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'. ----------