 180.235, 184.305 to
184.345, 190.480, 190.490, 200.035, 243.696, 357.805 to 357.895
and 656.017 (2) and ORS chapters 182, 183, 240, 270, 273, 276,
278, 279A, 279B, 279C, 282, 283, 291, 292, 293, 294, 295 and 297
do not apply to a university with a governing board.
  ' (4) Notwithstanding subsections (1) and (3) of this section,
ORS 240.167, 279C.600 to 279C.625, 279C.800, 279C.810, 279C.825,
279C.830, 279C.835, 279C.840, 279C.845, 279C.850, 279C.855,
279C.860, 279C.865, 279C.870 and 292.043 apply to a university
with a governing board under the same terms as they apply to
public bodies other than the state.
  ' (5) Notwithstanding subsection (2) of this section, ORS
190.430 and 192.105 do not apply to a university with a governing
board or any organization or other entity described in subsection
(1) of this section.
  ' (6) Except as set forth in subsection (3) of this section,
ORS 243.650 to 243.782 apply to a university with a governing
board under the same terms as they apply to the state.
  ' (7) ORS 351.065, 351.067, 351.642, 351.643, 351.644, 351.646,
351.656, 351.658, 352.012 and 352.375 apply to a university with
a governing board, except that the board or university shall
exercise the responsibilities and authorities of the State Board
of Higher Education { + , the Higher Education Coordinating
Commission + } or the Oregon University System.
  ' (8) A university with a governing board and its agents and
employees remain subject to all statutes and administrative rules
of this state that create rights, benefits or protections in
favor of military veterans, service members and families of
service members to the same extent as an agency of this state
would be subject to such statutes and administrative rules.
  ' (9) ORS 351.692, 351.695 and 351.697 apply to a governing
board, except that the board has the responsibilities and
authorities with respect to the university it governs that the
State Board of Higher Education and the Oregon University System
have with respect to the public universities identified in ORS
351.011. A university with a governing board may not issue a tax
credit certificate under ORS 351.692, 351.695 and 351.697 that
will cause the public universities listed in ORS 352.002 to owe
the General Fund more than $6 million at any one time under ORS
351.692, 351.695 and 351.697.
  ' (10) If state bonds are issued for the benefit of a
university with a governing board, the university shall have the
powers and duties of a related agency as defined in ORS 286A.001
to the extent necessary for the issuance of such state bonds and
the administration of the proceeds of the state bonds.
  ' (11) Nothing in this section may be construed so that
statutory provisions that are not set forth in this section apply
to a university with a governing board.'.
  In line 18, delete '173' and insert '180'.
  In line 24, delete '174' and insert '181'.
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